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Keynote Analysis | UiPath Forward5


 

>>The Cube presents UI Path Forward five, brought to you by UI Path. >>Hi everybody. Welcome to Las Vegas. We're here in the Venetian, formerly the Sans Convention Center covering UI Path Forward five. This is the fourth time the Cube has covered forward, not counting the years during Covid, but UiPath was one of the first companies last year to bring back physical events. We did it at the Bellagio last year, Lisa Martin and myself. Today, my co-host is David Nicholson, coming off of last week's awesome CrowdStrike show back here in Vegas. David talking about UI path. UI path is a company that had a very strange path, as I wrote one time to IPO this company that was founded in 2005 and was basically a development shop. And then they realized they got lightning in a bottle with this RPA thing. Yeah. And Daniel Deez, the founder of the company, just really drove it hard and they really didn't do any big kind of VC raise for several years. >>And then all of a sudden, boom, the rocket ship took off, kind of really got out over their skis a little bit, but then got to IPO and, and has had a very successful sort of penetration into the market. The IPO obviously has not gone as well. We can talk about that, but, but they've hit a billion dollars in arr. There aren't a lot of companies that, you know, have hit a billion dollars in ARR that quickly. These guys had massive valuations that were cut back, obviously with the, with the downturn, but also some execution misuses. But the one thing about UiPath, Dave, is they've been very successful at penetrating customers. And that's the thing you always get at forward customer stories. And the other thing I'll, I'll, I'll add is that it started out with the narrative was, oh, automation software, robots, they're gonna take away jobs. The opposite has happened, the zero unemployment. Now basically we're heading into a recession, we're actually probably in a recession. And so how do you combat a recession? You put automation to work and gain if, if, if, if inflation is five to 7% and you can get 20% from automation. Well, it's a good roi. But you sat in the keynotes, it was really your first exposure to the company. What were your thoughts? >>Yeah, I think the whole subject is interesting. I think if you've been involved in tech for a while, the first thing you think of is, well, hold on a second. Isn't this just high tech scripting? Aren't you essentially just automating stuff? How, how cool can that possibly be? >>Well, it kinda was in the >>Beginning. Yeah, yeah. But, but, but when you dig into it, to your, to your point about the concern about displacing human beings, the first things that can automate it are the mundane and the repetitive tasks, which then frees individuals up frontline individuals who are doing those tasks to do more strategic things for the business. So when you, when we, you know, one of the things that was talked about in the keynote was this idea of an army of citizen developers within an organization. Not, you know, not just folks who are innovating and automating at the core of enterprise applications, but also folks out on the front line automating the tasks that are interfering with their productivity. So it seems like it's a win-win for, for everybody throughout the enterprise. >>Yeah. So let's take a, let's take folks through the, the keynote to, basically we learned there are 3,500 people here, roughly, you know, we're in the Venetian and we do a lot of shows at, at the Venetian, formerly the San Convention Center. The one thing about UiPath, they, they are a cool company. Yeah, they are orange colors, kinda like pure storage, but they got the robots moving around. The setup is very nice, it's very welcoming and very cool, but 300 3500 attendees, including partners and UiPath employees, 250 sessions. They've got a CIO, automation council and a pickleball court inside this hall, which pickleball is, you know, all the rage. So Bobby, Patrick and Mary Telo kicked it off. Bobby's the cmo, Mary's the head of branding, and Bobby raised four themes. It it, this is a tool that it's, this is RPA is going from a tool to a way of operating and innovating. >>The second thing is, the big news here is the UI path business platform, something like that. They're calling, but they're talking about about platform and they're really super gluing that to digital transformation. The third is really outcomes shifting from tactical. I have a robot, a software robot on my desk doing, you know, mimicking what I do with the script to something that's transformative. We're seeing this operationalized very deeply. We'll go into some examples. And then the fourth theme is automation is being featured as a strategic line item in annual reports. Bobby Patrick, as he left the stage, I think he was commenting on my piece where I said that RPA automation is more discretionary than some other things. He said, this is not discretionary, it's strategic. You know, unfortunately when you're heading into a recession, you can, you can put off some of the more strategic items. However, the flip side of that, Dave, is as they were saying before, if you're gonna, if if you're, if you're looking at five to 7% inflation may be a way to attack that is with automation. Yeah. >>There's no question, there's no question that automation is a way to attack that. There's no question that automation is critical moving forward. There's no question that we have moved. We're in the, you know, we're, we're still in the age of cloud, but automation is gonna be absolutely critical. The question is, what will UI path's role be in that market? And, and, and when you hear, when you hear UI path talk about platform versus tool sets and things like that, that's a critical differentiator because if they are just a tool, then why wouldn't someone exploit a tool that is within an application environment instead of exploiting a platform? So what I'm gonna be looking for in terms of the, the folks we talked to over the next few days is this question of, you know, make the case that this is actually a platform that extends across all kinds of application environments. If they can't seize that high ground moving forward, it's it's gonna be, it's gonna be tough for them. >>Well, they're betting the company on >>That, that's Rob Ensslin coming in. That's why he's part of the, the equation. But >>That platform play is they are betting the company. And, and the reason is, so the, the, the history here is in the early days of this sort of RPA craze, Automation Anywhere and UI path went out, they both raised a ton of money. UI Path rocketed out to the lead. They had a much e easier to install, you know, Automation Anywhere, Blue Prism, some of the other legacy business process folks, you know, kind of had on-prem, Big Stacks, UiPath came in a really simple self-serve platform and took off and really got a foothold in the market. And then started building or or making some of these acquisitions like Process Gold, like cloud elements, which is API automation. More recently Reiner, We, which is natural language processing. We heard them up on the stage today and they've been putting that together to do not just rpa but process mining, task mining, you know, document automation, et cetera. >>And so Rob Ins insulin was brought in from Google, formerly Google and SAP, to really provide that sort of financial and go to market expertise as well as Shim Gupta who's, who's the cfo. So they, they, and they were kinda late with that. They sort of did all this post ipo. I wish they had done it, you know, somewhat beforehand, but they're sort of bringing in that adult supervision supervision that's necessary. Rob Sland, I thought was very cogent. He was assertive on stage, he was really clear, he was energetic. He talked about the phases, e r p, Internet cloud and the now automation is a new S-curve. He quoted a Forester analyst talking about that. He also had a great quote. He said, you know, the old adage better, faster, cheaper, pick two. He said, You don't have to do that anymore with automation. He cited reports from analysts, 50% efficiency improvement, 40% productivity improvement, 40% improvement in customer satisfaction. >>And then what I always, again, love about UiPath is they're no shortage of customers. They do as good a job as anybody, and I think I would say the best of, of, of getting customers to talk about their experiences. You'll see that on the cube all this week, talked about Changi airport from Singapore. They're adding 50 able to service 50 million new customers, new travelers with no new headcount company called Vital or retail. And how you say that a hundred thousand employees having access to it. Uber, 150% ROI in one year. New York state getting 1.2 million relief checks out in two weeks and identifying potentially 12 billion in fraud. They also talk about 25% of the, of the UI path finance team is digital. And they've, they've only incremented headcount, you know, very slightly one and a half times their revenue's grown. What a 10 x? And really he talked about how to, for how to turn automation into a force multiplier for growth. And to your point, I think that's their challenge. What were your thoughts on Rob ens insulin's keynote? >>First of all, in addition to his background, Rob brings a brand with him. Rob Ensslin is a brand, and that brand is enterprise overarching platform. Someone you go to for that platform play, not for a tool set. And again, I'll, I'll say it again. It's critically important that they, that they demonstrate this to the marketplace, that they are a platform worth embracing as opposed to simply a tool set. Because the large enterprise software providers are going to provide their own tool sets within their platforms. And if you can't convince someone that it's worth doing two things instead of one thing, you're, you're, you're never gonna make it. So I've had experiences with Rob when he was at Google. He's, he's, he's the right person for the job and I, and I I I buy into his strategy and narrative about where we are and the critical nature of automation question remains, will you I path to be able to benefit from that trend. >>So a couple things on that. So your point about sap, you know, is right on EY was up on stage. They, EY is a huge SAP customer and they chose UI path to automate their SAP installation, right? And they're going all in with UI path as a partner. Of course. I I often like to say that the global system integrators, they like to eat at the trough, right? When you see GSIs like EY and others coming into the ecosystem, that means there's business being done. We saw Orange up on stage, which was really interesting. >>Javier from Spain. Yeah. Yep. >>Talking about he had this really cool dashboard and then Ted Coomer was talking about the business automation platform and all the different chapters and the evolution. They've gotta get to a platform play because the thing I failed to mention is Microsoft a couple years ago made a tuck in acquisition and got it to this market really providing individual automations and making it, you know, it's Microsoft, they're gonna make it really easy to add it really >>Cheaply. SAP would tell you that they have the same thing and, >>And then, and then just grow from that. So UiPath has to pivot to a platform play. They started this back in 2019, but as you know, it takes a long time to integrate stuff. Okay. So they're, they're, they're working through that. But this is, you know, Rob ends and put up on the, the slide go big, I, I tweeted, took a page outta Michael Dell. Go big or go home. Final thoughts before we break? >>I think go big or go home is pretty much sums it up. I mean this is, this is an existential mission that UiPath is on right now, starting to stay forward. They need to seize that high ground of platform versus tool set. Otherwise they will never get beyond where they are now. I I I, I do wanna mention too, to folks in the audience, there's a huge difference between a billion dollar valuation and a billion dollars in revenue every year. So, so, you know, these, these guys have reached a milestone, there's no question about that. But to get to that next level platform, platform, platform, and I know we'll be, we'll be probing our guests on that question over the next couple years. >>Yeah. And the key is obviously gonna be keep servicing the customers, you know, all the financial machinations and you know, they reduced yesterday their guidance from the high end being 25% ARR growth down to roughly 20% when you, when you factor out currency conversions. UiPath has a lot of business overseas. They're taking that overseas revenue and converting it back to dollars though dollars are appreciated. So they're less of them. I know this is kind of the inside baseball, but, but we're gonna get into that over the next two days. Dave Ante and Dave, you're watching the Cubes coverage of UI path forward, five from Las Vegas. We'll be right back, right after this short break.

Published Date : Sep 29 2022

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The Cube presents UI Path Forward five, brought to you by And Daniel Deez, the founder of the company, And that's the thing you always Aren't you essentially just automating stuff? when we, you know, one of the things that was talked about in the keynote was this idea of an army of you know, all the rage. a software robot on my desk doing, you know, mimicking what I do with the script to this question of, you know, make the case that this is actually a platform But They had a much e easier to install, you know, Automation Anywhere, He said, you know, the old adage better, And how you say that a hundred thousand employees important that they, that they demonstrate this to the marketplace, that they are a and they chose UI path to automate their SAP installation, play because the thing I failed to mention is Microsoft a couple years ago made a tuck in acquisition and SAP would tell you that they have the same thing and, They started this back in 2019, but as you know, it takes a long time to integrate stuff. So, so, you know, you know, they reduced yesterday their guidance from the high end being 25% ARR growth

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BizOps Manifesto Unveiled V2


 

>>From around the globe. It's the cube with digital coverage, a BizOps manifesto unveiled brought to you by biz ops coalition. >>Hey, welcome back everybody. Jeff Frick here with the cube. Welcome back to our ongoing coverage of the biz ops manifesto. Unveil. Something has been in the works for a little while. Today's the formal unveiling, and we're excited to have three of the core founding members of the manifesto authors of the manifesto. If you will, uh, joining us again, we've had them all on individually. Now we're going to have a great power panel. First up. We're gonna have Mitt Kirsten returning he's the founder and CEO of Tasktop mic. Good to see you again. Where are you dialing in from? >>Great to see you again, Jeff I'm dialing from Vancouver, >>We're Canada, Vancouver, Canada. One of my favorite cities in the whole wide world. Also we've got Tom Davenport come in from across the country. He's a distinguished professor and author from Babson college, Tom. Great to see you. And I think you said you're at a fun, exotic place on the East coast >>Realm of Memphis shoes. That's on Cape Cod. >>Great to see you again and also joining surge Lucio. He is the VP and general manager enterprise software division at Broadcom surge. Great to see you again, where are you coming in from? >>Uh, from Boston right next to Cape Cod. >>Terrific. So welcome back, everybody again. Congratulations on this day. I know it's been a lot of work to get here for this unveil, but let's just jump into it. The biz ops manifesto, what was the initial reason to do this? And how did you decide to do it in a kind of a coalition, a way bringing together a group of people versus just making it an internal company, uh, initiative that, you know, you can do better stuff within your own company, surge, why don't we start with you? >>Yeah, so, so I think we were at a really critical juncture, right? Many, um, large enterprises are basically struggling with their digital transformation. Um, in fact, um, many recognized that, uh, the, the business side, it collaboration has been, uh, one of the major impediments, uh, to drive that kind of transformation. That, and if we look at the industry today, many people are, whether we're talking about vendors or, um, you know, system integrators, consulting firms are talking about the same kind of concepts, but using very different language. And so we believe that bringing all these different players together, um, as part of the coalition and formalizing, uh, basically the core principles and values in a BizOps manifesto, we can really start to F could have a much bigger movement where we can all talk about kind of the same concepts and we can really start to provide, could have a much better support for large organizations to, to transform. Uh, so whether it is technology or services or, um, or training, I think that that's really the value of bringing all of these players together, right. >>And mic to you. Why did you get involved in this, in this effort? >>So I've been closely involved the agile movement since it started two decades with that manifesto. And I think we got a lot of improvement at the team level, and I think that was just no. Did we really need to improve at the business level? Every company is trying to become a software innovator, trying to make sure that they can pivot quickly and the changing market economy and what everyone's dealing with in terms of needing to deliver value to customers sooner. However, agile practices have really focused on these metrics, these measures and understanding processes that help teams be productive. Those things now need to be elevated to the business as a whole. And that just hasn't happened. Uh, organizations are actually failing because they're measuring activities and how they're becoming more agile, how teams are functioning, not how much quickly they're delivering value to the customer. So we need to now move past that. And that's exactly what the manifesto provides. Right, >>Right, right. And Tom, to you, you've been covering tech for a very long time. You've been looking at really hard challenges and a lot of work around analytics and data and data evolution. So there's a definitely a data angle here. I wonder if you could kind of share your perspective of what you got excited to, uh, to sign onto this manifesto. >>Sure. Well, I have, you know, for the past 15 or 20 years, I've been focusing on data and analytics and AI, but before that I was a process management guy and a knowledge management guy. And in general, I think, you know, we've just kind of optimize that to narrow a level, whether you're talking about agile or dev ops or ML ops, any of these kinds of ops oriented movements, we're making individual project, um, performance and productivity better, but we're not changing the business, uh, effectively enough. And that's the thing that appealed to me about the biz ops idea, that we're finally creating a closer connection between what we do with technology and how it changes the business and provides value to it. >>Great. Uh, surge back to you, right? I mean, people have been talking about digital transformation for a long time and it's been, you know, kind of trucking along and then covert hit and it was instant Lightswitch. Everyone's working from home. You've got a lot more reliance on your digital tools, digital communication, uh, both within your customer base and your partner base, but also then your employees when you're, if you could share how that really pushed this all along. Right? Because now suddenly the acceleration of digital transformation is higher. Even more importantly, you got much more critical decisions to make into what you do next. So kind of your portfolio management of projects has been elevated significantly when maybe revenues are down, uh, and you really have to, uh, to prioritize and get it right. >>Yeah. Maybe I'll just start by quoting Satina Nello basically recently said that they're speeding the two years of digital preservation just last two months in any many ways. That's true. Um, but yet when we look at large enterprises, they're still struggling with a kind of a changes in culture. They really need to drive to be able to disrupt themselves. And not surprisingly, you know, when we look at certain parts of the industry, you know, we see some things which are very disturbing, right? So about 40% of the personal loans today are being, uh, origin data it's by fintechs, uh, of a like of Sophie or, uh, or a lending club, right? Not to a traditional brick and mortar for BEC. And so the, well, there is kind of a much more of an appetite and it's a, it's more of a survival type of driver these days. >>Uh, the reality is that's in order for these large enterprises to truly transform and engage on this digital transformation, they need to start to really align the business nightie, you know, in many ways and make cover. Does agile really emerge from the core desire to truly improve software predictability between which we've really missed is all the way we start to aligning the software predictability to business predictability, and to be able to have continual sleep continuous improvement and measurement of business outcomes. So by aligning that of these, uh, discuss inward metrics, that's, it is typically being using to business outcomes. We think we can start to really ELP, uh, different stakeholders within the organization to collaborate. So I think there is more than ever. There's an imperative to acts now. Um, and, and resolves, I think is kind of the right approach to drive that kind of transformation. Right. >>I want to follow up on the culture comment, uh, with you, Tom, because you've talked before about kind of process flow and process flow throughout a whore and an organization. And, you know, we talk about people process and tech all the time. And I think the tech is the easy part compared to actually changing the people the way they think. And then the actual processes that they put in place. It's a much more difficult issue than just the tech issue to get this digital transformation in your organization. >>Yeah. You know, I've always found that the soft stuff about, you know, the culture of a behavior, the values is the hard stuff to change and more and more, we, we realized that to be successful with any kind of digital transformation you have to change people's behaviors and attitudes. Um, we haven't made as much progress in that area as we might have. I mean, I've done some surveys suggesting that most organizations still don't have data driven cultures. And in many cases there is a lower percentage of companies that say they have that then, um, did a few years ago. So we're kind of moving in the wrong direction, which means I think that we have to start explicitly addressing that, um, cultural, behavioral dimension and not just assuming that it will happen if we, if we build system, if we build it, they won't necessarily come. Right. >>Right. So I want to go to you Nick. Cause you know, we're talking about workflows and flow, um, and, and you've written about flow both in terms of, um, you know, moving things along a process and trying to find bottlenecks, identify bottlenecks, which is now even more important again, when these decisions are much more critical. Cause you have a lot less, uh, wiggle room in tough times, but you also talked about flow from the culture side and the people side. So I wonder if you can just share your thoughts on, you know, using flow as a way to think about things, to get the answers better. >>Yeah, absolutely. And I'll refer back to what Tom has said. If you're optimized, you need to optimize your system. You need to optimize how you innovate and how you deliver value to the business and the customer. Now, what we've noticed in the data, since that we've learned from customers, value streams, enterprise organizations, value streams, is that when it's taking six months at the end to deliver that value with the flow is that slow. You've got a bunch of unhappy developers, unhappy customers when you're innovating half so high performing organizations, we can measure third and 10 float time and dates. All of a sudden that feedback loop, the satisfaction your developer's measurably goes up. So not only do you have people context, switching glass, you're delivering so much more value to customers at a lower cost because you've optimized for flow rather than optimizing for these other approximate tricks that we use, which is how efficient is my agile team. How quickly can we deploy software? Those are important, but they do not provide the value of agility of fast learning of adaptability to the business. And that's exactly what the biz ops manifesto pushes your organization to do. You need to put in place this new operating model that's based on flow on the delivery of business value and on bringing value to market much more quickly than you were before. Right. >>I love that. And I'm going back to you, Tom, on that to follow up. Cause I think, I don't think people think enough about how they prioritize what they're optimizing for. Cause you know, if you're optimizing for a versus B, you know, you can have a very different product that you kick out and let you know. My favorite example is with Clayton Christianson and innovator's dilemma talking about the three inch hard drive. If you optimize it for power, you know, is one thing, if you optimize it for vibration is another thing and sure enough, you know, they missed it on the poem because it was the, it was the game console, which, which drove that whole business. So when you, when you're talking to customers and we think we hear it with cloud all the time, people optimizing for cost efficiency, instead of thinking about it as an innovation tool, how do you help them kind of rethink and really, you know, force them to, to look at the, at the prioritization and make sure they're prioritizing on the right thing is make just said, what are you optimizing for? >>Oh yeah. Um, you have one of the most important aspects of any decision or, um, attempt to resolve a problem in an organization is the framing process. And, um, you know, it's, it's a difficult aspect of the decision to frame it correctly in the first place. Um, there, it's not a technology issue. In many cases, it's largely a human issue, but if you frame that decision or that problem incorrectly to narrowly say, or you frame it as an either or situation where you could actually have some of both, um, it, it's very difficult for the, um, process to work out correctly. So in many cases that I think we need to think more at the beginning about how we bring this issue or this decision in the best way possible before we charge off and build a system to support it. You know, um, it's worth that extra time to think, think carefully about how the decision has been structured, right >>Surgery. I want to go back to you and talk about the human factors because as we just discussed, you can put it in great technology, but if the culture doesn't adopt it and people don't feel good about it, you know, it's not going to be successful and that's going to reflect poorly on the technology, even if it had nothing to do with it. And you know, when you look at the, the, the core values, uh, of the Bezos manifesto, you know, a big one is trust and collaboration, you know, learn, respond and pivot. I wonder if you can share your thoughts on, on trying to get that cultural shift, uh, so that you can have success with the people or excuse me, with the technology in the process and helping customers, you know, take this more trustworthy and kind of proactive, uh, position. >>So I think, I think at the ground level, it truly starts with the realization that we're all different. We come from different backgrounds. Um, oftentimes we tend to blame the data. It's not uncommon my experiments that we spend the first 30 minutes of any kind of one hour conversation to debate the validity of the data. Um, and so, um, one of the first kind of, uh, probably manifestations that we've had or revelations as we start to engage with our customers is spike, just exposing, uh, high-fidelity data sets to different stakeholders from their different lens. We start to enable these different stakeholders to not debate the data. That's really collaborate to find a solution. So in many ways, when, when, when we think about kind of the types of changes we're trying to, to truly affect around data driven decision making, it's all about bringing the data in context, in the context that is relevant and understandable for, for different stakeholders, whether we're talking about an operator or develop for a business analyst. >>So that's, that's the first thing. The second layer I think, is really to provide context to what people are doing in their specific cycle. And so I think one of the best examples I have is if you start to be able to align business KPI, whether you are counting, you know, sales per hour, or the engagements of your users on your mobile applications, whatever it is, you can start to connect that PKI to the business KPI, to the KPIs that developers might be looking at, whether it is the number of defects or a velocity or whatever, you know, metrics that they are used to to actually track you start to, to be able to actually contextualize in what we are the effecting, basically a metric that is really relevant in which we see is that DC is a much more systematic way to approach the transformation than say, you know, some organizations kind of creating, uh, some of these new products or services or initiatives, um, to, to drive engagements, right? >>So if you look at zoom, for instance, zoom giving away a it service to, uh, to education, he's all about, I mean, there's obviously a marketing aspect in therapists. It's fundamentally about trying to drive also the engagement of their own teams. And because now they're doing something for good and the organizations are trying to do that, but you only can do this kind of things in a limited way. And so you really want to start to rethink how you connect to, everybody's kind of a business objective fruit data, and now you start to get people to stare at the same data from their own lens and collaborate on all the data. Right, >>Right. That's a good, uh, Tom, I want to go back to you. You've been studying it for a long time, writing lots of books and getting into it. Um, why now, you know, what w why now are we finally aligning business objectives with, with it objectives? You know, why didn't this happen before? And, you know, what are the factors that are making now the time for this, this, this move with the, uh, with the biz ops? >>Well, and much of the past, it was sort of a back office related activity. And, you know, it was important for, um, uh, producing your paychecks and, uh, um, capturing the customer orders, but the business wasn't built around it now, every organization needs to be a software business, a data business, a digital business, the auntie has been raised considerably. And if you aren't making that connection between your business objectives and the technology that supports it, you run a pretty big risk of, you know, going out of business or losing out to competitors. Totally. So, um, and, uh, even if you're in a, an industry that hasn't historically been terribly, um, technology oriented customer expectations flow from, uh, you know, the digital native, um, companies that they work with to basically every industry. So you're compared against the best in the world. So we don't really have the luxury anymore of screwing up our it projects or building things that don't really work for the business. Um, it's mission critical that we do that well. Um, almost every time, I just want to follow up by that, Tom, >>In terms of the, you've talked extensively about kind of these evolutions of data and analytics from artismal stage to the big data stage, the data economy stage, the AI driven stage and what I find diff interesting that all those stages, you always put a start date. You never put an end date. Um, so you know, is the, is the big data I'm just going to use that generically a moment in time finally here, where we're, you know, off mahogany row with the data scientists, but actually can start to see the promise of delivering the right insight to the right person at the right time to make that decision. >>Well, I think it is true that in general, these previous stages never seemed to go away. The, um, the artisinal stuff is still being done, but we would like for less than less of it to be artisinal, we can't really afford for everything to be artisinal anymore. It's too labor and time consuming to do things that way. So we shift more and more of it to be done through automation and B to be done with a higher level of productivity. And, um, you know, at some point maybe we reached the stage where we don't do anything artisanally anymore. I'm not sure we're there yet, but, you know, we are, we are making progress. Right, >>Right. And Mick, back to you in terms of looking at agile, cause you're, you're such a, a student of agile when, when you look at the opportunity with ops, um, and taking the lessons from agile, you know, what's been the inhibitor to stop this in the past. And what are you so excited about? You know, taking this approach will enable. >>Yeah. I think both Sergeant Tom hit on this is that in agile what's happened is that we've been measuring tiny subsets of the value stream, right? We need to elevate the data's there. Developers are working on these tools that delivering features that the foundations for, for great culture are there. I spent two decades as a developer. And when I was really happy is when I was able to deliver value to customers, the quicker I was able to do that the fewer impediments are in my way, that quicker was deployed and running in the cloud, the happier I was, and that's exactly what's happening. If we can just get the right data, uh, elevated to the business, not just to the agile teams, but really these values of ours are to make sure that you've got these data driven decisions with meaningful data that's oriented around delivering value to customers. Not only these legacies that Tom touched on, which has cost center metrics from an ITK, from where, for it being a cost center and something that provided email and then back office systems. So we need to rapidly shift to those new, meaningful metrics that are customized business centric and make sure that every development the organization is focused on those as well as the business itself, that we're measuring value and that we're helping that value flow without interruptions. >>I love that mic. Cause if you don't measure it, you can't improve on it and you gotta, but you gotta be measuring the right thing. So gentlemen, uh, thank you again for, for your time. Congratulations on the, uh, on the unveil of the biz ops manifesto and together this coalition >>Of, of, uh, industry experts to get behind this. And, you know, there's probably never been a more important time than now to make sure that your prioritization is in the right spot and you're not wasting resources where you're not going to get the ROI. So, uh, congratulations again. And thank you for sharing your thoughts with us here on the cube. Alright, so we had surge, Tom and Mick I'm. Jeff, you're watching the cube, it's a biz ops manifesto and unveil. Thanks for watching. We'll see you next time >>From around the globe. It's the cube with digital coverage of BizOps manifesto, unveiled brought to you by biz ops coalition and welcome back Friday, Jeff Frick here with the cube we're in our Palo Alto studios. And we'd like to welcome you back to our continuing coverage of biz ops manifesto, unveil exciting day to really, uh, kind of bring this out into public. There's been a little bit of conversation, but today's really the official unveiling and we're excited to have our next guest to share a little bit more information on it. He's Patrick tickle. He's a chief product officer for planned view. Patrick. Great to see you. Yeah, it's great to be here. Thanks for the invite. So why the biz ops manifesto, why the biz optical edition now when you guys have been at it, it's relatively mature marketplace businesses. Good. What was missing? Why, why this, uh, why this coalition? >>Yeah, so, you know, again, why is, why is biz ops important and why is this something I'm, you know, I'm so excited about, but I think companies as well, right. Well, you know, in some ways or another, this is a topic that I've been talking to, you know, the market and our customers about for a long time. And it's, you know, I really applaud, you know, this whole movement, right. And, um, in resonates with me, because I think one of the fundamental flaws, frankly, of the way we've talked about technology and business literally for decades, uh, has been this idea of, uh, alignment. Those who know me, I occasionally get off on this little rant about the word alignment, right. But to me, the word alignment is, is actually indicative of the, of the, of the flaw in a lot of our organizations and biz ops is really, I think now trying to catalyze and expose that flaw. >>Right. Because, you know, I always say that, you know, you know, alignment implies silos, right. Instantaneously, as soon as you say there's alignment, there's, there's obviously somebody who's got a direction and other people that have to line up and that, that kind of siloed, uh, nature of organizations. And then frankly, the passive nature of it. Right. I think so many technology organizations are like, look, the business has the strategy you guys need to align. Right. And, and, you know, as a product leader, right. That's where I've been my whole career. Right. I can tell you that I never sit around. I almost never use the word alignment. Right. I mean, whether I never sit down and say, you know, the product management team has to get aligned with Deb, right. Or the dev team has to get aligned with the delivery and ops teams. I mean, what I say is, you know, are we on strategy, right? >>Like we've, we have a strategy as a, as a full end to end value stream. Right. And that there's no silos. And I mean, look, every on any given day we got to get better. Right. But the context, the context we operate is not about alignment. Right. It's about being on strategy. And I think I've talked to customers a lot about that, but when I first read the manifesto, I was like, Oh yeah, this is exactly. This is breaking down. Maybe trying to eliminate the word alignment, you know, from a lot of our organizations, because we literally start thinking about one strategy and how we go from strategy to delivery and have it be our strategy, not someone else's that we're all aligning to it. And it's a great way to catalyze that conversation. That I've, it's been in my mind for years, to be honest. Right. >>So, so much to unpack there. One of the things obviously, uh, stealing a lot from, from dev ops and the dev ops manifesto from 20 years ago. And as I look through some of the principles and I looked through some of the values, which are, you know, really nicely laid out here, you know, satisfy customers, do continuous delivery, uh, measure, output against real results. Um, the ones that, that jumps out though is really about, you know, change, change, right? Requirements should change frequently. They do change frequently, but I'm curious to get your take from a, from a software development point, it's easy to kind of understand, right. We're making this widget and our competitors, beta widget plus X, and now we need to change our plans and make sure that the plus X gets added to the plan. Maybe it wasn't in the plan, but you talked a lot about product strategy. So in this kind of continuous delivery world, how does that meld with, I'm actually trying to set a strategy, which implies the direction for a little bit further out on the horizon and to stay on that while at the same time, you're kind of doing this real time continual adjustments. Cause you're not working off a giant PRD or MRD anymore. >>Yeah, yeah, totally. Yeah. You know, one of the terms, you know, that we use internally a lot and even with my customers, our customers is we talked about this idea of rewiring, right. And I think, you know, it's kind of a, now an analogy for transformation. And I think a lot of us have to rewire the way we think about things. Right. And I think at Planview where we have a lot of customers who live in that, you know, who operationalize that traditional PPM world. Right. And are shifting to agile and transforming that rewire is super important. And, and to your point, right, it's, you've just, you've got to embrace this idea of, you know, just iterative getting better every day and iterating, iterating, iterating as to building annual plans or, you know, I get customers occasionally who asked me for two or three year roadmap. >>Right. And I literally looked at them and I go, there's no, there's no scenario where I can build a two or three year roadmap. Right. You, you, you think you want that, but that's not, that's not the way we run. Right. And I will tell you the biggest thing that for us, you know, that I think is matched the planning, uh, you know, patents is a word I like to use a lot. So the thing that we've like, uh, that we've done from a planning perspective, I think is matched impedance to continuous delivery is instituting the whole program, implement, you know, the program, increment planning, capabilities and methodologies, um, in the scaled agile world. Right. And over the last 18 months to two years, we really have now, you know, instrumented our company across three value streams. You know, we do quarterly PI program increment 10 week planning, you know, and that becomes, that becomes the Terra firma of how we plant. >>Right. And it's, what are we doing for the next 10 weeks? And we iterate within those 10 weeks, but we also know that 10 weeks from now, we're going to, we're going to adjust iterate again. Right. And that shifting of that planning model, you know, to being as cross-functional is that as that big room planning kind of model is, um, and also, uh, you know, on that shorter increment, when you get those two things in place, all sudden the impedance really starts to match up, uh, with continuous delivery and it changes, it changes the way you plan and it changes the way you work. Right? >>Yeah. Their thing. Right. So obviously a lot of these things are kind of process driven, both within the values, as well as the principles, but there's a whole lot, really about culture. And I just want to highlight a couple of the values, right? We already talked about business outcomes, um, trust and collaboration, uh, data driven decisions, and then learn, respond and pivot. Right. A lot of those are cultural as much as they are process. So again, is it the, is it the need to really kind of just put them down on paper and you know, I can't help, but think of, you know, the hammering up the, uh, the thing in the Lutheran church with their, with their manifesto, is it just good to get it down on paper? Because when you read these things, you're like, well, of course we should trust people. And of course we need an environment of collaboration and of course we want data driven decisions, but as we all know saying it and living, it are two very, very different things. >>Yeah. Good question. I mean, I think there's a lot of ways you bring that to life you're right. And just hanging up, you know, I think we've all been through the hanging up posters around your office, which these days, right. Unless you're going to hang a poster and everybody's home office. Right. You can't even, you can't even fake it that you think that might work. Right. So, um, you know, you really, I think we've attacked that in a variety of ways. Right. And you definitely have to, you know, you've got to make the shift to a team centric culture, right. Empowered teams, you know, that's a big deal. Right. You know, a lot of, a lot of the people that, you know, we lived in a world of quote unquote, where we were lived in a deep resource management world for a long, long time. >>And right. A lot of our customers still do that, but you know, kind of moving to that team centric world is, uh, is really important and core the trust. Um, I think training is super important, right. We've, you know, we've internally, right. We've trained hundreds employees over the last a year and a half on the fundamentals really of safe. Right. Not necessarily, you know, we've had, we've had teams delivering in scrum and the continuous delivery for, you know, for years, but the scaling aspect of it, uh, is where we've done a lot of training and investment. Um, and then, you know, I think, uh, leadership has to be bought in. Right. You know? And so when we pie plan, you know, myself and Cameron and the other members of our leadership, you know, we're NPI planning, you know, for, for four days. Right. I mean, it's, it's, you've got to walk the walk, you know, from top to bottom and you've got to train on the context. Right. And then you, and then, and, and then once you get through a few cycles where you've done a pivot, right. Or you brought a new team in, and it just works, it becomes kind of this virtuous circle where he'll go, man, this really works so much better than what we used to do. Right. >>Right. The other really key principle to this whole thing is, is aligning, you know, the business leaders and the business prioritization, um, so that you can get to good outcomes with the development and the delivery. Right. And we, we know again, and kind of classic dev ops to get the dev and the production people together. So they can, you know, quickly ship code that works. Um, but adding the business person on there really puts, puts a little extra responsibility that they, they understand the value of a particular feature or particular priority. Uh, they, they can make the, the, the trade offs and that they kind of understand the effort involved too. So, you know, bringing them into this continuous again, kind of this continuous development process, um, to make sure that things are better aligned and really better prioritize. Cause ultimately, you know, we don't live in an infinite resources situation and people got to make trade offs. They got to make decisions as to what goes and what doesn't go in for everything that goes. Right. I always say you pick one thing. Okay. That's 99 other things that couldn't go. So it's really important to have, you know, this, you said alignment of the business priorities as well as, you know, the execution within, within the development. >>Yeah. I think that, you know, uh, you know, I think it was probably close to two years ago. Forester started talking about the age of the customer, right. That, that was like their big theme at the time. Right. And I think to me what that, the age of the customer actually translates to and Mick, Mick and I are both big fans of this whole idea of the project and product shift, mixed book, you know, it was a great piece on a, you're talking about, you know, as part of the manifesto is one of the authors as well, but this shift from project to product, right? Like the age of the customer, in my opinion, the, the embodiment of that is the shift to a product mentality. Right. And, and the product mentality in my opinion, is what brings the business and technology teams together, right? >>Once you, once you're focused on a customer experience is delivered through a product or a service. That's when I that's, when I started to go with the alignment problem goes away, right. Because if you look at software companies, right, I mean, we run product management models yeah. With software development teams, customer success teams, right. That, you know, the software component of these products that people are building is obviously becoming bigger and bigger, you know, in an, in many ways, right. More and more organizations are trying to model themselves over as operationally like software companies. Right. Um, they obviously have lots of other components in their business than just software, but I think that whole model of customer experience equaling product, and then the software component of product, the product is the essence of what changes that alignment equation and brings business and teams together because all of a sudden, everyone knows what the customer's experiencing. Right. And, and that, that, that makes a lot of things very clear, very quickly. >>Right. I'm just curious how far along this was as a process before, before COBIT hit, right. Because serendipitous, whatever. Right. But the sudden, you know, light switch moment, everybody had to go work from home and in March 15th compared to now we're in October and this is going to be going on for a while. And it is a new normal and whatever that whatever's going to look like a year from now, or two years from now is TBD, you know, had you guys already started on this journey cause again, to sit down and actually declare this coalition and declare this manifesto is a lot different than just trying to do better within your own organization. >>Yeah. So we had started, uh, you know, w we definitely had started independently, you know, some, some, you know, I think people in the community know that, uh, we, we came together with a company called lean kit a handful of years ago, and I give John Terry actually one of the founders LeanKit immense credit for, you know, kind of spearheading our cultural change and not, and not because of, we were just gonna be, you know, bringing agile solutions to our customers, but because, you know, he believed that it was going to be a fundamentally better way for us to work. Right. And we kind of, you know, we started with John and built, you know, out of concentric circles of momentum and, and we've gotten to the place where now it's just part of who we are, but, but I do think that, you know, COVID has, you know, um, I think pre COVID a lot of companies, you know, would, would adopt, you know, the would adopt digital slash agile transformation. >>Um, traditional industries may have done it as a reaction to disruption. Right. You know, and in many cases, the disruption to these traditional industries was, I would say a product oriented company, right. That probably had a larger software component, and that disruption caused a competitive issue, uh, or a customer issue that caused companies and tried to respond by transforming. I think COVID, you know, all of a sudden flatten that out, right. We literally all got disrupted. Right. And so all of a sudden, every one of us is dealing with some degree of market uncertainty, customer uncertainty, uh, and also, you know, none of us were insulated from the need to be able to pivot faster, deliver incrementally, you know, and operate in a different, completely more agile way, uh, you know, post COVID. Right. Yeah. That's great. >>So again, a very, very, very timely, you know, a little bit of serendipity, a little bit of planning. And, you know, as, as with all important things, there's always a little bit of lock in, uh, and a lot of hard work involved. So a really interesting thank you for, for your leadership, Patrick. And, you know, it really makes a statement. I think when you have a bunch of leaderships across an industry coming together and putting their name on a piece of paper, uh, that's aligned around us some principles and some values, which again, if you read them who wouldn't want to get behind these, but if it takes, you know, something a little bit more formal, uh, to kind of move the ball down the field, and then I totally get it and a really great work. Thanks for, uh, thanks for doing it. >>Oh, absolutely. No. Like I said, the first time I read it, I was like, yep. Like you said, this is all, it's all makes complete sense, but just documenting it and saying it and talking about it moves the needle. I'll tell you as a company, you gotta, we're pushing really hard on, uh, you know, on our own internal strategy on diversity and inclusion. Right. And, and like, once we wrote the words down about what, you know, what we aspire to be from a diversity and inclusion perspective, it's the same thing. Everybody reads the words that goes, why wouldn't we do this? Right. But until you write it down and kind of have again, a manifesto or a Terra firma of what you're trying to accomplish, you know, then you can rally behind it. Right. As opposed to it being something that's, everybody's got their own version of the flavor. Right. And I think it's a very analogous, you know, kind of, uh, initiative. Right. And, uh, and it's happening, both of those things right. Are happening across the industry these days. Right. >>And measure it too. Right. And measure it, measure, measure, measure, get a baseline. Even if you don't like to measure, even if you don't like what the, even if you can argue against the math, behind the measurement, measure it. And at least you can measure it again and you can, and you've got some type of a comp and that is really the only way to, to move it forward. We're Patrick really enjoyed the conversation. Thanks for, uh, for taking a few minutes out of your day. >>It's great to be here. It's an awesome movement and we're glad to be a part of it. >>All right. Thanks. And if you want to check out the biz ops, Manifesta go to biz ops, manifesto.org, read it. You might want to sign it. It's there for you. And thanks for tuning in on this segment will continuing coverage of the biz op manifesto unveil you're on the cube. I'm Jeff, thanks for watching >>From around the globe. It's the cube with digital coverage of biz ops manifesto unveiled brought to you by biz ops coalition. >>Hey, welcome back, everybody Jeffrey here with the cube. We're coming to you from our Palo Alto studios. And welcome back to this event is the biz ops manifesto unveiling. So the biz ops manifesto and the biz ops coalition had been around for a little while, but today's the big day. That's kind of the big public unveiling, or we're excited to have some of the foundational people that, you know, have put their, put their name on the dotted, if you will, to support this initiative and talk about why that initiative is so important. And so the next guest we're excited to have is dr. Mick Kirsten. He is the founder and CEO of Tasktop mic. Great to see you coming in from Vancouver, Canada, I think, right? Yes. Great to be here, Jeff. Thank you. Absolutely. I hope your air is a little better out there. I know you had some of the worst air of all of us, a couple, a couple of weeks back. So hopefully things are, uh, are getting a little better and we get those fires under control. Yeah. >>Things have cleared up now. So yeah, it's good. It's good to be close to the U S and it's going to have the Arabic cleaner as well. >>Absolutely. So let's, let's jump into it. So you you've been an innovation guy forever starting way back in the day and Xerox park. I was so excited to do an event at Xerox park for the first time last year. I mean, that, that to me represents along with bell labs and, and some other, you know, kind of foundational innovation and technology centers, that's gotta be one of the greatest ones. So I just wonder if you could share some perspective of getting your start there at Xerox park, you know, some of the lessons you learned and what you've been able to kind of carry forward from those days. >>Yeah. I was fortunate to join Xerox park in the computer science lab there at a fairly early point in my career, and to be working on open source programming languages. So back then in the computer science lab, where some of the inventions around programming around software development games, such as object programming, and a lot of what we had around really modern programming levels constructs, those were the teams I had the fortunate of working with, and really our goal was. And of course, there's, as, as you noticed, there's just this DNA of innovation and excitement and innovation in the water. And really it was the model that was all about changing the way that we work was looking at for how we can make it 10 times easier to white coat. But this is back in 99. And we were looking at new ways of expressing, especially business concerns, especially ways of enabling people who are wanting to innovate for their business to express those concerns in code and make that 10 times easier than what that would take. >>So we create a new open source programming language, and we saw some benefits, but not quite quite what we expected. I then went and actually joined Charles Stephanie, that former to fucking from Microsoft who was responsible for, he actually got Microsoft word as a sparking into Microsoft and into the hands of bill Gates and that company that was behind the whole office suite and his vision. And then when I was trying to execute with, working for him was to make PowerPoint like a programming language to make everything completely visual. And I realized none of this was really working, that there was something else, fundamentally wrong programming languages, or new ways of building software. Like let's try and do with Charles around intentional programming. That was not enough. >>That was not enough. So, you know, the agile movement got started about 20 years ago, and we've seen the rise of dev ops and really this kind of embracing of, of, of sprints and, you know, getting away from MRDs and PRDs and these massive definitions of what we're going to build and long build cycles to this iterative process. And this has been going on for a little while. So what was still wrong? What was still missing? Why the biz ops coalition, why the biz ops manifesto? >>Yeah, so I basically think we nailed some of the things that the program language levels of teams can have effective languages deployed to soften to the cloud easily now, right? And at the kind of process and collaboration and planning level agile two decades, decades ago was formed. We were adopting and all the, all the teams I was involved with and it's really become a self problem. So agile tools, agile teams, agile ways of planning, uh, are now very mature. And the whole challenge is when organizations try to scale that. And so what I realized is that the way that agile was scaling across teams and really scaling from the technology part of the organization to the business was just completely flawed. The agile teams had one set of doing things, one set of metrics, one set of tools. And the way that the business was working was planning was investing in technology was just completely disconnected and using a whole different set of measures. Pretty >>Interesting. Cause I think it's pretty clear from the software development teams in terms of what they're trying to deliver. Cause they've got a feature set, right. And they've got bugs and it's easy to, it's easy to see what they deliver, but it sounds like what you're really honing in on is this disconnect on the business side, in terms of, you know, is it the right investment? You know, are we getting the right business ROI on this investment? Was that the right feature? Should we be building another feature or should we building a completely different product set? So it sounds like it's really a core piece of this is to get the right measurement tools, the right measurement data sets so that you can make the right decisions in terms of what you're investing, you know, limited resources. You can't, nobody has unlimited resources. And ultimately you have to decide what to do, which means you're also deciding what not to do. And it sounds like that's a really big piece of this, of this whole effort. >>Yeah. Jeff, that's exactly it, which is the way that the agile team measures their own way of working is very different from the way that you measure business outcomes. The business outcomes are in terms of how happy your customers are, but are you innovating fast enough to keep up with the pace of a rapidly changing economy, roughly changing market. And those are, those are all around the customer. And so what I learned on this long journey of supporting many organizations transformations and having them try to apply those principles of agile and dev ops, that those are not enough, those measures technical practices, uh, those measured sort of technical excellence of bringing code to the market. They don't actually measure business outcomes. And so I realized that it really was much more around having these entwined flow metrics that are customer centric and business centric and market centric where we need it to go. Right. >>So I want to shift gears a little bit and talk about your book because you're also a bestselling author from project to product and, and, and you, you brought up this concept in your book called the flow framework. And it's really interesting to me cause I know, you know, flow on one hand is kind of a workflow and a process flow and, and you know, that's how things get done and, and, and embrace the flow. On the other hand, you know, everyone now in, in a little higher level existential way is trying to get into the flow right into the workflow and, you know, not be interrupted and get into a state where you're kind of at your highest productivity, you know, kind of your highest comfort, which flow are you talking about in your book? Or is it a little bit of both? >>That's a great question. It's not one I get asked very often cause to me it's absolutely both. So that the thing that we want to get, that we've learned how to master individual flow, that there's this beautiful book by me, how you teaches me how he does a beautiful Ted talk by him as well about how we can take control of our own flow. So my question with the book with question replies, how can we bring that to entire teams and really entire organizations? How can we have everyone contributing to a customer outcome? And this is really what if you go to the biz ops manifesto, it says, I focus on outcomes on using data to drive whether we're delivering those outcomes rather than a focus on proxy metrics, such as, how quickly did we implement this feature? No, it's really how much value did the customer go to the future? >>And how quickly did you learn and how quickly did you use that data to drive to that next outcome? Really that with companies like Netflix and Amazon have mastered, how do we get that to every large organization, every it organization and make everyone be a software innovator. So it's to bring that, that concept of flow to these end to end value streams. And the fascinating thing is we've actually seen the data. We've been able to study a lot of value streams. We see when flow increases, when organizations deliver value to a customer faster, developers actually become more happy. So things like that and point out promoter scores, rise, and we've got empirical data for this. So that the beautiful thing to me is that we've actually been able to combine these two things and see the results and the data that you increase flow to the customer. Your developers are more, >>I love it. I love it, right, because we're all more, we're all happier when we're in the flow and we're all more productive when we're in the flow. So I, that is a great melding of, of two concepts, but let's jump into the, into the manifesto itself a little bit. And you know, I love that you took this approach really of having kind of four key values and then he gets 12 key principles. And I just want to read a couple of these values because when you read them, it sounds pretty brain dead. Right? Of course. Right. Of course you should focus on business outcomes. Of course you should have trust and collaboration. Of course you should have database decision making processes and not just intuition or, you know, whoever's the loudest person in the room, uh, and to learn and respond and pivot. But what's the value of actually just putting them on a piece of paper, because again, this is not this, these are all good, positive things, right? When somebody reads these to you or tells you these are sticks it on the wall, of course. But unfortunately of course isn't always enough. >>No. And I think what's happened is some of these core principles originally from the agile manifesto in two decades ago, uh, the whole dev ops movement of the last decade of flow feedback and continue learning has been key. But a lot of organizations, especially the ones undergoing digital transformations have actually gone a very different way, right? The way that they measure value, uh, in technology and innovation is through costs for many organizations. The way that they actually are looking at that they're moving to cloud is actually as a reduction in cost. Whereas the right way of looking at moving to cloud is how much more quickly can we get to the value to the customer? How quickly can we learn from that? And how quickly can we drive the next business outcome? So really the key thing is, is to move away from those old ways of doing things of funding projects and cost centers, to actually funding and investing in outcomes and measuring outcomes through these flow metrics, which in the end are your fast feedback and how quickly you're innovating for your customer. >>So these things do seem very obvious when you look at them. But the key thing is what you need to stop doing to focus on these. You need to actually have accurate realtime data of how much value you fund to the customer every week, every month, every quarter. And if you don't have that, your decisions are not driven on data. If you don't know what your bottleneck is. And this is something that in decades of manufacturing, a car manufacturers, other manufacturers, master, they always know where the bottom back in their production processes. You ask a random CIO when a global 500 company where their bottleneck is, and you won't get a clear answer because there's not that level of understanding. So have to actually follow these principles. You need to know exactly where you fall. And I guess because that's, what's making your developers miserable and frustrated, then having them context, which I'm trash. So the approach here is important and we have to stop doing these other things, >>Right? There's so much there to unpack. I love it. You know, especially the cloud conversation because so many people look at it wrong as, as, as a cost saving a device, as opposed to an innovation driver and they get stuck, they get stuck in the literal. And I, you know, I think at the same thing, always about Moore's law, right? You know, there's a lot of interesting real tech around Moore's law and the increasing power of microprocessors, but the real power, I think in Moore's laws is the attitudinal change in terms of working in a world where you know that you've got all this power and what you build and design. I think it's funny to your, your comment on the flow and the bottleneck, right? Cause, cause we know manufacturing, as soon as you fix one bottleneck, you move to your next one, right? You always move to your next point of failure. So if you're not fixing those things, you know, you're not, you're not increasing that speed down the line, unless you can identify where that bottleneck is or no matter how many improvements you make to the rest of the process, it's still going to get hung up on that one spot. >>That's exactly it. And you also make it sound so simple, but again, if you don't have the data driven visibility of where the bottom line is, and these bottlenecks are adjusted to say, it's just whack-a-mole right. So we need to understand is the bottleneck because our security reviews are taking too long and stopping us from getting value for the customer. If it's that automate that process. And then you move on to the next bottleneck, which might actually be that deploying yourself into the cloud was taking too long. But if you don't take that approach of going flow first, rather than again, that sort of cost reduction. First, you have to think of that approach of customer centricity and you only focused on optimizing costs. Your costs will increase and your flow will slow down. And this is just one of these fascinating things. Whereas if you focus on getting back to the customer and reducing your cycles on getting value, your flow time from six months to two weeks or two, one week or two event, as we see with, with tech giants, you actually can both lower your costs and get much more value that for us to get that learning loop going. >>So I think I've seen all of these cloud deployments and one of the things that's happened that delivered almost no value because there was such big bottlenecks upfront in the process and actually the hosting and the AP testing was not even possible with all of those inefficiencies. So that's why going float for us rather than costs where we started our project versus silky. >>I love that. And, and, and, and it, it begs repeating to that right within the subscription economy, you know, you're on the hook to deliver value every single month because they're paying you every single month. So if you're not on top of how you're delivering value, you're going to get sideways because it's not like, you know, they pay a big down payment and a small maintenance fee every month, but once you're in a subscription relationship, you know, you have to constantly be delivering value and upgrading that value because you're constantly taking money from the customer. So it's such a different kind of relationship than kind of the classic, you know, big bang with a maintenance agreement on the back end really important. Yeah. >>And I think in terms of industry shifts that that's it that's, what's catalyzed. This interesting shift is in this SAS and subscription economy. If you're not delivering more and more value to your customers, someone else's and they're winning the business, not you. So one way we know is to delight our customers with great user experiences. Well, that really is based on how many features you delivered or how much, how big, how many quality improvements or scalar performance improvements you delivered. So the problem is, and this is what the business manifesto, as well as the full frame of touch on is if you can't measure how much value you delivered to a customer, what are you measuring? You just backed again, measuring costs and that's not a measure of value. So we have to shift quickly away from measuring cost to measuring value, to survive in the subscription economy. >>We could go for days and days and days. I want to shift gears a little bit into data and, and, and a data driven, um, decision making a data driven organization cause right day has been talked about for a long time, the huge big data meme with, with Hadoop over, over several years and, and data warehouses and data lakes and data oceans and data swamps, and can go on and on and on. It's not that easy to do, right? And at the same time, the proliferation of data is growing exponentially. We're just around the corner from, from IOT and 5g. So now the accumulation of data at machine scale, again, this is going to overwhelm and one of the really interesting principles, uh, that I wanted to call out and get your take right, is today's organizations generate more data than humans can process. So informed decisions must be augmented by machine learning and artificial intelligence. I wonder if you can, again, you've got some great historical perspective, um, reflect on how hard it is to get the right data, to get the data in the right context, and then to deliver it to the decision makers and then trust the decision makers to actually make the data and move that down. You know, it's kind of this democratization process into more and more people and more and more frontline jobs making more and more of these little decisions every day. >>Yeah. I definitely think the front parts of what you said are where the promises of big data have completely fallen on their face into the swamps as, as you mentioned, because if you don't have the data in the right format, you've cannot connect collected at the right way. You want that way, the right way you can't use human or machine learning effectively. And there've been the number of data warehouses in a typical enterprise organization. And the sheer investment is tremendous, but the amount of intelligence being extracted from those is, is, is a very big problem. So the key thing that I've noticed is that if you can model your value streams, so yes, you understand how you're innovating, how you're measuring the delivery of value and how long that takes. What is your time to value these metrics like full time? You can actually use both the intelligence that you've got around the table and push that down as well, as far as getting to the organization, but you can actually start using that those models to understand and find patterns and detect bottlenecks that might be surprising, right? >>Well, you can detect interesting bottlenecks when you shift to work from home. We detected all sorts of interesting bottlenecks in our own organization that were not intuitive to me that had to do with, you know, more senior people being overloaded and creating bottlenecks where they didn't exist. Whereas we thought we were actually an organization that was very good at working from home because of our open source roots. So that data is highly complex. Software value streams are extremely complicated. And the only way to really get the proper analyst and data is to model it properly and then to leverage these machine learning and AI techniques that we have. But that front part of what you said is where organizations are just extremely immature in what I've seen, where they've got data from all their tools, but not modeled in the right way. Right, right. >>Right. Well, all right. So before I let you go, you know, let's say you get a business leader, he buys in, he reads the manifesto, he signs on the dotted line and he says, Mick, how do I get started? I want to be more aligned with, with the development teams. You know, I'm in a very competitive space. We need to be putting out new software features and engaging with our customers. I want to be more data-driven how do I get started? Well, you know, what's the biggest inhibitor for most people to get started and get some early wins, which we know is always the key to success in any kind of a new initiative. >>Right? So I think you can reach out to us through the website, uh, there's the manifesto, but the key thing is just to get you set up it's to get started and to get the key wins. So take a probably value stream that's mission critical. It could be your new mobile and web experiences or, or part of your cloud modernization platform or your analytics pipeline, but take that and actually apply these principles to it and measure the end to end flow of value. Make sure you have a value metric that everyone is on the same page on the people, on the development teams, the people in leadership all the way up to the CEO. And one of the, what I encourage you to start is actually that content flow time, right? That is the number one metric. That is how you measure it, whether you're getting the benefit of your cloud modernization, that is the one metric that Adrian Cockcroft. When the people I respect tremendously put into his cloud for CEOs, the metric, the one, the one way to measure innovation. So basically take these principles, deploy them on one product value stream, measure, sentiment, flow time, and then you'll actually be well on your path to transforming and to applying the concepts of agile and dev ops all the way to, to the business, to the way >>You're offering model. >>Well, Mick really great tips, really fun to catch up. I look forward to a time when we can actually sit across the table and, and get into this. Cause I just, I just love the perspective and, you know, you're very fortunate to have that foundational, that foundational base coming from Xerox park and they get, you know, it's, it's a very magical place with a magical history. So to, to incorporate that into, continue to spread that well, uh, you know, good for you through the book and through your company. So thanks for sharing your insight with us today. >>Thanks so much for having me, Jeff. >>All right. And go to the biz ops manifesto.org, read it, check it out. If you want to sign it, sign it. They'd love to have you do it. Stay with us for continuing coverage of the unveiling of the business manifesto on the cube. I'm Jeff. Rick. Thanks for watching. See you next time >>From around the globe. It's the cube with digital coverage of biz ops manifesto unveiled brought to you by biz ops coalition. >>Hey, welcome back everybody. Jeff Frick here with the cube come due from our Palo Alto studios today for a big, big reveal. We're excited to be here. It's the biz ops manifesto unveiling a thing's been in the works for awhile and we're excited to have our next guest. One of the, really the powers behind this whole effort. And he's joining us from Boston it's surge, Lucio, the vice president, and general manager enterprise software division at Broadcom surge. Great to see you. >>Hi, good to see you, Jeff. Glad to be here. >>So you've been in this business for a very long time. You've seen a lot of changes in technology. What is the biz ops manifesto? What is this coalition all about? Why do we need this today and in 2020? >>Yeah. So, so I've been in this business for close to 25 years, right? So about 20 years ago, the agile manifesto was created. And the goal of the agile manifesto was really to address the uncertainty around software development and the inability to predict the efforts to build software. And, uh, if you, if you roll that kind of 20 years later, and if you look at the current state of the industry, uh, the product, the project management Institute, estimates that we're wasting about a million dollars, every 20 seconds in digital transformation initiatives that do not deliver on business results. In fact, we were recently served a third of the, uh, a number of executives in partnership with Harvard business review and 77% of those executives think that one of the key challenges that they have is really at the collaboration between business and it, and that that's been kind of a case for, uh, almost 20 years now. >>Um, so the, the, the key challenge we're faced with is really that we need a new approach and many of the players in the industry, including ourselves, I've been using different terms, right? Some are being, are talking about value stream management. Some are talking about software delivery management. If you look at the site, reliability engineering movement, in many ways, it embodies a lot of these kind of concepts and principles. So we believed that it became really imperative for us to crystallize around, could have one concept. And so in many ways, the, uh, the BizOps concept and the business manifesto are bringing together a number of ideas, which have been emerging in the last five years or so, and, and defining the key values and principles to finally help these organizations truly transform and become digital businesses. And so the hope is that by joining our forces and defining public key principles and values, we can help the industry, uh, not just, uh, by, you know, providing them with support, but also, uh, tools and consulting that is required for them to truly achieve the kind of transformation that everybody's seeking. >>Right, right. So COVID now we're six months into it, approximately seven months into it. Um, a lot of pain, a lot of bad stuff still happening. We've got a ways to go, but one of the things that on the positive side, right, and you've seen all the memes and social media is, is a driver of digital transformation and a driver of change. Cause we had this light switch moment in the middle of March and there was no more planning. There was no more conversation. You've suddenly got remote workforces, everybody's working from home and you got to go, right. So the reliance on these tools increases dramatically, but I'm curious, you know, kind of short of, of the beginnings of this effort in short of kind of COVID, which, you know, came along unexpectedly. I mean, what were those inhibitors because we've been making software for a very long time, right? The software development community has, has adopted kind of rapid change and, and iterative, uh, delivery and, and sprints, what was holding back the connection with the business side to make sure that those investments were properly aligned with outcomes. >>Well, so, so you have to understand that it is, is kind of a its own silos. And traditionally it has been treated as a cost center within large organizations and not as a value center. And so as a result could have a traditional dynamic between it and the business is basically one of a kind of supplier up to kind of a business. Um, and you know, if you, if you go back to, uh, I think you'll unmask a few years ago, um, basically at this concept of the machines to build the machines and you went as far as saying that, uh, the machines or the production line is actually the product. So, um, meaning that the core of the innovation is really about, uh, building, could it be engine to deliver on the value? And so in many ways, you know, we have missed on this shift from, um, kind of it becoming this kind of value center within the enterprises. >>And, and he talks about culture. Now, culture is a, is a sum total of beavers. And the reality is that if you look at it, especially in the last decade, uh, we've agile with dev ops with, um, I bring infrastructures, uh, it's, it's way more volatile today than it was 10 years ago. And so the, when you start to look at the velocity of the data, the volume of data, the variety of data to analyze this system, um, it's, it's very challenging for it to actually even understand and optimize its own processes, let alone, um, to actually include business as sort of an integral part of kind of a delivery chain. And so it's both kind of a combination of, of culture, um, which is required as well as tools, right? To be able to start to bring together all these data together, and then given the volume variety of philosophy of the data, uh, we have to apply some core technologies, which have only really, truly emerged in the last five to 10 years around machine learning and analytics. And so it's really kind of a combination of those freaks, which are coming together today to really help organizations kind of get to the next level. Right, >>Right. So let's talk about the manifesto. Let's talk about, uh, the coalition, uh, the BizOps coalition. I just liked that you put down these really simple, you know, kind of straightforward core values. You guys have four core values that you're highlighting, you know, business outcomes, over individual projects and outputs, trust, and collaboration, oversight, load teams, and organizations, data driven decisions, what you just talked about, uh, you know, over opinions and judgment and learned, respond and pivot. I mean, surgery sounds like pretty basic stuff, right? I mean, aren't, isn't everyone working to these values already. And I think he touched on it on culture, right? Trust and collaboration, data driven decisions. I mean, these are fundamental ways that people must run their business today, or the person that's across the street, that's doing it. It's going to knock them out right off their blog. >>Yeah. So that's very true. But, uh, so I'll, I'll mention in our survey, we did, uh, I think about six months ago and it was in partnership with, uh, with, uh, an industry analyst and we serve at a, again, a number of it executives to understand how many we're tracking business outcomes I'm going to do with the software executives. It executives we're tracking business outcomes. And the, there were less than 15% of these executives were actually tracking the outcomes of a software delivery. And you see that every day. Right? So in my own teams, for instance, we've been adopting a lot of these core principles in the last year or so, and we've uncovered that 16% of our resources were basically aligned around initiatives, which are not strategic for us. Um, I take, you know, another example, for instance, one of our customers in the, uh, in the airline industry and Harvard, for instance, that a number of, uh, um, that they had software issues that led to people searching for flights and not returning any kind of availability. >>And yet, um, you know, the, it teams, whether it's operations, software environments were completely oblivious to that because they were completely blindsided to it. And so the connectivity between kind of the inwards metrics that RT is using, whether it's database time, cycle time, or whatever metric we use in it are typically completely divorced from the business metrics. And so at its core, it's really about starting to align the business metrics with what the, the software delivery chain, right? This, uh, the system, which is really a core differentiator for these organizations. It's about connecting those two things and, and starting to, um, infuse some of the agile culture and principles. Um, that's emerged from the software side into the business side. Um, of course the lean movement and other movements have started to change some of these dynamic on the, on the business side. And so I think this, this is the moment where we are starting to see kind of the imperative to transform. Now, you know, Covina obviously has been a key driver for that. The, um, the technology is right to start to be able to weave data together and really kind of, uh, also the cultural shifts, uh, Prue agile through dev ops through, uh, the SRE movement, uh frulein um, business transformation, all these things are coming together and that are really creating kind of the conditions for the BizOps manifesto to exist. >>So, uh, Clayton Christianson, great, uh, Harvard professor innovator's dilemma might still my all time favorite business books, you know, talks about how difficult it is for incumbents to react to, to disruptive change, right? Because they're always working on incremental change because that's what their customers are asking for. And there's a good ROI when you talk about, you know, companies not measuring the right thing. I mean, clearly it has some portion of their budget that has to go to keeping the lights on, right. That that's always the case, but hopefully that's an, an ever decreasing percentage of their total activity. So, you know, what should people be measuring? I mean, what are kind of the new metrics, um, in, in biz ops that drive people to be looking at the right things, measuring the right things and subsequently making the right decisions, investment decisions on whether they should do, you know, move project a along or project B. >>So there, there are only two things, right? So, so I think what you're talking about is portfolio management, investment management, right. And, um, which, which is a key challenge, right? Um, in my own experience, right? Uh, driving strategy or a large scale kind of software organization for years, um, it's very difficult to even get kind of a base data as to who is doing what, uh, um, I mean, some of our largest customers we're engaged with right now are simply trying to get a very simple answer, which is how many people do I have and that specific initiative at any point in time, and just tracking that information is extremely difficult. So, and again, back to a product project management Institute, um, there, they have estimated that on average, it organizations have anywhere between 10 to 20% of their resources focused on initiatives, which are not strategically aligned. >>So, so that's one dimensional portfolio management. I think the key aspect though, that we are, we're really keen on is really around kind of the alignment of a business metrics to the it metrics. Um, so I'll use kind of two simple examples, right? And my background is around quality and I've always believed that the fitness for purpose is really kind of a key, um, uh, philosophy if you will. And so if you start to think about quality as fitness for purpose, you start to look at it from a customer point of view, right. And fitness for purpose for a core banking application or mobile application are different, right? So the definition of a business value that you're trying to achieve is different. Um, and so the, and yeah, if you look at our, it, operations are operating there, we're using kind of a same type of, uh, kind of inward metrics, uh, like a database off time or a cycle time, or what is my point of velocity, right? >>And so the challenge really is this inward facing metrics that it is using, which are divorced from ultimately the outcome. And so, you know, if I'm, if I'm trying to build a poor banking application, my core metric is likely going to be uptight, right? If I'm trying to build a mobile application or maybe your social, a mobile app, it's probably going to be engagement. And so what you want is for everybody across it, to look at these metric and what are the metrics within the software delivery chain, which ultimately contribute to that business metric. And some cases cycle time may be completely irrelevant, right? Again, my core banking app, maybe I don't care about cycle time. And so it's really about aligning those metrics and be able to start to, um, Charles you mentioned, uh, around the, the, um, uh, around the disruption that we see is, or the investors is the dilemma now is really around the fact that many it organizations are essentially applying the same approaches of, for innovation, like for basically scrap work, then they would apply to kind of over more traditional projects. And so, you know, there's been a lot of talk about two-speed it, and yes, it exists, but in reality are really organizations, um, truly differentiating, um, all of the operate, their, their projects and products based on the outcomes that they're trying to achieve. And this is really where BizOps is trying to affect. >>I love that, you know, again, it doesn't seem like brain surgery, but focus on the outcomes, right. And it's horses for courses, as you said, this project, you know, what you're measuring and how you define success, isn't necessarily the same as, as on this other project. So let's talk about some of the principles we talked about the values, but, you know, I think it's interesting that, that, that the BizOps coalition, you know, just basically took the time to write these things down and they don't seem all that super insightful, but I guess you just got to get them down and have them on paper and have them in front of your face. But I want to talk about, you know, one of the key ones, which you just talked about, which is changing requirements, right. And working in a dynamic situation, which is really what's driven, you know, this, the software to change in software development, because, you know, if you're in a game app and your competitor comes out with a new blue sword, you got to come out with a new blue sword. >>So whether you had that on your Kanban wall or not. So it's, it's really this embracing of the speed of change and, and, and, and making that, you know, the rule, not the exception. I think that's a phenomenal one. And the other one you talked about is data, right? And that today's organizations generate more data than humans can process. So informed decisions must be generated by machine learning and AI, and, you know, in the, the big data thing with Hadoop, you know, started years ago, but we are seeing more and more that people are finally figuring it out, that it's not just big data, and it's not even generic machine learning or artificial intelligence, but it's applying those particular data sets and that particular types of algorithms to a specific problem, to your point, to try to actually reach an objective, whether that's, you know, increasing the, your average ticket or, you know, increasing your checkout rate with, with, with shopping carts that don't get left behind in these types of things. So it's a really different way to think about the world in the good old days, probably when you got started, when we had big, giant, you know, MRDs and PRDs and sat down and coded for two years and came out with a product release and hopefully not too many patches subsequently to that. >>It's interesting. Right. Um, again, back to one of these surveys that we did with, uh, with about 600, the ITA executives, and, uh, and, and we, we purposely designed those questions to be pretty open. Um, and, and one of them was really wrong requirements and, uh, and it was really a wrong, uh, kind of what do you, what is the best approach? What is your preferred approach towards requirements? And if I were to remember correctly, over 80% of the it executives set that the best approach they'll prefer to approach these core requirements to be completely defined before software development starts, let me pause there we're 20 years after the agile manifesto, right? And for 80% of these idea executives to basically claim that the best approach is for requirements to be fully baked before salt, before software development starts, basically shows that we still have a very major issue. >>And again, our hypothesis in working with many organizations is that the key challenge is really the boundary between business and it, which is still very much contract based. If you look at the business side, they basically are expecting for it deliver on time on budget, right. But what is the incentive for it to actually delivering on the business outcomes, right? How often is it measured on the business outcomes and not on an SLA or on a budget type criteria? And so that's really the fundamental shift that we need to, we really need to drive up as an industry. Um, and you know, we, we talk about kind of this, this imperative for organizations to operate that's one, and back to the, the, um, you know, various Doris dilemna the key difference between these larger organization is, is really kind of, uh, if you look at the amount of capital investment that they can put into pretty much anything, why are they losing compared to, um, you know, startups? What, why is it that, uh, more than 40% of, uh, personal loans today or issued not by your traditional brick and mortar banks, but by, um, startups? Well, the reason, yes, it's the traditional culture of doing incremental changes and not disrupting ourselves, which Christiansen covered the length, but it's also the inability to really fundamentally change kind of a dynamic picture. We can business it and, and, and partner right. To, to deliver on a specific business outcome. >>All right. I love that. That's a great, that's a great summary. And in fact, getting ready for this interview, I saw you mentioning another thing where, you know, the, the problem with the agile development is that you're actually now getting more silos. Cause you have all these autonomous people working, you know, kind of independently. So it's even a harder challenge for, for the business leaders to, to, as you said, to know, what's actually going on, but, but certainly I w I want to close, um, and talk about the coalition. Um, so clearly these are all great concepts. These are concepts you want to apply to your business every day. Why the coalition, why, you know, take these concepts out to a broader audience, including either your, your competition and the broader industry to say, Hey, we, as a group need to put a stamp of approval on these concepts, these values, these principles. >>So first I think we, we want, um, everybody to realize that we are all talking about the same things, the same concepts. I think we were all from our own different vantage point, realizing that things after change, and again, back to, you know, whether it's value stream management or site reliability engineering, or biz ops, we're all kind of using slightly different languages. Um, and so I think one of the important aspects of BizOps is for us, all of us, whether we're talking about, you know, consulting agile transformation experts, uh, whether we're talking about vendors, right, provides kind of tools and technologies or these large enterprises to transform for all of us to basically have kind of a reference that lets us speak around kind of, um, in a much more consistent way. The second aspect is for, to me is for, um, DS concepts to start to be embraced, not just by us or trying, or, you know, vendors, um, system integrators, consulting firms, educators, thought leaders, but also for some of our old customers to start to become evangelists of their own in the industry. >>So we, our, our objective with the coalition needs to be pretty, pretty broad. Um, and our hope is by, by starting to basically educate, um, our, our joint customers or partners, that we can start to really foster these behaviors and start to really change some of dynamics. So we're very pleased at if you look at, uh, some of the companies which have joined the, the, the, the manifesto. Um, so we have vendors such as desktop or advance, or, um, uh, PagerDuty for instance, or even planned view, uh, one of my direct competitors, um, but also thought leaders like Tom Davenport or, uh, or cap Gemini or, um, um, smaller firms like, uh, business agility, institutes, or agility elf. Um, and so our goal really is to start to bring together, uh, fall years, people would have been LP, large organizations, do digital transformation vendors. We're providing the technologies that many of these organizations use to deliver on this digital preservation and for all of us to start to provide the kind of, uh, education support and tools that the industry needs. Yeah, >>That's great surge. And, uh, you know, congratulations to you and the team. I know this has been going on for a while, putting all this together, getting people to sign onto the manifesto, putting the coalition together, and finally today getting to unveil it to the world in, in a little bit more of a public, uh, opportunity. So again, you know, really good values, really simple principles, something that, that, uh, shouldn't have to be written down, but it's nice cause it is, and now you can print it out and stick it on your wall. So thank you for, uh, for sharing this story and again, congrats to you and the team. >>Thank you. Thanks, Jeff. Appreciate it. >>Oh, my pleasure. Alrighty, surge. If you want to learn more about the BizOps manifest to go to biz ops manifesto.org, read it and you can sign it and you can stay here for more coverage. I'm the cube of the biz ops manifesto unveiled. Thanks for watching. See you next >>From around the globe. It's the cube with digital coverage of this ops manifesto unveiled brought to you by bill. >>Hey, welcome back, everybody Jeffrey here with the cube. Welcome back to our ongoing coverage of the biz ops manifesto unveiling. It's been in the works for awhile, but today's the day that it actually kind of come out to the, to the public. And we're excited to have a real industry luminary here to talk about what's going on, why this is important and share his perspective. And we're happy to have from Cape Cod, I believe is Tom Davenport. He is a distinguished author and professor at Babson college. We could go on, he's got a lot of great titles and, and really illuminary in the area of big data and analytics Thomas. Great to see you. >>Thanks Jeff. Happy to be here with you. >>Great. So let's just jump into it, you know, and getting ready for this. I came across your LinkedIn posts. I think you did earlier this summer in June and right off the bat, the first sentence just grabbed my attention. I'm always interested in new attempts to address longterm issues, uh, in how technology works within businesses, biz ops. What did you see in biz ops, uh, that, that kind of addresses one of these really big longterm problems? >>Well, yeah, but the longterm problem is that we've had a poor connection between business people and it people between business objectives and the, it solutions that address them. This has been going on, I think since the beginning of information technology and sadly it hasn't gone away. And so biz ops is a new attempt to deal with that issue with, you know, a new framework, eventually a broad set of solutions that increase the likelihood that we'll actually solve a business problem with an it capability. >>Right. You know, it's interesting to compare it with like dev ops, which I think a lot of people are probably familiar with, which was, you know, built around, uh, agile software development and a theory that we want to embrace change that that changes. Okay. Uh, and we want to be able to iterate quickly and incorporate that. And that's been happening in the software world for, for 20 plus years. What's taken so long to get that to the business side, because as the pace of change has changed on the software side, you know, that's a strategic issue in terms of execution on the business side that they need now to change priorities. And, you know, there's no PRDs and MRDs and big, giant strategic plans that sit on the shelf for five years. That's just not the way business works anymore. It took a long time to get here. >>Yeah, it did. And you know, there have been previous attempts to make a better connection between business and it, there was the so called alignment framework that a couple of friends of mine from Boston university developed, I think more than 20 years ago, but you know, now we have better technology for creating that linkage. And the, you know, the idea of kind of ops oriented frameworks is pretty pervasive now. So I think it's time for another serious attempt at it. Right. >>And do you think doing it this way, right. With the, with the biz ops coalition, you know, getting a collection of, of, of kind of likeminded individuals and companies together, and actually even having a manifesto, which we're making this declarative statement of, of principles and values, you think that's what it takes to kind of drive this kind of beyond the experiment and actually, you know, get it done and really start to see some results in, in, uh, in production in the field. >>I think certainly, um, no one vendor organization can pull this off single handedly. It does require a number of organizations collaborating and working together. So I think our coalition is a good idea and a manifesto is just a good way to kind of lay out what you see as the key principles of the idea. And that makes it much easier for everybody to understand and act on. >>I think it's just, it's really interesting having, you know, having them written down on paper and having it just be so clearly articulated both in terms of the, of the values as well as, as the, uh, the principles and the values, you know, business outcomes matter trust and collaboration, data driven decisions, which is the number three or four, and then learn, respond and pivot. It doesn't seem like those should have to be spelled out so clearly, but, but obviously it helps to have them there. You can stick them on the wall and kind of remember what your priorities are, but you're the data guy. You're the analytics guy, uh, and a big piece of this is data and analytics and moving to data-driven decisions. And principle number seven says, you know, today's organizations generate more data than humans can process and informed decisions can be augmented by machine learning and artificial intelligence right up your alley. You know, you've talked a number of times on kind of the mini stages of analytics. Um, and how has that's evolved over, over time, you know, as you think of analytics and machine learning, driving decisions beyond supporting decisions, but actually starting to make decisions in machine time. What's that, what's that thing for you? What does that make you, you know, start to think, wow, this is, this is going to be pretty significant. >>Yeah. Well, you know, this has been a longterm interest of mine. Um, the last generation of AI, I was very interested in expert systems. And then, um, I think, uh, more than 10 years ago, I wrote an article about automated decision-making using what was available then, which was rule-based approaches. Um, but you know, this addresses an issue that we've always had with analytics and AI. Um, you know, we, we tended to refer to those things as providing decision support. The problem is that if the decision maker didn't want their support, didn't want to use them in order to make a decision, they didn't provide any value. And so the nice thing about automating decisions, um, with now contemporary AI tools is that we can ensure that data and analytics get brought into the decision without any possible disconnection. Now, I think humans still have something to add here, and we often will need to examine how that decision is being made and maybe even have the ability to override it. But in general, I think at least for, you know, repetitive tactical decisions, um, involving a lot of data, we want most of those, I think to be at least recommended if not totally made by an algorithm or an AI based system, and that I believe would add to the quality and the precision and the accuracy of decisions and in most organizations, >>No, I think, I think you just answered my next question before I, before Hey, asked it, you know, we had dr. Robert Gates on a former secretary of defense on a few years back, and we were talking about machines and machines making decisions. And he said at that time, you know, the only weapon systems, uh, that actually had an automated trigger on it were on the North Korea and South Korea border. Um, everything else, as you said, had to go through a sub person before the final decision was made. And my question is, you know, what are kind of the attributes of the decision that enable us to more easily automated? And then how do you see that kind of morphing over time, both as the data to support that as well as our comfort level, um, enables us to turn more and more actual decisions over to the machine? >>Well, yeah, it's suggested we need, um, data and, um, the data that we have to kind of train our models has to be high quality and current. And we, we need to know the outcomes of that data. You know, um, most machine learning models, at least in business are supervised. And that means we need to have labeled outcomes in the, in the training data. But I, you know, um, the pandemic that we're living through is a good illustration of the fact that, that the data also have to be reflective of current reality. And, you know, one of the things that we're finding out quite frequently these days is that, um, the data that we have do not reflect, you know, what it's like to do business in a pandemic. Um, I wrote a little piece about this recently with Jeff cam at wake forest university, we called it data science quarantined, and we interviewed with somebody who said, you know, it's amazing what eight weeks of zeros will do to your demand forecast. We just don't really know what happens in a pandemic. Um, our models maybe have to be put on the shelf for a little while and until we can develop some new ones or we can get some other guidelines into making decisions. So I think that's one of the key things with automated decision making. We have to make sure that the data from the past and that's all we have of course, is a good guide to, you know, what's happening in the present and the future as far as we understand it. Yeah. >>I used to joke when we started this calendar year 2020, it was finally the year that we know everything with the benefit of hindsight, but it turned out 20, 20 a year. We found out we actually know nothing and everything thought we knew, but I wanna, I wanna follow up on that because you know, it did suddenly change everything, right? We got this light switch moment. Everybody's working from home now we're many, many months into it, and it's going to continue for a while. I saw your interview with Bernard Marr and you had a really interesting comment that now we have to deal with this change. We don't have a lot of data and you talked about hold fold or double down. And, and I can't think of a more, you know, kind of appropriate metaphor for driving the value of the BizOps when now your whole portfolio strategy, um, these to really be questioned and, and, you know, you have to be really, uh, well, uh, executing on what you are, holding, what you're folding and what you're doubling down with this completely new environment. >>Well, yeah, and I hope I did this in the interview. I would like to say that I came up with that term, but it actually came from a friend of mine. Who's a senior executive at Genpact. And, um, I, um, used it mostly to talk about AI and AI applications, but I think you could, you could use it much more broadly to talk about your entire sort of portfolio of digital projects. You need to think about, well, um, given some constraints on resources and a difficult economy for a while, which of our projects do we want to keep going on pretty much the way we were and which ones are not that necessary anymore? You see a lot of that in AI, because we had so many pilots, somebody told me, you know, we've got more pilots around here than O'Hare airport and AI. Um, and then, but the ones that involve double down they're even more important to you. They are, you know, a lot of organizations have found this out in the pandemic, on digital projects. It's more and more important for customers to be able to interact with you, um, digitally. And so you certainly wouldn't want to, um, cancel those projects or put them on hold. So you double down on them and get them done faster and better. >>Right, right. Uh, another, another thing that came up in my research that you quoted, um, was, was from Jeff Bezos, talking about the great bulk of what we do is quietly, but meaningfully improving core operations. You know, I think that is so core to this concept of not AI and machine learning and kind of the general sense, which, which gets way too much buzz, but really applied right. Applied to a specific problem. And that's where you start to see the value. And, you know, the, the BizOps, uh, manifesto is, is, is calling it out in this particular process. But I'd love to get your perspective as you know, you speak generally about this topic all the time, but how people should really be thinking about where are the applications where I can apply this technology to get direct business value. >>Yeah, well, you know, even talking about automated decisions, um, uh, the kind of once in a lifetime decisions, uh, the ones that, um, ag Lafley, the former CEO of Procter and gamble used to call the big swing decisions. You only get a few of those. He said in your tenure as CEO, those are probably not going to be the ones that you're automating in part because, um, you don't have much data about them. You're only making them a few times and in part, because, um, they really require that big picture thinking and the ability to kind of anticipate the future, that the best human decision makers, um, have. Um, but, um, in general, I think where they are, the projects that are working well are, you know, when I call the low hanging fruit ones, the, some people even report to it referred to it as boring AI. >>So, you know, sucking data out of a contract in order to compare it to a bill of lading for what arrived at your supply chain companies can save or make a lot of money with that kind of comparison. It's not the most exciting thing, but AI, as you suggested is really good at those narrow kinds of tasks. It's not so good at the, at the really big moonshots, like curing cancer or, you know, figuring out well what's the best stock or bond under all circumstances or even autonomous vehicles. Um, we, we made some great progress in that area, but everybody seems to agree that they're not going to be perfect for quite a while. And we really don't want to be driving around on them very much unless they're, you know, good and all kinds of weather and with all kinds of pedestrian traffic and you know, that sort of thing, right? That's funny you bring up contract management. >>I had a buddy years ago, they had a startup around contract management and was like, and this was way before we had the compute power today and cloud proliferation. I said, you know, how, how can you possibly build software around contract management? It's language, it's legal, ease. It's very specific. And he's like, Jeff, we just need to know where's the contract. And when does it expire? And who's the signatory. And he built a business on those, you know, very simple little facts that weren't being covered because their contracts contractor in people's drawers and files and homes, and Lord only knows. So it's really interesting, as you said, these kind of low hanging fruit opportunities where you can extract a lot of business value without trying to, you know, boil the ocean. >>Yeah. I mean, if you're Amazon, um, uh, Jeff Bezos thinks it's important to have some kind of billion dollar projects. And he even says it's important to have a billion dollar failure or two every year. But I think most organizations probably are better off being a little less aggressive and, you know, sticking to, um, what AI has been doing for a long time, which is, you know, making smarter decisions based on, based on data. >>Right? So Tom, I want to shift gears one more time before, before we let you go on on kind of a new topic for you, not really new, but you know, not, not a, the vast majority of, of your publications and that's the new way to work, you know, as, as the pandemic hit in mid March, right. And we had this light switch moment, everybody had to work from home and it was, you know, kind of crisis and get everybody set up. Well, you know, now we're five months, six months, seven months. A number of companies have said that people are not going to be going back to work for a while. And so we're going to continue on this for a while. And then even when it's not what it is now, it's not going to be what it was before. So, you know, I wonder, and I know you, you, uh, you teased, you're working on a new book, you know, some of your thoughts on, you know, kind of this new way to work and, and the human factors in this new, this new kind of reality that we're kind of evolving into, I guess. >>Yeah. I missed was an interest of mine. I think, um, back in the nineties, I wrote an article called, um, a coauthored, an article called two cheers for the virtual office. And, you know, it was just starting to emerge. Then some people were very excited about it. Some people were skeptical and, uh, we said two cheers rather than three cheers because clearly there's some shortcomings. And, you know, I keep seeing these pop up. It's great that we can work from our homes. It's great that we can accomplish most of what we need to do with a digital interface, but, um, you know, things like innovation and creativity and certainly, um, uh, a good, um, happy social life kind of requires some face to face contact every now and then. And so I, you know, I think we'll go back to an environment where there is some of that. >>Um, we'll have, um, times when people convene in one place so they can get to know each other face to face and learn from each other that way. And most of the time, I think it's a huge waste of people's time to commute into the office every day and to jump on airplanes, to, to, um, give every little, um, uh, sales call or give every little presentation. Uh, we just have to really narrow down what are the circumstances where face to face contact really matters. And when can we get by with, with digital, you know, I think one of the things in my current work I'm finding is that even when you have AI based decision making, you really need a good platform in which that all takes place. So in addition to these virtual platforms, we need to develop platforms that kind of structure the workflow for us and tell us what we should be doing next, then make automated decisions when necessary. And I think that ultimately is a big part of biz ops as well. It's not just the intelligence of an AI system, but it's the flow of work that kind of keeps things moving smoothly throughout your organization. >>Yeah. I think such, such a huge opportunity as you just said, cause I forget the stats on how often we're interrupted with notifications between email texts, Slack, a sauna, Salesforce, the list goes on and on. So, you know, to put an AI layer between the person and all these systems that are begging for attention, and you've written a book on the attention economy, which is a whole nother topic, we'll say for another day, you know, it really begs, it really begs for some assistance because you know, you just can't get him picked, you know, every two minutes and really get quality work done. It's just not, it's just not realistic. And you know what? I don't think that's a feature that we're looking for. I agree. Totally. Alright, Tom. Well, thank you so much for your time. Really enjoyed the conversation. I gotta dig into the library. It's very long. So I might start at the attention economy. I haven't read that one in to me. I think that's the fascinating thing in which we're living. So thank you for your time and, uh, great to see you. >>My pleasure, Jeff. Great to be here. >>All right. Take care. Alright. He's Tom I'm Jeff. You are watching the continuing coverage of the biz ops manifesto and Vale. Thanks for watching the cube. We'll see you next time.

Published Date : Oct 15 2020

SUMMARY :

a BizOps manifesto unveiled brought to you by biz ops coalition. Good to see you again. And I think you said you're at a fun, exotic place on the East coast Realm of Memphis shoes. Great to see you again, where are you coming in from? you know, you can do better stuff within your own company, surge, why don't we start with you? whether we're talking about vendors or, um, you know, system integrators, consulting firms are talking Why did you get involved in this, in this effort? And I think we got a lot of improvement at the team level, and I think that was just no. I wonder if you could kind of share your And in general, I think, you know, we've just kind of optimize that to narrow for a long time and it's been, you know, kind of trucking along and then covert hit and you know, when we look at certain parts of the industry, you know, we see some things which are very disturbing, you know, in many ways and make cover. And, you know, we talk about people process we, we realized that to be successful with any kind of digital transformation you So I wonder if you can just share your thoughts on, you know, using flow as a way to think You need to optimize how you innovate and how you deliver value to the business and the customer. and really, you know, force them to, to look at the, at the prioritization and make And, um, you know, it's, it's a difficult aspect but if the culture doesn't adopt it and people don't feel good about it, you know, it's not going to be successful and that's in the context that is relevant and understandable for, for different stakeholders, whether we're talking about you know, metrics that they are used to to actually track you start to, And so you really want to start And, you know, what are the factors that are making and the technology that supports it, you run a pretty big Um, so you know, is the, is the big data I'm just going to use that generically um, you know, at some point maybe we reached the stage where we don't do um, and taking the lessons from agile, you know, what's been the inhibitor to stop and make sure that every development the organization is focused on those as well as the business itself, that we're measuring value So gentlemen, uh, thank you again for, for your time. And thank you for sharing your thoughts with us here on the cube. And we'd like to welcome you back to our And it's, you know, I really applaud, you know, this whole movement, I mean, whether I never sit down and say, you know, the product management team has to get aligned with Deb, Maybe trying to eliminate the word alignment, you know, from a lot of our organizations, Um, the ones that, that jumps out though is really about, you know, change, you know, it's kind of a, now an analogy for transformation. instituting the whole program, implement, you know, the program, increment planning, capabilities and kind of model is, um, and also, uh, you know, on that shorter increment, to really kind of just put them down on paper and you know, I can't help, but think of, So, um, you know, you really, I think we've attacked that in a variety And so when we pie plan, you know, myself and Cameron and the other members of our leadership, So they can, you know, quickly ship code that works. mixed book, you know, it was a great piece on a, you're talking about, you know, as part of the manifesto is that people are building is obviously becoming bigger and bigger, you know, in an, in many ways, right. But the sudden, you know, light switch moment, everybody had to go work from home and in March 15th And we kind of, you know, we started with John and built, you know, out of concentric circles of momentum and, to be able to pivot faster, deliver incrementally, you know, and operate in a different, to get behind these, but if it takes, you know, something a little bit more formal, uh, And I think it's a very analogous, you know, And at least you can measure it again and you can, and you've got some type of a comp and that is really the only way to, It's great to be here. And if you want to check out the biz ops, Manifesta go to biz ops, of biz ops manifesto unveiled brought to you by biz ops coalition. or we're excited to have some of the foundational people that, you know, have put their, put their name on the dotted, It's good to be close to the U S and it's going to have the Arabic cleaner as well. there at Xerox park, you know, some of the lessons you learned and what you've been able to kind of carry forward And of course, there's, as, as you noticed, there's just this DNA of innovation and excitement And I realized none of this was really working, that there was something else, So, you know, the agile movement got started about 20 years ago, And the way that the business was working was planning was investing the right measurement data sets so that you can make the right decisions in terms of what you're investing, different from the way that you measure business outcomes. And it's really interesting to me cause I know, you know, flow on one hand is kind of a workflow And this is really what if you go to the biz ops manifesto, it says, I focus on outcomes And how quickly did you learn and how quickly did you use that data to drive to that next outcome? And you know, I love that you took this approach really of having kind of four So really the key thing is, is to move away from those old ways of doing things But the key thing is what you need to stop doing to focus on these. And I, you know, I think at the same thing, always about Moore's law, And you also make it sound so simple, but again, if you don't have the data driven visibility the AP testing was not even possible with all of those inefficiencies. you know, you have to constantly be delivering value and upgrading that value because you're constantly taking money Well, that really is based on how many features you delivered or how much, how big, how many quality improvements or scalar I wonder if you can, again, you've got some great historical perspective, So the key thing that I've noticed is that if you can model you know, more senior people being overloaded and creating bottlenecks where they didn't exist. Well, you know, what's the biggest inhibitor for most people but the key thing is just to get you set up it's to get started and to get the key wins. continue to spread that well, uh, you know, good for you through the book and through your company. They'd love to have you do it. of biz ops manifesto unveiled brought to you by biz ops coalition. It's the biz ops manifesto unveiling a thing's Hi, good to see you, Jeff. What is the biz ops manifesto? years later, and if you look at the current state of the industry, uh, the product, not just, uh, by, you know, providing them with support, but also, of COVID, which, you know, came along unexpectedly. and you know, if you, if you go back to, uh, I think you'll unmask a few years And the reality is that if you look at it, especially in the last decade, I just liked that you put down these really simple, you know, kind of straightforward core values. you know, another example, for instance, one of our customers in the, uh, in the airline industry And yet, um, you know, the, it teams, whether it's operations, software environments were And there's a good ROI when you talk about, you know, companies not measuring and again, back to a product project management Institute, um, there, And so if you start to think about quality as fitness for purpose, And so, you know, if I'm, But I want to talk about, you know, one of the key ones, which you just talked about, of the speed of change and, and, and, and making that, you know, Um, again, back to one of these surveys that we did with, Um, and you know, we, we talk about kind of this, Why the coalition, why, you know, take these concepts out to a broader audience, all of us, whether we're talking about, you know, consulting agile transformation experts, So we're very pleased at if you look at, uh, And, uh, you know, congratulations to you and the team. manifesto.org, read it and you can sign it and you can stay here for more coverage. of this ops manifesto unveiled brought to you by bill. It's been in the works for awhile, but today's the day that it actually kind of come out to the, So let's just jump into it, you know, and getting ready for this. deal with that issue with, you know, a new framework, eventually a broad set get that to the business side, because as the pace of change has changed on the software side, you know, And the, you know, the idea of kind of ops With the, with the biz ops coalition, you know, getting a collection of, and a manifesto is just a good way to kind of lay out what you see as the key principles Um, and how has that's evolved over, over time, you know, I think at least for, you know, repetitive tactical decisions, And my question is, you know, what are kind of the attributes of and we interviewed with somebody who said, you know, it's amazing what eight weeks we knew, but I wanna, I wanna follow up on that because you know, and AI applications, but I think you could, you could use it much more broadly to talk about your you know, you speak generally about this topic all the time, but how people should really be thinking about where Yeah, well, you know, even talking about automated decisions, So, you know, sucking data out of a contract in order to compare And he built a business on those, you know, very simple little facts what AI has been doing for a long time, which is, you know, making smarter decisions everybody had to work from home and it was, you know, kind of crisis and get everybody set up. And so I, you know, I think we'll go back to an environment where there is some of you know, I think one of the things in my current work I'm finding is that even when on the attention economy, which is a whole nother topic, we'll say for another day, you know, We'll see you next time.

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BizOps Manifesto Unveiled - Full Stream


 

>>From around the globe. It's the cube with digital coverage, a BizOps manifesto unveiled brought to you by biz ops coalition. >>Hey, welcome back everybody. Jeff Frick here with the cube. Welcome back to our ongoing coverage of the biz ops manifesto. Unveil. Something has been in the works for a little while. Today's the formal unveiling, and we're excited to have three of the core of founding members of the manifesto authors of the manifesto. If you will, uh, joining us again, we've had them all on individually. Now we're going to have a great power panel first up. We're gab Mitt, Kirsten returning he's the founder and CEO of Tasktop mic. Good to see you again. Where are you dialing in from? >>Great to see you again, Jeff I'm dialing from Vancouver, >>We're Canada, Vancouver, Canada. One of my favorite cities in the whole wide world. Also we've got Tom Davenport come in from across the country. He's a distinguished professor and author from Babson college, Tom. Great to see you. And I think you said you're at a fun, exotic place on the East coast >>Realm of Memphis shoe sits on Cape Cod. >>Great to see you again and also joining surge Lucio. He is the VP and general manager enterprise software division at Broadcom surge. Great to see you again, where are you coming in from? >>Uh, from Boston right next to kickoff. >>Terrific. So welcome back, everybody again. Congratulations on this day. I know it's, it's been a lot of work to get here for this unveil, but let's just jump into it. The biz ops manifesto, what was the initial reason to do this? And how did you decide to do it in a kind of a coalition, a way bringing together a group of people versus just making it an internal company, uh, initiative that, you know, you can do better stuff within your own company, surge, why don't we start with you? >>Yeah, so, so I think we were at a really critical juncture, right? Many, um, large enterprises are basically struggling with their digital transformation. Um, in fact, um, many recognize that, uh, the, the business side, it collaboration has been, uh, one of the major impediments, uh, to drive that kind of transformation. And if we look at the industry today, many people are, whether we're talking about vendors or, um, you know, system integrators, consulting firms are talking about the same kind of concepts, but using very different language. And so we believe that bringing all these different players together, um, as part of the coalition and formalizing, uh, basically the core principles and values in a BizOps manifesto, we can really start to F could have a much bigger movement where we can all talk about kind of the same concepts and we can really start to provide, could have a much better support for large organizations to transform. Uh, so whether it is technology or services or, um, we're training, I think that that's really the value of bringing all of these players together, right. >>And Nick to you, why did you get involved in this, in this effort? >>So Ben close and follow the agile movement since it started two decades ago with that manifesto. >>And I think we got a lot of improvement at the team level, and I think as satisfies noted, uh, we really need to improve at the business level. Every company is trying to become a software innovator, uh, trying to make sure that they can adapt quickly and the changing market economy and what everyone's dealing with in terms of needing to deliver the customer sooner. However, agile practices have really focused on these metrics, these measures and understanding processes that help teams be productive. Those things now need to be elevated to the business as a whole. And that just hasn't happened. Uh, organizations are actually failing because they're measuring activities and how they're becoming more agile, how teams are functioning, not how much quickly they're delivering value to the customer. So we need to now move past that. And that's exactly what the that's manifested provides. Right, >>Right, right. And Tom, to you, you've been covering tech for a very long time. You've been looking at really hard challenges and a lot of work around analytics and data and data evolution. So there's a definitely a data angle here. I wonder if you could kind of share your perspective of what you got excited to, uh, to sign onto this manifesto. >>Sure. Well, I have, you know, for the past 15 or 20 years, I've been focusing on data and analytics and AI, but before that I was a process management guy and a knowledge management guy. And in general, I think, you know, we've just kind of optimized that to narrow a level, whether you're talking about agile or dev ops or ML ops, any of these kinds of ops oriented movements, we're making individual project, um, performance and productivity better, but we're not changing the business, uh, effectively enough. And that's the thing that appealed to me about the biz ops idea that we're finally creating a closer connection between what we do with technology and how it changes the business and provides value to it. >>Great. Uh, surge back to you, right? I mean, people have been talking about digital transformation for a long time and it's been, you know, kind of trucking along and then covert hit and it was instant lights, which everyone's working from home. You've got a lot more reliance on your digital tools, digital communication, uh, both within your customer base and your partner base, but also then your employees when you're, if you could share how that really pushed this all along. Right? Because now suddenly the acceleration of digital transformation is higher. Even more importantly, you got much more critical decisions to make into what you do next. So kind of your portfolio management of projects has been elevated significantly when maybe revenues are down, uh, and you really have to, uh, to prioritize and get it right. >>Yeah. Maybe I'll just start by quoting Satina Nello basically recently said that they're speeding the two years of digital preservation just last two months in any many ways. That's true. Um, but, but yet when we look at large enterprises, they're >>Still struggling with the kind of a changes in culture that they really need to drive to be able to disrupt themselves. And not surprisingly, you know, when we look at certain parts of the industry, you know, we see some things which are very disturbing, right? So about 40% of the personal loans today, or being, uh, origin data it's by fintechs, uh, of a like of Sophie or, uh, or a lending club, right? Not to a traditional brick and mortar for BEC. And so the, well, there is kind of a much more of an appetite and it's a, it's more of a survival type of driver these days. Uh, the reality is that's in order for these large enterprises to truly transform and engage with this digital transformation, they need to start to really align the business. And it, you know, in many ways, uh, make covered that agile really emerged from the core desire to truly improve software predictability between which we've really missed is all that we, we start to aligning the software predictability to business predictability and to be able to have continual sleep continuous improvement and measurement of business outcomes. So by aligning kind of these, uh, kind of inward metrics, that's, it is typically being using to business outcomes. We think we can start to really ELP different stakeholders within the organization to collaborate. So I think there is more than ever. There's an imperative to act now. Um, and, and resolves, I think is kind of the right approach to drive that transformation. Right. >>I want to follow up on the culture comment, uh, with Utah, because you've talked before about kind of process flow and process flow throughout a whore and an organization. And, you know, we talk about people process and tech all the time. And I think the tech is the easy part compared to actually changing the people the way they think. And then the actual processes that they put in place. It's a much more difficult issue than just the tech issue to get this digital transformation in your organization. >>Yeah. You know, I've always found that the soft stuff about, you know, the culture of the behavior, the values is the hard stuff to change and more and more, we, we realized that to be successful with any kind of digital transformation you have to change people's behaviors and attitudes. Um, we haven't made as much progress in that area as we might have. I mean, I've done some surveys suggesting that, um, most organizations still don't have data-driven cultures. And in many cases there is a lower percentage of companies that say they have that then, um, did a few years ago. So we're kind of moving in the wrong direction, which means I think that we have to start explicitly addressing that, um, cultural, behavioral dimension and not just assuming that it will happen if we, if we build a system, >>If we build it, they won't necessarily come. Right. >>Right. So I want to go to, to you Nick cause you know, we're talking about workflows and flow, um, and, and you've written about flow both in terms of, um, you know, moving things along a process and trying to find bottlenecks, identify bottlenecks, which is now even more important again, when these decisions are much more critical. Cause you have a lot less, uh, wiggle room in tough times, but you also talked about flow from the culture side and the people side. So I wonder if you can just share your thoughts on, you know, using flow as a way to think about things, to get the answers better. >>Yeah, absolutely. And I'll refer back to what Tom has said. If you're optimized, you need to optimize your system. You need to optimize how you innovate and how you deliver value to the business and the customer. Now, what we've noticed in the data, since that we've learned from customers, value streams, enterprise organizations, value streams, is that when it's taking six months at the end to deliver that value with the flow is that slow. You've got a bunch of unhappy developers, unhappy customers when you're innovating house. So high performing organizations we can measure at antenna flow time and dates. All of a sudden that feedback loop, the satisfaction, your developers measurably, it goes up. So not only do you have people context, switching glass, you're delivering so much more value to customers at a lower cost because you've optimized for flow rather than optimizing for these, these other approximate tricks that we use, which is how efficient is my adult team. How quickly can we deploy software? Those are important, but they do not provide the value of agility of fast learning of adaptability to the business. And that's exactly what the biz ops manifesto pushes your organization to do. You need to put in place this new operating model that's based on flow on the delivery of business value and on bringing value to market much more quickly than you were before. Right. >>I love that. And I'm gonna back to you Tom, on that to follow up. Cause I think, I don't think people think enough about how they prioritize what they're optimizing for, because you know, if you're optimizing for a versus B, you know, you can have a very different product that, that you kick out. And, you know, my favorite example is with Clayton Christianson and innovator's dilemma talking about the three inch hard drive, if you optimize it for power, you know, is one thing, if you optimize it for vibration is another thing and sure enough, you know, they missed it on the poem because it was the, it was the game console, which, which drove that whole business. So when you're talking to customers and we think we hear it with cloud all the time, people optimizing for a cost efficiency, instead of thinking about it as an innovation tool, how do you help them kind of rethink and really, you know, force them to, to look at the, at the prioritization and make sure they're prioritizing on the right thing is make just that, what are you optimizing for? >>Oh yeah. Um, you have one of the most important aspects of any decision or attempt to resolve a problem in an organization is the framing process. And, um, you know, it's, it's a difficult aspect to have the decision to confirm it correctly in the first place. Um, there, it's not a technology issue. In many cases, it's largely a human issue, but if you frame >>That decision or that problem incorrectly to narrowly say, or you frame it as an either or situation where you could actually have some of both, um, it, it's very difficult for the, um, process to work out correctly. So in many cases, I think we need to think more at the beginning about how we bring this issue or this decision in the best way possible before we charge off and build a system to support it. You know, um, it's worth that extra time to think, think carefully about how the decision has been structured. Right, >>Sir, I want to go back to you and talk about the human factors because as we just discussed, you can put it in great technology, but if the culture doesn't adopt it and people don't feel good about it, you know, it's not going to be successful and that's going to reflect poorly on the technology, even if that had nothing to do with it. And you know, when you look at the, the, the, the core values, uh, of the Bezos manifesto, you know, a big one is trust and collaboration, you know, learn, respond, and pivot. Wonder if you can share your thoughts on, on trying to get that cultural shift, uh, so that you can have success with the people, or excuse me, with the technology in the process and helping customers, you know, take this more trustworthy and kind of proactive, uh, position. >>So I think, I think at the ground level, it truly starts with the realization that we're all different. We come from different backgrounds. Uh, oftentimes we tend to blame the data. It's not uncommon my experiments that we spend the first 30 minutes of any kind of one hour conversation to debate the validity of the data. Um, and so, um, one of the first kind of, uh, probably manifestations that we've had or revelations as we start to engage with our customers is spoke just exposing, uh, high-fidelity data sets to different stakeholders from their different lens. We start to enable these different stakeholders to not debate the data. That's really collaborate to find a solution. So in many ways, when, when, when we think about kind of the types of changes we're trying to, to truly affect around data driven decision making, he told about bringing the data in context and the context that is relevant and understandable for, for different stakeholders, whether we're talking about an operator or develop for a business analyst. >>So that's, that's the first thing. The second layer I think, is really to provide context to what people are doing in their specific silo. And so I think one of the best examples I have is if you start to be able to align business KPI, whether you are counting, you know, sales per hour, or the engagements of your users on your mobile applications, whatever it is, you can start to connect that PKI to business KPI, to the KPIs that developers might be looking at, whether it is all the number of defects or velocity or whatever over your metrics that you're used to, to actually track you start to be able to actually contextualize in what we are, the effecting, basically a metric of that that is really relevant. And then what we see is that this is a much more systematic way to approach the transformation than say, you know, some organizations kind of creating some of these new products or services or initiatives, um, to, to drive engagements, right? >>So if you look at zoom, for instance, zoom giving away a it service to, uh, to education, he's all about, I mean, there's obviously a marketing aspect in there, but it's, it's fundamentally about trying to drive also the engagement of their own teams. And because now they're doing something for good and many organizations are trying to do that, but you only can do this kind of things in the limited way. And so you really want to start to rethink how you connect to, everybody's kind of a business objective fruit data, and now you start to get people to stare at the same data from their own lens and collaborate on all the data. Right, >>Right. That's a good, uh, Tom, I want to go back to you. You've been studying it for a long time, writing lots of books and getting into it. Um, why now, you know, what, why, why now are we finally aligning business objectives with, with it objectives? You know, why didn't this happen before? And, you know, what are the factors that are making now the time for this, this, this move with the, uh, with the biz ops? >>Well, and much of a past, it was sort of a back office related activity. And, you know, it was important for, um, uh, producing your paychecks and, uh, capturing the customer orders, but the business wasn't built around it now, every organization needs to be a software business, a data business, a digital business, the auntie has been raised considerably. And if you aren't making that connection between your business objectives and the technology that supports it, you run a pretty big risk of, you know, going out of business or losing out to competitors. Totally. So, um, and even if you're in, uh, an industry that hasn't historically been terribly, um, technology oriented customer expectations flow from, uh, you know, the digital native, um, companies that they work with to basically every industry. So you're compared against the best in the world. So we don't really have the luxury anymore of screwing up our it projects or building things that don't really work for the business. Um, it's mission critical that we do that well. Um, almost every time, I just want to fall by that, Tom, >>In terms of the, you've talked extensively about kind of these evolutions of data and analytics from artismal stage to the big data stage, the data economy stage, the AI driven stage and what I find diff interesting that all those stages, you always put a start date, you never put an end date. Um, so you know, is the, is the big data I'm just going to use that generically a moment in time finally here where we're, you know, off mahogany row with the data scientists, but actually can start to see the promise of delivering the right insight to the right person at the right time to make that decision. >>Well, I think it is true that in general, these previous stages never seemed to go away. The, um, the artisinal stuff is still being done, but we would like for less and less of it to be artisinal, we can't really afford for everything to be artisinal anymore. It's too labor and, and time consuming to do things that way. So we shift more and more of it to be done through automation and B to be done with a higher level of productivity. And, um, you know, at some point maybe we reached the stage where we don't do anything artisanally anymore. I'm not sure we're there yet, but we are, we are making progress. Right. >>Right. And Mick, back to you in terms of looking at agile, cause you're, you're such a student of agile. When, when you look at the opportunity with biz ops and taking the lessons from agile, you know, what's been the inhibitor to stop this in the past. And what are you so excited about? You know, taking this approach will enable. >>Yeah. I think both search and Tom hit on this is that in agile what's happened is that we've been measuring tiny subsets of the value stream, right? We need to elevate the data's there. Developers are working on these tools that delivering features that the foundations for for great culture are there. I spent two decades as a developer. And when I was really happy is when I was able to deliver value to customers, the quicker I was able to do that the fewer impediments are in my way, that quicker was deployed and running in the cloud, the happier I was, and that's exactly what's happening. If we can just get the right data, uh, elevated to the business, not just to the agile teams, but really this, these values of ours are to make sure that you've got these data driven decisions with meaningful data that's oriented around delivering value to customers. Not only these legacies that Tom touched on, which has cost center metrics. So when, from where for it being a cost center and something that provided email and then back office systems. So we need to rapidly shift to those new, meaningful metrics that are customized business centric and make sure that every development the organization is focused on those as well as the business itself, that we're measuring value. And that will help you that value flow without interruptions. >>I love that mic. Cause if you don't measure it, you can't improve on it and you gotta, but you gotta be measuring the right thing. So gentlemen, uh, thank you again for, for your time. Uh, congratulations on the, uh, on the unveil of the biz ops manifesto and bringing together this coalition, uh, of, of, uh, industry experts to get behind this. And, you know, there's probably never been a more important time than now to make sure that your prioritization is in the right spot and you're not wasting resources where you're not going to get the ROI. So, uh, congratulations again. And thank you for sharing your thoughts with us here on the cube. >>Thank you. >>Alright, so we had surge Tom and Mick I'm. Jeff, you're watching the cube. It's a biz ops manifesto unveil. Thanks for watching. We'll see you next time >>From around the globe. It's the cube with digital coverage of biz ops manifesto unveiled brought to you by biz ops coalition. >>Hey, welcome back. Variety. Jeff Frick here with the cube. We're in our Palo Alto studios, and we'd like to welcome you back to our continuing coverage of biz ops manifesto unveil some exciting day to really, uh, kind of bring this out into public. There's been a little bit of conversation, but today's really the official unveiling and we're excited to have our next guest is share a little bit more information on it. He's Patrick tickle. He's a chief product officer for planned view. Patrick. Great to see you. >>Yeah, it's great to be here. Thanks for the invite. So why >>The biz ops manifesto, why the biz ops coalition now when you guys have been at it, it's relatively mature marketplace businesses. Good. What was missing? Why, why this, why this coalition? >>Yeah. So, you know, again, why is, why is biz ops important and why is this something that I'm, you know, I'm so excited about, but I think companies as well, right? Well, no, in some ways or another, this is a topic that I've been talking to the market and our customers about for a long time. And it's, you know, I really applaud this whole movement. Right. And, um, it resonates with me because I think one of the fundamental flaws, frankly, of the way we have talked about technology and business literally for decades, uh, has been this idea of, uh, alignment. Those who know me, I occasionally get off on this little rant about the word alignment, right. But to me, the word alignment is, is actually indicative of the, of the, of the flaw in a lot of our organizations and biz ops is really, I think now trying to catalyze and expose that flaw. >>Right. Because, you know, I always say that, you know, you know, alignment implies silos, right. Instantaneously, as soon as you say there's alignment, there's, there's obviously somebody who's got a direction and other people that have to line up and that kind of siloed, uh, nature of organizations then frankly, the passive nature of it. Right. I think so many technology organizations are like, look, the business has the strategy you guys need to align. Right. And, and, you know, as a product leader, right. That's where I've been my whole career. Right. I can tell you that I never sit around. I almost never use the word alignment. Right. I mean, whether, you know, I never sit down and say, you know, the product management team has to get aligned with dev, right. Or the dev team has to get aligned with the delivery and ops teams. I mean, what I say is, you know, are we on strategy, right? >>Like we've, we have a strategy as a, as a full end to end value stream. Right. And that there's no silos. And I mean, look, every on any given day we got to get better. Right. But the context, the context we operate is not about alignment. Right. It's about being on strategy. And I think I've talked to customers a lot about that, but when I first read the manifesto, I was like, Oh yeah, this is exactly. This is breaking down. Maybe trying to eliminate the word alignment, you know, from a lot of our organizations, because we literally start thinking about one strategy and how we go from strategy to delivery and have it be our strategy, not someone else's that we're all aligning to. And I, and it's a great way to catalyze that conversation that I've, it's been in my mind for years, to be honest. Right. >>So, so much to unpack there. One of the things obviously, uh, stealing a lot from, from dev ops and the dev ops manifesto from 20 years ago. And, and as I look through some of the principles and I looked through some of the values, which are, you know, really nicely laid out here, you know, satisfy customer, do continuous delivery, uh, measure, output against real results. Um, the ones that, that jumps out though is really about, you know, change, change, right? Requirements should change frequently. They do change frequently, but I'm curious to get your take from a, from a software development point, it's easy to kind of understand, right. We're making this widget and our competitors, beta widget plus X, and now we need to change our plans and make sure that the plus X gets added to the plan. Maybe it wasn't in the plan, but you talked a lot about product strategy. So in this kind of continuous delivery world, how does that meld with, I'm actually trying to set a strategy, which implies the direction for a little bit further out on the horizon and to stay on that while at the same time, you're kind of doing this real time continual adjustments because you're not working off a giant PRD or MRD anymore. >>Yeah, yeah, totally. Yeah. You know, one of the terms, you know, that we use internally a lot and even with my customers, our customers is we talk about this idea of rewiring, right. And I think, you know, it's kind of a, now an analogy for transformation. And I think a lot of us have to rewire the way we think about things. Right. And I think at Planview where we have a lot of customers who live in that, you know, who operationalize that traditional PPM world. Right. And are shifting to agile and transforming that rewire is super important. And, and to your point, right, it's, you've just, you've got to embrace this idea of, you know, just iterative getting better every day and iterating, iterating, iterating as opposed to building annual plans or, you know, I get customers occasionally who asked me for two or three year roadmap. >>Right. And I literally looked at them and I go, there's no, there's no scenario where I can build a two or three year roadmap. Right. You, you, you think you want that, but that's not, that's not the way we run. Right. And I will tell you the biggest thing that for us, you know, that I think is matched the planning, uh, you know, patents is a word I like to use a lot. So the thing that we've like, uh, that we've done from a planning perspective, I think is matched impedance to continuous delivery is instituting the whole program, implement, you know, the program, increment planning, capabilities, and methodologies, um, in the scaled agile world. Right. And over the last 18 months to two years, we really have now, you know, instrumented our company across three value streams. You know, we do quarterly PI program increment 10 week planning, you know, and that becomes, that becomes the Terra firma of how we plan. >>Right. And it's, what are we doing for the next 10 weeks? And we iterate within those 10 weeks, but we also know that 10 weeks from now, we're gonna, we're gonna adjust iterate again. Right. And that shifting of that planning model to, you know, to being as cross-functional is that as that big room planning kind of model is, um, and also, uh, you know, on that shorter increment, when you get those two things in place, also the impedance really starts to match up, uh, with continuous delivery and it changes, it changes the way you plan and it changes the way you work. Right? >>Yeah. Their thing. Right. So obviously a lot of these things are kind of process driven, both within the values, as well as the principles, but there's a whole lot, really about culture. And I just want to highlight a couple of the values, right? We already talked about business outcomes, um, trust and collaboration, uh, data driven decisions, and then learn, respond and pivot. Right. A lot of those are cultural as much as they are process. So again, is it the, is it the need to really kind of just put them down on paper and, you know, I can't help, but think of, you know, the hammer and up the, a, the thing in the Lutheran church with it, with their manifesto, is it just good to get it down on paper? Because when you read these things, you're like, well, of course we should trust people. And of course we need an environment of collaboration and of course we want data driven decisions, but as we all know saying it and living, it are two very, very different things. >>Yeah. Good question. I mean, I think there's a lot of ways to bring that to life you're right. And just hanging up, you know, I think we've all been through the hanging up posters around your office, which these days, right. Unless you're going to hang a poster in everybody's home office. Right. You can't even, you can't even fake it that you think that might work. Right. So, um, you know, you really, I think we've attacked that in a variety of ways. Right. And you definitely have to, you know, you've got to make the shift to a team centric culture, right. Empowered teams, you know, that's a big deal. Right. You know, a lot of, a lot of the people that, you know, we lived in a world of quote, unquote work. We lived in a deep resource management world for a long, long time, and right. >>A lot of our customers still do that, but, you know, kind of moving to that team centric world is, uh, is really important and core to the trust. Um, I think training is super important, right. I mean, we've, you know, we've internally, right. We've trained hundreds employees over the last a year and a half on the fundamentals really of safe. Right. Not necessarily, you know, we've had, we've had teams delivering in scrum and the continuous delivery for, you know, for years, but the scaling aspect of it, uh, is where we've done a lot of training investment. Um, and then, you know, I think a leadership has to be bought in. Right. You know? And so when we pie plan, you know, myself and Cameron and the other members of our leadership, you know, we're NPI planning, you know, for, for four days. Right. I mean, it's, it's, you've got to walk the walk, you know, from top to bottom and you've got to train on the context. Right. And then you, and then, and, and then once you get through a few cycles where you've done a pivot, right. Or you brought a new team in, and it just works, it becomes kind of this virtuous circle where he'll go, man, this really works so much better than what we used to do. Right. >>Right. The other really key principle to this whole thing is, is aligning, you know, the business leaders and the business prioritization, um, so that you can get to good outcomes with the development and the delivery. Right. And we know again, and kind of classic dev ops to get the dev and the production people together. So they can, you know, quickly ship code that works. Um, but adding the business person on there really puts, puts a little extra responsibility that they, they understand the value of a particular feature or particular priority. Uh, they, they can make the, the, the trade offs and that they kind of understand the effort involved too. So, you know, bringing them into this continuous again, kind of this continuous development process, um, to make sure that things are better aligned and really better prioritize. Cause ultimately, you know, we don't live in an infinite resources situation and people gotta make trade offs. They gotta make decisions as to what goes and what doesn't go in for everything that goes. Right. I always say you pick one thing. Okay. That's 99 other things that couldn't go. So it's really important to have, you know, this, you said alignment of the business priorities as well as, you know, the execution within, within the development. >>Yeah. I think that, you know, uh, you know, I think it was probably close to two years ago. Forester started talking about the age of the customer, right. That, that was like their big theme at the time. Right. And I think to me what that, the age of the customer actually translates to and Mick, Mick and I are both big fans of this whole idea of the project, the product shift, mixed book, you know, it was a great piece on a, you're talking to Mick, you know, as part of the manifesto is one of the authors as well, but this shift from project to product, right? Like the age of the customer, in my opinion, the, the, the embodiment of that is the shift to a product mentality. Right. And, and the product mentality in my opinion, is what brings the business and technology teams together, right? >>Once you, once you're focused on a customer experience, that's delivered through a product or a service that's when I that's, when I started to go with the alignment problem goes away, right. Because if you look at software companies, right, I mean, we run product management models, you know, with software development teams, customer success teams, right. That, you know, the software component of these products that people are building is obviously becoming bigger and bigger, you know, in an, in many ways, right. More and more organizations are trying to model themselves over as operationally like software companies. Right. Um, they obviously have lots of other components in their business than just software, but I think that whole model of customer experience equaling product, and then the software component of product, the product is the essence of what changes that alignment equation and brings business and teams together because all of a sudden, everyone knows what the customer's experiencing. Right. And, and that, that, that makes a lot of things very clear, very quickly. >>Right. I'm just curious how far along this was as a process before, before covert hit, right. Because serendipitous, whatever. Right. But th the sudden, you know, light switch moment, everybody had to go work from home and in March 15th compared to now, we're in October, and this is going to be going on for a while, and it is a new normal and whatever that whatever's going to look like a year from now, or two years from now is TBD, you know, had you guys already started on this journey cause again, to sit down and actually declare this coalition and declare this manifesto is a lot different than just trying to do better within your own organization. >>Yeah. So we had started, uh, you know, w we definitely had started independently, you know, some, some, you know, I think people in the community know that, uh, we, we came together with a company called lean kit a handful of years ago, and I give John Terry actually one of the founders leaned to immense credit for, you know, kind of spearheading our cultural change and not, and not because of, we were just going to be, you know, bringing agile solutions to our customers, but because, you know, he believed that it was going to be a fundamentally better way for us to work. Right. And we kind of, you know, when we started with John and built, you know, out of concentric circles of momentum and, and we've gotten to the place where now it's just part of who we are, but, but I do think that, you know, COVID has, you know, um, I think pre COVID a lot of companies, you know, would, would adopt, you know, the, you would adopt digital slash agile transformation. >>Um, traditional industries may have done it as a reaction to disruption. Right. You know, and in many cases, the disruption to these traditional industries was, I would say a product oriented company, right. That probably had a larger software component, and that disruption caused a competitive issue or a customer issue that caused companies and tried to respond by transforming. I think COVID, you know, all of a sudden flatten that out, right. We literally all got disrupted. Right. And, and so all of a sudden, every one of us is dealing with some degree of market uncertainty, customer uncertainty, uh, and also know none of us were insulated from the need to be able to pivot faster, deliver incrementally, you know, and operate in a different, completely more agile way, uh, you know, post COVID. Right. Yeah. That's great. >>So again, a very, very, very timely, you know, a little bit of serendipity, a little bit of, of planning. And, you know, as, as with all important things, there's always a little bit of luck and a lot of hard work involved. So a really interesting thank you for, for your leadership, Patrick. And, you know, it really makes a statement. I think when you have a bunch of leaderships across an industry coming together and putting their name on a piece of paper, uh, that's aligned around us some principles and some values, which again, if you read them who wouldn't want to get behind these, but if it takes, you know, something a little bit more formal, uh, to kind of move the ball down the field, and then I totally get it and a really great work. Thanks for, uh, thanks for doing it. >>Oh, absolutely. No. Like I said, the first time I read it, I was like, yeah, like you said, this is all, this all makes complete sense, but just documenting it and saying it and talking about it moves the needle. I'll tell you as a company, you gotta, we're pushing really hard on, uh, you know, on our own internal strategy on diversity inclusion. Right? And, and like, once we wrote the words down about what, you know, what we aspire to be from a diversity and inclusion perspective, it's the same thing. Everybody reads the words and goes, why wouldn't we do this? Right. But until you write it down and kind of have again, a manifesto or a Terrafirma of what you're trying to accomplish, you know, then you can rally behind it. Right. As opposed to it being something that's, everybody's got their own version of the flavor. Right. And I think it's a very analogous, you know, kind of, uh, initiative, right. And, uh, and this happening, both of those things, right. Are happening across the industry these days. Right. >>And measure it too. Right. And measure it, measure, measure, measure, get a baseline. Even if you don't like to measure, even if you don't like what the, even if you can argue against the math, behind the measurement, measure it, and at least you can measure it again and you can, and you've got some type of a comp and that is really the only way to, to move it forward. Well, Patrick really enjoyed the conversation. Thanks for, uh, for taking a few minutes out of your day. >>It's great to be here. It's an awesome movement and we're glad >>That'd be part of it. All right. Thanks. And if you want to check out the biz ops, Manifesta go to biz ops, manifesto.org, read it. You might want to sign it. It's there for you. And thanks for tuning in on this segment will continuing coverage of the biz op manifesto unveil here on the cube. I'm Jeff, thanks for watching >>From around the globe. It's the cube with digital coverage of biz ops manifesto unveiled brought to you by biz ops coalition. >>Hey, welcome back, everybody Jeffrey here with the cube. We're coming to you from our Palo Alto studios. And welcome back to this event is the biz ops manifesto unveiling. So the biz ops manifesto and the biz ops coalition had been around for a little while, but today's the big day. That's kind of the big public unveiling or excited to have some of the foundational people that, you know, have put their, put their name on the dotted, if you will, to support this initiative and talk about why that initiative is so important. And so the next guest we're excited to have is dr. Mick Kirsten. He is the founder and CEO of Tasktop mic. Great to see you coming in from Vancouver, Canada, I think, right? Yes. Thank you. Absolutely. I hope your air is a little better out there. I know you had some of the worst air of all of us, a couple, a couple of weeks back. So hopefully things are, uh, are getting a little better and we get those fires under control. Yeah. >>Things have cleared up now. So yeah, it's good. It's good to be close to the U S and it's going to have the Arabic cleaner as well. >>Absolutely. So let's, let's jump into it. So you you've been an innovation guy forever starting way back in the day and Xerox park. I was so excited to do an event at Xerox park for the first time last year. I mean, that, that to me represents along with bell labs and, and some other, you know, kind of foundational innovation and technology centers, that's gotta be one of the greatest ones. So I just wonder if you could share some perspective of getting your start there at Xerox park, you know, some of the lessons you learned and what you've been able to kind of carry forward from those days. >>Yeah. I was fortunate to join Xerox park in the computer science lab there at a very early point in my career, and to be working on open source programming languages. So back then in the computer science lab, where some of the inventions around programming around software development teams, such as object oriented programming, and a lot of what we had around really modern programming levels constructs, those were the teams I have the fortune of working with, and really our goal was. And of course there's as, as you know, uh, there's just this DNA of innovation and excitement and innovation in the water. And really it was the model back then was all about changing the way that we work, uh, was looking at for how we could make it 10 times easier to write code. But this is back in 99. And we were looking at new ways of expressing, especially business concerns, especially ways of enabling people who are, who want to innovate for their business to express those concerns in code and make that 10 times easier than what that would take. >>So we create a new open source programming language, and we saw some benefits, but not quite quite what we expected. I then went and actually joined Charles Stephanie, that former to fucking Microsoft who was responsible for, he actually got Microsoft word as a spark and into Microsoft and into the hands of bill Gates on that company. I was behind the whole office suite and his vision. And then when I was trying to execute with, working for him was to make PowerPoint like a programming language, make everything completely visual. And I realized none of this was really working in that there was something else, fundamentally wrong programming languages, or new ways of building software. Like let's try and do with Charles around intentional programming. That was not enough. >>That was not enough. So, you know, the agile movement got started about 20 years ago, and we've seen the rise of dev ops and really this kind of embracing of, of, of sprints and, you know, getting away from MRDs and PRDs and these massive definitions of what we're going to build and long build cycles to this iterative process. And this has been going on for a little while. So what was still wrong? What was still missing? Why the BizOps coalition, why the biz ops manifesto? >>Yeah, so I basically think we nailed some of the things that the program language levels of teams can have effective languages deployed soften to the cloud easily now, right? And at the kind of process and collaboration and planning level agile two decades, decades ago was formed. We were adopting and all the, all the teams I was involved with and it's really become a self problem. So agile tools, agile teams, agile ways of planning, uh, are now very mature. And the whole challenge is when organizations try to scale that. And so what I realized is that the way that agile was scaling across teams and really scaling from the technology part of organization to the business was just completely flawed. The agile teams had one set of doing things, one set of metrics, one set of tools. And the way that the business was working was planning was investing in technology was just completely disconnected and using a whole different set of advisors. >>Interesting. Cause I think it's pretty clear from the software development teams in terms of what they're trying to deliver. Cause they've got a feature set, right. And they've got bugs and it's easy to, it's easy to see what they deliver, but it sounds like what you're really honing in on is this disconnect on the business side, in terms of, you know, is it the right investment? You know, are we getting the right business ROI on this investment? Was that the right feature? Should we be building another feature or should we building a completely different product set? So it sounds like it's really a core piece of this is to get the right measurement tools, the right measurement data sets so that you can make the right decisions in terms of what you're investing, you know, limited resources. You can't, no one has unlimited resources and ultimately have to decide what to do, which means you're also deciding what not to do. And it sounds like that's a really big piece of this, of this whole effort. >>Yeah. Jeff, that's exactly it, which is the way that the agile team measures their own way of working is very different from the way that you measure business outcomes. The business outcomes are in terms of how happy your customers are, but are you innovating fast enough to keep up with the pace of a rapidly changing economy, rapidly changing market. And those are, those are all around the customer. And so what I learned on this long journey of supporting many organizations transformations and having them try to apply those principles of agile and dev ops, that those are not enough, those measures technical practices, those measured sort of technical excellence of bringing code to the market. They don't actually measure business outcomes. And so I realized that it really was much more around having these entwined flow metrics that are customer centric and business centric and market centric where we need it to go. Right. >>So I want to shift gears a little bit and talk about your book because you're also a bestselling author, a project, a product, and, and, and you, you brought up this concept in your book called the flow framework. And it's really interesting to me cause I know, you know, flow on one hand is kind of a workflow and a process flow and, and you know, that's how things get done and, and, and embrace the flow. On the other hand, you know, everyone now in, in a little higher level existential way is trying to get into the flow right into the workflow and, you know, not be interrupted and get into a state where you're kind of at your highest productivity, you know, kind of your highest comfort, which flow are you talking about in your book or is it a little bit about, >>Well, that's a great question. It's not what I get asked very often. Just to me, it's absolutely both. So that the thing that we want to get to, we've learned how to master individual flow. That is this beautiful book by me, how he teaches me how he does a beautiful Ted talk by him as well about how we can take control of our own flow. So my question with the book with project replies, how can we bring that to entire teams and really entire organizations? How can we have everyone contributing to a customer outcome? And this is really what if you go to the biz ops manifesto, it says, I focus on outcomes on using data to drive whether we're delivering those outcomes rather than a focus on proxy metrics, such as, how quickly did we implement this feature? No, it's really how much value did the customer go to the feature and how quickly did you learn and how quickly did you use that data to drive to that next outcome? >>Really that with companies like Netflix and Amazon have mastered, how do we get that to every large organization, every it organization and make everyone be a software innovator. So it's to bring that co that concept of flow to these entwined value streams. And the fascinating thing is we've actually seen the data. We've been able to study a lot of value streams. We see when flow increases, when organizations deliver value to a customer faster, developers actually become more happy. So things like the employee net promoter scores rise, and we've got empirical data for this. So the beautiful thing to me is that we've actually been able to combine these two things and see the results in the data that you increase flow to the customer. Your developers are more happy. >>I love it, right, because we're all more, we're all happier when we're in the flow and we're all more productive when we're in the flow. So I, that is a great melding of, of two concepts, but let's jump into the, into the manifesto itself a little bit. And, you know, I love that, you know, took this approach really of having kind of four key values and then he gets 12 key principles. And I just want to read a couple of these values because when you read them, it sounds pretty brain dead. Right? Of course. Right. Of course you should focus on business outcomes. Of course you should have trust and collaboration. Of course you should have database decision making processes and not just intuition or, you know, whoever's the loudest person in the room, uh, and to learn and respond and pivot. But what's the value of actually just putting them on a piece of paper, because again, this is not this, these are all good, positive things, right? When somebody reads these to you or tells you these are sticks it on the wall, of course. But unfortunately of course isn't always enough. >>No. And I think what's happened is some of these core principles originally from the agile manifesto two decades ago, uh, the whole dev ops movement of the last decade of flow feedback and continue learning has been key. But a lot of organizations, especially the ones that are undergoing digital transformations have actually gone a very different way, right? The way that they measure value in technology and innovation is through costs for many organizations. The way that they actually are looking at that they're moving to cloud is actually as a reduction in cost. Whereas the right way of looking at moving to cloud is how much more quickly can we get to the value to the customer? How quickly can we learn from that? And how quickly can we drive the next business outcome? So really the key thing is, is to move away from those old ways of doing things, a funny projects and cost centers, uh, to actually funding and investing in outcomes and measuring outcomes through these flow metrics, which in the end are your fast feedback and how quickly you're innovating for your customer. >>So these things do seem, you know, very obvious when you look at them. But the key thing is what you need to stop doing to focus on these. You need to actually have accurate realtime data of how much value your phone to the customer every week, every month, every quarter. And if you don't have that, your decisions are not driven on data. If you don't know what your boggling like is, and this is something that in decades of manufacturing, a car manufacturers, other manufacturers, master, they always know where the bottom back in their production processes. You ask a random CIO when a global 500 company where their bottleneck is, and you won't get a clear answer because there's not that level of understanding. So let's, you actually follow these principles. You need to know exactly where you fall. And I guess because that's, what's making your developers miserable and frustrated around having them context, which on thrash. So it, the approach here is important and we have to stop doing these other things, >>Right? There's so much there to unpack. I love it. You know, especially the cloud conversation, because so many people look at it wrong as, as, as a cost saving device, as opposed to an innovation driver and they get stuck, they get stuck in the literal and the, and you know, I think at the same thing, always about Moore's law, right? You know, there's a lot of interesting real tech around Moore's law and the increasing power of microprocessors, but the real power, I think in Moore's laws is the attitudinal change in terms of working in a world where you know that you've got all this power and what you build and design. I think it's funny to your, your comment on the flow and the bottleneck, right? Cause, cause we know manufacturing, as soon as you fix one bottleneck, you move to your next one, right? You always move to your next point of failure. So if you're not fixing those things, you know, you're not, you're not increasing that speed down the line, unless you can identify where that bottleneck is or no matter how many improvements you make to the rest of the process, it's still going to get hung up on that one spot. >>That's exactly it. And you also make it sound so simple, but again, if you don't have the data driven visibility of where that bottom line is, and these bottlenecks are adjusted to say defense just whack them. All right. So we need to understand is the bottleneck because our security reviews are taking too long and stopping us from getting value for the customer. If it's that automate that process. And then you move on to the next bottleneck, which might actually be that deploying yourself into the cloud. It's taking too long. But if you don't take that approach of going flow first, rather than again, that sort of cost reduction. First, you have to think of the approach of customer centricity and you only focused on optimizing costs. Your costs will increase and your flow will slow down. And this is just one of these fascinating things. >>Whereas if you focus on getting closer to the customer and reducing your cycles out on getting value, your flow time from six months to two weeks or two, one week or two event, as we see with the tech giants, you actually can both lower your costs and get much more value for us to get that learning loop going. So I think I've, I've seen all these cloud deployments and one of the things happened that delivered almost no value because there was such big bottlenecks upfront in the process and actually the hosting and the AP testing was not even possible with all of those inefficiencies. So that's why going float us rather than costs when we started our project versus silky. >>I love that. And, and, and, and it, it begs repeating to that right within the subscription economy, you know, you're on the hook to deliver value every single month because they're paying you every single month. So if you're not on top of how you're delivering value, you're going to get sideways because it's not like they pay a big down payment and a small maintenance fee every month. But once you're in a subscription relationship, you know, you have to constantly be delivering value and upgrading that value because you're constantly taking money from the customer. So it's such a different kind of relationship than kind of the classic, you know, big bang with a maintenance agreement on the back end really important. Yeah. >>And I think in terms of industry shifts that that's, it that's, what's catalyzed. This industry shift is in this SAS and subscription economy. If you're not delivering more and more value to your customers, someone else's, and they're winning the business, not you. So, one way we know is to delight our customers with great user experience as well. That really is based on how many features you delivered or how much, how much, how many quality improvements or scalar performance improvements we delivered. So the problem is, and this is what the business manifesto, as well as the flow frame of touch on is if you can't measure how much value you deliver to a customer, what are you measuring? You just backed again, measuring costs, and that's not a measure of value. So we have to shift quickly away from measuring costs to measuring value, to survive. And in the subscription economy, >>We could go for days and days and days. I want to shift gears a little bit into data and, and a data driven decision making a data driven organization cause right day has been talked about for a long time, the huge big data meme with, with Hadoop over, over several years and, and data warehouses and data lakes and data oceans and data swamps. And you can go on and on and on. It's not that easy to do, right? And at the same time, the proliferation of data is growing exponentially. We're just around the corner from, from IOT and five G. So now the accumulation of data at machine scale, again, is this gonna overwhelm? And one of the really interesting principles, uh, that I wanted to call out and get your take right, is today's organizations generate more data than humans can process. So informed decisions must be augmented by machine learning and artificial intelligence. I wonder if you can, again, you've got some great historical perspective, um, reflect on how hard it is to get the right data, to get the data in the right context, and then to deliver it to the decision makers and then trust the decision makers to actually make the data and move that down. You know, it's kind of this democratization process into more and more people and more and more frontline jobs making more and more of these little decisions every day. >>Yeah. I definitely think the front parts of what you said are where the promises of big data have completely fallen on their face into the swamps as, as you mentioned, because if you don't have the data in the right format, you've cannot connect, collected that the right way you want it, that way, the right way you can't use human or machine learning on it effectively. And there've been the number of data where, how has this in a typical enterprise organization and the sheer investment is tremendous, but the amount of intelligence being extracted from those is, is, is a very big problem. So the key thing that I've noticed is that if you can model your value streams, so you actually understand how you're innovating, how you're measuring the delivery of value and how long that takes, what is your time to value through these metrics like full time? >>You can actually use both the intelligence that you've got around the table and push that down as well, as far as getting to the organization, but you can actually start using that those models to understand and find patterns and detect bottlenecks that might be surprising, right? Well, you can detect interesting bottlenecks when you shift to work from home. We detected all sorts of interesting bottlenecks in our own organization that were not intuitive to me that have to do with, you know, more senior people being overloaded and creating bottlenecks where they didn't exist. Whereas we thought we were actually an organization that was very good at working from home because of our open source roots. So the data is highly complex. Software value streams are extremely complicated. And the only way to really get the proper analysts and data is to model it properly and then to leverage these machine learning and AI techniques that we have. But that front part of what you said is where organizations are just extremely immature in what I've seen, where they've got data from all their tools, but not modeled in the right way. Right, right. >>Right. Well, all right. So before I let you go, you know, let's say you get a business leader. He, he buys in, he reads the manifesto, he signs on the dotted line and he says, Mick, how do I get started? I want to be more aligned with the, with the development teams. I know I'm in a very competitive space. We need to be putting out new software features and engage with our customers. I want to be more data-driven how do I get started? Well, you know, what's the biggest inhibitor for most people to get started and get some early wins, which we know is always the key to success in any kind of a new initiative. >>Right? So I think you can reach out to us through the website, uh, for the manifesto. But the key thing is just, it's definitely set up it's to get started and to get the key wins. So take a product value stream. That's mission critical if it'd be on your mobile and web experiences or part of your cloud modernization platform where your analytics pipeline, but take that and actually apply these principles to it and measure the end to end flow of value. Make sure you have a value metric that everyone is on the same page on, but the people on the development teams that people in leadership all the way up to the CEO, and one of the, where I encourage you to start is actually that end to end flow time, right? That is the number one metric. That is how you measure it, whether you're getting the benefit of your cloud modernization, that is the one metric that when the people I respect tremendously put into his cloud for CEOs, the metric, the one, the one way to measure innovation. So basically take these principles, deploy them on one product value stream measure, Antonin flow time, uh, and then you'll actually be well on your path to transforming and to applying the concepts of agile and dev ops all the way to, to the, to the way >>You're offering model. >>Well, Mick really great tips, really fun to catch up. I look forward to a time when we can actually sit across the table and, and get into this. Cause I just, I just love the perspective and, you know, you're very fortunate to have that foundational, that foundational base coming from Xerox park and they get, you know, it's, it's a very magical place with a magical history. So to, to incorporate that into, continue to spread that well, uh, you know, good for you through the book and through your company. So thanks for sharing your insight with us today. >>Thanks so much for having me, Jeff. Absolutely. >>All right. And go to the biz ops manifesto.org, read it, check it out. If you want to sign it, sign it. They'd love to have you do it. Stay with us for continuing coverage of the unveiling of the business manifesto on the cube. I'm Jeff. Rick. Thanks for watching. See you next time >>From around the globe. It's the cube with digital coverage, a biz ops manifesto unveiled brought to you by biz ops coalition. >>Hey, welcome back. You're ready. Jeff Frick here with the cube for our ongoing coverage of the big unveil. It's the biz ops manifesto manifesto unveil. And we're going to start that again from the top three And a Festo >>Five, four, three, two. >>Hey, welcome back everybody. Jeff Frick here with the cube come to you from our Palo Alto studios today for a big, big reveal. We're excited to be here. It's the biz ops manifesto unveiling a thing's been in the works for a while and we're excited to have our next guest. One of the, really the powers behind this whole effort. And he's joining us from Boston it's surge, Lucio, the vice president, and general manager enterprise software division at Broadcom surge. Great to see you. >>Hi, good to see you, Jeff. Glad to be here. >>Absolutely. So you've been in this business for a very long time. You've seen a lot of changes in technology. What is the biz ops manifesto? What is this coalition all about? Why do we need this today and in 2020? >>Yeah. So, so I've been in this business for close to 25 years, right? So about 20 years ago, the agile manifesto was created. And the goal of the agile manifesto was really to address the uncertainty around software development and the inability to predict the efforts to build software. And, uh, if you, if you roll that kind of 20 years later, and if you look at the current state of the industry of the product, the project management Institute, estimates that we're wasting about a million dollars, every 20 seconds in digital transformation initiatives that do not deliver on business results. In fact, we were recently served a third of the, a, a number of executives in partnership with Harvard >>Business review and 77% of those executives think that one of the key challenges that they have is really the collaboration between business and it, and that that's been kind of a case for, uh, almost 20 years now. Um, so the, the, the key challenge that we're faced with is really that we need a new approach. And many of the players in the industry, including ourselves have been using different terms, right? Some are being, are talking about value stream management. Some are talking about software delivery management. If you look at the site, reliability engineering movement, in many ways, it embodies a lot of these kind of concepts and principles. So we believed that it became really imperative for us to crystallize around, could have one concept. And so in many ways, the, a, the BizOps concept and the BizOps manifesto are bringing together a number of ideas, which has been emerging in the last five years or so, and, and defining the key values and principles to finally help these organizations truly transform and become digital businesses. And so the hope is that by joining our forces and defining public key principles and values, we can help the industry, uh, not just, uh, by, you know, providing them with support, but also tools and consulting that is required for them to truly achieve the kind of transformation that everybody's taking. >>Right. Right. So COVID now we're six months into it, approximately seven months into it. Um, a lot of pain, a lot of bad stuff still happening. We've got a ways to go, but one of the things that on the positive side, right, and you've seen all the memes and social media is, is a driver of digital transformation and a driver of change. Cause we had this light switch moment in the middle of March, and there was no more planning. There was no more conversation. You've suddenly got remote workforces, everybody's working from home and you got to go, right. So the reliance on these tools increases dramatically, but I'm curious, you know, kind of short of, of the beginnings of this effort in short of kind of COVID, which, you know, came along unexpectedly. I mean, what were those inhibitors because we've been making software for a very long time, right? The software development community has, has adopted kind of rapid change and, and iterative, uh, delivery and, and sprints, what was holding back the connection with the business side to make sure that those investments were properly aligned with outcomes. >>Well, so, so you have to understand that it is, is kind of a its own silos. And traditionally it has been treated as a cost center within large organizations and not as a value center. And so as a result, kind of a, the traditional dynamic between it and the business is basically one of a kind of supplier up to kind of a business. Um, and you know, if you go back to, uh, I think you'll unmask a few years ago, um, basically at this concept of the machines to build the machines and you went as far as saying that, uh, the, the machines or the production line is actually the product. So, uh, meaning that the core of the innovation is really about, uh, building, could it be engine to deliver on the value? And so in many ways, you know, we, we have missed on this shift from, um, kind of it becoming this kind of value center within the enterprises and end. >>He talks about culture. Now, culture is a, is a sum total of behaviors. And the reality is that if you look at it, especially in the last decade, uh, we've agile with dev ops with, um, I bring infrastructures, uh, it's, it's way more volatile today than it was 10 years ago. And so the, when you start to look at the velocity of the data, the volume of data, the variety of data to analyze the system, um, it's, it's very challenging for it to actually even understand and optimize its own processes, let alone, um, to actually include business as sort of an integral part of kind of a delivery chain. And so it's both kind of a combination of, of culture, um, which is required, uh, as well as tools, right? To be able to start to bring together all these data together, and then given the volume of variety of philosophy of the data. Uh, we have to apply some core technologies, which have only really, truly emerged in the last five to 10 years around machine learning and analytics. And so it's really kind of a combination of those freaks, which are coming together today, truly out organizations kind of get to the next level. Right, >>Right. So let's talk about the manifesto. Let's talk about, uh, the coalition, uh, the BizOps coalition. I just liked that you put down these really simple, you know, kind of straightforward core values. You guys have four core values that you're highlighting, you know, business outcomes, over individual projects and outputs, trust, and collaboration, oversight, load teams, and organizations, data driven decisions, what you just talked about, uh, you know, over opinions and judgment and learned, respond and pivot. I mean, surgery sounds like pretty basic stuff, right? I mean, aren't, isn't everyone working to these values already. And I think he touched on it on culture, right? Trust and collaboration, data driven decisions. I mean, these are fundamental ways that people must run their business today, or the person that's across the street, that's doing it. It's going to knock them out right off their block. >>Yeah. So that's very true. But, uh, so I'll, I'll mention an hour survey. We did, uh, I think about six months ago and it was in partnership with, uh, with, uh, an industry analyst and we serve at a, again, a number of it executives to understand only we're tracking business outcomes. I'm going to get the software executives, it executives we're tracking business outcomes. And the, there were less than 15% of these executives were actually tracking the outcomes of the software delivery. And you see that every day. Right? So in my own teams, for instance, we've been adopting a lot of these core principles in the last year or so, and we've uncovered that 16% of our resources were basically aligned around initiatives, which are not strategic for us. Um, I take another example, for instance, one of our customers in the, uh, in the airline industry and Harvard, for instance, that a number of, uh, um, that they had software issues that led to people searching for flights and not returning any kind of availability. >>And yet, um, you know, the it teams, whether it's operation software environments were completely oblivious to that because they were completely blindsided to it. And so the connectivity between kind of the inwards metrics that RT is using, whether it's database time, cycle time, or whatever metric we use in it are typically completely divorced from the business metrics. And so at its core, it's really about starting to align the business metrics with the, the, the software delivery chain, right? This, uh, the system, which is really a core differentiator for these organizations. It's about connecting those two things and starting to, um, infuse some of the agile culture and principles. Um, that's emerged from the software side into the business side. Um, of course the lean movement and other movements have started to change some of these dynamics on the business side. And so I think this, this is the moment where we are starting to see kind of the imperative to transform. Now, you know, Covina obviously has been a key driver for that. The, um, the technology is right to start to be able to weave data together and really kind of, uh, also the cultural shifts, uh, Prue agile through dev ops through, uh, the SRE movement, uh frulein um, business transformation, all these things are coming together and that are really creating kind of the conditions for the BizOps manifestor to exist, >>Uh, Clayton Christianson, great, uh, Harvard professor innovator's dilemma might steal my all time. Favorite business books, you know, talks about how difficult it is for incumbents to react to, to disruptive change, right? Because they're always working on incremental change cause that's what their customers are asking for. And there's a good ROI when you talk about, you know, companies not measuring the right thing. I mean, clearly it has some portion of their budget that has to go to keeping the lights on, right. That that's always the case, but hopefully that's an ever decreasing percentage of their total activity. So, you know, what should people be measuring? I mean, what are kind of the new metrics, um, in, in biz ops that drive people to be looking at the right things, measuring the right things and subsequently making the right decisions, investment decisions on whether they should do, you know, move project a along or project B. >>So there, there are only two things, right? So, so I think what you're talking about is portfolio management, investment management, right. And, um, which, which is a key challenge, right? Um, in my own experience, right? Uh, driving strategy or a large scale kind of software organization for years, um, it's very difficult to even get kind of a base data as to who is doing what, uh, um, I mean, some of our largest customers we're engaged with right now are simply trying to get a very simple answer, which is how many people do I have and that specific initiative at any point in time and just tracking that information is extremely difficult. So, and, and again, back to a product project management Institute, um, they're, they've estimated that on average, it organizations have anywhere between 10 to 20% of their resources focused on initiatives, which are not strategically aligned. >>So that's one dimension on portfolio management. I think the key aspect though, that we are really keen on is really around kind of the alignment of a business metrics to the it metrics. Um, so I'll use kind of two simple examples, right? And my background is around quality. And so I've always believed that fitness for purpose is really kind of a key, um, uh, philosophy if you will. And so if you start to think about quality as fitness for purpose, you start to look at it from a customer point of view, right. And fitness for purpose for core banking application or mobile application are different, right? So the definition of a business value that you're trying to achieve is different. Um, and so the, and yet, if you look at our, it, operations are operating, they were using kind of a same type of, uh, kind of inward metrics, uh, like a database of time or a cycle time, or what is my point of velocity, right? >>And, uh, and so the challenge really is this inward facing metrics that it is using, which are divorced from ultimately the outcome. And so, you know, if I'm, if I'm trying to build a poor banking application, my core metric is likely going to be uptime, right? If I'm trying to build a mobile application or maybe your social mobile app, it's probably going to be engagement. And so what you want is for everybody across it, to look at these metric, and what's hard, the metrics within the software delivery chain, which ultimately contribute to that business metric and some cases cycle time may be completely irrelevant, right? Again, my core banking app, maybe I don't care about cycle time. And so it's really about aligning those metrics and be able to start to differentiate, um, the key challenges you mentioned, uh, around the, the, um, uh, around the disruption that we see is, or the investors is the dilemma now is really around the fact that many it organizations are essentially applying the same approaches of, for innovation, right, for basically scrap work, then they would apply to kind of over more traditional projects. And so, you know, there's been a lot of talk about two-speed it, and yes, it exists, but in reality are really organizations, um, truly differentiating, um, all of the operate, their, their projects and products based on the outcomes that they're trying to achieve. And this is really where BizOps is trying to affect. >>I love that, you know, again, it doesn't seem like brain surgery, but focus on the outcomes, right. And it's horses for courses, as you said, this project, you know, what you're measuring and how you define success, isn't necessarily the same as, as on this other project. So let's talk about some of the principles we've talked about the values, but, you know, I think it's interesting that, that, that the BizOps coalition, you know, just basically took the time to write these things down and they don't seem all that, uh, super insightful, but I guess you just gotta get them down and have them on paper and have them in front of your face. But I want to talk about, you know, one of the key ones, which you just talked about, which is changing requirements, right. And working in a dynamic situation, which is really what's driven, you know, this, the software to change in software development, because, you know, if you're in a game app and your competitor comes out with a new blue sword, you've got to come out with a new blue sword. >>So whether you had that on your Kanban wall or not. So it's, it's really this embracing of the speed of change and, and, and, and making that, you know, the rule, not the exception. I think that's a phenomenal one. And the other one you talked about is data, right? And that today's organizations generate more data than humans can process. So informed decisions must be generated by machine learning and AI, and, you know, in the, the big data thing with Hadoop, you know, started years ago, but we are seeing more and more that people are finally figuring it out, that it's not just big data, and it's not even generic machine learning or artificial intelligence, but it's applying those particular data sets and that particular types of algorithms to a specific problem, to your point, to try to actually reach an objective, whether that's, you know, increasing the, your average ticket or, you know, increasing your checkout rate with, with, with shopping carts that don't get left behind and these types of things. So it's a really different way to think about the world in the good old days, probably when you got started, when we had big, giant, you know, MRDs and PRDs and sat down and coded for two years and came out with a product release and hopefully not too many patches subsequently to that. >>It's interesting. Right. Um, again, back to one of these surveys that we did with, uh, with about 600, the ITA executives, and, uh, and, and we, we purposely designed those questions to be pretty open. Um, and, and one of them was really role requirements and, uh, and it was really a wrong kind of what do you, what is the best approach? What is your preferred approach towards requirements? And if I remember correctly over 80% of the it executives set that the best approach they'll prefer to approach is for requirements to be completely defined before software development starts. Let me pause there where 20 years after the agile manifesto, right? And for 80% of these idea executives to basically claim that the best approach is for requirements to be fully baked before salt, before software development starts, basically shows that we still have a very major issue. >>And again, our hypothesis in working with many organizations is that the key challenge is really the boundary between business and it, which is still very much contract based. If you look at the business side, they basically are expecting for it deliver on time on budget, right. But what is the incentive for it to actually delivering all the business outcomes, right? How often is it measured on the business outcomes and not on an SLA or on a budget type criteria. And so that, that's really the fundamental shift that we need to, we really need to drive up as an industry. Um, and you know, we, we talk about kind of this, this imperative for organizations to operate that's one, and back to the innovator's dilemma. The key difference between these larger organization is, is really kind of a, if you look at the amount of capital investment that they can put into pretty much anything, why are they losing compared to, um, you know, startups? What, why is it that, uh, more than 40% of, uh, personal loans today or issued not by your traditional brick and mortar banks, but by, um, startups? Well, the reason, yes, it's the traditional culture of doing incremental changes and not disrupting ourselves, which Christiansen covered at length, but it's also the inability to really fundamentally change kind of a dynamic picture. We can business it and, and, and partner right. To, to deliver on a specific business outcome. Right. >>I love that. That's a great, that's a great summary. And in fact, getting ready for this interview, I saw you mentioning another thing where, you know, the, the problem with the agile development is that you're actually now getting more silos because you have all these autonomous people working, you know, kind of independently. So it's even a harder challenge for, for the business leaders to, to, to, as you said, to know, what's actually going on, but, but certainly I w I want to close, um, and talk about the coalition. Um, so clearly these are all great concepts. These are concepts you want to apply to your business every day. Why the coalition, why, you know, take these concepts out to a broader audience, including your, your competition and, and the broader industry to say, Hey, we, as a group need to put a stamp of approval on these concepts, values, these principles. >>So, first I think we, we want, um, everybody to realize that we are all talking about the same things, the same concepts. I think we were all from our own different vantage point, realizing that, um, things after change, and again, back to, you know, whether it's value stream management or site reliability engineering, or biz ops, we're all kind of using slightly different languages. Um, and so I think one of the important aspects of BizOps is for us, all of us, whether we're talking about, you know, consulting agile transformation experts, uh, whether we're talking about vendors, right, provides kind of tools and technologies, or these large enterprises to transform for all of us to basically have kind of a reference that lets us speak around kind of, um, in a much more consistent way. The second aspect is for, to me is for, um, these concepts to start to be embraced, not just by us or trying, or, you know, vendors, um, system integrators, consulting firms, educators, thought leaders, but also for some of our old customers to start to become evangelists of their own in the industry. >>So we, our, our objective with the coalition needs to be pretty, pretty broad. Um, and our hope is by, by starting to basically educate, um, our, our joint customers or partners, that we can start to really foster these behaviors and start to really change, uh, some of dynamics. So we're very pleased at if you look at, uh, some of the companies which have joined the, the, the, the manifesto. Um, so we have vendors and suggest desktop or advance, or, um, uh, PagerDuty for instance, or even planned view, uh, one of my direct competitors, um, but also thought leaders like Tom Davenport or, uh, or cap Gemini or, um, um, smaller firms like, uh, business agility, institutes, or agility elf. Um, and so our, our goal really is to start to bring together, uh, thought leaders, people who have been LP, larger organizations do digital transformation vendors, were providing the technologies that many of these organizations use to deliver on these digital preservation and for all of us to start to provide the kind of, uh, education support and tools that the industry needs. Yeah, >>That's great surge. And, uh, you know, congratulations to you and the team. I know this has been going on for a while, putting all this together, getting people to sign onto the manifesto, putting the coalition together, and finally today getting to unveil it to the world in a little bit more of a public, uh, opportunity. So again, you know, really good values, really simple principles, something that, that, uh, shouldn't have to be written down, but it's nice cause it is, and now you can print it out and stick it on your wall. So thank you for, uh, for sharing this story. And again, congrats to you and the team. Thank you. Appreciate it. My pleasure. Alrighty, surge. If you want to learn more about the biz ops, Manifesta go to biz ops manifesto.org, read it, and you can sign it and you can stay here for more coverage. I'm the cube of the biz ops manifesto unveiled. Thanks for watching. See you next time >>From around the globe. It's the cube with digital coverage of this ops manifesto unveiled and brought to you by >>This obstacle volition. Hey, welcome back, everybody Jeffrey here with the cube. Welcome back to our ongoing coverage of the biz ops manifesto unveiling. It's been in the works for awhile, but today's the day that it actually kind of come out to the, to the public. And we're excited to have a real industry luminary here to talk about what's going on, why this is important and share his perspective. And we're happy to have from Cape Cod, I believe is Tom Davenport. He's a distinguished author and professor at Babson college. We could go on, he's got a lot of great titles and, and really illuminary in the area of big data and analytics Thomas. Great to see you. >>Thanks Jeff. Happy to be here with you. >>Great. So let's just jump into it, you know, and getting ready for this. I came across your LinkedIn posts. I think you did earlier this summer in June and right off the bat, the first sentence just grabbed my attention. I'm always interested in new attempts to address longterm issues, uh, in how technology works within businesses, biz ops. What did you see in biz ops, uh, that, that kind of addresses one of these really big longterm problems? >>Well, yeah, but the longterm problem is that we've had a poor connection between business people and it people between business objectives and the, it solutions that address them. This has been going on, I think since the beginning of information technology and sadly it hasn't gone away. And so biz ops is a new attempt to deal with that issue with a, you know, a new framework, eventually a broad set of solutions that increase the likelihood that will actually solve a business problem with an it capability. >>Right. You know, it's interesting to compare it with like dev ops, which I think a lot of people are probably familiar with, which was, you know, built around, uh, agile software development and a theory that we want to embrace change that that changes. Okay. And we want to be able to iterate quickly and incorporate that. And that's been happening in the software world for, for 20 plus years. What's taken so long to get that to the business side, because as the pace of change has changed on the software side, you know, that's a strategic issue in terms of execution, the business side that they need now to change priorities. And, you know, there's no PRDs and MRDs and big, giant strategic plans that sit on the shelf for five years. That's just not the way business works anymore. It took a long time to get here. >>Yeah, it did. And, you know, there had been previous attempts to make a better connection between business and it, there was the so called strategic alignment framework that a couple of friends of mine from Boston university developed, I think more than 20 years ago, but you know, now we have better technology for creating that linkage. And the, you know, the idea of kind of ops oriented frameworks is pretty pervasive now. So I think it's time for another serious attempt at it. >>And do you think doing it this way, right. With the, with the BizOps coalition, you know, getting a collection of, of, of kind of likeminded individuals and companies together, and actually even having a manifesto, which we're making this declarative statement of, of principles and values, you think that's what it takes to kind of drive this kind of beyond the experiment and actually, you know, get it done and really start to see some results in, in, uh, in production in the field. >>I think certainly no one vendor organization can pull this off single handedly. It does require a number of organizations collaborating and working together. So I think our coalition is a good idea and a manifesto is just a good way to kind of lay out what you see as the key principles of the idea. And that makes it much easier for everybody to understand and act on. >>I, I think it's just, it's really interesting having, you know, having them written down on paper and having it just be so clearly articulated both in terms of the, of the values as well as, as the, uh, the principles and the values, you know, business outcomes matter trust and collaboration, data-driven decisions, which is the number three of four, and then learn, respond and pivot. It doesn't seem like those should have to be spelled out so clearly, but, but obviously it helps to have them there. You can stick them on the wall and kind of remember what your priorities are, but you're the data guy. You're the analytics guy, uh, and a big piece of this is data and analytics and moving to data driven decisions. And principle number seven says, you know, today's organizations generate more data than humans can process and informed decisions can be augmented by machine learning and artificial intelligence right up your alley. You know, you've talked a number of times on kind of the mini stages of analytics. Um, and how has that evolved over over time, you know, as you think of analytics and machine learning, driving decisions beyond supporting decisions, but actually starting to make decisions in machine time. What's that, what's that thing for you? What does that make you, you know, start to think, wow, this is this going to be pretty significant. >>Yeah. Well, you know, this has been a longterm interest of mine. Um, the last generation of AI, I was very interested in expert systems. And then, um, I think, uh, more than 10 years ago, I wrote an article about automated decision-making using what was available then, which was rule-based approaches. Um, but you know, this addresses an issue that we've always had with analytics and AI. Um, you know, we, we tended to refer to those things as providing decision support, but the problem is that if the decision maker didn't want their support, didn't want to use them in order to make a decision, they didn't provide any value. And so the nice thing about automating decisions, um, with now contemporary AI tools is that we can ensure that data and analytics get brought into the decision without any possible disconnection. Now, I think humans still have something to add here, and we often will need to examine how that decision is being made and maybe even have the ability to override it. But in general, I think at least for, you know, repetitive tactical decisions, um, involving a lot of data, we want most of those, I think to be at least, um, recommended if not totally made by an algorithm or an AI based system. And that I believe would add to, um, the quality and the precision and the accuracy of decisions and in most organizations, >>No, I think, I think you just answered my next question before I, before I asked it, you know, we had dr. Robert Gates on the former secretary of defense on a few years back, and we were talking about machines and machines making decisions. And he said at that time, you know, the only weapon systems, uh, that actually had an automated trigger on it were on the North Korea and South Korea border. Um, everything else, as you said, had to go through a sub person before the final decision was made. And my question is, you know, what are kind of the attributes of the decision that enable us to more easily automated? And then how do you see that kind of morphing over time, both as the data to support that as well as our comfort level, um, enables us to turn more and more actual decisions over to the machine? >>Well, yeah, as I suggested we need, um, data and the data that we have to kind of train our models has to be high quality and current, and we need to know the outcomes of that data. You know, um, most machine learning models, at least in business are supervised. And that means we need to have labeled outcomes in the, in the training data. But I, you know, um, the pandemic that we're living through is a good illustration of the fact that, that the data also have to be reflective of current reality. And, you know, one of the things that we're finding out quite frequently these days is that, um, the data that we have do not reflect, you know, what it's like to do business in a pandemic. Um, I wrote a little piece about this recently with Jeff cam at wake forest university, we call it data science quarantined, and we interviewed with somebody who said, you know, it's amazing what eight weeks of zeros will do to your demand forecast. We just don't really know what happens in a pandemic. Um, our models maybe have to be put on the shelf for a little while and until we can develop some new ones or we can get some other guidelines into making decisions. So I think that's one of the key things with automated decision making. We have to make sure that the data from the past and that's all we have of course, is a good guide to, you know, what's happening in the present and the future as far as we understand it. >>Yeah. I used to joke when we started this calendar year 2020, it was finally the year that we know everything with the benefit of hindsight, but I turned down 20, 20 a year. We found out we actually know nothing and everything and thought we knew, but I want to, I want to follow up on that because you know, it did suddenly change everything, right? We've got this light switch moment. Everybody's working from home now we're many, many months into it, and it's going to continue for a while. I saw your interview with Bernard Marr and you had a really interesting comment that now we have to deal with this change. We don't have a lot of data and you talked about hold fold or double down. And, and I can't think of a more, you know, kind of appropriate metaphor for driving the value of the biz ops when now your whole portfolio strategy, um, these to really be questioned and, and, you know, you have to be really, uh, well, uh, executing on what you are, holding, what you're folding and what you're doubling down with this completely new environment. >>Well, yeah, and I hope I did this in the interview. I would like to say that I came up with that term, but it actually came from a friend of mine. Who's a senior executive at Genpact. And, um, I, um, used it mostly to talk about AI and AI applications, but I think you could, you could use it much more broadly to talk about your entire sort of portfolio of digital projects. You need to think about, well, um, given some constraints on resources and a difficult economy for a while, which of our projects do we want to keep going on pretty much the way we were and which ones are not that necessary anymore? You see a lot of that in AI, because we had so many pilots, somebody told me, you know, we've got more pilots around here than O'Hare airport and, and AI. Um, and then, but the ones that involve doubled down, they're even more important to you. They are, you know, a lot of organizations have found this out, um, in the pandemic on digital projects, it's more and more important for customers to be able to interact with you, um, digitally. And so you certainly wouldn't want to cancel those projects or put them on hold. So you double down on them and get them done faster and better. Right, >>Right. Uh, another, another thing that came up in my research that, that you quoted, um, was, was from Jeff Bezos, talking about the great bulk of what we do is quietly, but meaningfully improving core operations. You know, I think that is so core to this concept of not AI and machine learning and kind of the general sense, which, which gets way too much buzz, but really applied right. Applied to a specific problem. And that's where you start to see the value. And, you know, the, the BizOps, uh, manifesto is, is, is calling it out in this particular process. But I'd love to get your perspective as you know, you speak generally about this topic all the time, but how people should really be thinking about where are the applications where I can apply this technology to get direct business value. >>Yeah, well, you know, even talking about automated decisions, um, uh, the kind of once in a lifetime decisions, uh, the ones that, um, ag Lafley, the former CEO of Procter and gamble used to call the big swing decisions. You only get a few of those. He said in your tenure as CEO, those are probably not going to be the ones that you're automating in part because, um, you don't have much data about them. You're only making them a few times and in part, because, um, they really require that big picture thinking and the ability to kind of anticipate the future, that the best human decision makers, um, have. Um, but, um, in general, I think where they, I, the projects that are working well are, you know, what I call the low hanging fruit ones, the, some people even report to it referred to it as boring AI. >>So, you know, sucking data out of a contract in order to compare it to a bill of lading for what arrived at your supply chain companies can save or make a lot of money with that kind of comparison. It's not the most exciting thing, but AI, as you suggested is really good at those narrow kinds of tasks. It's not so good at the, at the really big moonshots, like curing cancer or, you know, figuring out well what's the best stock or bond under all or even autonomous vehicles. Um, we, we made some great progress in that area, but everybody seems to agree that they're not going to be perfect for quite a while, and we really don't want to be driving around on, um, and then very much unless they're, you know, good and all kinds of weather and with all kinds of pedestrian traffic and you know, that sort of thing, right? >>That's funny you bring up contract management. I had a buddy years ago, they had a startup around contract management and I've like, and this was way before we had the compute power today and cloud proliferation. I said, you know, how can you possibly build software around contract management? It's language, it's legal, ease. It's very specific. And he's like, Jeff, we just need to know where's the contract. And when does it expire? And who's the signatory. And he built a business on those, you know, very simple little facts that weren't being covered because their contracts are in people's drawers and files and homes. And Lord only knows. So it's really interesting, as you said, these kind of low hanging fruit opportunities where you can extract a lot of business value without trying to, you know, boil the ocean. >>Yeah. I mean, if you're Amazon, um, uh, Jeff Bezos thinks it's important to have some kind of billion dollar project. And he even says it's important to have a billion dollar failure or two every year. But I think most organizations probably are better off being a little less aggressive and, you know, sticking to, um, what AI has been doing for a long time, which is, you know, making smarter decisions based on, based on data. >>Right? So Tom, I want to shift gears one more time before, before we let you go on, on kind of a new topic for you, not really new, but you know, not, not a, the vast majority of, of your publications and that's the new way to work, you know, as, as the pandemic hit in mid March, right. And we had this light switch moment, everybody had to work from home and it was, you know, kind of crisis and get everybody set up. Well, you know, now we're five months, six months, seven months. A number of companies have said that people are not going to be going back to work for a while. And so we're going to continue on this for a while. And then even when it's not what it is now, it's not going to be what it was before. So, you know, I wonder, and I know you, you, uh, you teased, you're working on a new book, you know, some of your thoughts on, you know, kind of this new way to work and, and, and the human factors in this new, this new kind of reality that we're kind of evolving into, I guess. >>Yeah. I missed was an interest of mine. I think, um, back in the nineties, I wrote an article called, um, a coauthored, an article called two cheers for the virtual office. And, you know, it was just starting to emerge. Then some people were very excited about it. Some people were skeptical and, uh, we said two cheers rather than three cheers because clearly there's some shortcomings. And, you know, I keep seeing these pop up. It's great that we can work from our homes. It's great that we can, most of what we need to do with a digital interface, but, um, you know, things like innovation and creativity, and certainly, um, uh, a good, um, happy social life kind of requires some face to face contact every now and then. And so I, you know, I think we'll go back to an environment where there is some of that. >>Um, we'll have, um, times when people convene in one place so they can get to know each other face to face and learn from each other that way. And most of the time, I think it's a huge waste of people's time to commute into the office every day and to jump on airplanes, to, to, um, give every little, um, uh, sales call or give every little presentation. Uh, we just have to really narrow down what are the circumstances where face to face contact really matters. And when can we get by with digital? You know, I think one of the things in my current work I'm finding is that even when you have AI based decision making, you really need a good platform in which that all takes place. So in addition to these virtual platforms, we need to develop platforms that kind of structure the workflow for us and tell us what we should be doing next, then make automated decisions when necessary. And I think that ultimately is a big part of biz ops as well. It's not just the intelligence of an AI system, but it's the flow of work that kind of keeps things moving smoothly throughout your organization. >>I think such, such a huge opportunity as you just said, cause I forget the stats on how often we're interrupted with notifications between email texts, Slack, a sauna, Salesforce, the list goes on and on. So, you know, to put an AI layer between the person and all these systems that are begging for attention, you've written a book on the attention economy, which is a whole nother topic, we'll say for another day, you know, it, it really begs, it really begs for some assistance because you know, you just can't get him picked, you know, every two minutes and really get quality work done. It's just not, it's just not realistic. And you know what? I don't think that's a feature that we're looking for. >>I agree. Totally >>Tom. Well, thank you so much for your time. Really enjoyed the conversation. I got to dig into the library. It's very long. So I might start at the attention economy. I haven't read that one. And to me, I think that's the fascinating thing in which we're living. So thank you for your time and, uh, great to see you. >>My pleasure, Jeff. Great to be here. >>All right. He's Tom I'm Jeff. You are watching the continuing coverage of the biz ops manifesto and Vail. Thanks for watching the cube. We'll see you next time.

Published Date : Oct 13 2020

SUMMARY :

a BizOps manifesto unveiled brought to you by biz ops coalition. Good to see you again. And I think you said you're at a fun, exotic place on the East coast Great to see you again, where are you coming in from? you know, you can do better stuff within your own company, surge, why don't we start with you? whether we're talking about vendors or, um, you know, system integrators, consulting firms are talking And I think we got a lot of improvement at the team level, and I think as satisfies noted, I wonder if you could kind of share your And in general, I think, you know, we've just kind of optimized that to narrow for a long time and it's been, you know, kind of trucking along and then covert hit and Um, but, but yet when we look at large enterprises, And not surprisingly, you know, And, you know, we talk about people process and we, we realized that to be successful with any kind of digital transformation you If we build it, they won't necessarily come. So I wonder if you can just share your thoughts on, you know, using flow as a way to think You need to optimize how you innovate and how you deliver value to the business and the customer. And I'm gonna back to you Tom, on that to follow up. And, um, you know, it's, it's a difficult aspect or you frame it as an either or situation where you could actually have some of both, but if the culture doesn't adopt it and people don't feel good about it, you know, it's not going to be successful and that's We start to enable these different stakeholders to not debate the data. the best examples I have is if you start to be able to align business And so you really want to start And, you know, what are the factors that are making flow from, uh, you know, the digital native, um, Um, so you know, is the, is the big data I'm just going to use that generically you know, at some point maybe we reached the stage where we don't do anything and taking the lessons from agile, you know, what's been the inhibitor to stop this And that will help you that value flow without interruptions. And, you know, there's probably never been a more important time than now to make sure that your prioritization is We'll see you next time of biz ops manifesto unveiled brought to you by biz ops coalition. We're in our Palo Alto studios, and we'd like to welcome you back to Yeah, it's great to be here. The biz ops manifesto, why the biz ops coalition now when you guys And it's, you know, I really applaud this whole movement. I mean, whether, you know, I never sit down and say, you know, the product management team has to get aligned with Maybe trying to eliminate the word alignment, you know, from a lot of our organizations, Um, the ones that, that jumps out though is really about, you know, change, you know, it's kind of a, now an analogy for transformation. instituting the whole program, implement, you know, the program, increment planning, capabilities, kind of model is, um, and also, uh, you know, on that shorter increment, to really kind of just put them down on paper and, you know, I can't help, but think of, So, um, you know, you really, I think we've attacked that in a variety And so when we pie plan, you know, myself and Cameron and the other members of our leadership, So they can, you know, quickly ship code that works. mixed book, you know, it was a great piece on a, you're talking to Mick, you know, as part of the manifesto is right, I mean, we run product management models, you know, with software development teams, But th the sudden, you know, light switch moment, everybody had to go work from home and in March 15th And we kind of, you know, when we started with John and built, you know, out of concentric circles of momentum and, I think COVID, you know, to get behind these, but if it takes, you know, something a little bit more formal, uh, And I think it's a very analogous, you know, even if you don't like what the, even if you can argue against the math, behind the measurement, It's great to be here. And if you want to check out the biz ops, Manifesta go to biz of biz ops manifesto unveiled brought to you by biz ops coalition. or excited to have some of the foundational people that, you know, have put their, put their name on the dotted, It's good to be close to the U S and it's going to have the Arabic cleaner as well. there at Xerox park, you know, some of the lessons you learned and what you've been able to kind of carry forward And of course there's as, as you know, uh, there's just this DNA of innovation and excitement And I realized none of this was really working in that there was something else, So, you know, the agile movement got started about 20 years ago, And the way that the business was working was planning was investing the right measurement data sets so that you can make the right decisions in terms of what you're investing, different from the way that you measure business outcomes. And it's really interesting to me cause I know, you know, flow on one hand is kind of a workflow did the customer go to the feature and how quickly did you learn and how quickly did you use that data to drive to you increase flow to the customer. And, you know, I love that, you know, took this approach really of having kind of four So really the key thing is, is to move away from those old ways of doing things, So these things do seem, you know, very obvious when you look at them. but the real power, I think in Moore's laws is the attitudinal change in terms of working in a world where you And you also make it sound so simple, but again, if you don't have the data driven visibility as we see with the tech giants, you actually can both lower your costs and you know, you have to constantly be delivering value and upgrading that value because you're constantly taking money as well as the flow frame of touch on is if you can't measure how much value you deliver to a customer, And you can go on and on and on. if you can model your value streams, so you actually understand how you're innovating, you know, more senior people being overloaded and creating bottlenecks where they didn't exist. Well, you know, what's the biggest inhibitor for most So I think you can reach out to us through the website, uh, for the manifesto. continue to spread that well, uh, you know, good for you through the book and through your company. Thanks so much for having me, Jeff. They'd love to have you do it. a biz ops manifesto unveiled brought to you by biz ops coalition. It's the biz ops manifesto manifesto unveil. Jeff Frick here with the cube come to you from our Palo Alto studios today for a big, Glad to be here. What is the biz ops manifesto? years later, and if you look at the current state of the industry of the product, you know, providing them with support, but also tools and consulting that is of COVID, which, you know, came along unexpectedly. Um, and you know, if you go back to, uh, I think you'll unmask a And the reality is that if you look at it, especially in the last decade, I just liked that you put down these really simple, you know, kind of straightforward core values. And you see that every day. And yet, um, you know, the it teams, whether it's operation software environments were And there's a good ROI when you talk about, you know, companies not measuring the right thing. kind of a base data as to who is doing what, uh, um, And so if you start to think about quality as fitness for purpose, And so, you know, if I'm, But I want to talk about, you know, one of the key ones, which you just talked about, of the speed of change and, and, and, and making that, you know, And if I remember correctly over 80% of the it executives set that the Um, and you know, we, we talk about kind of this, Why the coalition, why, you know, take these concepts out to a broader audience, all of us, whether we're talking about, you know, consulting agile transformation experts, So we're very pleased at if you look at, And, uh, you know, congratulations to you and the team. of this ops manifesto unveiled and brought to you by It's been in the works for awhile, but today's the day that it actually kind of come out to the, So let's just jump into it, you know, and getting ready for this. deal with that issue with a, you know, a new framework, eventually a broad set get that to the business side, because as the pace of change has changed on the software side, you know, And the, you know, With the, with the BizOps coalition, you know, getting a collection of, and a manifesto is just a good way to kind of lay out what you see as the key principles Um, and how has that evolved over over time, you know, I think at least for, you know, repetitive tactical decisions, And my question is, you know, what are kind of the attributes of of course, is a good guide to, you know, what's happening in the present and the future these to really be questioned and, and, you know, you have to be really, uh, and AI applications, but I think you could, you could use it much more broadly to talk about your you know, you speak generally about this topic all the time, but how people should really be thinking about where you know, what I call the low hanging fruit ones, the, some people even report to it referred of weather and with all kinds of pedestrian traffic and you know, that sort of thing, And he built a business on those, you know, very simple little what AI has been doing for a long time, which is, you know, making smarter decisions And we had this light switch moment, everybody had to work from home and it was, you know, kind of crisis and get everybody And so I, you know, I think we'll go back to an environment where there is some of And most of the time, I think it's a huge waste of people's time to commute on the attention economy, which is a whole nother topic, we'll say for another day, you know, I agree. So thank you for your time We'll see you next time.

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>>from around the globe. It's the Cube with digital coverage of biz ops Manifesto unveiled. Brought to you by biz ops Coalition. Hey, welcome back your body, Jeffrey here with the Cube. Welcome back to our ongoing coverage of the busy ops manifesto unveiling its been in the works for a while. But today is the day that it actually kind of come out to the to the public. And we're excited to have a real industry luminary here to talk about what's going on, Why this is important and share his perspective. And we're happy to have from Cape Cod, I believe, is Tom Davenport. He is a distinguished author on professor at Babson College. We could go on. He's got a lot of great titles and and really illuminate airy in the area of big data and analytics. Thomas, great to see you. >>Thanks, Jeff. Happy to be here with you. Great. >>So let's just jump into it, you know, and getting ready for this. I came across your LinkedIn post. I think you did earlier this summer in June and right off the bat, the first sentence just grabbed my attention. I'm always interested in new attempts to address long term issues, Uh, in how technology works within businesses. Biz ops. What did you see in biz ops? That that kind of addresses one of these really big long term problems? >>Well, yeah. The long term problem is that we've had a poor connection between business people and I t people between business objectives and the i t. Solutions that address them. This has been going on, I think, since the beginning of information technology, and sadly, it hasn't gone away. And so busy ops is new attempt to deal with that issue with a, you know, a new framework. Eventually a broad set of solutions that increase the likelihood that will actually solve a business problem with a nightie capability. >>Right. You know, it's interesting to compare it with, like, Dev ops, which I think a lot of people are probably familiar with, which was, you know, built around a agile software development and the theory that we want to embrace change that that changes okay on. We wanna be able to iterate quickly and incorporate that, and that's been happening in the software world for for 20 plus years. What's taking so long to get that to the business side because the pace of change is change on the software side. You know, that's a strategic issue in terms of execution on the business side that they need now to change priorities. And, you know, there's no P R D S and M R. D s and big giant strategic plans that sit on the shelf for five years. That's just not the way business works anymore. Took a long time to get here. >>Yeah, it did. And, you know, there have been previous attempts to make a better connection between business and i t. There was the so called strategic alignment framework that a couple of friends of mine from Boston University developed, I think more than 20 years ago. But, you know, now we have better technology for creating that linkage. And the, you know, the idea of kind of ops oriented frameworks is pretty pervasive now. So I think it's, um you know, time for another serious attempt at it, >>right? And do you think doing it this way right with the bizarre coalition, you know, getting a collection of of kind of like minded individuals and companies together and actually even having a manifesto which were making this declarative statement of principles and values. You think that's what it takes to kind of drive this, you know, kind of beyond the experiment and actually, you know, get it done and really start to see some results in, in in production in the field. >>I think certainly no one vendor organization can pull this off single handedly. It does require a number of organizations collaborating and working together. So I think a coalition is a good idea, and a manifesto is just a good way to kind of lay out. What you see is the key principles of the idea, and that makes it much easier for everybody. Toe I understand and act on. >>Yeah, I I think it's just it's really interesting having, you know, having them written down on paper and having it just be so clearly articulated both in terms of the of the values as well as as the the principles and and the values, you know. Business outcomes, matter, trust and collaboration, data driven decisions, which is the number three or four and then learn, responded pivot. It doesn't seem like those should have to be spelled out so clearly. But obviously it helps to have them there. You can stick them on the wall and kind of remember what your priorities are. But you're the data guy. You're the analytics guy. Yeah, And a big piece of this is data analytics and moving to data driven decisions. And principle number seven says, you know, today's organizations generate more data than humans can process. And informed decisions can be augmented by machine learning and artificial intelligence right up your alley. You know, you've talked a number of times on kind of the many stages of analytics. Onda. How has that's evolved over over time? You know, it is You think of analytics and machine learning driving decisions beyond supporting decisions, but actually starting to make decisions in machine time. What's that? What's that think for you? What does that make you? You know, start to think Wow, this is This is gonna be pretty significant. >>Yeah, well, you know, this has been a long term interest of mine. Um, the last generation of a I I was very interested in expert systems. And then e think more than 10 years ago, I wrote an article about automated decision making using, um, what was available then, which is rule based approaches. But, you know, this address is an issue that we've always had with analytics and ai. Um, you know, we tended Thio refer to those things as providing decision support. The problem is that if the decision maker didn't want their support, didn't want to use them in order to make a decision, they didn't provide any value. And so the nice thing about automating decisions with now contemporary ai tools is that we can ensure that data and analytics get brought into the decision without any possible disconnection. Now, I think humans still have something to add here, and we often will need to examine how that decision is being made and maybe even have the ability to override it. But in general, I think, at least for, you know, repetitive tactical decisions, um, involving a lot of data. We want most of those I think, to be at least, um, recommended, if not totally made by analgesic rhythm or an AI based system, and that, I believe would add to the quality and the precision and the accuracy of decisions. And in most organizations, >>you know, I think I think you just answered my next question before I Before I asked it. You know, we had Dr Robert Gates on the former secretary of Defense on a few years back, and we were talking about machines and machines making decisions, and he said at that time, you know, the only weapon systems that actually had an automated trigger on it, We're on the North Korean South Korea border. Um, everything else that you said had to go through some person before the final decision was made. And my question is, you know what are kind of the attributes of the decision that enable us that more easily automated? And then how do you see that kind of morphing over time both as the the data to support that as well as our comfort level, Um, enables us to turn mawr mawr actual decisions over to the machine? >>Well, yeah, I suggested we need data, and the data that we have to kind of train our models has to be high quality and current, and we need to know the outcomes of the that data. You know, most machine learning models, at least in business, are supervised, and that means we need tohave labeled outcomes in the in the training data. But you know, the pandemic that we're living through is a good illustration of the fact that the data also have to be reflective of current reality. And, you know, one of the things that were finding out quite frequently these days is that the data that we have a do not reflect you know what it's like to do business in a pandemic. I wrote a little piece about this recently with Jeff Cam at Wake Forest University. We call it Data Science Quarantined and it we interviewed somebody who said, You know, it's amazing what eight weeks of zeros will do to your demand forecast. We just don't really know what happens in a pandemic. Our models may be have to be put on the shelf for a little while and until we can develop some new ones or we can get some other guidelines into making decisions. So I think that's one of the key things with automated decision making. We have toe make sure that the data from the past and you know that's all we have, of course, is a good guide toe. You know what's happening in the present and in the future, as far as we understand it. >>Yeah, I used to joke when we started this calendar year 2020 was finally the year that we know everything with the benefit of hindsight. But it turned out 2020 the year we found out we actually know nothing and everything >>we thought we d >>o. But I wanna I wanna follow up on that because, you know, it did suddenly change everything, right? We got this light switch moment. Everybody's working from home now. We're many, many months into it, and it's going to continue for a while. I saw your interview with Bernard Marr and you had a really interesting comment that now we have to deal with this change. We don't have a lot of data and you talked about hold, fold or double down, and And I can't think of, um or, you know, kind of appropriate metaphor for driving the value of the biz ops. When now your whole portfolio strategy, um, needs to really be questioned. And, you know, you have to be really well executing on what you are holding. What you're folding and what you're doubling down with this completely new environment? >>Well, yeah, And I hope I did this in the interview. I would like to say that I came up with that term, but it actually came from a friend of mine was a senior executive at gen. Packed, and I used it mostly to talk about AI and AI applications, but I think you could You could use it much more broadly to talk about your entire sort of portfolio. Digital projects you need to think about. Well, um, given some constraints on resource is and a difficulty economy for a while. Which of our projects do we wanna keep going on Pretty much the way we were for and which ones, um, are not that necessary anymore. You see a lot of that in a I because we had so many pilots. Somebody told me, You know, we've got more pilots around here than O'Hare Airport in a I, um and then the the ones that involve double down there, even mawr Important to you, they are. You know, a lot of organizations have found this out in the pandemic on digital projects. It's more and more important for customers to be ableto interact with you digitally. And so you certainly wouldn't want toe cancel those projects or put them on hold. So you double down on them, get them done faster and better. >>Another. Another thing I came up in my research that that you quoted um, was was from Jeff. Bezos is talking about the great bulk of what we do is quietly but meaning fleeing, improving core operations. You know, I think that is so core to this concept of not AI and machine learning and kind of the general sense, which which gets way too much buzz but really applied, applied to a specific problem. And that's where you start to see the value. And, you know, the biz ops manifesto is calling it out in this particular process. But I just love to get your perspective. As you know, you speak generally about this topic all the time, but how people should really be thinking about where the applications where I can apply this technology to get direct business value. >>Yeah, well, you know, even talking about automated decisions, um, the kind of once in a lifetime decisions, uh, the ones that a G laugh. Li, the former CEO of Proctor and Gamble, used to call the big swing decisions. You only get a few of those, he said. In your tenure as CEO, those air probably not going to be the ones that you're automating in part because you don't have much data about them. Your you know, only making them a few times and in part because they really require that big picture thinking and the ability to kind of anticipate the future that the best human decision makers have. Um, but in general, I think where they I The projects that are working well are you know what I call the low hanging fruit ones? The some people even report to refer to it as boring A. I so you know, sucking data out of a contract in order to compare it Thio bill of lading for what arrived at your supply chain. Companies can save or make a lot of money with that kind of comparison. It's not the most exciting thing, but a I, as you suggest, is really good at those narrow kinds of tasks. Um, it's not so good at the at the really big Moonshots like curing cancer or, you know, figuring out well, what's the best stock or bond under all circumstances or even autonomous vehicles. We made some great progress in that area, but everybody seems to agree that they're not gonna be perfect for quite a while. And we really don't wanna be driving around on, um in that very much, unless they're, you know, good and all kinds of weather and with all kinds of pedestrian traffic. And you know that sort of thing, right? >>That's funny. Bring up contract management. I had a buddy years ago. They had a startup around contract management, and I'm like and this was way before we had the compute power today and cloud proliferation. I said, You know how How could you possibly built off around contract management? It's language. It's legalese. It's very specific. He's like Jeff. We just need to know where's the contract and when does it expire? And who's the signatory? And he built a business on those you know, very simple little facts that weren't being covered because their contracts from people's drawers and files and homes and Lord only knows so it's really interesting as you said. These kind of low hanging fruit opportunities where you could extract a lot of business value without trying to, you know, boil the ocean. >>Yeah, I mean, if you're Amazon, Jeff Bezos thinks it's important toe have some kind of billion dollar projects, and he even says it's important to have a billion dollar failure or two every year. But I think most organizations probably are better off being a little less aggressive and, you know, sticking to what a I has been doing for a long time, which is, you know, making smarter decisions based on based on data. >>Right? So, Tom, I want to shift gears one more time before before you let Ugo on on kind of a new topic for you, not really new, but you know, not not the vast majority of your publications. And that's the new way toe work, you know, as as the pandemic hit in mid March, right? And we had this light switch moment. Everybody had to work from home, and it was, you know, kind of crisis and get everybody set up. Well, you know, now we're five months, six months, seven months. A number of companies have said that people are not gonna be going back to work for a while, and so we're going to continue on this for a while, and then even when it's not what it is now, it's not gonna be what it was before. So, you know, I wonder and I know you, you tease. You're working on a a new book, you know, some of your thoughts on, you know, kind of this new way, uh, toe work and and and the human factors in this new, this new kind of reality that we're kind of evolving into, I guess, >>Yeah, this was an interest of mine. I think. Back in the nineties, I wrote an article called a co authored an article called Two Cheers for the Virtual Office. And, you know, it was just starting to emerge than some people were very excited about it. Some people were skeptical, and we said to cheers rather than three cheers because clearly there's some shortcomings and, you know, I keep seeing these pop up. It's it's great that we can work from our homes. It's great that we can accomplish most of what we need to do with a digital interface, but you know, things like innovation and creativity and certainly, um a A good, um, happy social life kind of requires some face to face contact every now and then. And so you know, I think we'll go back to an environment where there is some of that. Um, will have, um, time when people convene in one place so they can get to know each other face to face and learn from each other that way. And most of the time, I think it's a huge waste of people's time to commute into the office every day and toe jump on airplanes. Thio, Thio, give every little sales call or give every little presentation we just have to really narrow down. What are the circumstances, where face to face contact really matters and when can we get by with digital? You know, I think one of the things in my current work on finding is that even when you have AI based decision making, you really need a good platform in which that all takes place. So in addition to these virtual platforms, we need to develop platforms that kind of structure the workflow for us and tell us what we should be doing next and make automated decisions when necessary. And I think that ultimately is a big part of biz ops as well. It's not just the intelligence of an AI system, but it's the flow of work that kind of keeps things moving smoothly throughout your organization. Yeah, >>I think such such a huge opportunity as you just said, because I forget the stats on how often were interrupted with notifications between email text, slack asana, salesforce The list goes on and on. So, you know, t put an AI layer between the person and all these systems that are begging for attention. And you've written a you know, a book on the attention economy, which is a whole nother topic will say for another day. You know, it really begs. It really begs for some assistance because, you know, you just can't get him picked, you know, every two minutes and really get quality work done. It's just not it's just not realistic. And you know what? I don't think that's the future that we're looking for. >>Great. Totally. Alright, >>Tom. Well, thank you so much for your time. Really enjoyed the conversation. I got to dig into the library. It's very long song. I might started the attention economy. I haven't read that one in to me. I think that's the fascinating thing in which we're living. So thank you for your time. And, uh, great to see you. >>My pleasure, Jeff. Great to be here. >>All right, take care. Alright. East, Tom. I'm Jeff. You are watching the continuing coverage of the biz ops manifesto. Unveil. Thanks for watching the Cube. We'll see you next time.

Published Date : Oct 12 2020

SUMMARY :

Brought to you by biz ops Coalition. Great. So let's just jump into it, you know, and getting ready for this. to deal with that issue with a, you know, a new framework. with, which was, you know, built around a agile software development and the theory that we want to embrace And the, you know, the idea of kind of ops kind of beyond the experiment and actually, you know, get it done and really start to see some results in, What you see is the key Yeah, I I think it's just it's really interesting having, you know, having them written down on paper and But in general, I think, at least for, you know, repetitive tactical decisions, you know, I think I think you just answered my next question before I Before I asked it. the data that we have a do not reflect you know what it's like to do business Yeah, I used to joke when we started this calendar year 2020 was finally the year that we know everything think of, um or, you know, kind of appropriate metaphor for driving the value of AI and AI applications, but I think you could You could use it much more broadly And, you know, the biz ops manifesto is calling it out in this particular process. even report to refer to it as boring A. I so you know, And he built a business on those you know, very simple little facts I has been doing for a long time, which is, you know, making smarter decisions based on based And that's the new way toe work, you know, as as the pandemic hit in mid March, And so you know, I think we'll go back to an environment where there is some I think such such a huge opportunity as you just said, because I forget the stats on how often were interrupted with So thank you for your time. We'll see you next time.

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Cristian Garcia, Schaffhausen Institute of Technology | Acronis Global Cyber Summit 2019


 

>>From Miami beach, Florida. It's the queue covering a cryonics global cyber summit 2019 brought to you by Acronis. >>Okay. Welcome back everyone. This is the cubes coverage here at the Chronis global cyber summit 2019 I'm John furrier, host to the cube. We're Miami beach at the Fontainebleau hotel with a second day. Excited to have this next guest on Christian Garcia, senior vice president of finance and administration at the chauffeur housing ShipIt housing Institute of technology. Did they get it right? Almost right. housing. welcome back. Welcome to the cube. Good to see you. Good to see you. Thanks for having me here. This is a really cool story because you guys are doing something very entrepreneurial, right, with education, right. Okay. Inspired by the founder of a Chronis. Exactly as well. He's got. He's made a lot of money in his day, so he's doing some good things with it. Um, but this is an interesting opportunity for you to take a minute to explain what this Institute stands for. >>It's sit for short. >> Yeah, so sat actually as a name Schaffhausen Institute of technology. So we are actually starting up a university in Schaffhausen in Schaffhausen. These a beautiful tiny CD in Switzerland, 30 minutes or 30 minutes from the Zurich airport, which is the biggest airport in Switzerland, uh, close to Germany at the border with Germany. And uh, so that's kind of your, in the center of Europe and that's where we plan to have our main campus. Now let me tell you this story. How about the vision about target, his vision on these, on this project? Um, he, he said that, you know, uh, he needs to have skills in 10 to 15 years time that nowadays at the institutions that do not do not, do not bring, um, there is the need of computer scientists that are not enough computer scientists and we are having emergent technologies and these is something that provides us with tremendous opportunities, which we cannot even imagine nowadays what type of opportunities and to be on the forefront there. >>That's why we want to found these are, we have founded the Schaffhausen Institute of technology. >> Chef housing is a technology just for share. The day was just two months ago, couple months ago. It was two months ago where we, where we have started up the legal structure and now we are really laying the foundation. We have to find some that are kind of secured for for the next 12 to 18 months. And um, we are, you know, defining the strategic advisory board. We are setting up the curriculum for our students. And so it's everything up and running and to be defined. So risk is right at the creation present at creation. We are talking about this as a, this is the origination story. Exactly. Of the shelf house in Institute of technology. Exactly. What's the vision? >>I mean obviously getting skills for jobs that are our century, our time that's having been teaching in universities and before I get back. But is it about being open and what's the vision is just Switzerland is going to be global. Can you just share, what do you guys are thinking? >>Sure, absolutely. So basically what we are trying to do is to design a curriculum in um, computer science and physics because we think that computer science or present the software in physics represents the hardware. And these two things need to be combined in a entrepreneurial mindset or with an entrepreneurial mindset, which means that we also want to foster the transformation process and the anti entrepreneurship. Now, let me go back to the software path. Uh, our curriculum will cover, um, software engineering, cybersecurity. That's why we are here today. Uh, the curriculum we also cover, um, on the physics part. On the hardware part, we'll cover, uh, quantum technologies, uh, quantum physics and also new materials. Um, and these will be kind of the foundation that will build the curriculum for students, computer scientists to have physics and physics to have computer science in their curriculum so that at some point in time they can come together and to research together. >>This is the digital transformation that we're talking about. The, the intersection and the confluence of physical reality. A world that we live in, whether it's a baseball game or a soccer match to the digital culture, they're not mutually exclusive anymore and they're together. And then the impact is profound. I can only imagine. IOT, industrial, IOT, airplanes, cars, electricity, electronic batteries, all these things, correct. It's software and digital. And physical material. Exactly that you guys are thinking. >>Exactly. Exactly that and actually also considering the industry, talking to the industry, talking to chief information technology officers around the world to understand what they need are and what type of they believe of skills are needed in in 10 to 15 years time. And that's what we want to build up now to get >>well you guys car gotta go, you gotta go faster because there's jobs now. There's thousands of jobs right now in cybersecurity. There's thousands and thousands of jobs for provision and cloud computing. Amazon educate. We talked to them all the time. They just can't get the word out fast enough that Hey, if you're unemployed there's no excuse for being unemployed. Write down there's so many new jobs. But because someone didn't go to the linear school and exactly know go step by step over the years and now you can level up very quickly. Exactly for certification. But you guys are taking a much more bigger idea around real kind of masters level. Is that what it is? Undergraduate masters level? What's the level of, actually we, we, we are starting >>out with this university and we have already students that are at our or with our partner universities currently in Singapore with NUS. And we then move to Karnak and Molly here in the U S um, in order to have it, we'll do a degree. So that's a unique opportunity to already start up with some presence, uh, in, in education. And uh, you ultimately, they will be then acquired. So we hope by, by, by, by the industry and the were terrific. Elon Musk is in there somewhere innovating with who knows what's next out there and he's around. And next Sergei is out there too. A exactly. Exactly. So just look at our, at our home page, look at the curriculum, which we are currently defining now. Eh, that would be, that would be great on sit.org take me through how it works. I know you're just starting, but as you guys look at the world, I mean, first of all, I can see, I can see the attractiveness of a dual degree. >>Yeah. Because most kids get bored in college. They're freelancing anyway. They're learning on their own. I get that. But I can S so I want, so as you guys start building it out, what's going on? What's going, how's it work? What are you guys doing? You're recruiting tickets through the, the factory of work that needs to get done, if you will. What's the workflows look like? What's happening right now? So currently, I mean, we are talking about the university because we, we have students and we will have students and we weren't to have the best talents, uh, globally available. And that's why we are building institution that attracts those talents. And these is kind of the first priority to have, do I have the talents to get the tens to get students come to, to, to sit? And obviously the second part is he said, well, talking to the CEOs and Tito was in to understand what are the needs in 10 to 15 years as an outcome of this digital transformation. >>I mean, the world is computerized. Uh, as you just mentioned before, there are not enough computer scientists currently available. So four out of five companies in Switzerland direction also globally are lacking. Uh, of computer scientists and they understand, you know, at what the digital transformation means. And that's something that we really try to understand as well to build it up the curriculum. What's the timeline of starting with students? Is you right away? Do you have a location? Is there a building, I mean, give us a timeline. When did classes start? When you start bringing people in? Is it happening now? I mean, absolutely. So, so actually currently we are, we are hunting at, at uh, at some campus locations, looking at some campus locations, each a thousand where our main campus will be, will be located. Um, at the, at the, at the same time we are really building buildings structure. >>So we are appointing the strategic advisory board will be, we twill direct, eh, the curriculum of the university. Um, and, and which is represented already by, uh, very, um, great scientists. One of them, the president of the strategic advisory board being professor Dr. Noble selloff, which is a Nobel prize winner. And which actually brings in that, that new ma new material, um, science in our physics curriculum. So that's another thing that we are currently trying to do to build up that governance appropriate components. And third element that we are looking at is also to attract uh, industries and companies that sponsor the students. And that's actually an attractive ecosystem that we are trying to build up to combine science education and also entrepreneurship in business. In order to foster that, which means that we are looking at the campus, we are setting up a research center and I'm talking about two or three years down the line, the research center and then also a tech park where we can commercialize the innovation that the science green Springs in. >>So all in all we really aim to have a closed ecosystem and self sustaining ecosystem. Hopefully that we are going to establish. It's a really big idea. Congratulations. It's bold. It's and it's relevant. Absolutely. So I got to ask you the question, how do you finance all this? Who's paying for it? So tell us how do we get funded? It's very important. Otherwise we pull in, start up with such a tremendous pace. Uh, actually the vision is, is from Sergei Velo self, uh, founder and CEO of Acronis. Um, he, he's, Hey has actually secured the initial founding of the institution and now really we need to have more partners on board in order to make this self sustaining education edge educational system system as sustainable as you are going to be tuition base or scholarship based. Have you guys thought about that? Um, in terms of students it would be tuition-based ah, that's a classical classical model or at least at least in Switzerland and obviously to get the industry sponsoring students in order to also down the line employee them later on. >>That would be the idea situation. Nice vision for Sergei and nice gesture. But you've got to look at what his business is doing. They created a category called cyber protection. Extending the benefit to him is more candidates know physics edge. So why not? This is a great vision. Absolutely the win-win. Absolutely. And we all believe in that the entire, um, you know, stand up team believe in that vision. That's where we are here and building up this institution. Well when you need to go global will be in Silicon Valley and waiting for you guys to come there and collaborate with us there. I hope. I hope that because we want to compliment each other. As I mentioned, computer scientists, our need is globally and obviously also in the Silicon Valley and why not? I think the collaboration aspect is going to be a big part of the growth as you guys get >>settled in on the the first use case in Shevon housing. Exactly. You know, and get that built out, but I think with digital technologies, I think there'll be a great collaboration, bring some good talent in as faculty and advisors and exactly get the flywheel going except congratulations. Thanks for coming on. The key, the education game is changing with modernization of a global impact of technology for good. You're seeing the landscape of innovation hit education. This is another great example of it. Super proud. The interview. Thanks for coming on and sharing the insights. The world continues to evolve. Of course, the cube is, they're watching every turn. I'm John Feria here in Miami beach for the Crohn's global cyber summit. 2019 deck with more coverage after this short break.

Published Date : Oct 15 2019

SUMMARY :

global cyber summit 2019 brought to you by Acronis. This is the cubes coverage here at the Chronis global cyber So we are actually starting up a university in Schaffhausen in Schaffhausen. And um, we are, you know, defining the strategic advisory board. Can you just share, what do you guys are thinking? Uh, the curriculum we also cover, and the confluence of physical reality. Exactly that and actually also considering the industry, What's the level of, actually we, we, I mean, first of all, I can see, I can see the attractiveness of a dual degree. the factory of work that needs to get done, if you will. I mean, the world is computerized. at the campus, we are setting up a research center and I'm Hey has actually secured the initial founding of the institution and now really we need to I think the collaboration aspect is going to be a big part of the growth as you guys get The key, the education game is changing with modernization of a global impact of technology

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Nancy Gohring, 451 Research | Sumo Logic Illuminate 2019


 

>> from Burlingame, California It's the Cube covering Suma logic Illuminate 2019. Brought to You by Sumer Logic. >> Hey, welcome back, everybody. Jeffrey here with the Cube worth, assume a logic illuminate 2019 of it. It's at the Hyatt Regency San Francisco airport. About 809 100 people are second year. It's a 30 year of the event, excited to be here and watch it grow. We've seen a bunch of these things grow from little to bigger over a number of years, and it's always funded kind of beer for the zenith. We're excited to do it by our next guest. She's an analyst. It's Nancy Goering, senior analyst for 4 51 research. Nancy, great to see you. >> Thank you for having me. >> Absolutely so first off, Just kind of impressions of the event here. >> Yeah, good stuff. You know, like he's definitely trying to, you know, get on top of some of the big trends. You know, The big news here was their new Cooper nineties monitoring, also obviously kind of staying on the the leading edge of the cloud. Native Technologies. >> It's it's amazing how fast it's growing, you know, doing some research for this. Then I found some of your stuff out on the Internet and just one quote. I think it's from years ago, but just for people to kind of understand the scale, I think, he said, Google was launching four billion containers a week. Twitter had 12,000. Service is uber 4000. Micro service is Yelp and Justin 25 million data points per minute. I think this is like a two or three year old presentation. I mean, the scale in which the data is moving is astronomical. >> Yeah, well, I mean, if you think of Google launching four billion containers every week, they're collecting a number of different data points about a container spinning up about the operation of that container while it's alive about the container spinning down. So it's not even just four billion pieces of data. It's, you know, multiply that by 10 20 or many more. So, yeah, So the volume of operations dated that people are faced with is just, you know, out of this world, and some of that is beginning to get abstracted away, terms of what you need to look at. So, you know, Kubernetes is an orchestration engine so that's helping move things around. You still need to collect that data to inform automation tools, right? So even if you was, even if humans aren't really looking at it, it's being used to drive automation, right? It still has to be collected, >> right, And they're still configurations and settings and and dials. And it seems like a lot of the breaches that we hear about today are people just miss configuring something on us. It's human error. And so how do we kind of square the circle? Because the date is only growing. The quantity sources, the complexity, Yeah, the lack of structure. And that's before we had a I ot And now we got edge devices and they're all reporting in from from home. Yeah, crazy problem. It's >> really, I think, driving a lot of the investments in the focus and more sophisticated analytics, right? So that's why you're hearing a lot more about machine learning. And a I in this space is because humans can't just look at that huge volume >> of data and >> figure out what it means. So the development of machine learning tools, for instance, is gonna pull out a piece of data that's important. Here is the anomaly. This is the thing you should be paying attention to. Andi, obviously getting increasingly sophisticated, right? In terms of correlating data from different parts of your infrastructure in order to yet make sense of it, >> right? And then, Oh, by the way, they're all made up of micro service is a literal interconnected in AP eyes. The third party providers. Yeah. I mean, the complexity is ridicu >> and then, you know, and I've been actually thinking and talking a lot recently about organizational issues within companies that exacerbate some of these challenges. So you mentioned Micro Service is so ah, lot of times, you know, you've got Dev ops groups and an individual Dev Ops group is responsible for a or multiple. Micro service is right. They're all running, sort of autonomous. They're doing their own thing, right? So they could move quickly. But is there anybody overseeing the application that's made up of maybe 1000 Micro Service's? And in some cases, the answer is no. And so it may look like all the Micro Service's are operating well, but the user experience actually is not good, and no one really notices until the user starts complaining. So it's like things start. You know, you have to think about organizational things. Who's responsible for that, right? You know, if you're on a Dev ops team and your job has been to support the certain service's and not the whole, like who's responsible for the whole application and that's it's a challenge, it's something. Actually, in our surveys, we're hearing from people that they're looking for people that skill set, someone who understands how to look at Micro Service's as they work together to deliver a service, right? It's it's a It's a pain point. Shouldn't >> the project the product manager for that application would hopefully have some instances abilities to kind of what they're trying to optimize for? >> In some cases, they're not technical enough, right? A product manager doesn't necessarily have the depth to know that, or they're not used to using the types of tools that the Dev Ops team or the operations team would use to track the performance of an application. So sometimes it's just a matter of having the right tooling in front of them, >> and then even the performance I was like What do you optimizing four you optimized for security up the mind thing for speed are optimizing for yeah, you can optimize for everything if you got a stack rank order at some point in time. So that would also then drive in a different prioritization or the way that you look at those doctorsservices performance. Yeah, interesting. It's another big topic that comes up often is the vision of a single pane of glass in You know, I can't help but think is in my work day. You know how often I'm tabbing between, you know, sales force and email and slack and asana and, um, a couple of browsers air open. I mean, it's it's it's bananas, you know, it's no longer just that that email is the only thing that's open on my desk all day and only imagine the Dev Ops world. No, we saw just crazy complexity around again, managing all the micro service's of the AP eyes. So what's kind of the story? What are you seeing in kind of the development of that? And there's so many vendors now, and so many service is yeah, it's not just we're just gonna put in HB open view, and that's the standard, and that's what we're all right on. >> So if you're looking at it from the lens of of monitoring or observe ability or performance. Traditionally, you had different tools that looked at, say, different layers of a service, so you had a tool that was looking at infrastructure. Was your infrastructure monitoring tool. You had an application performance monitoring tool. You might have a network performance monitoring tool. You might have point tools that are looking just at the data base layer. But as things get more complicated, Azadliq ations are getting much more complex. Looking at that data in a silo tool tends to obscure the bigger picture. You don't understand when you're looking at the's separate tools how some piece of infrastructure might be impacting the application, for instance. And so the idea is to bring all of that operations data about the performance of an application in tow. One spot where you can run again, these more sophisticated analytics so that you can understand the relationship between the different layers of the application stack also horizontally, right? So how micro service's that are dependent on each other? How one micro service might be impacting the performance of another. So that's conceptually the idea behind having a single pane of glass. Now the execution can happen in a bunch of different ways, so you can have one vendor. There are vendors that are growing horizontally, so they're collecting data across the stack. And there's other vendors that are positioning themselves as that sort of central data repositories, so they may not directly collect all of that data. But they might in just some data that another monitoring vendor has collected. So there's an end. You know, there's there's always going to be good arguments for best of breed tools, right? So, you know, in most cases, businesses are not going to settle on just one monitoring tool that does it all. But that's conceptually the reason, right, and you want to bring all of this data together. However you get it, however, it's being collected so that you can analyze it and understand that big picture performance of a complicated application, >> right? But then, even then, as you said, you don't even want, you're not really monitoring the application performance per se. You're just waiting for the you're waiting for some of those needles to fall out of the haystack because you just you just can't get that much stuff. And you know, it's where do you focus your priority? You know what's most critical? What needs attention now. And if without a machine to help kind of point you in the right direction, you're gonna have a hard time finding that needle. >> And there's a lot of different approaches that are beginning to develop. So one is this idea of SL owes or service level objectives. And so, for instance, a really common service level objective that teams are looking at is Leighton. See, So this Leighton see of the service should never drop under whatever ah 100 milliseconds. And and if it does, I want to be alerted. And also if it drops below that objective for a certain amount of time, that can actually help you as a team. Allocate, resource is so if you're not living up to that service level objective, maybe you should shift some people's time toe working on improving the application instead of developing a new feature, right? So it can really help you prioritize your time because you know what? There was a time when people in operations teams or Dev. Ops teams had a really hard time, and they still d'oh figuring out which problems are important because you've always people always have a lot of performance problems going on. So which do you focus your time on? And it's been pretty opaque. It's hard to see. Is this performance impacting the bottom line of my business? Is this impacting? You know, my customers? Are we losing business over this? Like that's That's a really common question that people I can't answer, right? So there you people are beginning to develop these approaches to try to figure out how to prioritize work on performance problems. It's >> interesting because the other one that and some of you mentioned before is kind of this post incident review instead of a post boredom. And, you know, you talked about culture and words matter, and I think that's a really interesting take because it's it's it implies we're gonna learn, and we're gonna go forward. It's dead. Um, yeah, you know, we're gonna yell at each other and someone's gonna get blamed. That's exactly it. And we're going to move on. So, you know, how is that kind of evolved in. And how does that really help organizations do a better job? >> There's, I mean, there's there's much more of a focus on setting aside time to do that kind of analysis, right? So look at how we're performing as a team. Look at how we responded to an incident so that you can find ways that you can do better next time and some of that Israel tactical right? It's tweaking alerts. Did we not get an alert? You know, did we not even know this problem was happening? So maybe you build new alerts or sport get rid of a bunch of alerts that did nothing. You know, there's there's a lot you can learn on again to To your point, I think part of the reason people have started calling in a post Incident review instead of a postmortem is because yet you don't want that to be a session where people are feeling like Blaine. You know, this is my fault. I screwed up. I spent way too long on this, so I >> had to >> set things out properly. It's it's meant to be productive. Let's find the weak points and fill them right. Fill those gaps. >> It's funny you had another. There's another thing I found where you were talking about not not necessarily the Post Borden, but you know, people, people being much more proactive, much more, you know, thoughtful as to how they are going to take care of these things. And it is really more of a social cultural change unnecessarily. The technical piece that culture pieces. So so >> it is and especially, you know, right now there's a lot of focus on on tooling and that can cause some, you know, interesting issues. So, you know, especially in an organization that has really adopted Dev ops practices like the idea of a Dev Ops team is that it's very autonomous. They do what they do, what they need to do right to move fast and to get the job done. And that often includes choosing your own tools, but that that has created a number of problems, especially in monitoring. So if you have 100 Dev ops teams and they all have chosen their own, monitoring tools like this is not efficient, so it's not. It's not a good idea because those tools aren't talking to each other, even though they're micro service's that are dependent on each other. It's inefficient. From a business perspective. You've got all these relationships with vendors, and in some cases, with a single vendor, you might have 50 instances of the same monitoring tool that you know you have 50 accounts with them, like that's just totally inefficient. And then you've got people on a Dev ops, an individual, all the all the individual Dev ops teams have a person who's supposed to be the resident expert in these tools, like maybe you should share that knowledge across. But my point is, you get into the situation where you have hundreds of monitoring tools, sometimes 40 50 monitoring tools. You realize that's a problem. How do you address that problem? Because you're gonna have to go out and tell people you can't use this tool that you love. That helps you do your job that you chose. And so again, this whole cultural question comes out like, How do you manage that transition in a way that's gonna be productive? >> Thea other one that you brought up that was interesting is where the the sport team basically tells the business team you only have X number of incidents. We're gonna give you a budget. Yeah, exceed the budget. We're not going to help you. It's a really different way to think about prioritization. I >> don't necessarily think that's a great approach, but I mean, there was somebody who did that, but I think it's kind of it's kind of >> an interesting thing. And you talked about it in that. I think it was one of your presentations or speeches where, you know, it makes you kind of rethink. You know, why do we have so many incidents? Yeah, and there shouldn't be that many incidents, and maybe some of the responsibility should be shifted to think about why in the how and is more of a systemic problem than a feature problem or a bug, right? It's a broken code. So again, I think there's so many kind of cultural opportunities to rethink this. In a world of continuous development, continuous publishing and continuous pushing out of new code. Yeah, yeah, sure. All right. Nancy will. Thanks for taking a few minutes, and it's really great to talk to you. Thanks >> for having me. >> Alright. She's Nancy. I'm Jeff. You're watching the Cube where it's Uma Logic illuminate 2019. Thanks for watching. We'll see next time

Published Date : Sep 13 2019

SUMMARY :

from Burlingame, California It's the Cube covering It's at the Hyatt Regency San Francisco airport. You know, like he's definitely trying to, you know, get on top of some of the big trends. It's it's amazing how fast it's growing, you know, doing some research for this. So even if you was, even if humans aren't really looking at it, And it seems like a lot of the breaches that we hear about today are people just miss configuring And a I in this space is because humans This is the thing you should be paying attention to. I mean, the complexity is ridicu So you mentioned Micro Service is so ah, lot of times, you know, you've got Dev ops groups and an individual So sometimes it's just a matter of having the right tooling in front of them, or the way that you look at those doctorsservices performance. And so the idea is to bring all of that operations And you know, it's where do you focus your priority? So it can really help you prioritize your time because you know what? interesting because the other one that and some of you mentioned before is kind of this post incident review instead You know, there's there's a lot you can learn on again to To your point, It's it's meant to be productive. not necessarily the Post Borden, but you know, people, people being much more proactive, and that can cause some, you know, interesting issues. tells the business team you only have X number of incidents. you know, it makes you kind of rethink. Thanks for watching.

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>> Announcer: From Burlingame, California, it's theCUBE, covering Sumo Logic Illuminate 2019. Brought to you by Sumo Logic. >> Hey, welcome back, everybody. Jeff Frick here, with theCUBE. We're at Sumo Logic Illuminate at the Hyatt Regency San Francisco Airport. About 800 people, 900 people, packed house in the keynote earlier this afternoon, really interesting space. And we're excited to have our next guest, kind of on the cutting edge of the IoT space on the consumer side. And he's Robert Parker, the CTO of Samsung SmartThings. Robert, great to see you. >> Hi, great to be here. >> Absolutely, so, before we get into the depth of the conversation, a little bit of a background on SmartThings. I was doing some research, getting ready for this, and the fact that it started as a Kickstarter a long time ago, not that long ago, and now is part of Samsung, a global electronics giant, what a fun adventure. >> Absolutely, I think it's been one of these things where it's great to be something where it's community-driven to begin with. So, Kickstarter was a big part of our launch, and we were one of the biggest Kickstarter launches at the time, really powered by our community around the website and early users. We got a lot of interest in IoT, and then moved on to the next stage of the vision, which is sort of encompassing all devices. And so, that meant we have more than 2,000 different Samsung devices on the platform now, which really allowed devices to talk to each other in ways that are really exciting, and that breadth has been a really great thing to be part of. >> Right, it's really funny, we went to the Samsung Developer Conference a couple years ago, and it was funny to see the living room guys fighting with the kitchen guys as to, what was the center? Is it the TV, or is it the refrigerator? Or is the the washing machine, for that bit? And Samsung's really got a foot in all those places. >> Absolutely, this is one of the things that the SmartThing platform has really enabled Samsung to transition across, as then it's no longer a conversation with the washing machine person or the dryer. All the devices are part of the SmartThings cloud. The SmartThings cloud is a one way that you can talk to Samsung devices, and it's an open ecosystem. So, it's not just Samsung devices, we're equally comfortable with manufacturers, any manufacturer, bringing those devices because home is a multi-vendor environment. You are not going to have all of your home from any one vendor. >> Right. >> And that's been one of the exciting parts of the vision, is that's been part, the open ecosystem has been something that's been part of the SmartThings story forever. To really immortalize that in a platform for Samsung has been a great transition. >> Right, so we're here at Sumo Logic Illuminate, and in preparing for this, I saw an interview with you, you made a really interesting comment. You said that we are a pervasive user of Sumo Logic, and then you said 90% of the team are using Sumo Logic. It's fascinating to me, because I think a lot of companies are chasing innovation, and I think one of the ways to get innovation is you enable more people to have more access to more data, and the tools to actually operate that data so that they can do their jobs and find cool ways to make improvements that aren't necessarily coming from the top down. It sounds like you guys have addressed that philosophy wholeheartedly. >> So, we absolutely have addressed it wholeheartedly, I think there was a lot of luck involved, and I wanted to sort of describe it, is that one of the things that worked well for us is people were excited to use Sumo more and more. They were more excited to see what they could do with the tool, what insights they could get, and so, you'd see your neighbor looking at it, and they'd look at a dashboard and they'd say, hey, can I do a little bit of that? And so much so, in the last year, we've seen a lot of unplanned value come out. So, a third of the value we got out of the Sumo in the past year was unplanned. It was things people didn't, processes they didn't know they would improve that really just came from this groundswell, from what I would call the community. And I think that's where you get, that unlocks a lot of the potential, because you really can't do things from sort of the planned high level. You really need people actively engaged and doing stuff you wouldn't expect. >> That's great. So, I want to talk a little bit about security. Security's a big topic here, it's a topic everywhere we go. And now, with connected devices, and connected keys, and connected doorbells, it seems like, oh, here we go again, and there's this constant talk that security's got to be baked in throughout the entire process. How are you guys dealing with security? It's obviously got to be right at the top of mind in terms of priorities while you're still connecting the sprinklers-- >> No, absolutely. >> And the thermostat and everything else. >> Security and privacy are both critical. I link in privacy even though you didn't ask about it, because, as you think about devices like cameras and things like this, privacy is top of mind. Also, in terms of regulation like GDPR. And so, because of that, we're really looking at both cases, the challenge for both security and privacy is, it really cuts through your whole organization and every process, and by the way, every process that every partner at the organization has, because we can have something that could be exploited from an attack through a customer service representative, that could be a person in the customer service organization, it could be how someone social engineered that. And so, what we've really needed is this kind of continuous intelligence that can span all of these processes, because in something like security, you're as good as your weakest process. And that doesn't mean that we don't focus on all the things that you talked about. We're industry-leading from a device perspective to have hardware baked-in keys and do things in the manufacturing process that lead to something that could be as secure as anything, but that's really the secret of using a lot of the continuous intelligence tools like Sumo, is that all of these could-bes aren't enough. You have to bring it together by having the intelligence that spans those processes to make sure that all of them are elevated, because at the end of the day, a security attack is going to attack your weakest thing, not your strongest thing. >> Right, so one of the other topics here that's talked about is this exponential growth of data, and you guys are part of the problem, 'cause now we got sensors, and light switches, and all these other things that are kickin' off data that, before, we weren't monitoring. And so, from an execution point of view at the company, when you've got so much data that you need to turn into information, and then actionable insight, you said Sumo's got some unique characteristics that allow you guys to get more leverage out of that platform. I wonder if you could dig into that a little bit more. >> And I'd like to reframe the data discussion a little bit, because a lot of people look at it as a problem, and I want to really talk about the opportunity side. So, part of that goes to our story, where we started off at Kickstarter with a few thousand users. We have over 50 million active users now. >> Jeff: 50 million? >> 50 million, our Android application in the Google Play Store had been been downloaded around 200 million times, so it gives you some idea of that size and scope. So, the data is an opportunity. There's an opportunity to build a customer base, to excite people, and to manage the processes that do that. And what's great now is that the availability of this data means that you can do it in more ways than you ever could before. The problem is, you need a tool that brings this together to be able to do that, and doing that well is difficult. Difficult both on the teams, and difficult because of the size, scope, and complexity of the systems because of the data that you mentioned. But the reason you want to do it is so that you can cross the chasm in terms of this opportunity. And more and more companies have this opportunity out in front of them. One of the things that's been really exciting about the cloud is it sort of democratized the entry point, but that wasn't good enough. Just because you could get in the game with three people, it's like making a, you can make a application in a mobile application store, either on Google's or on Apple's, really easily, that gets you in there. What you really need to do is manage the intelligence that goes from that, and for us, it's been really exciting to be able to take our decisions and make them data-driven. And we can do that by this explosion of data because it is there. >> Right, and the data is good, and I think we see data as an asset, it hasn't really hit balance sheets officially yet, but I think you see it in the valuations of companies like Google, and Facebook, and Amazon, right, who obviously have these crazy, giant multiples of their revenue, one, because they're growing, but two, because they have so much data. So, the market's kind of valuing that data without explicitly calling it out as a line item on the balance sheet. That said, not all data has the same value, not all data needs to be treated the same. And so, it really opens up an opportunity to say how do you tier it? So, you don't want to get, y'know, spend a ton of money on a piece of data and a big, fat stream that somebody leaves open on Amazon accidentally, suddenly have a big bill, and that maybe wasn't the most valuable, so. >> I'd actually double down on what you said, because for a typical company, one of the things that's also been true of the mega-scale companies that you pointed out with, is there's a lot of uniformity in their data. So, a company like Amazon, they have customer orders and they've got orders at this massive scale. A typical company doesn't look like that. Their data spread is more fragmented, smaller scale, and so, because of that, they want to make different decisions. And this is the same thing that has already happened in the storage area. People are really comfortable with storage that they're going to have in either disaster recovery, or long-term storage, and they want a very low-cost footprint around that. They've got their hot data, and they're much more willing to have that data managed differently, and at a higher cost rate, because it's much more valuable. We're looking for tools that span that, not just in storage, but in the ingestion, and the management, and the querying of that data, because, like you said, for most businesses, a lot of data is infrequently looked at, or looked at in response to a situation, so I'll never know which 10% of the data will be looked at. It'll be based on, oh, I got audited, or some other business event that happens. And so, this is one of the keys things that businesses are now struggling with. One of them is that, hey, they want to adopt these practices to become modern, or more modernized, but the second one is, to really be able to tier the data because they couldn't treat all the data as if it's hot data, just like they already figured that out for storage. >> Right, it's pretty interesting, 'cause it's been going on for storage forever, and we really saw it, I think, with the rise of Flash, which was super-high quality but super-expensive in the early days, that's coming down. And then, at the other end, we have the Glacier Storage and the cold storage just put it away. I want to get your last thoughts, last answer, Robert. As you look forward, I can't believe we're already in middle of September of 2019, it's fascinating to me that time flies so fast, but as you look forward, what are some of your priorities over the next year or so? How are you guys moving the ball down the field? >> One of the things that we're looking at was the data problem that you were talking about, if, really looking at our infrequent data, and being able to manage that effectively, both from the types of insights that we can get from that, so a lot of this starts to be better usage of machine learning, pattern recognition, AI, and so that we can, the ideal situation for us in that type of data is it got touched once, it got looked at once, and then we could understand how to action it later, that deferred action. And then, how to trigger that deferred action, as well as the tiering that we sort of talked about, that all data's not-- >> Created equal. >> Created equally, and so both those things are happening. Just to put some numbers on this, as why, is that we have 150 terabytes or so of data that is somewhat interesting to our business generated on a daily basis. >> 150 terabytes a day? >> 150 terabytes a day. >> That's interesting, that's the good stuff. >> And out of that, I'd say 10 terabytes is really actionable. And so, that gives you an idea. The other part is how that's growing, where a year ago, we would've been at maybe 60 terabytes of what I would've called this interesting data, and maybe five terabytes of immediately actionable. And so, this is following that, where that's exponentially growing, and it's a big number, so that's what we really think about. >> So, you scared? Because those curves, those curves get steep. >> It's the same way, we look at it as a huge opportunity, so what will happen is, either people will create value out of that for customers, in which case, actually, the opportunity, because it's at such a scale, it will be great for everyone, or, number two, it just becomes noise. And so, it isn't really something to get scared of, because worst case is, it became noise to you. We really want to be one of those people who are getting value out of it, and see the business growth and the consumer value growth out of that. I'm pretty optimistic that we'll be able to do it, because we really, if I look back three, four, years, we've just been able to figure out a way, and I think it will continue to do that. >> All right, well, Robert, thanks for taking a few minutes of your time and sharing the story, it's a great story. >> Thank you, appreciate being here. >> All right, he's Robert, I'm Jeff, you're watching theCUBE. We're at Sumo Logic Illuminate 2019. Thanks for watching, we'll see you next time.

Published Date : Sep 12 2019

SUMMARY :

Brought to you by Sumo Logic. And he's Robert Parker, the CTO of Samsung SmartThings. and the fact that it started as a Kickstarter And so, that meant we have more than 2,000 different Or is the the washing machine, for that bit? that the SmartThing platform has really enabled Samsung And that's been one of the exciting parts of the vision, that aren't necessarily coming from the top down. of the potential, because you really can't do things It's obviously got to be right at the top of mind all the things that you talked about. are part of the problem, 'cause now we got sensors, So, part of that goes to our story, where we because of the data that you mentioned. Right, and the data is good, and I think and the querying of that data, because, and the cold storage just put it away. and so that we can, the ideal situation for us that is somewhat interesting to our business And so, that gives you an idea. So, you scared? and the consumer value growth out of that. a few minutes of your time and sharing the story, Thanks for watching, we'll see you next time.

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Kalyan Ramanathan, Sumo Logic | Sumo Logic Illuminate 2019


 

>> Narrator: From Burlingame, California, it's theCUBE. Covering Sumo Logic Illuminate 2019. Brought to you by Sumo Logic. >> Hey, welcome back, everybody, Jeff Frick here with theCUBE. We're at Sumo Logic Illuminate 2019. It's at the Hyatt Regency San Francisco Airport. We're excited to be back. It's our second year, so third year of the show, and really, one of the key tenants of this whole event is the report. It's the fourth year of the report. It's The Continuous Intelligence Report, and here to tell us all about it is the VP of Product Marketing, Kalyan Ramanathan. He's, like I said, VP, Product Management of Sumo Logic. Great to see you again. >> All right, thank you, Jeff. >> What a beautiful report. >> Absolutely, I love the cover and I love the data in the report even more. >> Yeah, but you cheat, you cheat. >> How come? >> 'Cause it's not a survey. You guys actually take real data. >> Ah, that's exactly right, exactly right. >> No, I love them, let's jump into it. No, it's a pretty interesting fact, though, and it came out in the keynote that this is not a survey. Tell us how you get the data. >> Yeah, I mean, so as you already know, Sumo Logic is a continuous intelligence platform. And what we do is to help our customers manage the operations and security of the mission critical application. And the way we do that is by collecting machine data from our customers, and many of our customers, we have two thousand, our customers, they're all running modern applications in the cloud, and when we collect this machine data, we can grade insights into how are these customers building their applications, how are these customers running and securing their application, and that insight is what is reflected in this report. And so, you're exactly right, this is not a survey. This is data from our customers that we bring into our system and then what we do is really treat things once we get this data into our system. First and foremost, we completely anonymize this data. So, we don't-- >> I was going to say Let's make sure we have to get that out. >> Yes, absolutely, so we don't have any customer references in this data. Two, we genericize this data. So, we're not looking for anomalies. We are looking for broad patterns, broad trends that we can apply across all of our customers and all of these enterprises that are running modern mission critical applications in the cloud. And then three, we analyze ten weeks to Sunday. We look at these datas, we look at what stands out in terms of good sample sizes, and that's what we reflect in this report. >> Okay, and just to close a loop on that, are there some applications that you don't include? 'Cause they're just legacy applications that're running on the cloud that doesn't give you good information, or you're basically taking them all in? >> Yeah, it's a good point, I mean we collect all data and we collect all applications, so we don't opt-in applications or out applications for that matter because we don't care about it. But what we do look for is significant sample size because we want to make sure that we're not talking about onesie-twosie applications here or there. We're looking for applications that have significant eruption in the cloud and that's what gets reflected in this report. >> Okay, well, let's jump into it. We don't have time to go through the whole thing here now, but people can get it online. They can download their own version and go through it at their leisure. Biggest change from last year as the fourth year of the report. >> Yeah, I mean, look, there are three big insights that we see in this report. The first one is, while we continue to see AWS rule in the cloud and that's not surprising at all, we're starting to see pretty dramatic adoption of multi-cloud technologies. So, two years ago, we saw a smidgen of multi-cloud in this report. Now, we have seen almost a 50% growth year over year in terms of multi-cloud adoption amongst enterprises who are in the cloud, and that's a substantial jump albeit from a smaller baseline. >> Do you have visibility if those are new applications or are those existing ones that are migrating to different platforms? Are they splitting? Do you have any kind of visibility into that? >> Yeah, I mean, it's an interesting point, and part of this is very related to the growth of Kubernetes that we also see in this report. What ypu've seen is that, in AWS itself, Kubernetes adoption has gone up significantly, what's even more interesting is that, as you think about multi-cloud adoption, we see a lot of Kubernetes, Kubernetes as the platform that is driving this multi-cloud adoption. There is a very interesting chart in this report on page nine. Obviously, I think you guys can see this if they want to download the report. If you're looking at AWS only, we see one in five customers are adopting Kubernetes. If you're looking at AWS and GCP, Google Cloud Platform, we see almost 60% of our customers are adopting Kubernetes. Now, when you put in AWS-- >> One in five at AWS, 60% we got Google, so that means four out of five at GCP are using Kubernetes and bring that average up. >> And then, if you look at AWS, Azure, and GCP, now you're talking about the creme de la creme customers who want to adopt all three clouds, it's almost 80% adoption of Kubernetes, so what it tells you is that Kubernetes has almost become this new Linux in the cloud world. If I want to deploy my application across multiple clouds, guess what, Kubernetes is that platform that enables me to deploy my application and then port it and re-target it to any other cloud or, for that matter, even an on-prem environment. >> Now, I mean, you don't see motivation behind action, but I'm just curious how much of it is now that I have Kubernetes. I can do multi-cloud or I've been wanting to do multi-cloud, and now that I have Kubernetes, I have an avenue. >> Yeah, it started another question. What's the chicken and what's the egg right here? My general sense, and we've debated this endlessly in our company, our general sense has been that the initiative to go multi-cloud typically comes top down in an organization. It's usually the CIO or the CSO who says, you know what, we need to go multi-cloud. And there are various reasons to go multi-cloud, some of which you heard in our keynote today. It could be for more reliability, it could be for more choice that you may want, it could be because you don't want to get logged into any one cloud render, so that decision usually comes top down. But then, now, the engineering teams, the ops teams have to support that decision, and what these engineering teams and these ops teams have realized is that, if they deploy Kubernetes, they have a very good option available now to port their applications very easily across these various cloud platforms. So, Kubernetes, in some sense, is supporting the top down decision to go multi-cloud which is something that is shown in spades as a result of this report. >> So, another thing that jumped out at me, or is there another top trend you want to make sure we cover before we get in some of those specifics? >> I mean we can talk to-- >> Yeah, one of them, one of them that jumped out at me was Docker. The Docker adoption. So, Docker was the hottest thing since sliced bread about four years ago, and is the shade of Kubernetes, not that they're replacements for one another specifically, but it definitely put a little bit of appall in the buzz that was the Docker, yet here, the Docker utilization, Docker use is growing year over year. 30%! >> I'll be the first one to tell you that Docker adoption has not stalled at all. This is shown in the report. It's shown in customers that we talk to. I mean, everyone is down the path of containerizing their application. The value of Docker is indisputable. That I get better agility, that I get better portability with Docker cannot be questioned. Now, what is indeed happening is that everyone who is deploying Docker today is choosing a orchestration technology and that orchestration technology happens to be Kubernetes. Again, Kubernetes is the king of the hill. If I'm deploying Docker, I'm deploying Kubernetes along with it. >> Okay, another one that jumped out at me, which shouldn't be a big surprise, but I'm a huge fan of Andy Jassy, we do all the AWS shows, and one of always the shining moments is he throws up the slide, he's got the Customer slide. >> There you go. >> It's the Services slide which is, in like, 2.6 font across a 100-foot screen that fills Las Vegas, and yet, your guys' findings is that it's really: the top ten applications are the vast majority of the AWS offerings that are being consumed. >> Yep, not just that. It's that the top services in AWS are the infrastructure-as-a-service services. These are the core services that you need if you have to build an application in AWS. You need ECDO, I need Esri, I need identity access management. Otherwise, I can't even log into AWS. So, this again goes back to that first point that I was making was that multi-cloud adoption is top of mind for many, many customers right now. It's something that many enterprises think of, and so, if I want to indeed be able to port my application from AWS to any other environment, guess what I should be doing? I shouldn't be adopting every AWS service out there because if I frankly adopted all these AWS services, the tentacles of the cloud render are just so that I will not be able to port away from my cloud render to any other cloud service out there. So, to a certain extent, many of the data points that we have in this report support the story that enterprises are becoming more conscious of the cloud platform choices that they are making. They want to at least keep an option of adopting the second or the third cloud out there, and they're consciously, therefore choosing the services that they are building their applications with. >> So, another hot topic, right? Computer 101 is databases. We're just up the road from Oracle. Oracle OpenWorld's next week. A lot of verbal jabs between Oracle and some of the cloud providers on the databases, et cetera. So, what do the database findings come back as? >> I mean, look at the top four databases: Redis, MySQL, Postgres, Mongo. You know what's common across them? They're all open-source. They're all open-source database, so if you're building your application, find standard components that you can then build your application on, whether it's a community that you can then take and move to any other cloud that you want to. That's takeaway number one. Takeaway number two, look at where Oracle is in this report. I think they're the eighth database in the cloud. I actually talked to a few customers of ours today. >> Now, are you sampling from Oracle's cloud? Is that a dataset? >> No, this is-- >> Yes, right, okay. So, I thought I want to make sure. >> And, if AWS is almost the universe of cloud today, we can debate at some bids, but it is close enough, I'd say, it tells you where Oracle is in this cloud universe, so our friends at Redwood City may talk about cloud day in and day out, but it's very clear that they're not making much of intent in the cloud at this point. >> And then, is this the first year the rollup of the type of database that NoSQL exceeded relational database? >> No, I mean, we've been doing this for the last two years, and it's very clear that NoSQL is ahead of SQL in the cloud, and I think the way we think about it is primarily because, when you are re-architecting your applications in the cloud, the cloud gives you a timeline, it gives you an opportunity to reconsider how you build out your data layer, and many of our customers are saying NoSQL is the way to go. The scalability demands, the reliability demands, so if my application was such that I now have the opportunity to rethink and redo my data layer, and frankly, NoSQL is winning the game. >> Right, it's winning big time. Another big one: serverless, Lambda. Actually, I'm kind of surprised it took so long to get to Lambda 'cause we've been going to smaller atomic units of compute, store, and networking for so, so long, but it sounds like, looks like we're starting to hit some critical mass here. >> Yeah, I mean, look, Lambda's ready for primetime. I mean we have seen that tipping point out here. Almost one in three customers of ours are using Lambda in production environments. And then, if you cast a wider net, go beyond production and even look at dev tests, what we see is that almost 60% of Sumo Logic's customers, and if you look at 2,000 customers, that's a pretty big sample size. Almost 60% of enterprises are using Lambda in some way, shape, or form. So, I think it's not surprising that Lambda is getting used quite well in the enterprise. The question really is: what are these people doing with Lambda? What's the intent behind the use of Lambda? And that's where I think we have to do some more research. My general sense, and I think it's shared widely within Sumo Logic, is that Lambda's still at the edges of the application. It's not at the core of the application. People are not building your mission critical application on Lambda yet because I think that that paradigm of thinking about event-driven application is still a little foreign to many organizations, so I think it'll take a few more years for an entire application to be built on Lambda. >> But you would think, if it's variable demand applications, whether that's a marketing promotion around the Super Bowl or running the books at the end of the month, I guess it's easy enough to just fire up the servers versus doing a pure Lambda at this point in time, but it seems like a natural fit. >> If you're doing the utility type application and you want to start it and you want to kill it and not use it after an event has come and gone, absolutely, Lambda's the way to go. The economics of Lambda. Lambda absolutely makes sense. Having said that, I mean, if you're to build a true mission critical application that you're going to be keeping on for a while to come, I'm not seeing a lot of that in Lambda yet, but it's definitely getting there. I mean we have lots of customers who are building some serious stuff on Lambda. >> Well, a lot of great information. It's nice to have the longitudinal aspect as you do this year over year, and again, we're glad you're cheating 'cause you're getting good data. >> (chuckles) >> (laughs) You're not asking people questions. >> Yeah, I mean, I'd like to finish out by saying this is a report that Sumo Logic builds every year, not because we want to sell Sumo Logic. It's because we want to give back to our community. We want our community to build great apps. We want them to understand how their peers are building some amazing mission critical apps in the cloud and so, please download this report, learn from how your peers are doing things, and that's our only intent and goal from this report. >> Great, well, thanks for sharing the information and a great catch-up, nice event. >> All right, thank you very much, Jeff. >> All right, he's Kalyan, I'm Jeff. You're watching theCUBE. We're at Sumo Logic Illuminate 2019. Thanks for watching, we'll see you next time. (upbeat electronic music)

Published Date : Sep 12 2019

SUMMARY :

Brought to you by Sumo Logic. and really, one of the key tenants and I love the data in the report even more. 'Cause it's not a survey. and it came out in the keynote that this is not a survey. And the way we do that is by collecting Let's make sure we have to get that out. that we can apply across all of our customers that have significant eruption in the cloud as the fourth year of the report. that we see in this report. the growth of Kubernetes that we also see in this report. so that means four out of five at GCP and re-target it to any other cloud and now that I have Kubernetes, I have an avenue. it could be for more choice that you may want, and is the shade of Kubernetes, and that orchestration technology happens to be Kubernetes. and one of always the shining moments of the AWS offerings that are being consumed. These are the core services that you need and some of the cloud providers on the databases, et cetera. and move to any other cloud that you want to. So, I thought I want to make sure. much of intent in the cloud at this point. and many of our customers are saying NoSQL is the way to go. to get to Lambda 'cause we've been going and if you look at 2,000 customers, or running the books at the end of the month, and you want to start it and again, we're glad you're cheating You're not asking people questions. are building some amazing mission critical apps in the cloud and a great catch-up, nice event. Thanks for watching, we'll see you next time.

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Nancy Gohring, 451 Research | Sumo Logic Illuminate 2019


 

>> Narrator: From Burlingame, California, it's theCUBE, covering Sumo Logic Illuminate 2019! Brought to you by Sumo Logic. >> Hey, welcome back everybody. Jeff Frick here with theCUBE. We're at the Sumo Logic Illuminate 2019 event. It's at the Hyatt Regency San Francisco Airport, about eight hundred, nine hundred people, our second year. It's the third year of the event. Excited to be here and watch it grow. We've seen a bunch of these things grow from little to big over a number of years and it's always fun to kind of be here for the zenith. We're excited to be joined by our next guest, she's an analyst. It's Nancy Gohring, Senior Analyst for 451 Research. Nancy, great to see you. >> Thank you, thanks for having me. >> Absolutely. So first off, just kind of impressions of the event here. >> Yeah, good stuff, you know? Definitely trying to, you know, get on top of some of the big trends, you know, the big news here was their new Kubernetes monitoring tool. So obviously kind of staying on the leading edge of the cloud-native technologies. >> It's amazing how fast it's growing, you know. Doing some research for this event, I found some of your stuff out on the internet, and just one quote, I think it's from years ago, but just for people to kind of understand the scale, I think you said Google was launching four billion containers a week, Twitter had twelve thousand services, Uber four thousand microservices, Yelp ingesting twenty-five million data points per minute, and I think this is a two or three year old presentation, I mean, the scale in which the data is moving is astronomical. >> Yeah, well if you think of Google launching four billion containers every week, they're collecting a number of different data points about a container spinning up, about the operation of that container while it's alive, about the container spinning down. So it's not even just four billion pieces of data, it's, you know, multiply that by ten or twenty or many more. So yeah, so the volume of operations data that people are faced with, is just, you know out of this world. And some of that is beginning to get abstracted away in terms of what you need to look at so you know Kubernetes is an orchestration engine so that's helping move thing around. You still need to collect that data to inform automation tools, right, so even humans aren't really looking at it, it's being used to drive automation. >> Right. >> It still has to be collected. >> Right. And there's still configurations and settings and dials and it seems like a lot of the breaches that we hear about today are just people misconfiguring something on AWS >> Yeah, it's human error. >> It's human error. And so how do we kind of square the circle cause the data's only growing the quantity, the sources, the complexity, the lack of structure and that's before we add IOT and now we have edge devices and they're all reporting in from home. >> Yeah >> Crazy problems. >> It's really, I think, driving a lot of the investments and the focus in more sophisticated analytics, right, so that's why you're hearing a lot more about machine learning and AI in this space. It's because humans can't just look at that huge volume of data and figure out what it means. So, the development of machine learning tools, for instance, is going to pull out a piece of data that's important. Like, here's the anomaly, this is the thing you should be paying attention to. And then obviously getting increasingly sophisticated, right, in terms of correlating data from different parts of your infrastructure in order to make sense of it. >> Right. And then, oh, by the way, they're all made up of microservices that are all interconnected and API is the third party providers >> Yeah. >> I mean the complexity is ridiculous. >> Yeah, and then, you know, and I've been actually thinking and talking a lot recently about organizational issues within companies that exacerbates some of these challenges. So you mentioned microservices. So, a lot of times, you know, you've got DevOps groups and an individual DevOps group is responsible for a, or multiple, microservices, right. They're all running sort of autonomous. They're doing their own thing, right, so that they can move quickly. But is there anybody overseeing the application that's made up of maybe a thousand microservices? And in some cases the answer is "no". And so it may look like all the microservices are operating well, but the user experience actually is not good. And no one really notices until the user starts complaining. So, it's like things start, you know you have to think about organizational things. Who's responsible for that, right? If you're on a DevOps team and your job as been to support these certain services and not the whole, like, who's responsible for the whole application? >> Right. >> And that's, it's a challenge. It's something, actually, in our surveys, we're hearing from people that they're looking for people, that skill set, someone who understands how to look at microservices as they work together to deliver a service, right, it's a pain point. >> Shouldn't the project, or the product manager for that application would hopefully have some visibilities to kind of what they're trying to optimize for. >> In some cases they're not technical enough, right, a product manager doesn't necessarily have the depth to know that. Or they're not used to using tools that the DevOps team or the operations team would use to track the performance of an application. >> Right. >> So sometimes it's just a matter of having the right tooling in front of them >> And then even the performance. It's like, what are you optimizing for? Are you optimizing for security? Are you optimizing for speed? Are you optimizing for... >> Experience... >> You can't optimize for everything. You've got to stack rank order at some point in time, so that would also then drive in a different prioritization or the way that you look at those microservices' performance. >> Yeah, yeah. >> Interesting. So another big topic that comes up often is the vision of a single pane of glass. And, you know, I can't help but think as in my work day how often I'm tabbing between you know, sales force, and email, and slack, and Asana, and a couple of browsers are open. I mean, it's bananas, you know. It's no longer just that email is the only thing that's open on my desk all day. >> Yeah. >> And then you can only imagine the DevOps world that we saw just crazy complexity around, again, managing all the microservices, the APIs, so what kinds of, sort of, what are you seeing in kind of the development of that? And there's so many vendors now, and so many services. >> Yeah. >> It's not just, we're just going to put in HP open view and that's the standard and that's what we're all on. >> So if you're looking at it from the lens of monitoring or observability or performance, traditionally you had different tools that looked at, say, different layers of a service. So you had a tool that was looking at infrastructure - it was your infrastructure monitoring tool. You had an application performance monitoring tool. You might have a network performance monitoring tool. You might have point tools that are looking just at the data base layer. But as things get more complicated, as applications are getting much more complex, looking at that data in a silo tool tends to obscure the bigger picture. You don't understand when you're looking at the separate tools how some piece of infrastructure might be impacting the application, for instance. And so, the idea is to bring all of that operations data about the performance of an application into one spot where you can run, again, these more sophisticated analytics so that you can understand the relationship between the different layers of the application stack, also horizontally, right, so, how microservices that are dependent on eachother how one microservice might be impacting the performance of another, so that's conceptually the idea behind having a single pane of glass. Now the execution can happen in a bunch of different ways. So you can have one vendor, there are vendors that are growing horizontally, so they're collecting data across the stack. There's other vendors that are positioning themselves as that sort of central data repository. So they may not directly collect all of that data, but they might ingest some data that another monitoring vendor has collected. So, there's, and, you know, there's always going to be good arguments for best of breed tools right, so, you know, in most cases, businesses are not going to settle on just one monitoring tool that does it all. But that's conceptually the reason, right, is you want to bring all of this data together however you get it, however it's being collected, so that you can analyze it and understand that "big picture" performance of a complicated application. >> Right. But then, even then, as you said, you don't even want to, you're not really monitoring the application performance per se, you're just waiting for the, you're waiting for some of those needles to fall out of the haystack, cause you just, you just can. There's so much stuff. And you know, it's where do you focus your priority. You know, what's most critical, what needs attention now. >> (Nancy) Yeah. >> And if, without a machine to help kind of, point you in the right direction, you're going to have a hard time finding that needle. >> Yeah, and there's a lot of different approaches that are beginning to develop. And one is this idea of SLO's, or Service Level Objectives. And so, for instance a really common Service Level Objective that teams are looking at is latency. So, the latency of the service should never drop under whatever- a hundred milliseconds, and if it does, I want to be alerted. And also, if it drops below that objective for a certain amount of time that can actually help you as a team allocate resources. So, if you're not living up to that Service Level Objective, maybe you should shift some people's time to working on improving the application instead of developing a new feature. Right? >> (Jeff) Right. >> So it can really help you prioritize your time because you know what? There was a time, people in operations teams, or DevOps teams, had a really hard time, and they still do, figuring out which problems are important. 'Cause you've always, people always have a lot of performance problems going on. So which do you focus your time on? And it's been pretty opaque. It's hard to see, is this performance impacting the bottom line in my business? Is this impacting, you know, my customers? Are we losing business over this? Like, that's, that's a really common question that people can't answer. >> Right. >> So, yeah, people are beginning to develop these approaches to try to figure out how to prioritize work on performance problems. >> It's interesting 'cause the other one that you've mentioned before, kind of this post incident review instead of a post mortem and you know, you talked about culture, and "words matter" >> (Nancy) Yeah. >> And I think that's a really interesting take because it's, it implies, we're going to learn, and we're going to go forward as opposed to "it's dead". >> (Linda) Yeah. >> And, you know, we're going to yell at eachother, and someone's going to get blamed... >> (Linda) That's exactly it... >> And we're going to move on. So, you know, how has that kind of evolved and how does that really help organizations do a better job? >> There's, I mean, there's much more of a focus on setting aside time to do that kind of analysis, right? So look at how we're performing as a team. Look at how we responded to an incident so that you can find ways that you can do better next time. And some of that is real tactical, right, it's tweaking alerts. Did we not get an alert? You know, did we not even know this problem was happening? So maybe you build new alerts or get rid of a bunch of alerts that did nothing. You know, there's a lot you can learn and again, to your point, I think part of the reason people have started calling it a post incident review instead of a post mortem is because, yeah, you don't want that to be as session where people are feeling like blame, you know, this is my fault, I screwed up, I spent way too long on this, or I hadn't set things up properly. It's meant to be productive. >> Right. >> Let's find the weak points and fill them. Right? Fill those gaps. >> It's funny you had another, there was another thing I found, you were talking about not, not necessarily the post mortem but, you know, people being much more pro-active, much more, you know, thoughtful as to how they are going to take care of these things. And it is really more of a social, cultural change than necessarily the technical piece. That culture piece is so, so important. >> It is, and especially, you know, right now there's a lot of focus on tooling and that can cause some, you know, interesting issues. So you know, especially in an organization that has really adopted DevOps practices like, the idea of a DevOps team is that it's very autonomous. They do what they need to do, right, to move fast and to get the job done and that often includes choosing your own tools. But that has created a number of problems especially in monitoring. So if you have a hundred DevOps teams and they all have chosen their own monitoring tools, like, this is not efficient. So it's not a good idea because those tools aren't talking to each other, even though they're microservices that are dependent on each other. It's inefficient from a business perspective. You've got all these relationships with vendors and in some cases with a single vendor. You might have fifty instances of the same monitoring tool that, you know, you have fifty accounts with them. Like that's just totally inefficient. And then you've got people on a DevOps and individual, all the individual DevOps teams have a person who's supposed to be the resident expert in these tools, like, maybe you should share that knowledge across... But my point is you get into this situation where you have hundreds of monitoring tools. Sometimes forty, fifty monitoring tools. You realize that's a problem. How do you address that problem? 'Cause you're going to have to go out and tell people you can't use this tool that you love, that helps you do your job, that you chose. So again this whole cultural question comes up. Like, how do you manage that transition in a way that's going to be productive? >> The other one that you brought up that was interesting was where the support team basically tells the business team you only have X-number of incidents, we're going to give you a budget. (laughs) >> Yeah. >> If you exceed the budget we're not going to help you. It's a really different way to think about prioritization... >> Yeah, I don't necessarily think that's a great approach. I mean there was somebody who did that but like... >> But I think its kind of, it's kind of an interesting thing. And you talked about it in that I think it was one of your presentations or speeches where, you know, it makes you kind of re-think, you know, why do we have so many incidents? >> Yeah. >> And there shouldn't be that many incidents. And maybe some of the responsibility should be shifted to think about why, and the how, and is it more of a systemic problem than a feature problem, or a bug, or... >> Right >> A piece of broken code, so again I think there's so many, kind of, cultural opportunities to re-think this, in this world of continuous development, continuous publishing, continuous pushing out of new code. >> Yeah, yeah. For sure. (laughs) >> Alright Nancy, well thanks for taking a few minutes and it was really great to talk to you. >> Thanks for having me. >> Alright, she's Nancy, I'm Jeff. You're watching theCUBE, where it's Sumo Logic Illuminate 2019. Thanks for watching We'll see you next time (electonic music)

Published Date : Sep 12 2019

SUMMARY :

Brought to you by Sumo Logic. and it's always fun to kind of just kind of impressions of the event here. So obviously kind of staying on the leading edge I think you said And some of that is beginning to get abstracted and it seems like a lot of the breaches the lack of structure and the focus in more sophisticated and API is the third party providers and then, you know, that they're looking or the product manager or the operations team what are you optimizing for? or the way that you look at And, you know, And then you can only imagine and that's the standard so that you can understand the And you know, point you in the right direction, that can actually help you as a team So it can really help you prioritize these approaches to try to and we're going to go forward you know, you know, to an incident so that you can find Let's find the weak points much more, you know, that helps you do your job, The other one that you brought up If you exceed the budget we're not I mean there was somebody who did that And you talked about it in that And maybe some of the responsibility to re-think this, Yeah, yeah. and it was really great to talk to you. We'll see you next time

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>> from Burlingame, California It's the Cube covering Suma logic Illuminate 2019. Brought to You by Sumer Logic >> Hey, welcome back, everybody. Jeffrey here with the Cube were at the higher Regency San Francisco Airport at Suma Logic, Illuminate, 2019 were here last year for our first time. It's a 30 year the show. It's probably 809 100 people around. 1000 packed house just had the finish. The keynote. And we're really excited to have our first guest of the day. Who's been here since the very beginning is Bruno Critic, the founding VP of product and strategy for Suma Logic, you know, great to see you. Likewise. Thank you. So I did a little homework and you're actually on the cube aws reinvent, I think 2013. Wow. How far has the cloud journey progressed? Since efforts? I think it was our first year at reinvented as well. >> That's the second year agreement, >> right? So what? What an adventure. You guys made a good bet six years ago. Seems to be paying off pretty well. >> It really has been re kind of slipped out that the cloud is gonna be a real thing. Put all of our bats into it and have been executing ever since. And I think we were right. They think it is no longer a question. Is this cloud thing gonna be re alarm enterprise gonna adopt it? It's just how quickly and how much. >> Right? Right. But we've seen kind of this continual evolution, right? Was this jump into public cloud? Everybody jumped in with both feet, and now they're pulling back a little bit. But now really seen this growth of the hybrid cloud Big announcement here with Antos and Google Cloud Platform and in containers. And, you know, the rise of doctor and the rise of kubernetes. So I don't know, a CZ. You look a kind of the evolution. A lot of positive things kind of being added to the ecosystem that have helped you guys in your core mission. >> That's right. Look, you know, five years ago, which is such a short time, But yet instead of the speed of the technology adoption and change, you know it's in It's in millennia. What's happened over the last few years is technology stocks have changed dramatically. We've gone from okay, we can host some v ems in the cloud and put some databases in the cloud. So we're now building micro service's architecture, leveraging new technologies like Kubernetes like Serverless Technologies and all the stuff And, you know, some one of the fastest growing technologies that's being adopted by some village custom base, actually the fastest kubernetes and also the fastest customer segment growing customer segments. ImmuLogic is multi clog customers, basically that sort of desire by enterprise to build choice into their offerings. Being able to have leverage over the providers is really coming to fruition right now, >> right? But the multi cloud almost it makes a lot of sense, right, because we're over and over. You want to put your workload in the environment that supposed appropriate for the workload. It kind of. It kind of flipped the bid. It was no longer. Here's your infrastructure. What kind of APs can you build on it? Now here's my app. Where should it run that maybe on Prem it may be in a public cloud. It may be in a data center, so it's kind of logical that we've come into this this hybrid cloud world that said, Now you've got a whole another layer of complexity that that's been added on. And that's really been a big part of the rise of kubernetes. >> That's right. And so, as you're adopting service's that are not equal, right, you have to create a layer that insulate you from those. Service is if you look a tw r continues intelligence report that we just announced today. You will also see that how customers and enterprise are adopting cloud service is is they're essentially adopting the basic and core compute storage network, and database service is there's a long, long tail of service that are very infrequently adopted. And that is because enterprise they're looking for a way to not get to lock Tintin into anyone. Service provider kubernetes Give them Give them that layer of insulation with in thoughts and other technologies like that, you are now able to seamlessly manage all those workloads rather there on your on premise in AWS in G C. P. In azure or anywhere else, >> right? So there's so much we can unpack. You're one of the things I want to touch on which you talked about six years ago, but it's even more thing appropriate. Today is kind of this scale this exponential growth of data on this exponential scale of complexity. And we, as people, has been written about by a lot of smart people, and I, we have a real hard time. Is humans with exponential growth. Everything's linear. Tow us. So as you look at this exponential growth and now we're trying to get insights. Now we've got a I ot and this machine a machine data, which is a whole another multiple orders of magnitude. You can't work in that world with a single painted glass with somebody looking at a dashboard that's trying to find a yellow light that's earned it. I'm going to go read. You don't have analytics. Your hose. >> That's right. This is no longer world of Ding dong lights, right? You can just like to say, Okay, red, green, yellow. The as sort of companies go digital right? Which is driving this growth in data, you know? Ultimately, that data is governed by Moore's law. Moore's law says machines are gonna be able to do twice as much every 18 to 24 months. Well, that guess what? They're gonna tell you what they're doing twice as much. Every 18 to 24 months, and that is an exponential growth rate, right? The challenge that is, budgets don't grow at that rate, either, right? So budgets are not exponentially growing. So how do you cope with the onslaught of this data? And if you're running a digital service, right, if you're serving your customers digital generating revenue through digital means, which is just about every industry. At this point in time, you must get that data because if you don't get the data, you can't run your business. This data is useful not just in operations and security. It's useful for general business abuse, useful in marketing and product management in sales and their complexity. And the analytics required to actually make sense of that data and serve it to the right constituency in the business is really hard. And that has been whatever we have been trying to solve, including this economics of machine. Dad and me talked about it today. Keynote. We're trying t bend the cost curve >> Moore's law >> yet delivered analytics that the enterprise can leverage to really not just operate an application but run their business >> right. So let's talk about this concept of observe ability. You've written box about it. When you talk to people about observe ability, what should they be thinking about? How are you defining it? Why is it important? >> It's great question, So observe ability right now is being defined as a technique right. The simplest way to think about it is people think, observe a witty I need to have these three data sets and I have observed ability. And then you have to ask yourself a question. First of all, what is Observe ability and why does it matter? I think there's a a big misconception in the market how people adopt this is that they think, observe abilities the end. But it isn't observe. Ability is the means of achieving a goal. And what we like to talk about is what is the goal? Observe, observe ability right now. Observe abilities talked about strictly in the devil up space, right? Basically, how am I going to get obs Erv City into an application? And it's maybe runtime how it's running, whether it's up and performance. The challenge with that is that is a pigeon pigeon hole view off, observe ability, observe ability. If you think about it, we talk about objectives during observe ability. Operability tau sa two ns Sorry could be up time in performance. Well, guess what a different group like security observe. Ability is not getting breached. Understanding your compliance posture. Making sure that you are compliant with with regular to re rules and things like that observe ability to a business person to a product manager who's who owns a P N. L. On some product is how are my users using this product powers my application being adopted where users having trouble. What are they and where's the user experience? Poor right? So all of this data is multifaceted and multi useful as multi uses and observing Tow us. Is his objectives driven? If you don't know what your object it is, observe. Ability is just a tool. >> I love that, you know, because it falls under this thing We talked about off the two, which is, you know, there's data, right, and then there's information in the data and then, but it is a useful information because it has to be applied to something that's right in and of itself. It has no value, and what you're talking about really is getting the right data to the right person at the right time, which kind of stumbled into another area, which is how do you drive innovation in an organization? In one of the simple concepts is democratization. Get more people more than data more than tools to manipulate the data. Then piano manager is gonna make a different decision based on different visibility than Security Person or the Dev Ops person. So how is how is that evolving? Where do you see it going? Where was it in the past? And you know, I think he made it interesting or remain made. Interesting thing in the keynote where you guys let your software be available to everyone. And there was a lot of people talking about giving Maur. People Maur access to the tools and more of the data so that they can start to drive this innovation >> abuse of an example of one of the one of the sort of aspects of when we talk about continued continues intelligence. What do we mean? So this concept of agile development didn't evolve because people somehow thought, Hey, why don't we just try to push court production all the time? Break stuff all the time. What's the What's the reason why that came about? It did not come about because somehow somebody decided so better. Software development model It's because cos try to innovate faster, so they they wanted Toa accelerate. How they deliver digital product and service is to their customers. And what's facilitates that delivery cycle is the feedback loop. They get out of their data. They push code early. They observed the data. They understand what it's telling them about how their customers are using their products, and service is what products are working with or not. And they're quickly baking that feedback back into their development cycles into the business business cycles. To make better Prada effectively, it evolved as a as a tool to differentiate and out innovate the competition. And that's to a large degree one of the ways that you deliver the right inside to the right group to improve your business right. And so this is applicable across all use cases in order pot. All departments are on the company, but that's just one example of how you think of this continuous innovation, continuous data from to use analytics and don't >> spend two years doing an M r d and another two years doing a P R d and then another to your shift >> When you when you actually ship it. Half of the assumptions that you made two years ago already all the main along, right? So now you've gotta go. You've wasted half of your development time, and you've only released half of the value that you could have other, >> right? Right. And your assumptions are not gonna be correct, right? You just don't know until you get that >> you think over time, like two years of kubernetes with a single digits percentage adoption technology and soon was customer base. Now it's 1/3 right? Right? Which means no things have changed. If I had made an assumption as of two years ago on communities, I would have no way wouldn't have done this announcement, >> right? Right. >> But we did it in an interactive mode and re benefit from that continuous information continues intelligence that we do in our own >> right, right? We fed Joe and the boys on lots of times so that it's a pretty interesting how fast that came and how it really kind of over took. Doctor has informed they contain it. Even the doctor, according to reporters. Still getting a Tana Tana traction >> and it's >> working in conjunction with communities. Communities allows you to manage those containers right, And Dr Containers are always part of the ecosystem. And so it's, you know, you know, it's like the management layer and the actual container layer, >> right? So as you look forward to give you the last word, you know, as we're really kind of getting into the SIA Teague World and five G's coming just around around the corner, which is gonna have a giant impact on an industrial I ity and this machine a machine communications, what are some of your priorities? What are you looking, you know, kind of a little bit down the road and keeping an eye on >> interesting question. You know, we used to think about I ot as is the new domain. We should think about I or tea. And maybe we need to build a solution for right. It turns out our biggest customers, customers and the way that I have personally reframed my thinking about Iris is the following Computational capacity is ubiquitous. Now, what used to be a modern application 345 years ago was something that your access to your laptop or three or mobile app, and maybe you're a smart watch Now the computation that you interface with runs in your doorbell, you know, in a light switch in your light bulbs and how's it runs everywhere runs in your shoe because when you're around, it talks to your phone to tell you how many steps you've taken, all the stuff right? Essentially, enterprises building application to serve their customers are simply pushing computation farther and farther into our being, like everywhere. There's now I, P Networks, CP use memory and all of those distributed computers are now running the applications that are serving us in our lives, right? And to me, that's what I ot is. It's just an extension off what the digital service is our and we interface with does, and it so happens that when you push computation farther and farther into our lives, you get more and more computers participating. You get more data, and many of our largest customers are essentially ingesting their full stack of iron devices to serve their customers >> right crazy future and you know, it just kind of this continual Adam ization to of computer store and memory. Well, Bruno, hopefully it will not be six years before we see you again. Congrats on the conference. And thanks for taking a few minutes. Absolutely. All right. He's Bruno. I'm Jeff. You're watching the Cube where? It's suma logic illuminate at the Hyatt Regency seven square port. Thanks for watching. We'll see you next time.

Published Date : Sep 12 2019

SUMMARY :

from Burlingame, California It's the Cube covering you know, great to see you. Seems to be paying off pretty well. It really has been re kind of slipped out that the cloud is gonna be a real thing. A lot of positive things kind of being added to the ecosystem that have helped you guys in your core mission. Look, you know, five years ago, which is such a short time, And that's really been a big part of the rise of kubernetes. and other technologies like that, you are now able to seamlessly manage all those workloads rather there on You're one of the things I want to touch on which you talked about six years ago, And the analytics required to actually make sense of that data and serve it to the right constituency When you talk to people about observe ability, what should they be thinking about? And then you have to ask yourself a question. And you know, I think he made it interesting or remain made. All departments are on the company, but that's just one example of how you think of this continuous Half of the assumptions that you made two years ago already all the main You just don't know until you get that you think over time, like two years of kubernetes with a single digits percentage adoption right? We fed Joe and the boys on lots of times so that it's a pretty interesting And so it's, you know, you know, it's like the management layer and the computation that you interface with runs in your doorbell, you know, right crazy future and you know, it just kind of this continual Adam ization

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Ramin Sayar, Sumo Logic | Sumo Logic Illuminate 2019


 

>> from Burlingame, California It's the Cube covering Suma logic illuminate 2019. Brought to you by Sumer Logic >> Hey, welcome back there. Ready Geoffrey here with the Cube where it's suma logic illuminate 2019. We're here >> at the Hyatt Regency San Francisco Airport is about 809 100 people packed house in the keynote earlier this afternoon. Really excited tohave. The guy that was >> running the whole show was running the whole show here for this company. He's remain Sayer, >> the president and CEO of To Malachi Remain great to see you again. You too. Thanks. Absolutely. So 30 year. The show Second year of us being here. Wonder if you could just kind of reflect on how this thing is growing. >> Yeah. I mean, I think it's really a testament to the community more so than sumo, and we've seen a lot of growth naturally, because of where customers are with their own adoption of technologies such as cloud, but also transformations that they're going through like digital transformation, cloud transformation so naturally that allows for more audience of people to attend conference like this. Because this is not a sales marketing conference. This is a user conference. And as evidenced by the fact that 60 plus percent of the content is users themselves in the community present. >> Right? And you talked about the theme is really this intelligence gap, which, which was really a key piece of the key note. And it's interesting because talking about data in huge amounts of data flow, exponential growth and types of data, flow of data, sources of data and your data is just data until it turns into information. And then if it turns into good information, that actually could maybe turn into some intelligence and some action that you can do something with. But there's no person that has the ability to manage the data flows now that we're starting to see. So you guys are really coming at that at the core? You've been at it for a long time. You made some great early on bets being cloud native and now really starting to see the benefits as this exponential growth of data just hits everybody >> you're spot on, I think, um, you know, maybe to add to that, I think the challenge that we see despite the tsunami of data growth, is that a lot of organizations still struggle because the lacked ability to be able to share the insights and intelligence they glean from this data. So a lot of things we spoke about the key note today was the whole notion of the intelligence gap that exists. And that's predicated on the fact that you know, we're all going through some sort of transformation or migration or business model change. And with that comes five challenges that we talked about with respect to continues intelligence we internally has actually referred to as a challenge of minding the gap of intelligence trap because we need to help our customers become intelligent and collaborate, communicate much more effectively by virtue of what we've become that what we've become is that trusted partner, that data steward that is sitting on all this valuable insights that we need to be able provide continuously to our community of users. >> Right, if you talked about it really out along three different metrics, right, the operations metrics, which is probably what people think of top of mine security metric on then, as well as the business metric. And, you know, we had a Robert Parker on earlier from smart thing Samsung Smart Things, and he made an interesting comment that they are pervasive users of Suma logic within the company, which I thought was really interesting because everyone's chasing innovation. How do you get innovative? I think one of the core ways, as you give more people more access to more data and the tools to actually do something with it. That seems to be a big piece of the of the smart thing story. And that's really a big part of your guys. Messaging. >> Yeah, I mean, I think unlike other vendors who have restrictions on adoption and usage on or charging by user model, you know, we're trying to make sure we tear those silos down on one of the nature's by nature. One of things you have to do is provide ubiquitous access, and second thing you have to do is built to dress all different types of data so you can get value for all those users and ubiquitous access. And so you hear about that through not just smart things, but a lot of other customers and partners that are here today because that's unlike the old models, >> right? Right. It's interesting, right? Minds, we backed you know, 97 97 98 99 when first started seeing people build Web applications. And they had all these pricing models based on, you know, cores and CP use because it was based on how many employees were inside the inside the walls and would have access to the applications. And they try to apply this to to a public Web page. It doesn't work. Still see some of that nasty legacy stuff, though, >> right? And would now it was 20 years later. So you made >> a big announcement today about really changing your pricing model. Two more fit the realities of the world in which we live. >> Yeah, look on the surface. Why it seems revolutionary. It's not. It's evolutionary for sumo. It's something we've been doing since we first started. For example, we always provided a service that charges an average for the month, not for the penalty. You're going over a day we didn't charge for user's because that's antiquated model. More importantly, we actually provide in an economic model all along the mere the business model of all these companies. So the more you ingest and use the lower your cost become not more right. And so the things we announced today is a further commitment that we have been making to the community and effectively taken the headache away from them because he looked at these other tools, for example, that provide observe ability for monitoring or for security. You have to go calculate, count the licenses. You have to go look at the number data point for a minute. You have to look at the number nodes and who wants to manage software you want to manage Service's. And so what we've done has really taken the next license taken existing licensing mall that we have to the next level and providing a credit based system so that you can flex and choose what you want to use in a given day and give a month and given Pierre recycle across a new suite of packing ages or a suite of products that we brought to market >> right or whatever, whatever you are optimizing for that particular day. That particular moment, that particular business >> but also ties or something you mentioned earlier it it actually helps tear down those silos that other vendors air creating because it provides ubiquitous access to all users for all different types of data, right? And instead of trying to keep those silos and separation that exists, that further challenges intelligence gap that we're seeing in intelligence. Economy, >> right, Right. What? Another great slide. I thought earlier in the keynote was given by Anheuser Busch, and he talked about his security infrastructure and all different layers of security in the solution that he has for, you know, front kind of front door and fishing, etcetera, etcetera. But the great thing is, you basically crossed all those applications stack and and it's a pretty interesting position for you guys to be in to be able to integrate with all these other kind of point solutions that make up parts of the puzzle and to bring it all back and to still have kind of this one ubiquitous Data Analytics platform to go on and do stuff with that. >> Yeah, I mean, I think it's truth be told, something we've been doing for a long time. I think the visual that you saw there is the challenged a lot of our customers have, and specifically they have these silos >> of >> endpoint or firewall or email or whatever else, and it could only make sense of it by leveraging the monitoring of those silos to an intelligence platform like sumo. And so the same thing that you saw in security with Anheuser Busch being able to leverage the silos into intelligence platform for security. We see in the monitoring space for developers and operations team so they'll have silo tools. But observe ability, is not it. You need continuous reliability, and therefore you need to be able to take all those different types of dead and signals, just like you saw on security for the different types of infrastructure and applications that your manager aging and provide an intelligence based system and service, not a monitoring based on the system of service. >> Right? Another big trend that's happening. You guys were riding this wave and you're Jennifer up from from Google Cloud and she she had the same presentation on Antos. I think at the Google Cloud platform, someone earlier today, you know the Mo Mentum behind Hybrid Cloud as kind of the whipsaw. You know, it's all jump into public and then let's not jump in and its hybrid and its multi. The fact of the matter is, everything's going to work supposed to be, which is its workloads Pacific and the works load should run where the workload should run Really a great moment, um, for you guys to be ableto leverage because regardless of where the work flows running based on where it should run, I need to see it in a unified front. Back at the back of the ranch. >> Have a Jeff. I think this is what we saw even last year when we put the continuous intelligence report out, then let alone the changes we saw this year. For example, we saw Container Technologies moved from development to production last year in north of two ex growth. Now we're seeing orchestration technologies like Kubernetes more than two Ex Growth. And what's driving the multi cloud common that you made is because the customers want flexibility and choice of where those work clothes run. Historically, they have been able to do that until now. Leveraging contain orchestration, technology that builds an abstraction layer from the eye. Astor infrastructure is a service later, and obviously a testament to what Google's been doing with an throws in the partnership we have with them. Tow develop and integrate things for anthros. Ston service mesh. >> Yeah. So what's next? What do you looking for? I can't believe we're almost done with 2019. It still shocks me every time I flipped a calendar. >> What? Your priorities going forward? >> Another great event. 2020 year of insight and all knowledge. What we're saying we're gonna be, >> uh >> you >> know, we started down this journey before the market was there, and I think the unique position and fortunate position that we're in right now is Maura, Maura, that market opportunities to us and the community's getting more powerful and stronger day by day and year by year. So we're very early innings of this honestly. And so what do we see? Going forward to your question is a lot of the execution of our strategy that we set out a while ago to build the only continuous intelligence platform. And more importantly, the new category of software called into continues intelligence. That's really mirroring the OMB operating model and economic model of every single digital business that needs to thrive, not just survive >> right in an era of exponential growth data, complexity, sources, types, which is ah, good place to be all right. Well, we're mean. I know you're super busy. Thanks for taking a few minutes. And congratulations on a great show for sure. All right, >> ease remain. I'm Jeff. You're watching the Q word. Suma logic illuminate 2019. >> Thanks for watching. We'll see you next time.

Published Date : Sep 12 2019

SUMMARY :

Brought to you by Sumer Logic Ready Geoffrey here with the Cube where it's suma logic illuminate 2019. at the Hyatt Regency San Francisco Airport is about 809 100 people packed house in the running the whole show was running the whole show here for this company. the president and CEO of To Malachi Remain great to see you again. And as evidenced by the fact that 60 plus percent of the content is And you talked about the theme is really this intelligence gap, which, And that's predicated on the fact that you know, we're all going through some sort of transformation I think one of the core ways, as you give more people more access to more data and the One of things you have to do is provide ubiquitous access, And they had all these pricing models based on, you know, cores and CP use because it was based on how many So you made of the world in which we live. You have to look at the number nodes and who wants to manage software you want to manage Service's. right or whatever, whatever you are optimizing for that particular day. but also ties or something you mentioned earlier it it actually helps tear down those silos all different layers of security in the solution that he has for, you know, I think the visual that you saw there is the challenged a lot of our customers have, And so the same thing that you saw in security with Anheuser The fact of the matter is, everything's going to work supposed to be, which is its workloads Pacific and the And what's driving the multi cloud common that you made is because the customers want flexibility What do you looking for? What we're saying we're gonna be, And more importantly, the new category of software called into continues intelligence. And congratulations on a great show for sure. Suma logic illuminate 2019. We'll see you next time.

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Kamal Shah, StackRox | Sumo Logic Illuminate 2019


 

>> Narrator: From Burlingame, California, it's the Cube, covering Sumo Logic Illuminate 2019. Brought to you by Sumo Logic. >> Hey welcome back everybody! Jeff Frick here with the Cube, we're at the Sumo Logic Illuminate conference, it's at the Hyatt San Francisco Airport. About 700, 800 people, full house in the keynote earlier today, all about operational process monitoring, all this crazy data is being kicked out of the Cloud and IoT and all these crazy next-gen applications. We're excited to have a very close friend of mine, CEO of a very hot company, Kamal Shah, the CEO of StackRox. Kamal, great to see you! >> Thank you, and great to be here, Jeff! >> Absolutely! So for folks that aren't familiar with StackRox, give us the overview. >> Sure, so in a nutshell, we do Kubernetes Security, and so as we've heard all day today, enterprises are deploying microservices, containers, Kubernetes, and we do security for your cloud data infrastructure. >> So how does security work for Kubernetes versus security for other things? >> Yeah, so the use cases for security, or the mission for the security team is the same, right? You got to harden your environment to prevent the bad guys from getting in. >> And, you have to make sure, despite your best efforts, if somebody does break in, then you catch them before they do any damage, right? But the how you do security has to evolve for the cloud data stack, right? It has to understand the containers are immutable affirm all infrastructure, you have to understand that it's not just about the container, but it's also about the orchestrator, and specifically Kubernetes, and it's also about making sure that you seamlessly integrate with dev ops processes, automation and workflow. So it requires a fundamentally different approach to security than traditional security tools. >> So you know, we talk a lot about the increasing attack area that's offered by IoT, right? And increasing attack area that's offered by all those API's and all these interconnected applications, but I've never heard anyone really talk about containers or orchestration as kind of a new attack surface. Did we just stop paying attention? Is that something you're seeing happen? >> Yeah it's something that is starting to emerge, and we've seen some high-profile breachers at a large next generation electric car company, and a large shopping site where misconfigurations led to security breaches in the Kubernetes' environment, and Kubernetes' ecosystem also did a Cube security audit, and so I think we're going to start to hear a lot more, because there's more and more applications are being deployed in production. It's creating a new attack area, and as the old saying goes, the predators go where there's food in the system. >> And so if you're not proactive about it, I think it's going to really hurt as you deploy containers in Kubernetes. >> Right, so we hear over and over and over again about breaches because people misconfigure stuff. That just seems to happen, whether it's a database or this, that, and the other. And I think we can pretty much safely assume everyone's going to get breached if they haven't got breached already, 'cause we hear about it all the time. How do you catch them fast, limit the damage and try not to have too much vulnerabilities? >> Exactly, so the use cases for what we do at Kubernetes are the same. Right? Its vulnerability management, it's configuration management, and we just did a study around the state of container in Kubernetes security and misconfigeration was the number one concern. Because the reality is that Kubernetes, there are a lot of knobs. And each knob has multiple options, so if you're not careful you can really misconfigure your environment and make it so much easier for attackers. >> Right, right. >> And it's precisely what happened at the two examples I sighted earlier. So a misconfigerations is important, runtime security is important, and also compliance. Let's not forget about compliance, right. You have to make sure that you meet your PCI, HIPAA, NIST, and CIS benchmark standards for this cloud native stock. >> So what we're seeing is that these are all becoming very, very important and as a result, it's increasing awareness as Kubernetes gets more prominent. >> Right, and then they are creating and tearing down hundreds, thousands, millions of these things at a nidicolous pace. >> I mean exactly. Kubernetes came out of Google, they open sourced it, and it's really what allows you to deploy, manage, containers at scale. Apparently, they manage hundreds of millions of container a day using Kubernetes, it's incredible. >> Jeff: Oh yeah, I saw a statistic that Google launches 4 billion containers per week. That was from a presentation, actually from a 451 analyst from like 2 years ago. So one can only imagine the scale. >> We are also seeing not quite 4 billion containers per week, but we are seeing thousands, and tens of thousands of containers at scale at companies everywhere. They are all deployed in production, and now they are waking up to security. The good news here is that they are waiting for breaches to happen before they solve the problem. There's still a lack of awareness, and what Sumo Logic has done today with the announcement around continued intelligence for Kubernetes just increases the awareness around, hey we have to solve observability, which is logs, metrics, and tracing, which is what Sumo does, and security for your cloud native infrastructures. >> Yeah, I mean the automation is so important, right? You can't do any of this stuff with this exponential growth of data, exponential growth of pushes, of new code releases. There's so many pieces in this, so automation is a huge piece of the puzzle. >> Automation is paramount and with this new infrastructure there aren't enough security people to solve this. So security has to become everybody's responsibility. And the only way we are going to solve this is to automate it. It also has to integrate with your DebOps processes and automation and work flows. If you don't, then the DebOps body is going to reject the security organ, right? So it has to be seamless in the way you deploy it. >> It's interesting you say that because we go to RSA, forty thousand people, more vendor than you can count, it bulges Moscone to the absolute edges. Everyone says over and over that security has to be baked in the entire process from beginning to end, it's not a bolt on and can never be successful as a bolt on. So it surprises me to hear you say that still a lot of people are kind of behind the curve. >> Well I mean if you think about I, even though they say that, right? In a traditional model of the application you go to spend 6 months building it and then you can go spend a couple of weeks or month hardening and putting security around it. But when you are launching applications every 6 hours, you can spend 6 days addressing security, so it has to be built in. And speaking of RSA, if you recall, last year the big talk at RSA was around AI, right. Everything was AI driven security. My prediction, my bold prediction for this RSA is it's going to be all around Kubernetes security. >> Yeah, well it's applied AI. Applied AI for Kubernetes. >> Exactly. >> And that's what you need. I always feel for the SISO just walking the floor at RSA going, "Where do I begin? I mean where do I spend my money, how do I prioritize?" It's kind of like an insurance problem. You can't insure to the nth degree. You got to have a budget, but how do you deploy your assets? It's got to be super, super confusing. >> It really is. I think what your seeing is that SISO's are relying on their DEV and IT ops teams, right? They are partnering with the VP of platform, the VP of infrastructure, the VP engineering, because when you think about this new world security is really, the ownership of security is now shifting from the information's security teams to DevOps teams. So security teams still drive policy, and they still want to make sure they do the trust and verify, but the implementation of the security is now being owned by DevOps teams. So its a big cultural shift that's going on in organizations today. SISO's have to realize that it's no longer just them, but they have to partner with their DevOps counterparts to effectively address security for this cloud native stock. >> Right, so tell us a little bit about the relationship with Sumo. How do the applications work together? What's the solution look like when the 2 solutions are brought together. >> So Sumo has been a great partner. We have several joint customers. The simplest way to think about this is that Sumo does observability for Kubernetes, so that's logs, metrics, and tracing, and we do security from Kubernetes. We are the yin to their yang. What we do is we have taken all the intelligence we get from security and we feed it into the Sumo dashboard. Sumo customers get a single pane of glass, not just for the observability data, but also for their security violations, weather its for vulnerability, weathers it's for configuration or if it's for runtime threats, right? You get it all in one single place. >> Right. So I just want to get your take on kind of this rise of the momentum behind Hybrid Cloud that we've seen recently. Big announcement at Google Cloud show, with Anthos. Big announcement between VMware and Amazon. It always kind of swings back and forth. It was all in to public cloud and now there's a little bit of a pullback in Hybrid, but that's terrific for you. The fact of the matter is workload should run where they should run, they don't really care it's what's appropriate. Horses for courses, right? >> Precisely so, we see the shift from public cloud to Multi-cloud, and then from Multi-cloud to Hybrid cloud. The underlying infrastructure that makes that a reality are containers and Kubernetes, right? And that's why we've seen this tremendous momentum on Kubernetes. What we are seeing is customers that want to give their Dev teams that flexibility to pick their favorite cloud, or to do it on premises, their private clouds. But they want to make it in a single security solution that gets integrated no matter where you run your infrastructure and that's integrated back to your Sumo dashboard. So you have visibility across all Dev teams, all your application infrastructure, regardless of where they are running. There is one security standard that gets implemented. That is really, that's the future. You don't want to be beholden to a one claw provider, you want flexibility, you want choice. Kubernetes allows you to do that. >> Well and the whole thing becomes more autotomized, right, with autonomic memory, autonomic compute, autonomic store, throw that on an IoT and Edges and now you're starting to distribute all those pieces all over the place, which is going to happen. >> Kamal: It is going to happen for sure. >> All right, looking forward I can't believe we're almost through 2019, it still shocks me everyday I look at the calendar, but what are some of your priorities looking forward? What are you guys working on? What do you see coming down the pipe? >> Yes, so you touches on a couple of these. So today, is a lot of talk around Kubernete. We are seeing Kubernetes also get deployed in IoT and edge devices, we are also seeing they are being used to manage serve-less infrastructure. So we are going to continue to evolve as Kubernetes evolves. The other big trend that we are seeing in the market today is around service mesh. People talk a lot about Istio and Linkerd and using service mesh as your policy framework to drive consistent policies across applications, so that's another area where we are innovating very rapidly and that will become, I think, more and more real in enterprise deployments over 2020. >> Well, congratulations Kamal to you and the team. I think you picked a good horse to ride on, I should say ship, right, with Kubernetes. Thanks for taking a few minutes. >> No, thank you for having me. I can officially say now that I've checked off one of my professional bucket-list items, which is to be on the Cube with an old friend. So thank you for having me. >> Check that box man. All right, he's Kamal, I'm Jeff, you're watching the Cube. Were at Sumo Logic Illuminate from the Hyatt San Francisco Airport. Thanks for watching, see you next time.

Published Date : Sep 11 2019

SUMMARY :

Brought to you by Sumo Logic. it's at the Hyatt San Francisco Airport. So for folks that aren't familiar Kubernetes, and we do security for You got to harden your environment But the how you do security has to evolve So you know, we talk a lot about Yeah it's something that is starting to emerge, I think it's going to really hurt as you deploy How do you catch them fast, limit the damage Exactly, so the use cases for what we do You have to make sure that you meet your PCI, HIPAA, So what we're seeing is that these are all becoming Right, and then they are creating and tearing down they open sourced it, and it's really what allows you to So one can only imagine the scale. and what Sumo Logic has done today with the announcement so automation is a huge piece of the puzzle. So it has to be seamless in the way you deploy it. So it surprises me to hear you say that still a lot and then you can go spend a couple of weeks or month Applied AI for Kubernetes. You got to have a budget, but how do you deploy your assets? of infrastructure, the VP engineering, because when you the relationship with Sumo. We are the yin to their yang. The fact of the matter is workload should run where they Multi-cloud, and then from Multi-cloud to Hybrid cloud. Well and the whole thing becomes more autotomized, right, Yes, so you touches on a couple of these. Well, congratulations Kamal to you and the team. So thank you for having me. Thanks for watching, see you next time.

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Robert Parker, Samsung SmartThings | Sumo Logic Illuminate 2019


 

>> from Burlingame, California It's the Cube covering Suma logic Illuminate 2019. Brought to you by Sumer Logic >> Hey, welcome back already, Jeffrey Here with the Cube Worth Suma >> logic illuminated the higher Regency San Francisco airport. About 800 people, 900 people packed house in the keynote earlier this afternoon. Really interesting space, and we're excited to have our next guest >> kind of on the cutting edge >> of the I o T space on the consumer side. And he's Robert Parker, the CTO of Sand Samsung. Smart things, Robert. Great to see you. >> Great to be here. >> Absolutely so before we get into >> the kind of the depth of the conversation, a little bit of a background on smart things. I was doing some research getting ready for this and the fact that it started as a kickstarter a long time ago, not that long ago, and now is part of Samsung, a global electronics giants. What a fun adventure. >> Absolutely. I think it's been one of these things where it's great to be something where it's community driven to begin with, so kick start. It was a big part of our launch, and we were one of the biggest kicks are launches at the time. Uh, really powered by our community around the website and early users. We got a lot of interest in I O. T. And then moved on to the next stage of the vision, which is sort of encompassing all devices. And so that meant we have more than 2000 different Samsung devices on the platform now, which really allow devices to talk to each other in ways that are really exciting. And that breath has been really great thing to be part of >> right. It's really funny. We went to the Samsung Developer conference a couple of years ago. It was funny to see the the living room guys fighting with the kitchen guys, you know, What was >> the centers that the TV or is it >> the fridge aerator? Or is it the washing machine for that bit? And Samsung's got really got a foot in all those places? >> Absolutely. This is one of the things that the smart thing platform is really enabled Samsung to transition across is then it's no longer a conversation with the washing machine person or the dryer. All the devices are part of the smart things. Cloud. Martin Claude is a one way that you could talk to Samsung Devices, and it's an open ecosystem. So it's not just Samsung. Devices were equally comfortable with manufacturers. Any manufacturer bringing those devices because home is a multi vendor environment you are not. We're gonna have all of your home from anyone, vendor, right? And that's been one of the exciting parts of visions that's been part The open ecosystem is something that's been part of smart things. Story forever to really immortalize that in a platform for Samsung has been great transit, >> right? So we're here. It's Uma Logic, eliminate and preparing for this. I saw an interview with you. You made a really interesting comment. >> You said that we are a pervasive >> user of suma logic, and he said 90% of the team are using similar logic. It's fascinating to me because I think a lot of companies air chasing innovation. I think one of the ways to get innovation is you enable more people to have more access to more data and the tools to actually operate that data so that they can do their jobs and find cool ways to make improvements that aren't necessarily coming from the top down. It sounds like you guys have addressed that philosophy wholeheartedly, >> so we absolutely have addressed it wholeheartedly. I think there's a lot of luck involved, and I want to sort of describe it Is that one of the things that worked well for us is people were excited to use sumo more and more. They're more excited to see what they could do with the tool, what insights they could get. And so you see your neighbor looking at it and they look a dashboard and they say, Can I do a little bit of that? And so much So you know, in the last year we've seen ah lot of unplanned value come out. So 1/3 of the value we gotta assume of, um, um in the past year was unplanned. These things people didn't process, they didn't know they would improve. That really just came from this groundswell from what I would call the community. And I think that's where you get that. That unlocks a lot of the potential because you really can't do things from sort of the planned high level. You really need. People actively engaged right and doing stuff you wouldn't expect. >> That's great. So I >> want to talk about >> a little bit about security. Security is a big topic here. It's topic everywhere we go on and now, with connected devices and connected keys and connect doorbells, it seems like, Oh, here we go again And there's this constant talk that security's got to be baked in throughout the entire process. How are you guys dealing with security? Obviously got to be right at the top of mind in terms of priorities. While you're still connecting the sprinklers in the thermostat and everything else. Security >> and privacy are both critical link in privacy, even though you didn't ask about it. Because as you think about devices like cameras and things like this, privacy is top of mind. Also, in terms of regulation like GDP, are so because of that, we're really looking at both cases that the challenge for both security and privacy is it really cuts through your whole organization and every process, and by the way, every process that every partner, if the organization has because we can have something that could be exploited from sort of a an attack through a customer service representative. That could be a person in the customer service organization. It could be how some of social engineered that. And so what we've really needed is this kind of continuous intelligence that can span all of these processes because in something I security, you're as good as your weakest process. And that doesn't mean that we don't focus on all things that you talked about. Were industry leading from device perspective tohave hardware baked in keys and, you know, do things the manufacturing process that lead to something that could be as secure as anything. But that's really that the secret of using a lot of the continuous intelligence tools like sumo is that all of these could bees aren't enough. You have to bring it together by having the intelligence that spans those processes to make sure that all of them are elevated. Because at the end of the day, a security attack is gonna attack your weakest thing, not your strongest right. >> So one of the other >> topics here that talked about is this exponential growth of data, and you guys were part of the problem because now we got sensors and light switches and all these other things that are kicking off data that before we weren't monitoring. And so from from an execution point of view at the company, when you've got so much data that you need to turn into information and then actionable insight, you said Sumo's got some unique characteristics that allow you guys to get more leverage of that platform. I wonder if you could dig into that little bit more >> and I'd like to reframe the data discussion a little bit. A lot of people look at it. It's a problem. I want to really talk about the opportunity side. So part of that goes to our story where we started off at KICKSTARTER with a few 1000 users, we have over 50 million active users now. >> 50 million >> 50 million. Our Android application, the Google Play store, had been downloaded around 200 million times, so it gives you some idea of that size and scope. So the data is an opportunity. There's an opportunity to build a customer base, too, excite people and to manage the processes that do that. And you know what's great now is that the availability of this data means that you can do it in more ways than you ever could before. The problem is, you need a tool that brings us together. To be able to do that in doing that well is difficult, difficult both on the teams and difficult because the size, scope and complexity of the systems because of the data that you mentioned. But the >> reason you want to >> do it is so that you can cross the chasm in terms of this opportunity, and more and more companies are enough. You have this opportunity on the front of them. One of the things that's been really exciting, but the cloud is a sort of democratized the entry point. But that wasn't good enough just because you could get in the game with three people. It's like making a you can make us application in Mobile Applications store, either on Google's on Apple's really easily that gets you in there. What you really need to do is manage the intelligence that goes from that, and for us, it's been really exciting to be able to take our decisions and make them data driven, and we can do that by this explosion of data because it is their >> right in the date is good. And I think we see, you know, kind of date of it as an asset. It hasn't really hit balance sheets officially yet, but I think you see it in the valuations of of companies like Google and Facebook and Amazon, right, who obviously have these crazy giant multiples of the revenue one because they're growing but too because they have so much data. So the markets kind of valuing that data without explicitly calling it out as a line on the balance sheet. That said, not all data has the same value, not all day. Not all data needs to be treated the same and so really opens up an opportunity. How do you tear it so you don't want to get? You know, it's been a ton of money on a piece of data and a big fat stream that somebody leaves open and accidentally suddenly have a big building that maybe wasn't the most valuable. So >> it actually double down on what you said because for a typical company, one of things has also been true. Of the mega scale companies that you pointed out with is there's a lot of uniformity in their data coming the cost of the Amazon. They have customer orders, and they've got orders at this massive scale. A typical company doesn't look like that. They have their data spread is more fragmented, smaller scale on so >> because they want to make different decisions. And this is the >> same thing that has already happened in the storage area. People are really comfortable with storage that they're gonna have in either just disaster recovery or long term storage. And they want a very low cost footprint around that they've got their hot data and they're much more willing, tohave that data managed differently and at a higher cost rate because it's it's much more valuable. We're looking for tools that span that not just in storage, but in the ingestion in the management in the querying of that data. Because, like you said for most businesses, a lot of data's infrequently looked at or looked at in response to a situation, so I'll never know which 10% of the data will be looked at. It will be based on Oh, I got audited or, you know, some other business event that happened on, so this is one of the key things that business is struggling with. One of them is that they they want to adopt these practices to become modern or boring, modernized. But the 2nd 1 is to really be able to tear the data because they couldn't treat all the data's if it's hot data, just like they already figured that out for storage, >> right? It's pretty interesting. It's been going on for storage forever. We really saw it, I think, with the rise of Flash, which was super high quality but super expensive in the early days that's coming down and then at the other. And we have the end of the glacier storage in the cold, cold, cold store. Just put it away by what your last thought's that last. Answer, Robert. As you look forward, I can't believe you're already in middle of September of 2019. It's fascinating to me that time flies so fast. But as >> you look >> forward, what are some of your priorities over the next year or so? How are you guys kind of moving the ball down the field? >> So we're one of the things that we're looking at? Was the data problem that you were talking about, if really looking at are infrequent data and be able to manage that effectively both from the types of insights that we can get from that. So a lot of this starts to be better usage of machine learning pattern recognition a eye on so that we can, you know, the ideal situation for us and not type of data is it got touched once it got looked at once, and then we could understand how to action it later that deferred action. And then how do you know trigger that deferred action as well as the tearing that we sort of talked about that all day? It is not created, equal, created equally, and so both those things are happening just to put some numbers on this. And why is that? We have 150 terabytes or so of data that is somewhat interesting to our business generated on a daily basis. 150. Terrible, terrible. That's interesting. And then on that's out of that, I'd say 10 terabytes is kind of really actionable. It's that gives you an idea. The other part is how that's growing. Where a year ago, we would have been at maybe 60 terabytes of what I would have called this interesting data and maybe five terabytes of, of of, you know, immediately actionable. And And so that's where you know this is following that where that's exponentially growing and it's a big number. So that's what we really think about. >> So you scared those curves. Curves get state, we look. It >> is a huge opportunity. What will happen is either people will create value out of that for customers, in which case, actually the opportunity, because is that such a scale? It will be great for everyone or number two, you know, it just becomes noise, right? And so it isn't really something that scared of, because worst case is it became noise to you. We really want to be one of those people were getting value out of it and see sort of the business growth and the consumer value growth. Out of that, I I'm pretty optimistic that we'll be able to do it because we really if I look back 34 years, we've just been able to figure out a way, and I think it will continue to do that >> All right. Well, Robert, thanks for taking a few minutes of your time and ensuring the story. It's a great story. Thank you. Appreciate being here. All right. >> He's Robert. I'm Jeff. You're watching the Q word. Suma logic illuminate 2019. >> Thanks for watching. We'll see you next time.

Published Date : Sep 11 2019

SUMMARY :

Brought to you by Sumer Logic in the keynote earlier this afternoon. of the I o T space on the consumer side. the kind of the depth of the conversation, a little bit of a background on smart things. And so that meant we have more than 2000 living room guys fighting with the kitchen guys, you know, What was This is one of the things that the smart thing platform is really enabled Samsung to transition across I saw an interview with you. that aren't necessarily coming from the top down. So 1/3 of the value we gotta assume of, So I How are you guys dealing with security? a lot of the continuous intelligence tools like sumo is that all of these could bees aren't enough. I wonder if you could dig into that little bit more So part of that goes to our story where because the size, scope and complexity of the systems because of the data that you mentioned. do it is so that you can cross the chasm in terms of this opportunity, and more And I think we see, you know, kind of date of it as an asset. Of the mega scale companies that you pointed out with is there's a lot of uniformity in their data coming And this is the But the 2nd 1 is to really be able to tear the data because they couldn't treat all the data's As you look forward, I can't believe you're already in middle of September Was the data problem that you were talking about, So you scared those curves. see sort of the business growth and the consumer value growth. It's a great story. Suma logic illuminate 2019. We'll see you next time.

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Lior Mechlovich, Informatica | Sumo Logic Illuminate 2019


 

>> Narrator: From Burlingame, California, it's theCUBE, covering Sumo Logic Illuminate 2019! Brought to you by Sumo Logic. >> Hey, welcome back everybody, Jeff Frick here with theCUBE. We're at Sumo Logic Illuminate at the Hyatt Regency, San Francisco Airport. Our second year here, about a thousand people, third year of the conference, a really good vibe. You know I think some of these cases where the marketers really come to Sumo Logic in terms of data and data monitoring, and there's so many applications that are business and security, and operations. We're excited to have our next guest. He is Lior Mechlovich. He's an architect at Informatica. Lior, great to see you. >> Great to see you, too. >> Absolutely, so you said you've been coming to this for a couple years, just kind of general impressions as it's grown. >> Sure, it's my third year, it's grown very nicely. Always exciting. I think there's a very nice vibe to this conference. I always learn new things so we've been with Sumo for more than four years now for Informatica. And excited as always. >> Yeah, and we've been covering the Informatica show. I think we've looked it up, since 2015 so, we've been doing a lot of work and you guys are right in the heart of this whole data thing, >> Right. >> And you been part of the kind of migration from pretty much pure on-prem, to Cloud. There's rush to public Cloud, and then now kind of this Hybrid model. So you kind of look at the data perspective you know, what's kind of your take as this thing has evolved over the last several years? >> Sure, so we have been around for 26 years. I think building a lot of on-pram, data platforms for being the enterprise Cloud data management that Informatica sells with basically getting your data inside our outside the organization from Clouds, on-pram, or whatever integration pattern you have and we decided four or five years ago to be a Cloud-first company and migrated most of our products to be on Cloud to provide them as a service. And for us, it was a huge journey, we needed to take some offering that we had in the Cloud, some products, and really revamp and building a new microscopic architecture and then slowly migrate all the customers. It took us over a year to make that. We currently run on all three Cloud providers. And really using Sumo mentoring tools to really understand the impact that we have on our customers during this migration. It was a very successful. They hardly noticed that-- >> Oh good. >> Only the nice UI, but they hardly noticed the problems. I mean we really changed a lot of things. >> What is some of the things you learned in that process that you can apply now with just some of your customers in terms of data migration and operating in a Cloud situation versus a traditional data center? >> Sure, so I would definitely highlight the need to be able to roll back and the need to always keep really good money to working it and understanding how the end user getting impacted. And so we really kept that in mind. Everything we do try do always do it side by side, and then when we migrate we're really sure that it is successful and there's no impact on the customer. So I think that's definitely too, harshly monitored everything and be able to roll back when you need to, because you will need to at some point. >> But the rollback is funny, because it use to be you had you know the release cadence was significantly slower than now. And now you've got all these kind of micro pushes that are going on multiple times a day. >> Yeah. >> So how does that impact kind of keeping that safety net? That rollback safety net? >> So it's interesting. So we actually don't deploy that many times a day. Where we can really impact the customer so we deploy the things that are not customer urgent impacting production more, but still the really heavy productions of the thrilling part of the customer; we try to minimize that and make it very customer aware okay. >> So basically they choose their own windows of maintenance and all that. But our customers again hospitals, all kinds of very important, then we are in charge of the data byte in those places. So we don't want to just push whatever we can. We really cannot take that, even a rollback of 1%, it can be very bad so we're a bit more conservative models of deployments, but actually that means we put a lot of effort in our monitoring. What is going on doing those deployments. >> Right. All right, so what are the big trends that happen? I mean containers have been around for awhile, but we really saw kind of the rise of containers in terms of the popular consciousness with Docker couple three or four years ago, and then a couple years ago the Cooper 90's coming in for the orchestration. From your point of view how had those things impacted your world, and how you do your job, and take care of your customers? >> Sure, so for us Cubernetics is really a great opportunity to standardize the way that we deploy across different products. So we have our platform, but we have also different products; different people across the globe. We're a very multi-globe organization, and to get a standard like Cubernetics to help us standardize to get more releases, more stable environments that really solves a lot of problems, because we had this migration that I talked about really left us with a lot of clusters across the globe, different time zones. It was really hard to standardize on the pipelines, and to deploy to really minimize the problems that we give to the end user at the end. >> So we really took that opportunity to use Cubernetics, to use containers to minimize the difference it has from the developer machine all the way to production. To automate the most we can so when it's really is excelling in this. Yeah, so that's where we really... took those containers apart. Today we are in migrating, so not all of that, but we truly see the benefits of standardization, of immutable infrastructure as that key component for us. >> This is just so great, because you have such a longitudinal point of view having been in. The company's been at it for awhile, and you've been at the company for awhile. So another topic I'd love to get your thought is just kind of this exponential explosion of data. I mean it would be curious not to know the numbers, but kind of the scale of data in which you guys are dealing with for you customers, and how that has changed over the last several years before you even really factor in IOT, and this next kind of machine to machine explosion? >> So we definitely see that explosion of data. It's not just the explosion. It's also the different types, and where data has been on-prem, now moving to Cloud. Where do people want to run off all those work loads? As of course a lot of feedback for us as well need to support all the Cloud providers when we use to do a lot of Hadoop on-prem, right? It's all changed now too. >> All the Cloud providers, the data it's theirs. So the data move, data locality is a big thing, Now we need to run all those things on the Cloud. So, I don't remember the exact numbers. I guess we're doing something of 2.5 billion transactions a month for like number of records that we serve. That being we usually just see more work loads, more people, more use cases for onboarding more data from Cloud applications. The data became more dispersed not just more data, but the sources has become like everybody needs to integrate Salesforce or Workday with their on-prem that gives unique opportunities for this kind of data. >> Well, it's funny when you talk about the workloads, because it always use to be, do you bring the workload to the data or the data to the workload, and a knock on the Cloud is that you got to get all the data into the Cloud, and pay for the transport of the data. And there's data gravity that said once you have it in a central location like that the opportunity to put applications against that data is much much higher than if you're bringing the data to the application. You see and how are customers taking advantage of that opportunity? >> So for sure we saw they did that move to the Cloud. When we started from on naked Cloud 10 years ago our entire model was hybrid, so we can stick around on-prem, because the data was on-prem, and since then our hybrid model that you still run both on-prem and on Cloud, you can see the change right? You can see more of our agents. We have an agent based architecture to really being deployed much more on easy 2's, on AKS or whatever to run those workloads in the Cloud. >> Right, but I would imagine the number of workloads applied to each data set now have increased significantly, because now it's in that central repository. >> Yes, and definitely you can see those data legs being built, and mostly in the Cloud. That gives unique opportunity. >> So just get your perspective after a couple days here. I know you haven't been here for a couple of days. We're just getting started at this show. What does Sumo Logic bring to you and your team? What does it enable you to do that you couldn't otherwise do? Why are you happy to be a customer of Sumo? >> Sure, so four and foremost it's the democratization of data. I really like to say that internally. In an organization that's spread across the globe, really sharing insides based on data, it's very important. When you have many R&D centers that can just send this summary; send the data and show people what they mean saves so much time, and so we use it across. We use the customer success, product management to understand feature being used, SRE's, developers. All of those really can communicate based on data. In this Microsoft Office tool you cannot do it without that. You cannot do it without linking, because the different products that we onboard on the platform will not be able to communicate effectively without that. So that's very important, and giving that landing pages dashboard templates for onboarded services to have this kind of standard to follow to monitor how to operate that's very important for us. >> That's great. Go ahead. I'm sorry I interrupted you. >> Sorry, and the key place that we brought Sumo in is basically for instant management. So how to understand when something doesn't work just to try to understand the blast radius, which products are impacted. We have a variety of products, so just in minutes we minimize that in four hours to minutes trying to understand what exactly is going on. Who's impacted to update the customer  and all that. >> I love the part you talked about the democratization, because again I talk about it all the time, and I'll talk about it again, but to drive innovation in a company I think such a key piece of it is to enable more people to have more information, and the tools to manipulate that information, so they see opportunities to make improvements here, there, and otherwise and it sounds like you guys are really using it for that. >> Definitely. Definitely. >> In this case. >> You know when you get some people that you never knew that even though we have a customer support guys that did some crazy dash wars that we had no idea it's possible even, and they really getting chance to work with customers better to really tell the customer, "Oh, you just did that and that. "Maybe you'll try this option." And we found that even communicating, and really minimize the time it takes for them to figure out what's going on that it's been really impactful. >> With no call to It to help (laughs). >> And it was never the intent, so we wanted to allow dev's and off's to operate, and all of a sudden you're getting customer support without even telling them. >> Good, well Lior thanks for sharing your story and really appreciate you taking the time. >> Thank you. >> All right, he's Lior. I'm Jeff. You're watching theCube. We are at Sumo Logic Illuminate 2019. Thanks for watching. We'll see you next time. (upbeat techno music)

Published Date : Sep 11 2019

SUMMARY :

Brought to you by Sumo Logic. We're at Sumo Logic Illuminate at the Absolutely, so you said you've been coming to this I always learn new things so we've been with Sumo and you guys are right in the heart So you kind of look at the data perspective to really understand the impact that we have I mean we really changed a lot of things. And so we really kept that in mind. But the rollback is funny, because it use to be So we actually don't deploy that many times a day. So we don't want to just push whatever we can. but we really saw kind of the rise of containers and to get a standard like Cubernetics to help us To automate the most we can and how that has changed over the last several years So we definitely see that explosion of data. a month for like number of records that we serve. the opportunity to put applications against So for sure we saw they did that move to the Cloud. to each data set now have increased significantly, Yes, and definitely you can see What does Sumo Logic bring to you and your team? that we onboard on the platform I'm sorry I interrupted you. Sorry, and the key place that we brought Sumo in I love the part you talked about the democratization, Definitely. and they really getting chance to work so we wanted to allow dev's and off's to operate, and really appreciate you taking the time. We'll see you next time.

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Rich Colbert, Dell EMC | CUBEConversation, July 2019


 

from our studios in the heart of Silicon Valley Palo Alto California this is a cute conversation hey welcome back everybody Jeffrey here with the cube we're in our Palo Alto Studios here today for a cute conversation it's a little bit of a dog days of summer conference seasons a little bit slow so we're excited we can kind of take a step back and we're gonna look back actually in time we're excited to have a very special guest rich Kolbert he is the field CTO at Dell EMC but really what we're talking about today is this data domain is 10-year anniversary of the date domain acquisition so rich first off welcome to the to the cube thanks Jeff excited to be here thanks for the invitation appreciate it I can't believe we're talking before we turned the cameras on that you join in 2006 and yet it's been 10 years I'm like wait 2006 was more than 10 can that be we're just getting old I don't know things are changing too fast no it's like a trip down memory lane and it just seems so long ago and yes in a way it also seems like yesterday I think things have gone so quickly so we're also joined in this segment by our top data analyst also the founder of wiki bond and co-ceo of Silicon angle media and founder of that as well so Dave Villante is joining us all the way from Boston Dave good to see ya hey Jeff hi rich to talk to you guys hey Dave so let's take a quick trip back 10 years ago actually maybe 11 years ago things were starting to heat up there was a lot of different vendors out there a lot of different players and things started to consolidate so I wonder if you can give us a little bit of your perspective what what's going on rich and then we'll get Dave's perspective yeah it was an interesting time right before the data domain acquisition we actually went through some economic times in 2008 and the markets are changing and and and some companies are becoming more successful some companies were struggling through that time customers were also looking for ways to to you know save money and do some interesting things there so it was a mixed feeling set of you know through that times data domain had IPO in 2007 and we were kind of going through this this explosive period of growth but you know across the board we just saw so many things change all at once and we really were surprised I think when initially was NetApp that an that they had intentions to bias and I think that was due to some of the economic factors of play and then of course EMC stepped in and and started a bidding contest with NetApp for for the company right so I Dave wonder if you could share your perspective you're sitting as an analyst you got Jo TG The Godfather of storage back in Boston what were you seeing in terms of the kind of the market dynamics and was it a surprise wouldn't that app decided to make a move well if you know first first of all I had left the storage industry for quite some time and when I started wiki bond we looked at storage and nothing had changed except one thing which was David deduplication that was new until a new tape was finally I always hated the tape the tape was finally being attacked so it was it was amazing time and EMC at the time we had some obviously great management yet Frank Sluman running data domain yo Joe Tucci who always balanced out acquisitions with organic you know in how to R&D and when Tom Georgians and NetApp said they were gonna go by David domain emt's walk right in and said no way so it was somewhat of a defensive move but at the same time when you talk to the M&A guys they said no no it's not just defense we can actually make this a growth play and that's exactly what happened Dayna domain I think at the time rich was probably a couple of hundred million dollar company and then they they popped that at the EMC and scaled that to you know well over a billion dollars and it'll maintain the the franchise and then grew it quite dramatically beyond where all the expectations were for the market the market team at the time was probably around a billion and I think ID seen rich as a over three billion today yeah one of the things that's so don't quote me on all the numbers because I'm not like you know watching the market caps and stocks but I think we'd gotten up to about a 500 million dollar run rate in terms of sales and prior to the crash I think our market cap was actually significantly higher so so our price came down you know which is one of the things I think that attracted NetApp to the game so the interesting dynamic inside the company was that the NetApp offer was was kind of the first one so they were working with the data domain leadership and they were speaking with us EMC was more of a kind of unsolicited offer so there was less communication and I remember there was a morning I was at San Francisco Airport going out to meet a customer and Joe to Chi put out a full-page ad in a local newspaper and we were reading that and that was his way of communicating to the to the people a data domain saying he wants to welcome us into the family it was quite a moment well it sure was and of course you guys were fierce competitors data domain was fierce competitors with with EMC you know fighting for for the install base and then all of a sudden you know the cultures it's somehow work EMC was was very good at acquisitions and he made it work and they not active it was an outside observer but you were there you know Frank Sluman came in did it's kind of running the the data protection organization but a lot has changed since then hasn't it I mean back then you stored you know a little bit of data I think accounting of terabytes today we live in a petabyte scale world I could talk about what's changed well you know the scales and performance certainly has changed I think the data domain platform today is about a thousand times larger than it was when it first came to market and in fact when we were being bid on by NetApp and EMC we had a flagship product is the DD 690 you know behind the scenes we had a system that was coming out that was double that size and EMC nor Netta knew about that so once the deal closed they got to find out that our size had just doubled in our performance and doubled at the same time but you're right you kind of talked about the dynamics inside of EMC EMC had a very large data protection you know division they had avemar networker santaros v TLS they also had an OEM arrangement for a competing product with the data domain platform so it was really like you know I compared to going to Hogwarts right where you have all of these different houses and we came in with with data domain and and I think the thing that really the glue that really helped it come to get was Joe Tucci you know tapping Frank's Luqman on the shoulder as the leader to bring this together and taking what was the borough division and and reforming it as the BRS division and I think we came together very quickly as a team even though people came from all of these different backgrounds you know standing for these different products rich let me follow up on that because there's a lot of M&A activity going on right now and and not very many big M&A deals are ultimately successful it turns out so what you said a little bit about you know Joe and Frank you know coming together but what are some of the other attributes that you would say that made it work it actually did what everybody hopes on an acquisition which is take great technology put it into a big sales machine and watch it grow and grow I think part of it you know quite frankly just comes down to the product and being differentiated because there are a lot of products out there and and if you take a step back they have good things that they're doing but it's very hard to find a product that says hey you're doing something that even if you put the blueprints out there it's very hard for other people to follow in those footsteps and create a similar value proposition and I think I think in this case it was a differentiated product and it had a lot of energy of its own and and I think from an EMC perspective they just stood back and said let's take this momentum and and play it out and see how how far it can take itself unfortunately I think a lot of times they don't do that right a lot of times acquiring companies don't just take this great thing and kind of get out of the way and add the juice where they can but you try to to try to change it so that's a really nice statement on Joe to G and what he was able to accomplish yeah no he was fantastic for us and and his support was tremendous but also his you know delegation and and kind of seeing how this but you know kind of having a vision of how this business unit should be formed right I think what was was very prison and then now you're part of Dell so obviously Michael Dell big personality as well the Dell technology stories he's doing a great job of pulling all these pieces together and you know kind of reinvigorating the brand coming back out of the little little side bar you know make it private for a while and come back so I wonder if you can talk about that integration how's that going as you've gone now a couple of times well I think it's been very exciting for us because the one piece that EMC had always been lacking had been the the compute part of the picture and now we have really the ability to go in and talk about the entire stack with our customers and that's that's a lot more powerful than saying here is an element of it and then if you want to go and add compute to that perhaps you know put in your virtual or physical servers then you're gonna we're going to need to partner with somebody and you know it's it's just a much cleaner story from end to end right right so the big big change obviously that wasn't around ten years ago that is around today is public cloud right huge impact not only directly in in taking workloads to the public cloud but also I think much more importantly changing the way people think about provisioning thinking about the way people think about elastic capacity so as as the market has evolved the rise of AWS and any other public clouds how has that changed what you guys are doing how are you reacting to that house at a new opportunity you know to kind of grow the maturity of the core product yeah well the thing is we have taken a lot of approach you know that's been learning and evolving as well right so so you know developers and applications really figured out AWS and the public cloud early I think data protection has has followed along with a couple years of lag in terms of doing that so you know our perspective is we learned as well right so so 2015 2016 I think there was some resistance and I think ultimately when we started to follow those workloads into the cloud there was a little bit of a lift and shift what we've learned is that the architecture really matters when you get to the cloud so the efficient use of resources the ability to do things in a cloud like way to use for example object storage instead of block storage when when the case presents itself so we took our products and virtualize them and followed them into the cloud but we realized that just taking the on-premise version of the product and putting it in the cloud itself isn't enough right because at the end of the day the customer is paying for all the underlying resources and so if your architecture is an efficient from a cost perspective as well as a performance perspective it's not going to be a viable solution and so 2017-2018 we've really seen a big acceleration in our adoption in the cloud because we have adapted our architecture to be more cloud friendly and more cost-effective for our customers to deploy but it was a learning experience for sure you know and and I think we're continuing to learn and continue to develop in that space and there's a lot of opportunity ahead of us the other big change I think that's come that we see over and over and over is really data as an asset only as an asset but as a huge valuable asset that drives your business drives real lytx but then becomes actually something that drives your company value and I think we see that and the Facebook's of the world and the googles of the world of why they have these crazy high valuations relative to here to their revenue and their profits because they're getting value for the data alright great news for you right it used to be a sample the day of the day was a pain it was expensive to store I didn't want to keep it all now everyone wants all the data they want to analyze it in real time and they want to put it in a place where they can actually put multiple applications across that same data set to do all kinds of new analytics so again super opportunity for you guys people aren't storing any less data no absolutely yeah no the data amount being stored is definitely growing one of the things that we're seeing that that's this kind of pervasive is this idea of of really using the right data the right place the right time so accessibility to whether it is a data Lake or it is your protection copies or you know an instant access of your protection copies there's a lot of different thing customers are doing with data but it's no longer a one-size-fits-all proposition like it was back in the tape automation days where I'm just throwing all of this stuff into a box and and never accessing it again right so the dynamics are changing and continue to evolve I expect that if we have this conversation two or three years down the road we're going to see some amazing things happen in the next couple of years that and some of it we were not predicting now we're gonna find out as customer demand and as innovation guides us along right because then the other big piece is the media right we've talked about tapes and the original data domain was was in response to some issues with tape and we get spinning rust as everybody likes to call it and now of course flash so yeah again see change in terms of capability the cost is coming down it's no longer the super high-end thing just for super high value applications so very transfer transformative opportunity on the on the media side as well on the flashlight as well you hit on a couple of really key things data domain was very successful because it became viable and practical to displace tape automation and nobody was a fan of their tape automation environments and now I think we're gonna see that's that same shift you know spinning disk is right now being relegated to archival and backup purposes but we're gonna hit an inflection point very soon I think we're where every instance of spinning disk probably can be questioned and so we are actually doing the you know kind of getting ahead of that curve and coming out with all flash products as a choice for a customer so we'll still have spinning disk for some backup use cases but we'll also have you know be able to offer customers a choice of the data domain technology on an all flash set of platforms and that will give customers a chance to get out of the yeah that spinning disk business as well right good I wonder if I get what if I get chime in here I you guys were talking about the the technologies and the cloud and the architecture it's interesting it David the main really started out don't hate me for saying this but as a feature product and the key feature was data deduplication data domain had the best you had a lot of guys doing post process you had you know some guys trying to do server-side avemar itself for example but they domain really killed it with regard to data David II do and if this feature product became a platform and had an architecture people became as you know unicorn times 2 plus plus and so I wanted to ask you rich about that architecture and aware it can go you're talking about different media now beyond spinning disk you know it used to be just a kind of a dumb target you've now got integrated appliances you've got software that's integrated there so it's you know you talked about the scale and the capacity where do you see this architecture going I wonder if you could comment on yeah well I think a lot of that belongs in in the realm of the data management software that speaks to it and and by having a distributed ecosystem and having things like you know distributed segment processing so we can take data domains technology and extend it out into those data management activities because a lot of the what's happening in the market is as new workloads are coming into the market they're having their own methods and native tools built-in for data protection and to be able to leverage those and have a highly consolidated affect on the backend is still extremely valuable to our customers and you're right it was a differentiated product from a deduplication standpoint but really the feature was that I can keep my 30 60 or 90 days worth of copies that are separate from my primary copies so I putting them somewhere safe I can even put them under different governance from my primary storage or my primary application owners right and it's practical and feasible and and prior to that the only real way to do that was with tape automation deduplication has become more of a broader word itself and it goes beyond what data domain does so there's deduplication and primary storage but if you look at primary storage deduplication it's good but it's designed to help you reduce the use of primary storage by 2 or 3 times it doesn't touch on the 30 60 90 days of retention that data domain does so there the similar technologies and a common use of the word but but they're two different use cases that the the remains separate I think yeah and you know as a former practitioner the other you are I think a former customer the genius part of the genius of data domain was its ability to just plug in to existing processes yes you didn't have to change things up and so it was an easy in but but it's impressive that you've been able to keep that that architecture going I wanted to ask you about market share you aided them in has always had a sixty plus percent market share I think it's at sixty now but it's it's like the Cisco of purpose-built backhaul appliances you're able to sort of dominate that little segment of the market which keeps getting bigger what but now you've got a lot of new entrants you know on VC money pouring in a lot of noise in the marketplace I feel like you guys maybe a couple years ago took your eye off the wall and now you've got this renewed sense of a vigor you know maybe it was parked partly the acquisition but you know we've talked to Beth Phelan about this a number of times you've really refreshed the portfolio so so wonder if you can talk about that and my question is what gives you confidence that you can continue to maintain your dominance yeah that's a great question and things have really changed I think starting around 2014 we were having some internal conversations about things like simplification the consumerization of IT and and all of those those dollars that you're talking about are really being poured into companies that are trying to take a different approach they're going into the white space that we had kind of left open which was simplicity right if you if you look back 10 or 15 years and you look at the the data management and enterprise backup software space enterprise backup software has been complicated and as you add more use cases it has become even more complicated and the customer base is no longer tolerant of that that's something that that maybe 10 or 15 years ago that was kind of a badge of honor to be working with complex and people just don't have the time for that there's a lot of IT generalists and folks that are out there that don't want to go to training class you know you know five days or ten days out of the year to learn how to use a product so that was a really good thing that we're seeing in the marketplace in terms of making products simpler easier to use and more approachable with things like discoverable functionality we certainly have the you know put a lot of effort into going in that direction because we think that's the right direction but what gives me confidence is the underlying storage value proposition about efficiency and performance and scale is something that we've still think that we have a strong upper hand on and when it comes down to that you know we take cloud as an example our data reduction in the cloud we think allows a much lower cost to serve and you know the customer is going to pay for that cloud storage or that cloud compute regardless of which vendor they're trusting in terms of their their solutions so simple only goes so far we think we can get there with simple but we don't necessarily see our competition having the efficiencies scalability and and so forth that we've already had so that that's good that gives me a lot of confidence so when you talk to customers what's the big problem the big hairy problem that they're trying to solve in your space and how are you guys helping so I one of the two big problems I see is is really a lot of IT teams are confronted with they've got a digital transformation going on they've got a cloud strategy going on an IT isn't necessarily being invited to the table early enough or often enough to go ahead and help with that process so what you have is you a cloud team building applications bringing things online and then the data protection the backups the snapshots whatever they're doing to make sure that that data is safe is is a bit of an afterthought and it you know I think of DevOps and I think about the ops part and I've never really come across an application team that wanted to own the business responsibility for the risk of you know backups recovery replication and all of that and I think IT has a lot of established practices that would be good to inform how those things should be built so the number one thing that I'm talking to with my customers when we're talking about this whole you know tectonic shift and in the way things are being done is that IT and the digital transformation or the cloud team do need to speak early and often and proactively about how they approach data protection because they continue to need to have a strategy that evolves and make sure they keep themselves protected as they start moving these critical workloads into the cloud it's an age-old problem with backup and data protection people think of it as a back as a bolt-on is an afterthought and your point is right on it's got to be a fundamental part of any transformation it's just like security you can't bolt it on earth just doesn't scale yeah and it's very much like you know back in the day when open systems was just coming of age there was a lot of operational discipline that the mainframe teams had and the mid-range teams had but the open systems was the Wild West and eventually open systems learned and and and a lot of that you know was knowledge sharing about best practices and you know Mis became IT now IT is becoming you know DevOps and digital transformation we're seeing a lot of that same dynamic happening again and and you know my main point is just you know start those conversations and if you're on the IT side start those conversations proactively you might not be getting invited to the digital transformation party invite yourself rich has been quite a 10 years and and as I was just watching an Andy Jazzy interview if you think the last 10 years have been crazy you ain't seen nothing yet so you guys are in a great position to stay agile and I'm gonna steal your line that it's no longer an honor to work on complicated systems that's great yeah it's been great being here thanks for having me and looking forward to maybe coming back in ten years and seeing what changed so hopefully we won't wait 10 years so rich thanks for stopping by Dave thanks for checking in from Boston and it's great to see you as well thanks you guys thanks Dave thanks Jeff [Music]

Published Date : Jul 11 2019

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Harry Moseley, Zoom Video Communications | Enterprise Connect 2019


 

>> Live from Orlando, Florida its theCUBE covering Enterprise Connect 2019. Brought to you by Five9. >> Hello from Orlando, Lisa Martin with Stu Miniman theCUBE. We are live, day three at Enterprise Connect 2019. We have been in Five9's booth all week and we're very excited to welcome to the program for the first time Harry Moseley the CIO of Zoom Video Communications. Harry thanks so much for joining Stu and me on The CUBE today. >> Lisa, Stu its a pleasure to be here, thank you for having me. >> And you're a hall of famer, you have been inducted into the CIO Magazine's hall of fame and recognized as one of the world's top 100 CIO's be Computer World >> Yes that's right >> So we're in the presence of a VIP >> (chuckles) Well thank you for that it's, as I say its all credit back to the wonderful people that have supported me throughout my career. And I've worked with some amazing people and leaders and, who have supported me and the visions that I've created for their organizations. And so, I understand its about me but it's also about the great teams that I've worked with in my past. I can't make this stuff up, yep. >> Harry, we love talking to CIO's especially one with such a distinguished career as yours 'cause the role of CIO has gone through a lot of changes. IT has gone through a lot of changes. You know we've been doing this program for nine years. Remember reading Nick Carr's IT, does IT matter? And you know, we believe IT matters more than ever Not just IT, the business, the relationship maybe give us a little more of your view point as to the role of the CIO and technology, at a show like this. We hear about the CMO and the business and IT all working together. >> Yeah so its actually, in my opinion, there's never been a better time to be a CIO, irrespective of the company you are in, whether its a tech company like where I'm, you know Zoom Video Communications or any one of the prior companies I worked for, professional services, financial services. But even when you think about it like trucking, You think about trucking as an industry, you think about trucking as a company, its like it was a very sort of brick and mortars? But now its all about digital, right? A friend of mine runs a shipping container company and to think that they load five miles of wagons every day. And so I said to him, "how long does it take to load a wagon on a truck?" "It takes four minutes, and you know what Harry, "we're working that down to three. "And that'll increase our revenue by 20 to 25 percent.' And so its just fantastic. And the pace of change, you know it's just growing exponentially. It's just fascinating, the things that we can actually do today we only dreamed about them a year ago. And you think about it sort of' I can't wait to be back here next year, 'cause we're going to just lift the roof off this place in terms of the capabilities. And so its fantastic, yeah it's just absolutely fantastic. >> So looking at, a lot of us know Zoom for video conferencing and different things like that, but you said something very interesting in your fireside chat this morning that I hadn't thought about, and that is when, either going from audio to video, when you're on a video chat you really can't or shouldn't multi-task. So in terms of capturing peoples attention, enabling meetings to happen maybe more on time, faster, more productive. Thought that was an interesting realization, I thought, you're right. >> It just clicks, it just works. You know mobile, you know when I go back to my you know sort of' going back and again, thank you for the recognition from the key note. But when I go back earlier in my career it's like dialing that number, dialing that ten digit number, misdialing that number, what happened? I got to' hang up, I got to' get a dial tone, I got to' dial the numbers again. Now I'm like two minutes late and I know I'm late more often than I'd like, but when its late because of something like that, that's frustrating. That's really frustrating. And so the notion that you can just click on your mobile device, you can click on your laptop, I have no stress anymore, in joining meetings anywhere. I love telling the story about how I had a client meeting, I was in O'Hare Airport and I joined the client prospect meeting. I joined the prospect meeting on my phone using the free wifi service at O'Hare Airport. Put up my virtual background on my phone I just showed you this Stu, with our logo shared the content off of my phone 18 minutes into this 30 minutes call, the person I was talking to, the CIO for this firm called a halt to the meeting. This is what exactly what happened. Enough, I've heard enough. (announcement in background) >> Keep going. >> Keep going, okay. Enough, I didn't know what enough meant. And so I was a little spooked by that if you will. He goes, "you're on a phone, you're in O'Hare Airport, "you've got a virtual background, "you're sharing content, its all flawless. "Its like this is an amazing experience "that we can't get from all the technology "investment we've done in this space "for our company. "So guys, enough. "We're starting a proof of concept on Monday. "No more discussions about it. "Harry, looking forward to being a business partner." >> Does it get better than that? >> It doesn't get better than that. Its like you know, you hop through security, you get on a plane, and its cruisin' all the way home. >> Yeah I mean Harry, I do have to say, you know disclaimer, we are Zoom customers I'm actually a Zoom admin and its that simplicity that you've built into it is the experience, makes it easy. >> And then when you, and Stu, sorry to interrupt you but I got really excited about this stuff as you can tell. But, and then you look at the enterprise. So you're admin? You get into the enterprise management portal and its like Stu, I had a really bad experience. Oh let me look that up, oh yeah, okay. Where were you? You know, I was in outer Mongolia Ah okay, about five minutes into the call you had some packet loss, its like yeah it wasn't. But it still maintains the connection, right? So you can actually, so our Enterprise Management Portal is awesome. >> Yeah so that actually where I was going with the question, is you know I remember back, I actually worked for Lucent right after they spun out from AT&T. And we had videos talking about pervasive video everywhere, in my home in the business. Feels like we're almost there but still even when I have a team get together my folks that live in Silicon Valley, their connectivity's awful. You know when they have their, and its like oh well my computer or my phone don't have the cycles to be able to run. Maybe we have to turn off some of the video Are we getting there, will 5G solve some of these issues? Will the next generation of phones and computers keep up with it? Because it's, I'm sure you can guess we're big fans of video. It's a lot of what we do. >> Because video is the new voice, right. We like video. If I can only hear you and I can't see you, then when I make a statement I can't see you nodding. If I say something you like, you nod. So we get that concurrency of the experience Again it comes back Stu, where were we a year ago? The capabilities we had, where will we be a year from today? Whether its AI, whether its the power in the device in front of us whether its the network, you know, 5G is becoming a reality. It's going to take some time to get there but you've got sort of great technologies and capabilities, that you know, you look at the introduction of our real-time transcription services. I mean how cool is that? I'm sure there's lots of questions, so lots of people would ask about that real-time transcription in terms of, well what's next? I'm not going to talk about what's next. But as they say in life, watch this space. >> Yeah, just you made some announcements at the show with some partners I actually believe Otter AI is one of the ones you mentioned there. I got a demo of their thing, real time, a little bit of AI built in there. Can you talk about some of those partnerships? >> Yeah so we have great, we love our partnerships right? Whether its on the AI space, with Apple and Siri and Amazon and Otter. We also love our partnerships with Questron and Logitek and HP, and Polly of course. Again its the notion of, we have terrific software. You guys realize that, right? Its terrific software, proprietary QOS proprietary capabilities, its like its a fantastic experience every time on our software. These partners have great technologies too. But they're more on the hardware side, we are software engineers at our core. As Andreson said, I think it was about ten years go, "software is the easing thing in the world "so you take terrific software "you imbed it in terrific hardware "with terrific partners and what happens "is you get exceptional experiences." And that's what we want to deliver to people. So its not about the technology, its about the people. Its about making people happy, making easy, taking stress off the table. You go to the meeting, you light it up, you share the content, you record it, you can watch it later, its just terrific. >> So the people, the experiences you about we've been hearing that thematically for the last three days. As we know as consumers, the consumer behavior is driving so much of this change that has to happen, for companies to not just digitally transform, but to be competitive. We're in Five9's booth and they've mentioned they've got five billion minutes of recorded customer conversations. You guys can record, but its not just about the recording of the voice and the video and the transcription. Tell us about what you're doing to enable the context, so that the data and the recordings have much more value. >> Yeah so , I mean its the notion of being able to sort of rewind and replay. I'll give you another example if I may. Coming out of an office in Palo Alto jumped in the Uber, going back to San Jose for a client meeting. I'm a New Yorker as we talked about a few minutes ago and, I don't know the traffic patterns in Southern, in the Valley. And its about 5:00 o'clock, 5:15. San Jose meetings 5:45. Normally it would be fine, but its rush hour, what do I know about rush hour? I know a lot more now than then. I realize I'm not going to be able to make it on time. Put up the client logo, virtual background on the phone, in the Uber, client gets on the call, Harry where are you? I'm in the back of an Uber. Again, the same sort of experience. Then he asks the question, "well with this recording capability, "can I watch it at 35,000 feet?" Of course you can. And that was it. That was the magic moment for this particular client, because he said "I'm client facing all the time. "I don't get it in time, "I don't always make my management meetings "so I won't have to ask my colleagues what happened "and get their interpretation of the meeting. "I can actually watch the meeting "when I'm at 35,000 feet on a plane, going to Europe." So that's what this is all about. >> Alright, well Harry obviously this space excites you a bunch. Can you bring us back a little bit? This brought you out of retirement and the chase, the space is changing so fast. We come a year from now, what kind of things do we think we'll be talking about, and what's going to keep you excited going forward? >> So lets talk about the first part first and then sort of' break it into two. So yes I had a fantastic career and I retired and so when I met Eric and I met the leadership team at Zoom and I dug into the technology and I understood sort of' A, the culture of the company which is amazing. When I understood the product capability and how this was built as video first, and how we would have this maniacal focus if you will on sort of being a software company at our core. And how it was all about the people. That was sort of a very big part of my decision. So that was one. Two is, look we have a labor shortage right? We can't hire enough people, we can't hire the people, we have more jobs than we have people. So and so, retaining talent is really important. Giving them the technology and the studies that have been done, if you make an investment in the technology, that helps with retention. That helps with profit. It helps with, product innovation. So investment in the people. And the ability to collaborate. It's very hard to work if you don't collaborate, right? It just makes it really, very lumpy if you will. So the ability to collaborate locally, nationally, and globally, and people say, well what's collaborating locally? It's kind of like we can just walk down the corridor. Yeah, well if you're in two different buildings how do you get there? And then it gives us, a foot of snow between you, its makes it really hard. So collaborating locally, nationally, and globally is super important. So you put all that together that was the, what convinced me to say okay you know what, retirement, we're just going to put a pause button on that. And we're going to gave some fun over here. And that really has been, so I've, over a year now and its been absolutely amazing. So yes, big advances. What's in the the future? I think the future, you know there's been a lot of discussion around AI. We hear that its like, all the time. And we've seen from a variety of different providers this week in terms of their, their thoughts around how they're going to leverage AI. Its not about the technology, its about the end of the its about the user experience. And you look at the things that we started to do, we talked about real-time transcriptions a few moments ago, you look at the partnership that we have with Linkedin where you can hover over the name and their Linkinin profile pops up. You're going to see this, I just see this as an exponential change in these abilities. Because you have these building blocks today that you can grow on an exponential basis. So, the world is our oyster, is how I fundamentally think about it. And the art of the possible is now possible, And so lets, I think the future is going to' be absolutely amazing. Who would have, sorry Lisa, who would have thought a year ago, you could get on a plane using facial recognition? Let me just throw that out there. I mean, that's pretty amazing. Who would have thought a year ago that when you rent a car, you can just look at the camera on the way out and you're approved to go? Who would have thought that? >> So with that speed I'm curious to get your take on how Zoom is facilitating adoption. You mentioned some great customers examples where your engagement with them via Zoom Video Conference basically sold the POC in and of itself, with you at an airport >> That's a great questions. >> I guess O'Hare has pretty good wifi. >> What's that? >> O'Hare has pretty good wifi. >> A little choppy but, but it worked. >> It worked. >> Because of our great software, yeah. >> There you go, but in terms of adoption so as customers understand, alright our consumers are so demanding, we have to be able to react, and facilitate collaboration internally and externally. How, what are some of the tools and the techniques that Zoom delivers to enable those guys and gals to go I get it, I'm going to use it, And I'm actually going to actually use it successfully? >> This is a question, I don't know how many clients, CIOs, CTOs, C suite execs I talk to, and they all say, they all ask me similar sorts of questions. Like we're not a video first culture. Its like video, its kind of like we're a phone culture. And then I, so I throw that right back at them and I say and why is that? Because we don't have a good video platform. Aha. Now, when you have good video, when it just works when its easy, when its seamless, when its platform agnostic. IOS, Andriod, Mac, Windows, Linux, VDI, web. When you have this sort of, this platform when you're agnostic to the platform, and its a consistent high quality experience, you use it. So its the notion of, Lisa, it's the notion of would we rather get into a room and, would we rather get into a room and have a face to face meeting? Absolutely. So why would you get on a call and not like to see the people you're talking to. You like to see the people. Why, because its a video first. >> Unless its just one of those meetings that's on my calender and I didn't want to be there and I'm not going to listen. But I totally agree with you Harry. So, another hot button topic that I think we're at the center of here and that I'm sure you have an opinion on. Remote workers. So we watched some really big companies I think really got back in the dialogue a coupla' years ago when Yahoo was like okay, everybody's got to' come in work for us and we've seen some very large public companies that said you need to be in your workforce. and as I said, I'm sure you've got some pretty strong opinions on this >> I don't know what's going on here, quite honestly Stu but its like I think you're reading my brain because these are things I love talking about. So yeah, its. Sorry repeat the question? >> Remote workers. >> Remote workers, yeah. So first of all, I was at an event recently we talked about remote work. We didn't like the term. Its a distributed workforce. >> Yes. Because if you say you're a remote worker its kind like, that doesn't give you that warm feeling of being part of the organization. So we call it, so we said, we should drop calling people remote workers and we should call them a distributed work force. So that's one. Two is, I'm in New york, I'm in Orlando, I'm in Chicago, I'm in Atlanta, I'm in Denver. I'm on planes, I'm in an Uber. I don't feel disconnected at all. Why? Because I can see my colleagues, and its immersive. They share content with me. I'm walking down Park Avenue and I've got my phone and they're sharing content and I'm zooming in and I can see them and I can hear them and I'm giving feedback and I'm marking up on my phone, as I'm walking. So I don't feel, and then when I go to, its fascinating, and then I go to San Jose and I'm walking around the office and I'm seeing people physically. It doesn't feel like I haven't seen them, its really funny. I was in San Jose last week, Wednesday and Thursday in San Jose, took the red-eye back. Hate the red-eye but, I don't like flying during the day, I think it's inefficient, a waste of time. Took the red-eye back, now I'm on calls Friday morning from my office at home with my green screen, Zoom background and everybody's got, it's like I'm talking to the same people I was talking to yesterday but they were in the flesh, now they're on video. It's like Harry where are you, why didn't you come to the room? Well I'm back in New York. It's just just that simple, yep. >> That simple and really it sounds like Harry, what Zoom is delivering is a cultural transformation for some of these newer or older companies who, there is no reason not to be a video culture. We thank you so much for taking some time >> Thank you, thank you >> To stop by theCUBE and chat with Stu and me about all of the exciting things that brought you back into tech. and I'm excited to dial up how I'm using Zoom. >> Well we can take five minutes after this and I can show you some cool tricks >> Wow, from the CIO himself. Harry Moseley, thank you so much for your time. >> Thank you, thank you >> Great to have you on the program. For Stu Miniman, I'm Lisa Martin and you're watching theCUBE (upbeat tune)

Published Date : Mar 20 2019

SUMMARY :

Brought to you by Five9. the CIO of Zoom Video Communications. thank you for having me. (chuckles) Well thank you for that And you know, we believe IT matters more than ever And the pace of change, you know but you said something very interesting And so the notion that you can just click And so I was a little spooked by that if you will. and its cruisin' all the way home. I'm actually a Zoom admin and its that simplicity But, and then you look at the enterprise. with the question, is you know I remember back, I can't see you nodding. I actually believe Otter AI is one of the ones So its not about the technology, its about the people. So the people, the experiences you about jumped in the Uber, going back to San Jose and what's going to keep you excited going forward? and how we would have this maniacal focus if you will in and of itself, with you at an airport And I'm actually going to actually use it successfully? and its a consistent high quality experience, you use it. and that I'm sure you have an opinion on. Sorry repeat the question? We didn't like the term. its kind like, that doesn't give you that warm feeling We thank you so much for taking some time that brought you back into tech. Harry Moseley, thank you so much for your time. Great to have you on the program.

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Brett Catlin, Alaska Airlines | Alaska Airlines Elevated Experience 2019


 

>> We'll come back here ready. Geoffrey here with the Cube were at San Francisco International Airport, Gate fifty four d. If you want to stop by for getting ready to go on a little Alaska flight because it's an exciting day, they took advantage of the opportunity after the Virgin merger to kind of rebrand everything. We look at the technology of everything from the seats to the WiFi, everything in between. We're excited at the guy who's responsible for everything. He's Brett Catlin, the managing director >> of alliances and product. Bret, great to see you. >> Thanks for having my job. I really appreciate it. >> So first off, congratulations. You're a whole lot of work. Went into this day absolutely the >> team effort over the past few years, and we're just thrilled to see it all come together to deliver a better experience for our guests. >> So it's pretty interesting because I think you know, you guys are obviously thinking about this. I don't know if people are is aware that when you think of the total experience, the engagement that I have, when I'm taking a flight from San Francisco to Seattle, it's a lot more than just the air miles with my butt in a seat and moving down down the road. You guys really think that >> whole experience absolutely. Look at the entire journey from when you arrive at the airport to your lounge experience. When you walk on board, what's the Jet Jeffords feel like? The lighting, the music. When you enter the aircraft, the configuration, the seats, comfort and then ultimately, a big thing crosses food and beverage. So making sure that it's healthy local speaks to the West Coast values that we're so proud of. >> And how do you how do you kind of get input from the customers >> is toe, You know, these are things that you guys spend a lot of time on, and there are a lot of little things that add up to a total experience. How where customers are, kind of are they get in, Or do they suddenly like, Wow, you know, I feel a little bit more arrested because of a particular type of sound or a particular type of configuration on the seat. >> How do you get feedback >> on all these different things? >> Absolutely great questions on the front end. We obviously quite a bit of guest research, both kind of online quantitative studies, but then also in person with focus groups. Now that we have a lot of product and market, our focus is kind of elevating and improving. What we have and how we get that feedback is every guest receives a survey after every flight. And so we look. >> Every guest receives a survey after every flight. >> Exactly. And so we have hundreds of thousands of response as every year, which allows us to make small tweaks around the margin, but also more material changes. >> That's pretty wild. So I'm just curious some of the more crazy things that have come come through that either good things that you could actually execute on that maybe never thought about or just just funny things to make put a smile on your face and tell you it really is a mixture >> of to tell you the truth, and a lot of things are items that we want action. So certain health restrictions where maybe we didn't realize a certain kind of food wasn't hitting the mark with a wide section of our guests. We could make tweets there, but also, when you think about maybe our in flight entertainment. Do we have the right content? Are the movies that people watch resonating? So we look at all that data to say, Well, look, this kind of movie. It does really well in flight. So people love thrillers when you think about movies and flight, for whatever reason. So we try and put more thrillers onboard. >> I thought they go, Mort. The romantic comedies in the airplane. I don't know that. What a swell. But the suspense people love, right? Right. And it really goes to this bigger question of this total experience. An engagement with the airline. So I wonder you can speak to about technology in the role of technology and how you guys are using that across all these various product. Absolutely. So being >> a West Coast airline technologies critically important for us, one of the things we're focused on is offering high spider highspeed WiFi and offer a mainline aircraft. We have about a dozen done right now, by the end of twenty nineteen will have one hundred twenty five. And so the key there is you'll be all the stream entertainment on board our aircraft. Your outlook for your core, Primo will be zippy, The real basics. When you're flying coast to coast or to Hawaii, You're super excited about that. Then we look at a couple other things as well. Mobile order and one great example. So before you board your flight, you can reserve your meal in first class with the main cabin to make sure you get exactly what you want. So there's some basics like that. Then we're also looking longer term. How do we improve the technology experience in our lounge is to maybe being ableto order a barista beverage while you're still approaching the AARP point. >> Pretty thing. And a lot of that's got to be through your mobile app, right? Absolutely. Has this very significant point of contact between you and your customers? >> That's exactly right. >> Excellent. Well, thanks for taking a few minutes of your time. Way. Looked forward to drop it on the plane and get to experience some of this. And again, congratulations on the Integrative X when it's my pleasure. Thank you, Jeffrey. Really appreciate it. All right. >> He's Brad. I'm Jeff. You're watching the Cube. Where at San Francisco International Gave fifty four b. Thanks for watching. We'll catch you next time.

Published Date : Mar 1 2019

SUMMARY :

We look at the technology of everything from the seats to the WiFi, everything in between. Bret, great to see you. I really appreciate it. So first off, congratulations. So it's pretty interesting because I think you know, you guys are obviously thinking about this. Look at the entire journey from when you arrive at the airport to your lounge experience. Or do they suddenly like, Wow, you know, I feel a little bit more arrested because of a particular type of sound Now that we have a lot of product and market, And so we have hundreds of thousands of response as every year, which allows us to make small So I'm just curious some of the more crazy things that have come come So people love thrillers when you think about movies and flight, So I wonder you can speak to about technology in the role of technology and how you guys are using So before you board your flight, you can reserve your meal in first class with the main cabin And a lot of that's got to be through your mobile app, right? And again, congratulations on the Integrative X when it's my pleasure. We'll catch you next time.

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Eldon Sprickerhoff, eSentire | Sumo Logic Illuminate 2018


 

>> From San Francisco, it's theCUBE covering Sumo Logic Illuminate 2018. (techy music) Now here's Jeff Frick. >> Hey, welcome back, everybody. Jeff Frick here with theCUBE. We're at the Hyatt Regency, San Francsico International Airport in Burlingame. It's Sumo Logic Illuminate 2018, about 600 people, I think it's three times bigger than the conference last year, it's growing really fast. They got a really interesting thing going on with kind of the silent disco. All the sessions are in one room, everybody's got different headphones on so you can listen to any session. I've never, never seen that before, but we're excited to have a partner of theirs on a big announcement today. He's Eldon Sprickerhoff, the founder of eSentire, welcome. >> Jeff, great to be here. >> Absolutely, so you guys had a big announcement today, what was your big announcement? >> So, we have formally partnered with Sumo Logic to work on, so extend our visibility into native applications, cloud, and everything within a hybrid security. >> Okay, so let's back up a little bit for folks-- >> Sure. >> That aren't familiar with eSentire, what are you guys all about, how long have you been around, what's your core business? >> Sure, so we're a manage, detection, and response firm. So, basically we're looking at the attacks that made it through all the infrastructure that was currently in place. You know, firewalls and web application firewalls, and everything that you put in place, and I used to call it embedded incident response, but the idea is to hunt for the attacks as they're going on, so time is a very, you know, of the essence to detect these attacks and shoot them down. We've been in business for, it's almost 17 years. So, it was in 2001, and this is, you know, the biggest thing was, at the time, to have full visibility into attacks, be able to play back attacks, to be able to build our own threat intelligence, and so on. This is, so you know, over 15 years worth of this kind of practice and process put into place, it's something that was very revolutionary at the time and the market is just sort of catching up to it now. >> Right, right, now the other thing that of course changed significantly since 17 years ago was public cloud and the adoption of public cloud, private cloud, hybrid cloud, so how has that really changed your market? Was that a great new opportunity? I assume your original solution was on-prem >> Yep. >> Suddenly now all these workloads are moving to the proud, so how did you, or cloud, how did you guys respond to that? >> You know, so we know that, again, logging is a very important piece of getting full visibility into attacks that are going on in the network. The move into the cloud, of course, it's inevitable. You know, it's never going to be stopped, and it's something where we had a chance to sit back and we said, "Look, we recognize "that there's a need for this kind of visibility. "We don't want to build it ourselves." Some of our strength has come from building up the data analytics, and so on, that you'll, from the various signals that we get-- >> Right. >> What we're going to end up doing, you know, rather than building it ourselves, let's find the partner that can do it the best and see what is the most complementary to our methodology and our process, and so we looked at about a dozen different firms that offered this kind of thing and went with Sumo Logic as a result. You know, one of the biggest pieces was even, you know, a lot of our clients are in the mid-size market. They're not as necessarily enthusiastic about moving to cloud, although pretty much everybody has some kind of hybrid piece there. Even our most, you know, anti-cloud clients said, you know, basically in five years 70% plus of our apps and our workload will be in the cloud, but they're not in any necessarily in a rush to get there. >> Right, right. >> So, again, this was a realization that it's not going to go away. We need to find a partner that, again, works best with our sort of data analytics pipeline and the same kind of thought process behind that, and you know, not being hampered by the... You know, necessarily being on-prem, and that was, again, that was why we eventually-- >> Right. >> We went with Sumo Logic. >> So, how's your business changed fundamentally in this kind of hybrid cloud world? We also have all this crazy, you know, API economy, everything is connected to everything else, and then you've got this kind of interesting attribute of many cloud workloads, which is they don't last very long, or they change very, very quickly. They blow up, they come down, they're turned on, they turn off. How has that impacted the way you guys get your work done? >> So, you know, we're very comfortable with ephemeral workloads and attacks, but the idea of being, again, being able to respond very quickly to threats, even, you know, given servers that are, again, very short-lived, makes it even more important that the data that we pull from our existing clients and other vectors, you know, such as, you know, indicators of compromise or indicators of concern, that we can move very quickly, that we don't have the luxury of, you know, the next day getting analysis-- >> Right. >> Or sort of a nine-to-five sort of analysis and response window. That shrinks the windows even down further. >> Right, so the other thing that's pretty interesting... You know, you just said you've got like 15, 18 years worth of data. How much of that can you use to build machine learning and AI to see, you know, kind of patterns, things you've seen before, and to build some of that intelligence behind... I always think of the poor guy that rips off a bank for the first time, right? >> Right. >> It's his first time, he needed some cash, he got stupid and went in and grabbed... >> Right. >> But the policeman has seen that thing, (chuckles) you know-- >> And methodology-- >> A thousand times, right? >> Right, right right, right, yeah. >> He knows exactly where to look. He knows right where the bodies are buried, so I would imagine you've got a tremendous amount of insight that you guys can leverage in your own kind of threat detection and threat analysis. >> Yeah, yeah, that's exactly... So, you know, my role as the chief innovation officer is to drive value out of the data that we've gathered, and we've, you know, again, when we have, you know, petabytes across our client base of stored data, whether it's attack data or metadata. I said, "There's a lot of gold in them "thar hills." >> Right, right. >> And you know, part of it is do we have the right tooling to be able to access and use that data? What kind of inferences can we make from things we've seen before? So, you know, sort of like the broken windows methodology so that you expect that a certain neighborhood will be, is more likely to be attacked, and so on. So, it's a very exciting time to be in this space, right? >> Right. >> And again, given the, you know, almost 17 years worth of data and knowledge and process, I think we have a headstart against our competitors, our, you know, would-be competitors, and having access to this data and sort of the tooling to access this data that we're getting from Sumo Logic, is going to be critical in our success. >> Right, so don't share any trade secrets, but I'm curious how the strategies for the bad guys have evolved when they know that a significant amount of what they're going after sits in a public cloud that's got a whole nother layer of security and infrastructure that's been put in place by Azure or AWS or GCP. >> Yep. >> How has that changed the way that they attack those opportunities, and then how has that impacted your business and what you're doing about it? >> You know, so there's a lot of sort of interesting use cases, edge cases, that come out of this. Some of the things that we've seen that are, again, sort of challenges will be that there's attackers that have gotten quite a bit more sophisticated, and rather than going off into sort of edge cases, like one by one attacks that they go up a level and they're attacking the infrastructure themselves. So, you know, we're seeing cases where... Even this year we discovered an attack against a management of endpoint solutions, so it's of packaging of software that goes out into endpoints, and they attacked that vendor in the cloud themselves, so that was hosted, you know, a hosted solution that you would not necessarily have seen unless you were looking for some very unusual characteristics, and this is not your, you're not going to get that from the public cloud. You know, given that shared model in a cloud, you're responsible for a good portion of the infrastructure that you support. >> Right. >> It requires, it means that you have to get past sort of things like well known signatures and you really have to focus on more of the unusual behavior, build up a baseline, and then be able to dig deep into the attack vectors, and you know, every single part of the layer that, you know, whether it, not just sort of IP addresses that are bad, but it's... It requires, again, as more visibility in places that you may not necessarily have visibility. You know, so every cloud vendor that, you know, that is, especially the big three, they're ramping up their, the data that's available. >> Right. >> So, I think AWS still leads with, you know, a lot of things with Macy recently from the machine learning piece, so they're trying to give more visibility, and what you do with that data is what's critical. >> Right. >> Once you, you know, once they give you that visibility, what can you do with that data? Can you rapidly make decisions on it and be able to push that out across a complete client base? >> Right, so I'd love to get your perspective again, you've been doing this for a long time, on kind of the change of the landscape from the kid hacker who's going to go in and change his grade from a C to a B-- >> Yep, yep. >> Or he's playing games or he wants to put some splashy page up. >> Right. >> So, now, you know, state sponsored hackers, which you know are much more strategic, much better resourced, much more sophisticated. You know, how have you seen that kind of evolve and how has, are you and the industry been responding directly to that? >> Yeah, so we've seen, again, some really incredible nation state attack vectors. You know, some of the most sophisticated tooling that you can imagine we've seen from... And it's difficult, often, to be able to say that's absolutely nation state, right? Attribution is always tough-- >> Right. >> And I'm loathe to do this. There are cases that, you know, across our client base, that we have seen attacks that were so sophisticated and with a purpose, like a very fine purpose. They only could've been from nation state. It is the most, you know, without having to go out on a limb at all. >> Right. >> It just makes sense, and so it is incredible how determined and how well-tooled these attack vectors are. >> Right. >> And this is, this is not hyperbole, I'm a zero hyperbole guy. >> Right, right. And I assume the safe assumption, probably the good working assumption just like no-trust networking, is you're going to get breached somehow, some way, sometime. >> Yep, yep. >> And it's really about identifying it, responding to it, shutting it off, and trying to keep that window closed for the next time around. >> You know, I even go so far as to say it's not a question of when, like you are. >> Right, you are, they're already in, right? You just haven't found them yet. (laughs) >> Somebody, yeah, somebody, whether it's an external vector, you know, or an insider, there's, you know... The odds are good if you are of any reasonable size, there's somebody who's doing something they should not. >> Right, right, all right, so last question. >> Yeah. >> We were just at AT&T Spark's event earlier this week talking about 5G, right, and 5G is coming. They did their first call, AT&T's rolling out to all these cities. >> Right. >> So, 5G and IoT and industrial IoT are suddenly going to multiply your threat-- >> Attack base, yep. >> Attack base by orders of magnitude. What are, you know, kind of what are some of your thoughts as an industry veteran, how are you preparing for that? Do people really understand what's coming down the pike with 5G? I don't think they do. >> Not at all, not at all. (laughs) You know, when we're talking about, again, the biggest things that we're working on right now are how do we deal with scale and visibility of signals, so you know, a lot of systems do a great job of generating signals, but they're not necessarily equipped to deal with the response piece, and that's, those are some of the challenges that we're dealing with. How do you deal with the increased in scale and increase of vector, of number of vectors, attackers, and the size of the attack space themselves. >> Crazy, crazy stuff coming. (laughs) >> It's a great time to be in this industry. >> That's true, all right, Eldon, well, congrats on the announcement and thanks for taking a few minutes with us today. >> Thank you very much. >> All right, he's Eldon, I'm Jeff, you're watching theCUBE. We're at Sumo Logic Illuminate 2018, thanks for watching. (techy music)

Published Date : Sep 13 2018

SUMMARY :

From San Francisco, it's theCUBE so you can listen to any session. So, we have formally partnered with Sumo Logic and everything that you put in place, and so on, that you'll, from the various you know, a lot of our clients are in the mid-size market. and you know, not being hampered by the... How has that impacted the way you guys get your work done? That shrinks the windows even down further. machine learning and AI to see, you know, It's his first time, he needed some cash, of insight that you guys can leverage in your own and we've, you know, again, when we have, you know, so that you expect that a certain neighborhood And again, given the, you know, almost 17 years but I'm curious how the strategies for the bad guys so that was hosted, you know, a hosted solution You know, so every cloud vendor that, you know, So, I think AWS still leads with, you know, Or he's playing games or he wants to put So, now, you know, state sponsored hackers, that you can imagine we've seen from... It is the most, you know, without having to go out It just makes sense, and so it is incredible And this is, this is not hyperbole, And I assume the safe assumption, closed for the next time around. You know, I even go so far as to say Right, you are, they're already in, right? you know, or an insider, there's, you know... AT&T's rolling out to all these cities. What are, you know, kind of what are some so you know, a lot of systems do a great job (laughs) and thanks for taking a few minutes with us today. All right,

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Lenovo Transform 2.0 Keynote | Lenovo Transform 2018


 

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

Published Date : Sep 13 2018

SUMMARY :

and those around you, Ladies and gentlemen, we ask that you please take an available seat. Ladies and gentlemen, once again we ask and software that transform the way you collaborate, Good morning everyone! Ooh, that was pretty good actually, and have a look at all of the breakout sessions. and the industries demand to be more intelligent, and the strategies that we have going forward I'm going to give you the stage and allow you to say is that the first products are orderable and being one of the largest device companies in the world. and exactly what's going on with that. I think I'll need that. Okay, Christian, so obviously just before we get down, You're in Munich? and it's a great place to live and raise kids, And I miss it a lot, but I still believe the best sushi in the world and I have had sushi here, it's been fantastic. (Christian laughing) the real Oktoberfest in Munich, in relation to Oktoberfest, at the Lower East Side in Avenue C at Zum Schneider, and consequently ended up with you. and is reconfiguring it based on the work he's doing and a carbon fiber roll cage to protect what's inside, and that is the workstation business . and then finding an appropriate model of desktop, in the wind tunnel, which isn't alway easy, I hate to use the word game changer, is certainly going to ensure that future. And the core of this is that we need to be, and distribute the best tire in the world, okay? that would fit to that. and thank you for the introduction. and the technology you are deploying and more productive during the meeting. how IT gets hardware in the hands of end-users, You imagine looking at all the devices we use. and we really appreciate the partnership. and it's going to be starting up next year for sure. and how many operators in the world Ladies and gentlemen that is the end of your keynote.

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Kalyan Ramanathan, Sumo Logic | Sumo Logic Illuminate 2018


 

>> From San Francisco, It's theCUBE. Covering Sumo Logic Illuminate 2018. Now here's Jeff Frick. >> Hey welcome back everybody. Jeff Frick here with theCUBE. We are at Sumo Logic Illuminate 2018: about 600 people. I think its three times as big as it was last year here at the Hyatt San Francisco Airport in Burlingame, and on of the big topics of today is the release of this new report. It's called The State of Modern Applications in DevOps Security, and to talk all about it and the results and kind of the process we are excited to have Kalyan Ramanathan, excuse me, VP of Product Marketing at Sumo Logic. Welcome. >> Thank you, Jeff. >> So you've been doing this report for a while, correct? >> Yeah, exactly, I think this is the third version of this report, and from what we know the first and only report that looks at how, you know, leading edge customers actually build, run, manage, and secure their applications in public cloud environments. >> Right, so just a little history for people that aren't familiar: Sumo launched in the cloud natively, right, and I think you guys launched on AWS. >> Absolutely. >> Way back when, I think, one of our very first AWS shows we went to in 2013, Summit San Francisco, I remember it well, we had you guys on, and so you guys have really grown along with AWS, but obviously you have expanded well beyond just simply inside of AWS. >> That's right. So, the company was founded in 2010, and we were one of the first big data services to run on AWS. I think our founders, you know, ran into one of the AWS architects who describe this new thing called a cloud, and they were completely smitten by it. They thought that this was the next new wave of how services are going to be delivered, so it just made a lot of sense to build this machine data analytics platform, that we were building, or that we were planning to build on AWS. >> Right. >> The scalability, the agility, the, ya know, the flexibility that AWS offered was exactly what our platform needed, and so this was a marriage made in heaven. But we can support applications that run just about anywhere. We obviously support applications running on AWS extremely well; that's our DNA. We get those applications, because we build and run those applications ourselves, but we also support Azure. We support GCP. We support hybrid environments. Many of our customers, ya know, are either, ya know, built in the cloud, and they know only cloud, but a few of them are also making the transition to the cloud, are migrating their applications to the cloud, and you know, we believe that we live in an age where flexibility is extremely important, and we support our customers where ever their applications are today. >> Right, so let's look at some of the findings, so. >> Absolutely. >> Just from a process point of view, you interviewed your customer data base, right? Your, your numbers here? >> Yeah, yeah, I think, yeah. We looked at our 16 hundred customers. >> Sixteen hundred customers, okay. >> And an important point to make out here is that we don't interview our customers. What we do is to, essentially, collect data from our customers, which is what we do when we are doing machine data analytics, we anonymize those data, and we represent as to what is happening in terms of these applications. How do our customers build these applications, you know, manage them, and secure them? >> Right. >> So this is not a >> It's the real data, though. >> It's real data. >> This is not, this is not what they think they know, and they're going to answer the survey. >> Absolutely. Exactly. Right. >> And all the survey biases that can come up. >> You are very right, I mean, you know, that's what makes this report unique, right? >> Right, right. >> It's the first report where we're actually reflecting what customers actually do. It's not a survey. It's not an aggregation of, you know, data from ten other sources. This is as close to truth as you can get in terms of running and building and securing applications. >> Right. >> In the cloud environment. >> So, I was happy to see that the data supports a number of the hypotheses that we derive at a lot of the shows. >> Absolutely. >> That we go through. You know, right of the top: Docker and the adoption of Kubernetes in orchestration is growing rapidly. >> Absolutely, I mean, ya know, everywhere you go you hear containers: container this, container that, so, ya know, we see a similar adoption. Docker has grown from 14 percent to about 28 percent in this, as we see in this report, but what's interesting is also the growth of Kubernetes and orchestration, right? If you were to ask anyone, even in this conference, you know, about orchestration, let's say two or three years ago, and even the word Kubernetes, ya know, I'm sure you'd have gotten blank stares. >> Right, right. >> Here we are, two years into Kubernetes becoming, you know, somewhat mainstream, and we are already starting to see 30 per cent adoption of orchestration within AWS, and out of that 30 per cent, we almost see fifteen per cent of those folks using Kubernetes as a native technology. AWS has just announced their own Kubernetes service. I am sure if, when we have this conversation next year, >> Right. >> Kubernetes, you know, will become a household name. You will see 30 per cent adoption of Kubernetes alone, >> Right. >> Ya know, in a report of this kind. >> Well it's funny: when we were at VMworld a couple weeks ago, and Kubernetes was both in Pat's, Pat Gelsinger's keynote. >> Uh-huh. >> As well as Sonjay's, you know, so it's just, it really shows how fast in this type of a world a new technology adoption can just be put into place. >> Yeah, I mean, if you bring the right capabilities, if you have the right support, which is what Kubernetes does, and, obviously, if you have the right backing, you know, in the form of Google, obviously, incubating this project and then, you know, promoting it as an open source standard, and everybody is now falling behind it. Ya know, we support it. We hear it from our customers, and, you know, the data also bears this out. >> Right, so what about on the database side? What did you find on the database side? >> Yeah, I mean, the database results are always interesting for us, right? You know, I think the most important thing that we learned is that, you know, as customers are building apps in their public cloud environments, they really have a choice, ya know? If you were to build an on-prem, you know, application, once upon a time, I mean, you are usually stuck with Oracle or, ya know, MySQL or SQL Silver or some of those standard database fares everyone has heard about. >> Right. >> But when you, now, go to the cloud, when you migrate to the cloud, or when you are, you know, incubating your applications in the cloud to begin with, you want to re-think your database layer. This is the core layer that powers your application, and there are lots more, ya know, opportunities to, and options out there. >> Right. >> So, what we are seeing is, one, the growth of no-SQL databases: they are way more scalable, ya know, they handle big data way better that, ya know, traditional SQL databases, so we're definitely seeing a growth of that, of no-SQL databases. >> Right. >> What's also interesting is that, ya know, is customers have the choice. They are looking at other forms of databases. Ya know, I could look at Redis, I could look at MongoDB, I could look at Posgres, and, right, I'm not stuck going back to, ya know, our favorite Oracle or SQL Silver anymore. >> Right. What strikes me is that the definition of the requirement has been flipped upside-down. Before it was, "What infrastructure do we have? What's available that IT can deliver to me? What do we have licenses for, and what can I build on top of?" Now the application has taken center stage, so now it's "This is what I want to do with my application. What is it that I need underneath the covers to deliver that capability?" So it really flipped the whole thing on its head. >> Ya know, this also goes back to that, you know, sort of the democratization of decisions where, you know, developers, now, can make these choices. You know, once upon a time, right, I mean, someone, a muckity-muck in your organization says Oracle is the way to go, and everybody follows suite, follows suit. That's not the case any more, right? >> Right. >> I mean, the engineer, they're a developer who is building their application, especially in the microservices world, they can make choices in terms of what is a data server that they may choose to build into that microservcie? And that doesn't have to be Oracle every time. It doesn't have to be SQL Silver every time. You know, if Redis makes sense, if MongoDB makes sense, let's go build that into our into our platform. >> Right, so, another one, you know, serverless is all the hot buzz, and clearly that is supported here with some of the data around Lambda adoption. >> Yeah, I mean, Lambda growth, you know, continues to astound us. We are seeing Lambda grow from twelve per cent two years ago, which is when we did our first report, to now, you know, almost 30 per cent, you know? So, imagine that, right: one in three enterprises today are using Lambda, and this is a technology that is very easy to use, but architecture-wise, you need to re-think how you are putting your applications together with Lambda, and we are starting to see, you know, some wide-spread Lambda adoption, you know, within enterprises. >> Right, but isn't that the ultimate goal, I mean, as we get closer and closer to, you know, atomic versions of store, compute, & networking, I mean, shouldn't it all, ultimately, get there. >> Yeah. >> I mean, there's requirements, and, you know, there's reality I don't deal, you know, luckily I don't have to go turn the stuff on and run it, but, you know, that is the vision, right? Atomic units of compute, atomic units of store, atomic units of network. >> Yeah, I mean, look, serverless is the ultimate Nirvana when it comes to the cloud, right? I mean, the notion of the cloud is that, you know, I have an application. It needs to run. I don't worry about the infrastructure, and to a certain extent, I don't even worry about the management. So, serverless and Lambda is the manifestation of that. >> Right. >> Right, and what we are starting to see is that many customers are, at least dabbling with Lambda. Now, I won't say that customers are building their core application with Lambda yet, because that requires a re-think of their application itself, but what we are starting to see is that Lambda is used in DevOps, Lambda is used in integration, Lambda is a glue-ware that sort of ties all of these applications together. >> Right. >> In fact, you know, this report that we put together, a lot of it has actually been put together on the back of Lambda. We use Lambda extensively to collect this kind of data, and create a report of this kind. >> (chuckles) That's great! Another piece I wanted to make sure that we talked about is really, kind of, the break-down of the clouds. >> Uh-huh. >> Obviously you guys have a huge percentage of your business is, you know, you ask customers, you guys were born in AWS. >> That's right. >> That seems pretty logical, but what's interesting is a lot of multi-cloud, so, you know, I don't know if you distinguish between multi-cloud, hyper-cloud, but at the end of the day, as I think Ramin talked about in the keynote, right, there's going to be different places for different workloads. >> Absolutely. You know, look, as you rightfully pointed out, we are born in AWS, so we have an affinity to AWS, and so AWS customers also have an affinity to Sumo Logic, so it's not wonder that a big swath of our customers are built in AWS. Now, having said that, what we are also seeing is actually an acceleration of our customers, you know, adopting more and more AWS. I mean, they are the leaders in the space. I mean, I think nobody can, nobody can question that statistics. What is interesting, though, is that we are starting to see increased adoption of multi-cloud. We saw about five per cent of our customers dabble in multi-cloud last year. We are at close to ten per cent this year. We are also seeing increased adoption of Azure. We had a, you know, about five per cent of our customers use Azure last year. We are starting to see almost, I should say about eight per cent of our customers used Azure last year. We saw, we're seeing about fifteen per cent of our customers use Azure this year. >> Right, right. >> Right, so Azure is a, you know, has definitely become a very credible second cloud alternative for many of our customers. >> Sure. >> Now, we do see interest in GCP. It's not translated into lots of GCP adoption in production environments yet, but we're definitely seeing that increased interest, and I'm sure, you know, when we put this report together next year, you'll see some very credible and statistically relevant GCP data in this report. >> Right, right, so, Kalyan, there's a lot here, and we could go on for (chuckles) and on and on. So, people can go to the website. They can download the report, but... It's so great, but what I like most about this report is you lay out the facts, right, you lay out your findings, people can question your data source or this or that, but you lay out your methodology, but then you have very specific instructions for the IT buyer about what they should consider, and I think that is so powerful, because I think from the position of an IT purchaser today, >> Right. >> They've got to just be getting creamed with, you know, like, with things we're talkin' about, like, with serverless and Lambda and security and DevOps and >> Right. >> And the pace of change for them keeps going faster, so where do they even begin when they're doin' this kind of analysis? It's not just putting it out for an RFP anymore, right? >> Yeah, I mean, that was the intent of this report, right? I mean, at the, you know, when we started this report our goal was to provide accurate, real-time information about, you know, where are these modern apps in the public cloud going? You know, our leading-edge customers, like Airbnb and the Twitters and the Salesforce and the Adobes, know how to do this well, but there is a huge swath of our community that is, in some sense, perplexed, right? I mean, they see this cloud adoption happening. They see this cloud wave coming. They have cut their teeth on, you know, data centers and applications in the data center. How do I make that transition to the cloud? How do I, you know, follow these cloud-first companies and learn from these companies? And, so, what we wanted to do was to collect this data, anonymously surface this data, and provide, you know, this insight to this community so that they can, you know, in some sense emulate, you know, these leading-edge companies and learn how to architect, build, run and secure their apps. >> Right, right, and I love this little, you know, kind of, the new stack, if you will, the architecture set-up. >> Right. >> Cake chart that you've done in the past. All right, great! So, a lot of, ton of information. I'll give you the last word as we're here at Illuminate, triple last year's numbers. A little bit about where you guys are goin' next. What's, kind of, top of your mind? >> You know, look, you know, Sumo Logic, as a company, you know, we are doing exceptionally well in this machine data analytics space. We are the only cloud-native machine data analytics vendor. We are where the market is going, right? We understand cloud; the apps are going to the cloud. We know how to manage these apps exceptionally well, but more importantly, you know, we think that it's also important and it behooves us to make sure that we take our developer community, our ops community, our security community along with us, and that's the intent of this report. >> Right. >> It's to not sell product, though we do want to sell it eventually. >> Yeah. >> But it's to provide you guys, actually I should say, provide the community with the right kinds of information so that, you know, they can do their jobs better. >> Right, right. >> That's the goal of Sumo Logic. It's all about, you know, empowering the people who power these modern apps, which is actually the theme of this event itself. >> Well, very good. Well, we'll leave it there, and thanks for taking a few minutes of your time. >> Thank you very much, Jeff. >> All right, he's Kalyan. I'm Jeff. You're watchin' theCUBE. We're at Sumo Logic Illuminate at San Francisco Hyatt Regency by the airport. See ya next time. (hip music)

Published Date : Sep 12 2018

SUMMARY :

It's theCUBE. and kind of the process we are excited to have that looks at how, you know, leading edge customers right, and I think you guys launched on AWS. and so you guys have really grown along with AWS, I think our founders, you know, ran into one of the and you know, we believe that we live in an age We looked at our 16 hundred customers. you know, manage them, and secure them? and they're going to answer the survey. Right. It's not an aggregation of, you know, a number of the hypotheses that we derive You know, right of the top: Docker and the adoption of Absolutely, I mean, ya know, everywhere you go you know, somewhat mainstream, and we are already Kubernetes, you know, will become a household name. Well it's funny: when we were at VMworld As well as Sonjay's, you know, so it's just, the right backing, you know, in the form of Google, is that, you know, as customers are building apps you know, incubating your applications So, what we are seeing is, one, the growth is customers have the choice. What strikes me is that the definition Ya know, this also goes back to that, you know, I mean, the engineer, they're a developer Right, so, another one, you know, serverless is and we are starting to see, you know, some wide-spread as we get closer and closer to, you know, I mean, there's requirements, and, you know, you know, I have an application. Right, and what we are starting to see is that In fact, you know, this report that we put together, is really, kind of, the break-down of the clouds. Obviously you guys have a huge percentage so, you know, I don't know if you distinguish We had a, you know, about five per cent Right, so Azure is a, you know, has definitely become and I'm sure, you know, when we put this report together is you lay out the facts, right, you lay out your findings, this insight to this community so that they can, you know, Right, right, and I love this little, you know, kind of, A little bit about where you guys are goin' next. You know, look, you know, Sumo Logic, as a company, It's to not sell product, though we do want so that, you know, they can do their jobs better. It's all about, you know, empowering the people and thanks for taking a few minutes of your time. San Francisco Hyatt Regency by the airport.

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Ramin Sayar, Sumo Logic | Sumo Logic Illuminate 2018


 

>> (Narrator) From San Francisco, it's theCUBE. Covering Sumo Logic Illuminate 2018. Now, here's Jeff Frick. >> Hey, welcome back everybody. Jeff Frick here with theCUBE. We're at Sumo Logic Illuminate at the Hyatt Regency at San Francisco airport in Burlingame, about 600 people. The second year this conference, about triple the amount of people that they had last year. A lot of buzz, a lot of activities, some really creative things that I've never seen in the conference world with the silent disco kind of treatment for the training is pretty cool. Everyone's in the same room listening to their own, in training, I've never seen that before. We're excited to have, fresh off the keynote, the leader of this party, President and CEO of Sumo Logic, Ramin Sayar. Ramin, great job on the keynote today. >> Great, thank you for having me today. >> Absolutely. >> Thanks for being here. >> So, a lot of passion really came through. It struck me and it was palatable in your keynote, really reaching out to the community and talking about being on this mission together. I wonder if you can speak a little bit to how important community is to you, to the company, and what you guys are trying to accomplish. >> Well the interesting thing about that, Jeff, is that that's really innate in our culture and that's part of, one of the reasons why I actually joined Sumo. Specifically, one of our core values is we're in it with our customers. And that permeates all the way through to every action that every employee takes every single day, and ultimately, is seen and felt here at an event like Illuminate. So when we talked about community, is we're living and breathing the same thing that a lot of our customers are every single day. All the challenges that they're dealing with, the cloud, the cost, the migrations, the training. And so the more we get intelligent in terms of using our own service, the better it is for the rest of the users in our community, so that was a big theme for not just what we wanted people to take away, but also naturally as part of the announcements we made around some of the new intelligence. >> Right, right. I think it's an under-reported kind of attribute of SaaS-based business models, in that you are in bed with your customer because you're taking money from them every month, or whatever the frequency is, so you've got to have this ongoing relationship and continue to deliver value. And we've heard that time and time again, we heard it from the MLB guy on stage, we had another partner on-- >> Samsung, the smart things. >> The smartphone, but we had another one here. But just talking about working together with your teams collaboratively to execute on the objectives at hand. Not just here's some stuff, I'll take the money, good luck, we'll see you next year. >> Yeah, interesting enough you point out something that's a precursor to being successful in the SaaS business, and that is, you're having to get reelected every single year. But we don't wait 'til every single year, we try to make sure from the moment we land a new customer that we help them understand what it's going to take for them to get, not just instant value, but ongoing value out of our service. And we often times make sure they also understand they we're actually living and breathing the same experience they are, so there's that trusted advisor relationship, not just a vendor relationship. >> Right. The other great thing I'd love to see, and I think we first interviewed Sumo at our first AWS San Francisco 2013, You guys definitely picked the right rocket ship to strap onto. But one of the things that we love to watch is kind of the change of a company from an application space to a platform space. 'Cause nobody has a line item for new platform, nobody wants to buy a new platform. I tried to launch a platform company as a platform, it doesn't work, you got to have an app. So that's what you guys did, but you've got the infrastructure and the architecture in place that's now allowing you to get into the platform play and the slide that really jumped out to me, and I took a picture of it on my camera, was the diversity of roles in organizations that have Sumo Logic. After, I think they've had 60 months, you start seeing customer success people, design people, quality assurance people, these are not engineers. This is not reliability, this is a whole separate set of people that are using this great tool that you guys have built to solve some different business objectives, and maybe the ones when they started the company. >> Well, that's predicated on how we started the company. We never started the company to be a silo tool use for one part of the organization. It was always meant for how do we take what was typically in the back room only to select few of folks in security or operations to other parts of the organization, thereby democratizing like we've been talking about. And so, over the last few years, since you mentioned AWS and the reinvent show, we spent an enormous amount of energy and investment in terms of making sure that we're constantly listening to our users, we're constantly redesigning and iterating on a user experience, so that we can actually extend from the power users that might be in development or operations or security, into these other teams that you've been mentioning. And now we're seeing evidence of that, which is phenomenal. >> So it's, you know, we go to so many shows, we talk to a lot of smart people, it's really fun. And one of the things that I've come to believe in terms of how do you drive innovation... Some really simple things, you give more people access to more data with the tools to manipulate it and then the ability to make decisions based on that data. And that was really a big part of your theme, in terms of, you know, some of the new product releases that you announced and also again what we just talked about in terms of the use cases, is giving more people the tools and the data so they can actually make innovative steps instead of just funneling it through you know, asking somebody to run a BI report for me or this or that. That's not the way anymore. >> You're spot on. And I think we're still earning that right, to be honest with you. And while we've seen massive adoption in terms of various profiles of users and the types of data, I think we're honestly just scratching the surface here. And specifically what I mean by that is, we've announced some interesting things around industry benchmarks and community insights and obviously the modern app report that you talked about and covered before, but there's also a different subset of users that are now embarking on and leveraging a platform like this, and those are the data engineers, and those are the data scientists, because they don't want to be left on the back room. They also want, just like security operations or analysts or development teams, to be able to collaborate, be able to iterate, be able to share their own experience with not just the service, but how they're to getting value out of this. And so what's most refreshing, and honestly something that we pay very close attention to, is the types of roles and users that are here. And you see people from interesting enough product or finance or success report to your comment, but that's innate in the value of something like this that we're referring to in terms of machine data analytics platform. >> Right. So you guys are in such a good spot with the machine data. The MLB guy was interesting. He just threw up a slide with a whole bunch of really big numbers. But even more than that, we were at an AT&T show on Monday that the conversation's all about 5G, and the big thing about 5G 100X, 100X more throughput than 4G, designed for machine-to-machine interaction. I mean, the tsunami of data that we've been living through up 'til now is going to be dwarfed by this continuing tsunami when we get 5G internet of things, industrial internet of things. You guys are pretty well positioned to take advantage of this big, giant trend. >> We are. But we're also being very conscious and prescriptive how we approach it. So we've been maniacally focused first on the new applications, and therefore the new architectures associated with these applications that are being built and born and bred in the cloud. Then we extended it to those that are being lifted and shifted, because we had to earn the trust and the right there, particularly those that were running traditionally on-prem, we want to rewrite the front end, and in doing so, we had to often times interface and interact and get sign-off by security. And so that naturally led us into the CISO, in the security operations analyst teams starting to understand, "What's going on over there? "Why are those guys using that service, and why aren't we?" So then we extended our opportunity to security analytics play, and you naturally pointed out there's other opportunities into connected devices, industrial IOT, and what we heard from some of our customers today, in consumer IOT. But we're going to go to it gradually. We're also going to go to it through partners, and really extend the platform as customers use it for those use cases, not necessarily how we see fit always. >> I wonder if you can dig a little deeper into how security has changed. You've been in the industry for a long time, go Gauchos, I saw you went to Santa Barbara, my daughter's at Santa Barbara now, so we're all about the Gauchos. But you've seen how security has changed from this walled garden or moat around the castle, however you wanted to describe it, into being baked everywhere, up and down the stack, throughout the applications, throughout the infrastructure, and how that's really changed everyone being involved in security, regardless of what your day job is or what your title is. >> See that's what's the interesting thing. You heard it from MLB and Neil. There's a shortage of security professionals that are out there, so it's no longer just a duty and a responsibility of security operations or analysts; it's everyone upstream. And that's the power of what Sumo provides. It can't be an afterthought. And so what we're helping understand for our customers to understand is, as you architect these new workloads, specifically looking at micro services or containers or cloud, put some forethought and insight into what does that mean from not just an operational perspective, how do you instrument, collect, and log and events and metrics, but also from a security perspective. And so when you're able to leverage one platform to do so, it actually is a connecting mechanism, meaning that it's bringing these teams together versus isolating and siloing them like in the past. >> Right, right. I'd love to jump... You did a little bit in your report and now you announced some of the benchmarks and stuff about how you're able to aggregate, anonymize and aggregate back end data from a lot of different customers to start to share that information. To use BI and machine intelligence to optimize. To use benchmarks and to help your customers do a better job. And you're sitting on a boatload of data. And it's really a great way to provide another layer of value, beyond just the core functions of the products. >> I totally agree. And we are still early in that journey, though. And as I mentioned earlier in the announcements today, one of the ways that we're fixated on making sure we continue to get more data is constantly look for ways that we can bend that cost curve down for our customers. So that they can start to ingest more their tier-two, tier-three data or their lower-performing data so we can get more intelligent, more smart, and also provide that value, add back into the community and the service. So we felt that we weren't ready before because we needed to see multiple sets of years across multiple different types of data sets to be able to launch and release something like global insights. We started actually three years ago with a modern app report, because that was usage-based, not survey-based. And it's really interesting-- >> Real data. >> Because it's real data, right? But we were contemplating, even three years ago when we did the report, do we start to put out some of these benchmarks? And we felt that we were too early, because we needed more data, we needed different types of data from across different geographies, different types of usage, different technologies, and so we held off. And so that was one of the things that we've been paying very close attention to, and what the announcement today was all centered on is, yes, we've been talking about some insights around the industry, but you as the community of users here are helping us get smart and helping each other get smarter, and we're going to start to allow you guys to compare yourselves, back to your question, around, "Am I best in class from an operational KPI perspective?" And what does that mean? From utilization versus cost. And, "Am I best in class from a key risk perspective?" From a security perspective, for example. And how does that compare to others? And when you're staring the reality of that type of data in your face, it forces you to do something, take action. And the whole premise here is insights and intelligence. And so the more forthcoming, transparent we are with our customers in terms of these types of insights and intelligence, the more they're going to be using and adopting the platform, and hopefully, together as a community, getting smarter, more efficient. >> The graphic you showed, you get a whole bunch of green lights and one yellow light, all the eyes go right to... "What the heck, what's my yellow light?" Alright, I give you the last word on a word that you used again a number of times in your keynote, and that's trust. >> Yes. >> At the end of the day, that is such an important word in all types of relationships, but certainly in business relationships. Why're you putting the focus on that? Clearly it's important, you're highlighting trust. In fact I think you said, "We are your trusted steward for your data." Really important attribute for this company. >> Well that's been something early on, Jeff, in our architecture and things we did in terms of guaranteeing data sovereignty, privacy, encryption. We took no short change or shortcuts in terms of how we architect the service, eight-plus years ago. And we don't take any of those now. And the trust comment is because we have to trust, we have to build the trust and relationship, not just in terms of the value they're getting out of using the service, but that we're going to make sure that we keep their data safe and secure. Because we are PCI certified. We are also HIPAA certified, SOC type one, type two, we're doing GPR, all these other attestations and stuff that our customers have to face, we're also facing. So together, we're actually creating a trusted network, and that's the strategy here, is to create that trusted network. To share the insights. >> Well the passion comes through. And again, congratulations on the show, and the success, and we continue to enjoy watching the ride. >> Thank you very much for being part of it. It's great to be here with you. >> He's Ramin, I'm Jeff, you're watching theCUBE. We're at Sumo Logic Illuminate 2018. Thanks for watching. (inquisitive electronic music)

Published Date : Sep 12 2018

SUMMARY :

(Narrator) From San Francisco, it's theCUBE. Everyone's in the same room listening to their own, and what you guys are trying to accomplish. And so the more we get intelligent in terms of using the MLB guy on stage, we had another partner on-- Not just here's some stuff, I'll take the money, to make sure from the moment we land a new customer But one of the things that we love to watch We never started the company to be a silo tool use And one of the things that I've come to believe and obviously the modern app report on Monday that the conversation's all about 5G, and in doing so, we had to often times interface You've been in the industry for a long time, And that's the power of what Sumo provides. beyond just the core functions of the products. And as I mentioned earlier in the announcements today, And so the more forthcoming, transparent we are "What the heck, what's my yellow light?" At the end of the day, that is such an important word And the trust comment is because we have to trust, And again, congratulations on the show, and the success, It's great to be here with you. We're at Sumo Logic Illuminate 2018.

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Nutanix .Next | NOLA | Day 1 | AM Keynote


 

>> PA Announcer: Off the plastic tab, and we'll turn on the colors. Welcome to New Orleans. ♪ This is it ♪ ♪ The part when I say I don't want ya ♪ ♪ I'm stronger than I've been before ♪ ♪ This is the part when I set your free ♪ (New Orleans jazz music) ("When the Saints Go Marching In") (rock music) >> PA Announcer: Ladies and gentleman, would you please welcome state of Louisiana chief design officer Matthew Vince and Choice Hotels director of infrastructure services Stacy Nigh. (rock music) >> Well good morning New Orleans, and welcome to my home state. My name is Matt Vince. I'm the chief design office for state of Louisiana. And it's my pleasure to welcome you all to .Next 2018. State of Louisiana is currently re-architecting our cloud infrastructure and Nutanix is the first domino to fall in our strategy to deliver better services to our citizens. >> And I'd like to second that warm welcome. I'm Stacy Nigh director of infrastructure services for Choice Hotels International. Now you may think you know Choice, but we don't own hotels. We're a technology company. And Nutanix is helping us innovate the way we operate to support our franchisees. This is my first visit to New Orleans and my first .Next. >> Well Stacy, you're in for a treat. New Orleans is known for its fabulous food and its marvelous music, but most importantly the free spirit. >> Well I can't wait, and speaking of free, it's my pleasure to introduce the Nutanix Freedom video, enjoy. ♪ I lose everything, so I can sing ♪ ♪ Hallelujah I'm free ♪ ♪ Ah, ah, ♪ ♪ Ah, ah, ♪ ♪ I lose everything, so I can sing ♪ ♪ Hallelujah I'm free ♪ ♪ I lose everything, so I can sing ♪ ♪ Hallelujah I'm free ♪ ♪ I'm free, I'm free, I'm free, I'm free ♪ ♪ Gritting your teeth, you hold onto me ♪ ♪ It's never enough, I'm never complete ♪ ♪ Tell me to prove, expect me to lose ♪ ♪ I push it away, I'm trying to move ♪ ♪ I'm desperate to run, I'm desperate to leave ♪ ♪ If I lose it all, at least I'll be free ♪ ♪ Ah, ah ♪ ♪ Ah, ah ♪ ♪ Hallelujah, I'm free ♪ >> PA Announcer: Ladies and gentlemen, please welcome chief marketing officer Ben Gibson ♪ Ah, ah ♪ ♪ Ah, ah ♪ ♪ Hallelujah, I'm free ♪ >> Welcome, good morning. >> Audience: Good morning. >> And welcome to .Next 2018. There's no better way to open up a .Next conference than by hearing from two of our great customers. And Matthew, thank you for welcoming us to this beautiful, your beautiful state and city. And Stacy, this is your first .Next, and I know she's not alone because guess what It's my first .Next too. And I come properly attired. In the front row, you can see my Nutanix socks, and I think my Nutanix blue suit. And I know I'm not alone. I think over 5,000 people in attendance here today are also first timers at .Next. And if you are here for the first time, it's in the morning, let's get moving. I want you to stand up, so we can officially welcome you into the fold. Everyone stand up, first time. All right, welcome. (audience clapping) So you are all joining not just a conference here. This is truly a community. This is a community of the best and brightest in our industry I will humbly say that are coming together to share best ideas, to learn what's happening next, and in particular it's about forwarding not only your projects and your priorities but your careers. There's so much change happening in this industry. It's an opportunity to learn what's coming down the road and learn how you can best position yourself for this whole new world that's happening around cloud computing and modernizing data center environments. And this is not just a community, this is a movement. And it's a movement that started quite awhile ago, but the first .Next conference was in the quiet little town of Miami, and there was about 800 of you in attendance or so. So who in this hall here were at that first .Next conference in Miami? Let me hear from you. (audience members cheering) Yep, well to all of you grizzled veterans of the .Next experience, welcome back. You have started a movement that has grown and this year across many different .Next conferences all over the world, over 20,000 of your community members have come together. And we like to do it in distributed architecture fashion just like here in Nutanix. And so we've spread this movement all over the world with .Next conferences. And this is surging. We're also seeing just today the current count 61,000 certifications and climbing. Our Next community, close to 70,000 active members of our online community because .Next is about this big moment, and it's about every other day and every other week of the year, how we come together and explore. And my favorite stat of all. Here today in this hall amongst the record 5,500 registrations to .Next 2018 representing 71 countries in whole. So it's a global movement. Everyone, welcome. And you know when I got in Sunday night, I was looking at the tweets and the excitement was starting to build and started to see people like Adile coming from Casablanca. Adile wherever you are, welcome buddy. That's a long trip. Thank you so much for coming and being here with us today. I saw other folks coming from Geneva, from Denmark, from Japan, all over the world coming together for this moment. And we are accomplishing phenomenal things together. Because of your trust in us, and because of some early risk candidly that we have all taken together, we've created a movement in the market around modernizing data center environments, radically simplifying how we operate in the services we deliver to our businesses everyday. And this is a movement that we don't just know about this, but the industry is really taking notice. I love this chart. This is Gartner's inaugural hyperconvergence infrastructure magic quadrant chart. And I think if you see where Nutanix is positioned on there, I think you can agree that's a rout, that's a homerun, that's a mic drop so to speak. What do you guys think? (audience clapping) But here's the thing. It says Nutanix up there. We can honestly say this is a win for this hall here. Because, again, without your trust in us and what we've accomplished together and your partnership with us, we're not there. But we are there, and it is thanks to everyone in this hall. Together we have created, expanded, and truly made this market. Congratulations. And you know what, I think we're just getting started. The same innovation, the same catalyst that we drove into the market to converge storage network compute, the next horizon is around multi-cloud. The next horizon is around whether by accident or on purpose the strong move with different workloads moving into public cloud, some into private cloud moving back and forth, the promise of application mobility, the right workload on the right cloud platform with the right economics. Economics is key here. If any of you have a teenager out there, and they have a hold of your credit card, and they're doing something online or the like. You get some surprises at the end of the month. And that surprise comes in the form of spiraling public cloud costs. And this isn't to say we're not going to see a lot of workloads born and running in public cloud, but the opportunity is for us to take a path that regains control over infrastructure, regain control over workloads and where they're run. And the way I look at it for everyone in this hall, it's a journey we're on. It starts with modernizing those data center environments, continues with embracing the full cloud stack and the compelling opportunity to deliver that consumer experience to rapidly offer up enterprise compute services to your internal clients, lines of businesses and then out into the market. It's then about how you standardize across an enterprise cloud environment, that you're not just the infrastructure but the management, the automation, the control, and running any tier one application. I hear this everyday, and I've heard this a lot already this week about customers who are all in with this approach and running those tier one applications on Nutanix. And then it's the promise of not only hyperconverging infrastructure but hyperconverging multiple clouds. And if we do that, this journey the way we see it what we are doing is building your enterprise cloud. And your enterprise cloud is about the private cloud. It's about expanding and managing and taking back control of how you determine what workload to run where, and to make sure there's strong governance and control. And you're radically simplifying what could be an awfully complicated scenario if you don't reclaim and put your arms around that opportunity. Now how do we do this different than anyone else? And this is going to be a big theme that you're going to see from my good friend Sunil and his good friends on the product team. What are we doing together? We're taking all of that legacy complexity, that friction, that inability to be able to move fast because you're chained to old legacy environments. I'm talking to folks that have applications that are 40 years old, and they are concerned to touch them because they're not sure if they can react if their infrastructure can meet the demands of a new, modernized workload. We're making all that complexity invisible. And if all of that is invisible, it allows you to focus on what's next. And that indeed is the spirit of this conference. So if the what is enterprise cloud, and the how we do it different is by making infrastructure invisible, data centers, clouds, then why are we all here today? What is the binding principle that spiritually, that emotionally brings us all together? And we think it's a very simple, powerful word, and that word is freedom. And when we think about freedom, we think about as we work together the freedom to build the data center that you've always wanted to build. It's about freedom to run the applications where you choose based on the information and the context that wasn't available before. It's about the freedom of choice to choose the right cloud platform for the right application, and again to avoid a lot of these spiraling costs in unanticipated surprises whether it be around security, whether it be around economics or governance that come to the forefront. It's about the freedom to invent. It's why we got into this industry in the first place. We want to create. We want to build things not keep the lights on, not be chained to mundane tasks day by day. And it's about the freedom to play. And I hear this time and time again. My favorite tweet from a Nutanix customer to this day is just updated a lot of nodes at 38,000 feed on United Wifi, on my way to spend vacation with my family. Freedom to play. This to me is emotionally what brings us all together and what you saw with the Freedom video earlier, and what you see here is this new story because we want to go out and spread the word and not only talk about the enterprise cloud, not only talk about how we do it better, but talk about why it's so compelling to be a part of this hall here today. Now just one note of housekeeping for everyone out there in case I don't want anyone to take a wrong turn as they come to this beautiful convention center here today. A lot of freedom going on in this convention center. As luck may have it, there's another conference going on a little bit down that way based on another high growth, disruptive industry. Now MJBizCon Next, and by coincidence it's also called next. And I have to admire the creativity. I have to admire that we do share a, hey, high growth business model here. And in case you're not quite sure what this conference is about. I'm the head of marketing here. I have to show the tagline of this. And I read the tagline from license to launch and beyond, the future of the, now if I can replace that blank with our industry, I don't know, to me it sounds like a new, cool Sunil product launch. Maybe launching a new subscription service or the like. Stay tuned, you never know. I think they're going to have a good time over there. I know we're going to have a wonderful week here both to learn as well as have a lot of fun particularly in our customer appreciation event tonight. I want to spend a very few important moments on .Heart. .Heart is Nutanix's initiative to promote diversity in the technology arena. In particular, we have a focus on advancing the careers of women and young girls that we want to encourage to move into STEM and high tech careers. You have the opportunity to engage this week with this important initiative. Please role the video, and let's learn more about how you can do so. >> Video Plays (electronic music) >> So all of you have received these .Heart tokens. You have the freedom to go and choose which of the four deserving charities can receive donations to really advance our cause. So I thank you for your engagement there. And this community is behind .Heart. And it's a very important one. So thank you for that. .Next is not the community, the moment it is without our wonderful partners. These are our amazing sponsors. Yes, it's about sponsorship. It's also about how we integrate together, how we innovate together, and we're about an open community. And so I want to thank all of these names up here for your wonderful sponsorship of this event. I encourage everyone here in this room to spend time, get acquainted, get reacquainted, learn how we can make wonderful music happen together, wonderful music here in New Orleans happen together. .Next isn't .Next with a few cool surprises. Surprise number one, we have a contest. This is a still shot from the Freedom video you saw right before I came on. We have strategically placed a lucky seven Nutanix Easter eggs in this video. And if you go to Nutanix.com/freedom, watch the video. You may have to use the little scrubbing feature to slow down 'cause some of these happen quickly. You're going to find some fun, clever Easter eggs. List all seven, tweet that out, or as many as you can, tweet that out with hashtag nextconf, C, O, N, F, and we'll have a random drawing for an all expenses paid free trip to .Next 2019. And just to make sure everyone understands Easter egg concept. There's an eighth one here that's actually someone that's quite famous in our circles. If you see on this still shot, there's someone in the back there with a red jacket on. That's not just anyone. We're targeting in here. That is our very own Julie O'Brien, our senior vice president of corporate marketing. And you're going to hear from Julie later on here at .Next. But Julie and her team are the engine and the creativity behind not only our new Freedom campaign but more importantly everything that you experience here this week. Julie and her team are amazing, and we can't wait for you to experience what they've pulled together for you. Another surprise, if you go and visit our Freedom booths and share your stories. So they're like video booths, you share your success stories, your partnerships, your journey that I talked about, you will be entered to win a beautiful Nutanix brand compliant, look at those beautiful colors, bicycle. And it's not just any bicycle. It's a beautiful bicycle made by our beautiful customer Trek. I actually have a Trek bike. I love cycling. Unfortunately, I'm not eligible, but all of you are. So please share your stories in the Freedom Nutanix's booths and put yourself in the running, or in the cycling to get this prize. One more thing I wanted to share here. Yesterday we had a great time. We had our inaugural Nutanix hackathon. This hackathon brought together folks that were in devops practices, many of you that are in this room. We sold out. We thought maybe we'd get four or five teams. We had to shutdown at 14 teams that were paired together with a Nutanix mentor, and you coded. You used our REST APIs. You built new apps that integrated in with Prism and Clam. And it was wonderful to see this. Everyone I talked to had a great time on this. We had three winners. In third place, we had team Copper or team bronze, but team Copper. Silver, Not That Special, they're very humble kind of like one of our key mission statements. And the grand prize winner was We Did It All for the Cookies. And you saw them coming in on our Mardi Gras float here. We Did It All for Cookies, they did this very creative job. They leveraged an Apple Watch. They were lighting up VMs at a moments notice utilizing a lot of their coding skills. Congratulations to all three, first, second, and third all receive $2,500. And then each of them, then were able to choose a charity to deliver another $2,500 including Ronald McDonald House for the winner, we did it all for the McDonald Land cookies, I suppose, to move forward. So look for us to do more of these kinds of events because we want to bring together infrastructure and application development, and this is a great, I think, start for us in this community to be able to do so. With that, who's ready to hear form Dheeraj? You ready to hear from Dheeraj? (audience clapping) I'm ready to hear from Dheeraj, and not just 'cause I work for him. It is my distinct pleasure to welcome on the stage our CEO, cofounder and chairman Dheeraj Pandey. ("Free" by Broods) ♪ Hallelujah, I'm free ♪ >> Thank you Ben and good morning everyone. >> Audience: Good morning. >> Thank you so much for being here. It's just such an elation when I'm thinking about the Mardi Gras crowd that came here, the partners, the customers, the NTCs. I mean there's some great NTCs up there I could relate to because they're on Slack as well. How many of you are in Slack Nutanix internal Slack channel? Probably 5%, would love to actually see this community grow from here 'cause this is not the only even we would love to meet you. We would love to actually do this in a real time bite size communication on our own internal Slack channel itself. Now today, we're going to talk about a lot of things, but a lot of hard things, a lot of things that take time to build and have evolved as the industry itself has evolved. And one of the hard things that I want to talk about is multi-cloud. Multi-cloud is a really hard problem 'cause it's full of paradoxes. It's really about doing things that you believe are opposites of each other. It's about frictionless, but it's also about governance. It's about being simple, and it's also about being secure at the same time. It's about delight, it's about reducing waste, it's about owning, and renting, and finally it's also about core and edge. How do you really make this big at a core data center whether it's public or private? Or how do you really shrink it down to one or two nodes at the edge because that's where your machines are, that's where your people are? So this is a really hard problem. And as you hear from Sunil and the gang there, you'll realize how we've actually evolved our solutions to really cater to some of these. One of the approaches that we have used to really solve some of these hard problems is to have machines do more, and I said a lot of things in those four words, have machines do more. Because if you double-click on that sentence, it really means we're letting design be at the core of this. And how do you really design data centers, how do you really design products for the data center that hush all the escalations, the details, the complexities, use machine-learning and AI and you know figure our anomaly detection and correlations and patter matching? There's a ton of things that you need to do to really have machines do more. But along the way, the important lesson is to make machines invisible because when machines become invisible, it actually makes something else visible. It makes you visible. It makes governance visible. It makes applications visible, and it makes services visible. A lot of things, it makes teams visible, careers visible. So while we're really talking about invisibility of machines, we're talking about visibility of people. And that's how we really brought all of you together in this conference as well because it makes all of us shine including our products, and your careers, and your teams as well. And I try to define the word customer success. You know it's one of the favorite words that I'm actually using. We've just hired a great leader in customer success recently who's really going to focus on this relatively hard problem, yet another hard problem of customer success. We think that customer success, true customer success is possible when we have machines tend towards invisibility. But along the way when we do that, make humans tend towards freedom. So that's the real connection, the yin-yang of machines and humans that Nutanix is really all about. And that's why design is at the core of this company. And when I say design, I mean reducing friction. And it's really about reducing friction. And everything we do, the most mundane of things which could be about migrating applications, spinning up VMs, self-service portals, automatic upgrades, and automatic scale out, and all the things we do is about reducing friction which really makes machines become invisible and humans gain freedom. Now one of the other convictions we have is how all of us are really tied at the hip. You know our success is tied to your success. If we make you successful, and when I say you, I really mean Main Street. Main Street being customers, and partners, and employees. If we make all of you successful, then we automatically become successful. And very coincidentally, Main Street and Wall Street are also tied in that very same relation as well. If we do a great job at Main Street, I think the Wall Street customer, i.e. the investor, will take care of itself. You'll have you know taken care of their success if we took care of Main Street success itself. And that's the narrative that our CFO Dustin Williams actually went and painted to our Wall Street investors two months ago at our investor day conference. We talked about a $3 billion number. We said look as a company, as a software company, we can go and achieve $3 billion in billings three years from now. And it was a telling moment for the company. It was really about talking about where we could be three years from now. But it was not based on a hunch. It was based on what we thought was customer success. Now realize that $3 billion in pure software. There's only 10 to 15 companies in the world that actually have that kind of software billings number itself. But at the core of this confidence was customer success, was the fact that we were doing a really good job of not over promising and under delivering but under promising starting with small systems and growing the trust of the customers over time. And this is one of the statistics we actually talk about is repeat business. The first dollar that a Global 2000 customer spends in Nutanix, and if we go and increase their trust 15 times by year six, and we hope to actually get 17 1/2 and 19 times more trust in the years seven and eight. It's very similar numbers for non Global 2000 as well. Again, we go and really hustle for customer success, start small, have you not worry about paying millions of dollars upfront. You know start with systems that pay as they grow, you pay as they grow, and that's the way we gain trust. We have the same non Global 2000 pay $6 1/2 for the first dollar they've actually spent on us. And with this, I think the most telling moment was when Dustin concluded. And this is key to this audience here as well. Is how the current cohorts which is this audience here and many of them were not here will actually carry the weight of $3 billion, more than 50% of it if we did a great job of customer success. If we were humble and honest and we really figured out what it meant to take care of you, and if we really understood what starting small was and having to gain the trust with you over time, we think that more than 50% of that billings will actually come from this audience here without even looking at new logos outside. So that's the trust of customer success for us, and it takes care of pretty much every customer not just the Main Street customer. It takes care of Wall Street customer. It takes care of employees. It takes care of partners as well. Now before I talk about technology and products, I want to take a step back 'cause many of you are new in this audience. And I think that it behooves us to really talk about the history of this company. Like we've done a lot of things that started out as science projects. In fact, I see some tweets out there and people actually laugh at Nutanix cloud. And this is where we were in 2012. So if you take a step back and think about where the company was almost seven, eight years ago, we were up against giants. There was a $30 billion industry around network attached storage, and storage area networks and blade servers, and hypervisors, and systems management software and so on. So what did we start out with? Very simple premise that we will collapse the architecture of the data center because three tier is wasteful and three tier is not delightful. It was a very simple hunch, we said we'll take rack mount servers, we'll put a layer of software on top of it, and that layer of software back then only did storage. It didn't do networks and security, and it ran on top of a well known hypervisor from VMware. And we said there's one non negotiable thing. The fact that the design must change. The control plane for this data center cannot be the old control plane. It has to be rethought through, and that's why Prism came about. Now we went and hustled hard to add more things to it. We said we need to make this diverse because it can't just be for one application. We need to make it CPU heavy, and memory heavy, and storage heavy, and flash heavy and so on. And we built a highly configurable HCI. Now all of them are actually configurable as you know of today. And this was not just innovation in technologies, it was innovation in business and sizing, capacity planning, quote to cash business processes. A lot of stuff that we had to do to make this highly configurable, so you can really scale capacity and performance independent of each other. Then in 2014, we did something that was very counterintuitive, but we've done this on, and on, and on again. People said why are you disrupting yourself? You know you've been doing a good job of shipping appliances, but we also had the conviction that HCI was not about hardware. It was about a form factor, but it was really about an operating system. And we started to compete with ourselves when we said you know what we'll do arm's length distribution, we'll do arm's length delivery of products when we give our software to our Dell partner, to Dell as a partner, a loyal partner. But at the same time, it was actually seen with a lot of skepticism. You know these guys are wondering how to really make themselves vanish because they're competing with themselves. But we also knew that if we didn't compete with ourselves someone else will. Now one of the most controversial decisions was really going and doing yet another hypervisor. In the year 2015, it was really preposterous to build yet another hypervisor. It was a very mature market. This was coming probably 15 years too late to the market, or at least 10 years too late to market. And most people said it shouldn't be done because hypervisor is a commodity. And that's the word we latched on to. That this commodity should not have to be paid for. It shouldn't have a team of people managing it. It should actually be part of your overall stack, but it should be invisible. Just like storage needs to be invisible, virtualization needs to be invisible. But it was a bold step, and I think you know at least when we look at our current numbers, 1/3rd of our customers are actually using AHV. At least every quarter that we look at it, our new deployments, at least 35% of it is actually being used on AHV itself. And again, a very preposterous thing to have said five years ago, four years ago to where we've actually come. Thank you so much for all of you who've believed in the fact that virtualization software must be invisible and therefore we should actually try out something that is called AHV today. Now we went and added Lenovo to our OEM mix, started to become even more of a software company in the year 2016. Went and added HP and Cisco in some of very large deals that we talk about in earnings call, our HP deals and Cisco deals. And some very large customers who have procured ELAs from us, enterprise license agreements from us where they want to mix and match hardware. They want to mix Dell hardware with HP hardware but have common standard Nutanix entitlements. And finally, I think this was another one of those moments where we say why should HCI be only limited to X86. You know this operating systems deserves to run on a non X86 architecture as well. And that gave birth to this idea of HCI and Power Systems from IBM. And we've done a great job of really innovating with them in the last three, four quarters. Some amazing innovation that has come out where you can now run AIX 7.x on Nutanix. And for the first time in the history of data center, you can actually have a single software not just a data plane but a control plane where you can manage an IBM farm, an Power farm, and open Power farm and an X86 farm from the same control plane and have you know the IBM farm feed storage to an Intel compute farm and vice versa. So really good things that we've actually done. Now along the way, something else was going on while we were really busy building the private cloud, we knew there was a new consumption model on computing itself. People were renting computing using credit cards. This is the era of the millennials. They were like really want to bypass people because at the end of the day, you know why can't computing be consumed the way like eCommerce is? And that devops movement made us realize that we need to add to our stack. That stack will now have other computing clouds that is AWS and Azure and GCP now. So similar to the way we did Prism. You know Prism was really about going and making hypervisors invisible. You know we went ahead and said we'll add Calm to our portfolio because Calm is now going to be what Prism was to us back when we were really dealing with multi hypervisor world. Now it's going to be multi-cloud world. You know it's one of those things we had a gut around, and we really come to expect a lot of feedback and real innovation. I mean yesterday when we had the hackathon. The center, the epicenter of the discussion was Calm, was how do you automate on multiple clouds without having to write a single line of code? So we've come a long way since the acquisition of Calm two years ago. I think it's going to be a strong pillar in our overall product portfolio itself. Now the word multi-cloud is going to be used and over used. In fact, it's going to be blurring its lines with the idea of hyperconvergence of clouds, you know what does it mean. We just hope that hyperconvergence, the way it's called today will morph to become hyperconverged clouds not just hyperconverged boxes which is a software defined infrastructure definition itself. But let's focus on the why of multi-cloud. Why do we think it can't all go into a public cloud itself? The one big reason is just laws of the land. There's data sovereignty and computing sovereignty, regulations and compliance because of which you need to be in where the government with the regulations where the compliance rules want you to be. And by the way, that's just one reason why the cloud will have to disperse itself. It can't just be 10, 20 large data centers around the world itself because you have 200 plus countries and half of computing actually gets done outside the US itself. So it's a really important, very relevant point about the why of multi-cloud. The second one is just simple laws of physics. You know if there're machines at the edge, and they're producing so much data, you can't bring all the data to the compute. You have to take the compute which is stateless, it's an app. You take the app to where the data is because the network is the enemy. The network has always been the enemy. And when we thought we've made fatter networks, you've just produced more data as well. So this just goes without saying that you take something that's stateless that's without gravity, that's lightweight which is compute and the application and push it close to where the data itself is. And the third one which is related is just latency reasons you know? And it's not just about machine latency and electrons transferring over the speed light, and you can't defy the speed of light. It's also about human latency. It's also about multiple teams saying we need to federate and delegate, and we need to push things down to where the teams are as opposed to having to expect everybody to come to a very large computing power itself. So all the ways, the way they are, there will be at least three different ways of looking at multi-cloud itself. There's a centralized core cloud. We all go and relate to this because we've seen large data centers and so on. And that's the back office workhorse. It will crunch numbers. It will do processing. It will do a ton of things that will go and produce results for you know how we run our businesses, but there's also the dispersal of the cloud, so ROBO cloud. And this is the front office server that's really serving. It's a cloud that's going to serve people. It's going to be closer to people, and that's what a ROBO cloud is. We have a ton of customers out here who actually use Nutanix and the ROBO environments themselves as one node, two node, three node, five node servers, and it just collapses the entire server closet room in these ROBOs into something really, really small and minuscule. And finally, there's going to be another dispersed edge cloud because that's where the machines are, that's where the data is. And there's going to be an IOT machine fog because we need to miniaturize computing to something even smaller, maybe something that can really land in the palm in a mini server which is a PC like server, but you need to run everything that's enterprise grade. You should be able to go and upgrade them and monitor them and analyze them. You know do enough computing up there, maybe event-based processing that can actually happen. In fact, there's some great innovation that we've done at the edge with IOTs that I'd love for all of you to actually attend some sessions around as well. So with that being said, we have a hole in the stack. And that hole is probably one of the hardest problems that we've been trying to solve for the last two years. And Sunil will talk a lot about that. This idea of hybrid. The hybrid of multi-cloud is one of the hardest problems. Why? Because we're talking about really blurring the lines with owning and renting where you have a single-tenant environment which is your data center, and a multi-tenant environment which is the service providers data center, and the two must look like the same. And the two must look like the same is that hard a problem not just for burst out capacity, not just for security, not just for identity but also for networks. Like how do you blur the lines between networks? How do you blur the lines for storage? How do you really blur the lines for a single pane of glass where you can think of availability zones that look highly symmetric even though they're not because one of 'em is owned by you, and it's single-tenant. The other one is not owned by you, that's multi-tenant itself. So there's some really hard problems in hybrid that you'll hear Sunil talk about and the team. And some great strides that we've actually made in the last 12 months of really working on Xi itself. And that completes the picture now in terms of how we believe the state of computing will be going forward. So what are the must haves of a multi-cloud operating system? We talked about marketplace which is catalogs and automation. There's a ton of orchestration that needs to be done for multi-cloud to come together because now you have a self-service portal which is providing an eCommerce view. It's really about you know getting to do a lot of requests and workflows without having people come in the way, without even having tickets. There's no need for tickets if you can really start to think like a self-service portal as if you're just transacting eCommerce with machines and portals themselves. Obviously the next one is networking security. You need to blur the lines between on-prem and off-prem itself. These two play a huge role. And there's going to be a ton of details that you'll see Sunil talk about. But finally, what I want to focus on the rest of the talk itself here is what governance and compliance. This is a hard problem, and it's a hard problem because things have evolved. So I'm going to take a step back. Last 30 years of computing, how have consumption models changed? So think about it. 30 years ago, we were making decisions for 10 plus years, you know? Mainframe, at least 10 years, probably 20 plus years worth of decisions. These were decisions that were extremely waterfall-ish. Make 10s of millions of dollars worth of investment for a device that we'd buy for at least 10 to 20 years. Now as we moved to client-server, that thing actually shrunk. Now you're talking about five years worth of decisions, and these things were smaller. So there's a little bit more velocity in our decisions. We were not making as waterfall-ish decision as we used to with mainframes. But still five years, talk about virtualized, three tier, maybe three to five year decisions. You know they're still relatively big decisions that we were making with computer and storage and SAN fabrics and virtualization software and systems management software and so on. And here comes Nutanix, and we said no, no. We need to make it smaller. It has to become smaller because you know we need to make more agile decisions. We need to add machines every week, every month as opposed to adding you know machines every three to five years. And we need to be able to upgrade them, you know any point in time. You can do the upgrades every month if you had to, every week if you had to and so on. So really about more agility. And yet, we were not complete because there's another evolution going on, off-prem in the public cloud where people are going and doing reserved instances. But more than that, they were doing on demand stuff which no the decision was days to weeks. Some of these things that unitive compute was being rented for days to weeks, not years. And if you needed something more, you'd shift a little to the left and use reserved instances. And then spot pricing, you could do spot pricing for hours and finally lambda functions. Now you could to function as a service where things could actually be running only for minutes not even hours. So as you can see, there's a wide spectrum where when you move to the right, you get more elasticity, and when you move to the left, you're talking about predictable decision making. And in fact, it goes from minutes on one side to 10s of years on the other itself. And we hope to actually go and blur the lines between where NTNX is today where you see Nutanix right now to where we really want to be with reserved instances and on demand. And that's the real ask of Nutanix. How do you take care of this discontinuity? Because when you're owning things, you actually end up here, and when you're renting things, you end up here. What does it mean to really blur the lines between these two because people do want to make decisions that are better than reserved instance in the public cloud. We'll talk about why reserved instances which looks like a proxy for Nutanix it's still very, very wasteful even though you might think it's delightful, it's very, very wasteful. So what does it mean for on-prem and off-prem? You know you talk about cost governance, there's security compliance. These high velocity decisions we're actually making you know where sometimes you could be right with cost but wrong on security, but sometimes you could be right in security but wrong on cost. We need to really figure out how machines make some of these decisions for us, how software helps us decide do we have the right balance between cost, governance, and security compliance itself? And to get it right, we have introduced our first SAS service called Beam. And to talk more about Beam, I want to introduce Vijay Rayapati who's the general manager of Beam engineering to come up on stage and talk about Beam itself. Thank you Vijay. (rock music) So you've been here a couple of months now? >> Yes. >> At the same time, you spent the last seven, eight years really handling AWS. Tell us more about it. >> Yeah so we spent a lot of time trying to understand the last five years at Minjar you know how customers are really consuming in this new world for their workloads. So essentially what we tried to do is understand the consumption models, workload patterns, and also build algorithms and apply intelligence to say how can we lower this cost and you know improve compliance of their workloads.? And now with Nutanix what we're trying to do is how can we converge this consumption, right? Because what happens here is most customers start with on demand kind of consumption thinking it's really easy, but the total cost of ownership is so high as the workload elasticity increases, people go towards spot or a scaling, but then you need a lot more automation that something like Calm can help them. But predictability of the workload increases, then you need to move towards reserved instances, right to lower costs. >> And those are some of the things that you go and advise with some of the software that you folks have actually written. >> But there's a lot of waste even in the reserved instances because what happens it while customers make these commitments for a year or three years, what we see across, like we track a billion dollars in public cloud consumption you know as a Beam, and customers use 20%, 25% of utilization of their commitments, right? So how can you really apply, take the data of consumption you know apply intelligence to essentially reduce their you know overall cost of ownership. >> You said something that's very telling. You said reserved instances even though they're supposed to save are still only 20%, 25% utilized. >> Yes, because the workloads are very dynamic. And the next thing is you can't do hot add CPU or hot add memory because you're buying them for peak capacity. There is no convergence of scaling that apart from the scaling as another node. >> So you actually sized it for peak, but then using 20%, 30%, you're still paying for the peak. >> That's right. >> Dheeraj: That can actually add up. >> That's what we're trying to say. How can we deliver visibility across clouds? You know how can we deliver optimization across clouds and consumption models and bring the control while retaining that agility and demand elasticity? >> That's great. So you want to show us something? >> Yeah absolutely. So this is Beam as just Dheeraj outlined, our first SAS service. And this is my first .Next. And you know glad to be here. So what you see here is a global consumption you know for a business across different clouds. Whether that's in a public cloud like Amazon, or Azure, or Nutanix. We kind of bring the consumption together for the month, the recent month across your accounts and services and apply intelligence to say you know what is your spent efficiency across these clouds? Essentially there's a lot of intelligence that goes in to detect your workloads and consumption model to say if you're spending $100, how efficiently are you spending? How can you increase that? >> So you have a centralized view where you're looking at multiple clouds, and you know you talk about maybe you can take an example of an account and start looking at it? >> Yes, let's go into a cloud provider like you know for this business, let's go and take a loot at what's happening inside an Amazon cloud. Here we get into the deeper details of what's happening with the consumption of a specific services as well as the utilization of both on demand and RI. You know what can you do to lower your cost and detect your spend efficiency of a dollar to see you know are there resources that are provisioned by teams for applications that are not being used, or are there resources that we should go and rightsize because you know we have all this monitoring data, configuration data that we crunch through to basically detect this? >> You think there's billions of events that you look at everyday. You're already looking at a billon dollars worth of AWS spend. >> Right, right. >> So billions of events, billing, metering events every year to really figure out and optimize for them. >> So what we have here is a very popular international government organization. >> Dheeraj: Wow, so it looks like Russians are everywhere, the cloud is everywhere actually. >> Yes, it's quite popular. So when you bring your master account into Beam, we kind of detect all the linked accounts you know under that. Then you can go and take a look at not just at the organization level within it an account level. >> So these are child objects, you know. >> That's right. >> You can think of them as ephemeral accounts that you create because you don't want to be on the record when you're doing spams on Facebook for example. >> Right, let's go and take a look at what's happening inside a Facebook ad spend account. So we have you know consumption of the services. Let's go deeper into compute consumption, and you kind of see a trendline. You can do a lot of computing. As you see, looks like one campaign has ended. They started another campaign. >> Dheeraj: It looks like they're not stopping yet, man. There's a lot of money being made in Facebook right now. (Vijay laughing) >> So not only just get visibility at you know compute as a service inside a cloud provider, you can go deeper inside compute and say you know what is a service that I'm really consuming inside compute along with the CPUs n'stuff, right? What is my data transfer? You know what is my network? What is my load blancers? So essentially you get a very deeper visibility you know as a service right. Because we have three goals for Beam. How can we deliver visibility across clouds? How can we deliver visibility across services? And how can we deliver, then optimization? >> Well I think one thing that I just want to point out is how this SAS application was an extremely teachable moment for me to learn about the different resources that people could use about the public cloud. So all of you who actually have not gone deep enough into the idea of public cloud. This could be a great app for you to learn about things, the resources, you know things that you could do to save and security and things of that nature. >> Yeah. And we really believe in creating the single pane view you know to mange your optimization of a public cloud. You know as Ben spoke about as a business, you need to have freedom to use any cloud. And that's what Beam delivers. How can you make the right decision for the right workload to use any of the cloud of your choice? >> Dheeraj: How 'about databases? You talked about compute as well but are there other things we could look at? >> Vijay: Yes, let's go and take a look at database consumption. What you see here is they're using inside Facebook ad spending, they're using all databases except Oracle. >> Dheeraj: Wow, looks like Oracle sales folks have been active in Russia as well. (Vijay laughing) >> So what we're seeing here is a global view of you know what is your spend efficiency and which is kind of a scorecard for your business for the dollars that you're spending. And the great thing is Beam kind of brings together you know through its intelligence and algorithms to detect you know how can you rightsize resources and how can you eliminate things that you're not using? And we deliver and one click fix, right? Let's go and take a look at resources that are maybe provisioned for storage and not being used. We deliver the seamless one-click philosophy that Nutanix has to eliminate it. >> So one click, you can actually just pick some of these wasteful things that might be looking delightful because using public cloud, using credit cards, you can go in and just say click fix, and it takes care of things. >> Yeah, and not only remove the resources that are unused, but it can go and rightsize resources across your compute databases, load balancers, even past services, right? And this is where the power of it kind of comes for a business whether you're using on-prem and off-prem. You know how can you really converge that consumption across both? >> Dheeraj: So do you have something for Nutanix too? >> Vijay: Yes, so we have basically been working on Nutanix with something that we're going to deliver you know later this year. As you can see here, we're bringing together the consumption for the Nutanix, you know the services that you're using, the licensing and capacity that is available. And how can you also go and optimize within Nutanix environments >> That's great. >> for the next workload. Now let me quickly show you what we have on the compliance side. This is an extremely powerful thing that we've been working on for many years. What we deliver here just like in cost governance, a global view of your compliance across cloud providers. And the most powerful thing is you can go into a cloud provider, get the next level of visibility across cloud regimes for hundreds of policies. Not just policies but those policies across different regulatory compliances like HIPA, PCI, CAS. And that's very powerful because-- >> So you're saying a lot of what you folks have done is codified these compliance checks in software to make sure that people can sleep better at night knowing that it's PCI, and HIPA, and all that compliance actually comes together? >> And you can build this not just by cloud accounts, you can build them across cloud accounts which is what we call security centers. Essentially you can go and take a deeper look at you know the things. We do a whole full body scan for your cloud infrastructure whether it's AWS Amazon or Azure, and you can go and now, again, click to fix things. You know that had been probably provisioned that are violating the security compliance rules that should be there. Again, we have the same one-click philosophy to say how can you really remove things. >> So again, similar to save, you're saying you can go and fix some of these security issues by just doing one click. >> Absolutely. So the idea is how can we give our people the freedom to get visibility and use the right cloud and take the decisions instantly through one click. That's what Beam delivers you know today. And you know get really excited, and it's available at beam.nutanix.com. >> Our first SAS service, ladies and gentleman. Thank you so much for doing this, Vijay. It looks like there's going to be a talk here at 10:30. You'll talk more about the midterm elections there probably? >> Yes, so you can go and write your own security compliances as well. You know within Beam, and a lot of powerful things you can do. >> Awesome, thank you so much, Vijay. I really appreciate it. (audience clapping) So as you see, there's a lot of work that we're doing to really make multi-cloud which is a hard problem. You know think about working the whole body of it and what about cost governance? What about security compliance? Obviously what about hybrid networks, and security, and storage, you know compute, many of the things that you've actually heard from us, but we're taking it to a level where the business users can now understand the implications. A CFO's office can understand the implications of waste and delight. So what does customer success mean to us? You know again, my favorite word in a long, long time is really go and figure out how do you make you, the customer, become operationally efficient. You know there's a lot of stuff that we deliver through software that's completely uncovered. It's so latent, you don't even know you have it, but you've paid for it. So you've got to figure out what does it mean for you to really become operationally efficient, organizationally proficient. And it's really important for training, education, stuff that you know you're people might think it's so awkward to do in Nutanix, but it could've been way simpler if you just told you a place where you can go and read about it. Of course, I can just use one click here as opposed to doing things the old way. But most importantly to make it financially accountable. So the end in all this is, again, one of the things that I think about all the time in building this company because obviously there's a lot of stuff that we want to do to create orphans, you know things above the line and top line and everything else. There's also a bottom line. Delight and waste are two sides of the same coin. You know when we're talking about developers who seek delight with public cloud at the same time you're looking at IT folks who're trying to figure out governance. They're like look you know the CFOs office, the CIOs office, they're trying to figure out how to curb waste. These two things have to go hand in hand in this era of multi-cloud where we're talking about frictionless consumption but also governance that looks invisible. So I think, at the end of the day, this company will do a lot of stuff around one-click delight but also go and figure out how do you reduce waste because there's so much waste including folks there who actually own Nutanix. There's so much software entitlement. There's so much waste in the public cloud itself that if we don't go and put our arms around, it will not lead to customer success. So to talk more about this, the idea of delight and the idea of waste, I'd like to bring on board a person who I think you know many of you actually have talked about it have delightful hair but probably wasted jokes. But I think has wasted hair and delightful jokes. So ladies and gentlemen, you make the call. You're the jury. Sunil R.M.J. Potti. ("Free" by Broods) >> So that was the first time I came out from the bottom of a screen on a stage. I actually now know what it feels to be like a gopher. Who's that laughing loudly at the back? Okay, do we have the... Let's see. Okay, great. We're about 15 minutes late, so that means we're running right on time. That's normally how we roll at this conference. And we have about three customers and four demos. Like I think there's about three plus six, about nine folks coming onstage. So we'll have our own version of the parade as well on the main stage for the next 70 minutes. So let's just jump right into it. I think we've been pretty consistent in terms of our longterm plans since we started the company. And it's become a lot more clearer over the last few years about our plans to essentially make computing invisible as Dheeraj mentioned. We're doing this across multiple acts. We started with HCI. We call it making infrastructure invisible. We extended that to making data centers invisible. And then now we're in this mode of essentially extending it to converging clouds so that you can actually converge your consumption models. And so today's conference and essentially the theme that you're going to be seeing throughout the breakout sessions is about a journey towards invisible clouds, but make sure that you internalize the fact that we're investing heavily in each of the three phases. It's just not about the hybrid cloud with Nutanix, it's about actually finishing the job about making infrastructure invisible, expanding that to kind of go after the full data center, and then of course embark on some real meaningful things around invisible clouds, okay? And to start the session, I think you know the part that I wanted to make sure that we are all on the same page because most of us in the room are still probably in this phase of the journey which is about invisible infrastructure. And there the three key products and especially two of them that most of you guys know are Acropolis and Prism. And they're sort of like the bedrock of our company. You know especially Acropolis which is about the web scale architecture. Prism is about consumer grade design. And with Acropolis now being really mature. It's in the seventh year of innovation. We still have more than half of our company in terms of R and D spend still on Acropolis and Prism. So our core product is still sort of where we think we have a significant differentiation on. We're not going to let our foot off the peddle there. You know every time somebody comes to me and says look there's a new HCI render popping out or an existing HCI render out there, I ask a simple question to our customers saying show me 100 customers with 100 node deployments, and it will be very hard to find any other render out there that does the same thing. And that's the power of Acropolis the code platform. And then it's you know the fact that the velocity associated with Acropolis continues to be on a fast pace. We came out with various new capabilities in 5.5 and 5.6, and one of the most complicated things to get right was the fact to shrink our three node cluster to a one node, two node deployment. Most of you actually had requirements on remote office, branch office, or the edge that actually allowed us to kind of give us you know sort of like the impetus to kind of go design some new capabilities into our core OS to get this out. And associated with Acropolis and expanding into Prism, as you will see, the first couple of years of Prism was all about refactoring the user interface, doing a good job with automation. But more and more of the investments around Prism is going to be based on machine learning. And you've seen some variants of that over the last 12 months, and I can tell you that in the next 12 to 24 months, most of our investments around infrastructure operations are going to be driven by AI techniques starting with most of our R and D spend also going into machine-learning algorithms. So when you talk about all the enhancements that have come on with Prism whether it be formed by you know the management console changing to become much more automated, whether now we give you automatic rightsizing, anomaly detection, or a series of functionality that have gone into it, the real core sort of capabilities that we're putting into Prism and Acropolis are probably best served by looking at the quality of the product. You probably have seen this slide before. We started showing the number of nodes shipped by Nutanix two years ago at this conference. It was about 35,000 plus nodes at that time. And since then, obviously we've you know continued to grow. And we would draw this line which was about enterprise class quality. That for the number of bugs found as a percentage of nodes shipped, there's a certain line that's drawn. World class companies do about probably 2% to 3%, number of CFDs per node shipped. And we were just broken that number two years ago. And to give you guys an idea of how that curve has shown up, it's now currently at .95%. And so along with velocity, you know this focus on being true to our roots of reliability and stability continues to be, you know it's an internal challenge, but it's also some of the things that we keep a real focus on. And so between Acropolis and Prism, that's sort of like our core focus areas to sort of give us the confidence that look we have this really high bar that we're sort of keeping ourselves accountable to which is about being the most advanced enterprise cloud OS on the planet. And we will keep it this way for the next 10 years. And to complement that, over a period of time of course, we've added a series of services. So these are services not just for VMs but also for files, blocks, containers, but all being delivered in that single one-click operations fashion. And to really talk more about it, and actually probably to show you the real deal there it's my great pleasure to call our own version of Moses inside the company, most of you guys know him as Steve Poitras. Come on up, Steve. (audience clapping) (rock music) >> Thanks Sunil. >> You barely fit in that door, man. Okay, so what are we going to talk about today, Steve? >> Absolutely. So when we think about when Nutanix first got started, it was really focused around VDI deployments, smaller workloads. However over time as we've evolved the product, added additional capabilities and features, that's grown from VDI to business critical applications as well as cloud native apps. So let's go ahead and take a look. >> Sunil: And we'll start with like Oracle? >> Yeah, that's one of the key ones. So here we can see our Prism central user interface, and we can see our Thor cluster obviously speaking to the Avengers theme here. We can see this is doing right around 400,000 IOPs at around 360 microseconds latency. Now obviously Prism central allows you to mange all of your Nutanix deployments, but this is just running on one single Nutanix cluster. So if we hop over here to our explore tab, we can see we have a few categories. We have some Kubernetes, some AFS, some Xen desktop as well as Oracle RAC. Now if we hope over to Oracle RAC, we're running a SLOB workload here. So obviously with Oracle enterprise applications performance, consistency, and extremely low latency are very critical. So with this SLOB workload, we're running right around 300 microseconds of latency. >> Sunil: So this is what, how many node Oracle RAC cluster is this? >> Steve: This is a six node Oracle RAC deployment. >> Sunil: Got it. And so what has gone into the product in recent releases to kind of make this happen? >> Yeah so obviously on the hardware front, there's been a lot of evolutions in storage mediums. So with the introduction of NVME, persistent memory technologies like 3D XPoint, that's meant storage media has become a lot faster. Now to allow you to full take advantage of that, that's where we've had to do a lot of optimizations within the storage stack. So with AHV, we have what we call AHV turbo mode which allows you to full take advantage of those faster storage mediums at that much lower latency. And then obviously on the networking front, technologies such as RDMA can be leveraged to optimize that network stack. >> Got it. So that was Oracle RAC running on a you know Nutanix cluster. It used to be a big deal a couple of years ago. Now we've got many customers doing that. On the same environment though, we're going to show you is the advent of actually putting file services in the same scale out environment. And you know many of you in the audience probably know about AFS. We released it about 12 to 14 months ago. It's been one of our most popular new products of all time within Nutanix's history. And we had SMB support was for user file shares, VDI deployments, and it took awhile to bake, to get to scale and reliability. And then in the last release, in the recent release that we just shipped, we now added NFS for support so that we can no go after the full scale file server consolidation. So let's take a look at some of that stuff. >> Yep, let's do it. So hopping back over to Prism, we can see our four cluster here. Overall cluster-wide latency right around 360 microseconds. Now we'll hop down to our file server section. So here we can see we have our Next A File Server hosting right about 16.2 million files. Now if you look at our shares and exports, we can see we have a mix of different shares. So one of the shares that you see there is home directories. This is an SMB share which is actually mapped and being leveraged by our VDI desktops for home folders, user profiles, things of that nature. We can also see this Oracle backup share here which is exposed to our rack host via NFS. So RMAN is actually leveraging this to provide native database backups. >> Got it. So Oracle VMs, backup using files, or for any other file share requirements with AFS. Do we have the cluster also showing, I know, so I saw some Kubernetes as well on it. Let's talk about what we're thinking of doing there. >> Yep, let's do it. So if we think about cloud, cloud's obviously a big buzz word, so is containers in Kubernetes. So with ACS 1.0 what we did is we introduced native support for Docker integration. >> And pause there. And we screwed up. (laughing) So just like the market took a left turn on Kubernetes, obviously we realized that, and now we're working on ACS 2.0 which is what we're going to talk about, right? >> Exactly. So with ACS 2.0, we've introduced native Kubernetes support. Now when I think about Kubernetes, there's really two core areas that come to mind. The first one is around native integration. So with that, we have our Kubernetes volume integration, we're obviously doing a lot of work on the networking front, and we'll continue to push there from an integration point of view. Now the other piece is around the actual deployment of Kubernetes. When we think about a lot of Nutanix administrators or IT admins, they may have never deployed Kubernetes before, so this could be a very daunting task. And true to the Nutanix nature, we not only want to make our platform simple and intuitive, we also want to do this for any ecosystem products. So with ACS 2.0, we've simplified the full Kubernetes deployment and switching over to our ACS two interface, we can see this create cluster button. Now this actually pops up a full wizard. This wizard will actually walk you through the full deployment process, gather the necessary inputs for you, and in a matter of a few clicks and a few minutes, we have a full Kubernetes deployment fully provisioned, the masters, the workers, all the networking fully done for you, very simple and intuitive. Now if we hop back over to Prism, we can see we have this ACS2 Kubernetes category. Clicking on that, we can see we have eight instances of virtual machines. And here are Kubernetes virtual machines which have actually been deployed as part of this ACS2 installer. Now one of the nice things is it makes the IT administrator's job very simple and easy to do. The deployment straightforward monitoring and management very straightforward and simple. Now for the developer, the application architect, or engineers, they interface and interact with Kubernetes just like they would traditionally on any platform. >> Got it. So the goal of ACS is to ensure that the developer ecosystem still uses whatever tools that they are you know preferring while at that same time allowing this consolidation of containers along with VMs all on that same, single runtime, right? So that's ACS. And then if you think about where the OS is going, there's still some open space at the end. And open space has always been look if you just look at a public cloud, you look at blocks, files, containers, the most obvious sort of storage function that's left is objects. And that's the last horizon for us in completing the storage stack. And we're going to show you for the first time a preview of an upcoming product called the Acropolis Object Storage Services Stack. So let's talk a little bit about it and then maybe show the demo. >> Yeah, so just like we provided file services with AFS, block services with ABS, with OSS or Object Storage Services, we provide native object storage, compatibility and capability within the Nutanix platform. Now this provides a very simply common S3 API. So any integrations you've done with S3 especially Kubernetes, you can actually leverage that out of the box when you've deployed this. Now if we hop back over to Prism, I'll go here to my object stores menu. And here we can see we have two existing object storage instances which are running. So you can deploy however many of these as you wanted to. Now just like the Kubernetes deployment, deploying a new object instance is very simple and easy to do. So here I'll actually name this instance Thor's Hammer. >> You do know he loses it, right? He hasn't seen the movies yet. >> Yeah, I don't want any spoilers yet. So once we specified the name, we can choose our capacity. So here we'll just specify a large instance or type. Obviously this could be any amount or storage. So if you have a 200 node Nutanix cluster with petabytes worth of data, you could do that as well. Once we've selected that, we'll select our expected performance. And this is going to be the number of concurrent gets and puts. So essentially how many operations per second we want this instance to be able to facilitate. Once we've done that, the platform will actually automatically determine how many virtual machines it needs to deploy as well as the resources and specs for those. And once we've done that, we'll go ahead and click save. Now here we can see it's actually going through doing the deployment of the virtual machines, applying any necessary configuration, and in the matter of a few clicks and a few seconds, we actually have this Thor's Hammer object storage instance which is up and running. Now if we hop over to one of our existing object storage instances, we can see this has three buckets. So one for Kafka-queue, I'm actually using this for my Kafka cluster where I have right around 62 million objects all storing ProtoBus. The second one there is Spark. So I actually have a Spark cluster running on our Kubernetes deployed instance via ACS 2.0. Now this is doing analytics on top of this data using S3 as a storage backend. Now for these objects, we support native versioning, native object encryption as well as worm compliancy. So if you want to have expiry periods, retention intervals, that sort of thing, we can do all that. >> Got it. So essentially what we've just shown you is with upcoming objects as well that the same OS can now support VMs, files, objects, containers, all on the same one click operational fabric. And so that's in some way the real power of Nutanix is to still keep that consistency, scalability in place as we're covering each and every workload inside the enterprise. So before Steve gets off stage though, I wanted to talk to you guys a little bit about something that you know how many of you been to our Nutanix headquarters in San Jose, California? A few. I know there's like, I don't know, 4,000 or 5,000 people here. If you do come to the office, you know when you land in San Jose Airport on the way to longterm parking, you'll pass our office. It's that close. And if you come to the fourth floor, you know one of the cubes that's where I sit. In the cube beside me is Steve. Steve sits in the cube beside me. And when I first joined the company, three or four years ago, and Steve's if you go to his cube, it no longer looks like this, but it used to have a lot of this stuff. It was like big containers of this. I remember the first time. Since I started joking about it, he started reducing it. And then Steve eventually got married much to our surprise. (audience laughing) Much to his wife's surprise. And then he also had a baby as a bigger surprise. And if you come over to our office, and we welcome you, and you come to the fourth floor, find my cube or you'll find Steve's Cube, it now looks like this. Okay, so thanks a lot, my man. >> Cool, thank you. >> Thanks so much. (audience clapping) >> So single OS, any workload. And like Steve who's been with us for awhile, it's my great pleasure to invite one of our favorite customers, CSC Karen who's also been with us for three to four years. And I'll share some fond memories about how she's been with the company for awhile, how as partners we've really done a lot together. So without any further ado, let me bring up Karen. Come on up, Karen. (rock music) >> Thank you for having me. >> Yeah, thank you. So I remember, so how many of you guys were with Nutanix first .Next in Miami? I know there was a question like that asked last time. Not too many. You missed it. We wished we could go back to that. We wouldn't fit 3/4s of this crowd. But Karen was our first customer in the keynote in 2015. And we had just talked about that story at that time where you're just become a customer. Do you want to give us some recap of that? >> Sure. So when we made the decision to move to hyperconverged infrastructure and chose Nutanix as our partner, we rapidly started to deploy. And what I mean by that is Sunil and some of the Nutanix executives had come out to visit with us and talk about their product on a Tuesday. And on a Wednesday after making the decision, I picked up the phone and said you know what I've got to deploy for my VDI cluster. So four nodes showed up on Thursday. And from the time it was plugged in to moving over 300 VDIs and 50 terabytes of storage and turning it over for the business for use was less than three days. So it was really excellent testament to how simple it is to start, and deploy, and utilize the Nutanix infrastructure. Now part of that was the delight that we experienced from our customers after that deployment. So we got phone calls where people were saying this report it used to take so long that I'd got out and get a cup of coffee and come back, and read an article, and do some email, and then finally it would finish. Those reports are running in milliseconds now. It's one click. It's very, very simple, and we've delighted our customers. Now across that journey, we have gone from the simple workloads like VDIs to the much more complex workloads around Splunk and Hadoop. And what's really interesting about our Splunk deployment is we're handling over a billion events being logged everyday. And the deployment is smaller than what we had with a three tiered infrastructure. So when you hear people talk about waste and getting that out and getting to an invisible environment where you're just able to run it, that's what we were able to achieve both with everything that we're running from our public facing websites to the back office operations that we're using which include Splunk and even most recently our Cloudera and Hadoop infrastructure. What it does is it's got 30 crawlers that go out on the internet and start bringing data back. So it comes back with over two terabytes of data everyday. And then that environment, ingests that data, does work against it, and responds to the business. And that again is something that's smaller than what we had on traditional infrastructure, and it's faster and more stable. >> Got it. And it covers a lot of use cases as well. You want to speak a few words on that? >> So the use cases, we're 90%, 95% deployed on Nutanix, and we're covering all of our use cases. So whether that's a customer facing app or a back office application. And what are business is doing is it's handling large portfolios of data for fortune 500 companies and law firms. And these applications are all running with improved stability, reliability, and performance on the Nutanix infrastructure. >> And the plan going forward? >> So the plan going forward, you actually asked me that in Miami, and it's go global. So when we started in Miami and that first deployment, we had four nodes. We now have 283 nodes around the world, and we started with about 50 terabytes of data. We've now got 3.8 petabytes of data. And we're deployed across four data centers and six remote offices. And people ask me often what is the value that we achieved? So simplification. It's all just easier, and it's all less expensive. Being able to scale with the business. So our Cloudera environment ended up with one day where it spiked to 1,000 times more load, 1,000 times, and it just responded. We had rally cries around improved productivity by six times. So 600% improved productivity, and we were able to actually achieve that. The numbers you just saw on the slide that was very, very fast was we calculated a 40% reduction in total cost of ownership. We've exceeded that. And when we talk about waste, that other number on the board there is when I saved the company one hour of maintenance activity or unplanned downtime in a month which we're now able to do the majority of our maintenance activities without disrupting any of our business solutions, I'm saving $750,000 each time I save that one hour. >> Wow. All right, Karen from CSE. Thank you so much. That was great. Thank you. I mean you know some of these data points frankly as I started talking to Karen as well as some other customers are pretty amazing in terms of the genuine value beyond financial value. Kind of like the emotional sort of benefits that good products deliver to some of our customers. And I think that's one of the core things that we take back into engineering is to keep ourselves honest on either velocity or quality even hiring people and so forth. Is to actually the more we touch customers lives, the more we touch our partner's lives, the more it allows us to ensure that we can put ourselves in their shoes to kind of make sure that we're doing the right thing in terms of the product. So that was the first part, invisible infrastructure. And our goal, as we've always talked about, our true North is to make sure that this single OS can be an exact replica, a truly modern, thoughtful but original design that brings the power of public cloud this AWS or GCP like architectures into your mainstream enterprises. And so when we take that to the next level which is about expanding the scope to go beyond invisible infrastructure to invisible data centers, it starts with a few things. Obviously, it starts with virtualization and a level of intelligent management, extends to automation, and then as we'll talk about, we have to embark on encompassing the network. And that's what we'll talk about with Flow. But to start this, let me again go back to one of our core products which is the bedrock of our you know opinionated design inside this company which is Prism and Acropolis. And Prism provides, I mentioned, comes with a ton of machine-learning based intelligence built into the product in 5.6 we've done a ton of work. In fact, a lot of features are coming out now because now that PC, Prism Central that you know has been decoupled from our mainstream release strain and will continue to release on its own cadence. And the same thing when you actually flip it to AHV on its own train. Now AHV, two years ago it was all about can I use AHV for VDI? Can I use AHV for ROBO? Now I'm pretty clear about where you cannot use AHV. If you need memory overcome it, stay with VMware or something. If you need, you know Metro, stay with another technology, else it's game on, right? And if you really look at the adoption of AHV in the mainstream enterprise, the customers now speak for themselves. These are all examples of large global enterprises with multimillion dollar ELAs in play that have now been switched over. Like I'll give you a simple example here, and there's lots of these that I'm sure many of you who are in the audience that are in this camp, but when you look at the breakout sessions in the pods, you'll get a sense of this. But I'll give you one simple example. If you look at the online payment company. I'm pretty sure everybody's used this at one time or the other. They had the world's largest private cloud on open stack, 21,000 nodes. And they were actually public about it three or four years ago. And in the last year and a half, they put us through a rigorous VOC testing scale, hardening, and it's a full blown AHV only stack. And they've started cutting over. Obviously they're not there yet completely, but they're now literally in hundreds of nodes of deployment of Nutanix with AHV as their primary operating system. So it is primetime from a deployment perspective. And with that as the base, no cloud is complete without actually having self-service provisioning that truly drives one-click automation, and can you do that in this consumer grade design? And Calm was acquired, as you guys know, in 2016. We had a choice of taking Calm. It was reasonably feature complete. It supported multiple clouds. It supported ESX, it supported Brownfield, It supported AHV. I mean they'd already done the integration with Nutanix even before the acquisition. And we had a choice. The choice was go down the path of dynamic ops or some other products where you took it for revenue or for acceleration, you plopped it into the ecosystem and sold it at this power sucking alien on top of our stack, right? Or we took a step back, re-engineered the product, kept some of the core essence like the workflow engine which was good, the automation, the object model and all, but refactored it to make it look like a natural extension of our operating system. And that's what we did with Calm. And we just launched it in December, and it's been one of our most popular new products now that's flying off the shelves. If you saw the number of registrants, I got a notification of this for the breakout sessions, the number one session that has been preregistered with over 500 people, the first two sessions are around Calm. And justifiably so because it just as it lives up to its promise, and it'll take its time to kind of get to all the bells and whistles, all the capabilities that have come through with AHV or Acropolis in the past. But the feature functionality, the product market fit associated with Calm is dead on from what the feedback that we can receive. And so Calm itself is on its own rapid cadence. We had AWS and AHV in the first release. Three or four months later, we now added ESX support. We added GCP support and a whole bunch of other capabilities, and I think the essence of Calm is if you can combine Calm and along with private cloud automation but also extend it to multi-cloud automation, it really sets Nutanix on its first genuine path towards multi-cloud. But then, as I said, if you really fixate on a software defined data center message, we're not complete as a full blown AWS or GCP like IA stack until we do the last horizon of networking. And you probably heard me say this before. You heard Dheeraj and others talk about it before is our problem in networking isn't the same in storage. Because the data plane in networking works. Good L2 switches from Cisco, Arista, and so forth, but the real problem networking is in the control plane. When something goes wrong at a VM level in Nutanix, you're able to identify whether it's a storage problem or a compute problem, but we don't know whether it's a VLAN that's mis-configured, or there've been some packets dropped at the top of the rack. Well that all ends now with Flow. And with Flow, essentially what we've now done is take the work that we've been working on to create built-in visibility, put some network automation so that you can actually provision VLANs when you provision VMs. And then augment it with micro segmentation policies all built in this easy to use, consume fashion. But we didn't stop there because we've been talking about Flow, at least the capabilities, over the last year. We spent significant resources building it. But we realized that we needed an additional thing to augment its value because the world of applications especially discovering application topologies is a heady problem. And if we didn't address that, we wouldn't be fulfilling on this ambition of providing one-click network segmentation. And so that's where Netsil comes in. Netsil might seem on the surface yet another next generation application performance management tool. But the innovations that came from Netsil started off at the research project at the University of Pennsylvania. And in fact, most of the team right now that's at Nutanix is from the U Penn research group. And they took a really original, fresh look at how do you sit in a network in a scale out fashion but still reverse engineer the packets, the flow through you, and then recreate this application topology. And recreate this not just on Nutanix, but do it seamlessly across multiple clouds. And to talk about the power of Flow augmented with Netsil, let's bring Rajiv back on stage, Rajiv. >> How you doing? >> Okay so we're going to start with some Netsil stuff, right? >> Yeah, let's talk about Netsil and some of the amazing capabilities this acquisition's bringing to Nutanix. First of all as you mentioned, Netsil's completely non invasive. So it installs on the network, it does all its magic from there. There're no host agents, non of the complexity and compatibility issues that entails. It's also monitoring the network at layer seven. So it's actually doing a deep packet inspection on all your application data, and can give you insights into services and APIs which is very important for modern applications and the way they behave. To do all this of course performance is key. So Netsil's built around a completely distributed architecture scaled to really large workloads. Very exciting technology. We're going to use it in many different ways at Nutanix. And to give you a flavor of that, let me show you how we're thinking of integrating Flow and Nestil together, so micro segmentation and Netsil. So to do that, we install Netsil in one of our Google accounts. And that's what's up here now. It went out there. It discovered all the VMs we're running on that account. It created a map essentially of all their interactions, and you can see it's like a Google Maps view. I can zoom into it. I can look at various things running. I can see lots of HTTP servers over here, some databases. >> Sunil: And it also has stats, right? You can go, it actually-- >> It does. We can take a look at that for a second. There are some stats you can look at right away here. Things like transactions per second and latencies and so on. But if I wanted to micro segment this application, it's not really clear how to do so. There's no real pattern over here. Taking the Google Maps analogy a little further, this kind of looks like the backstreets of Cairo or something. So let's do this step by step. Let me first filter down to one application. Right now I'm looking at about three or four different applications. And Netsil integrates with the metadata. So this is that the clouds provide. So I can search all the tags that I have. So by doing that, I can zoom in on just the financial application. And when I do this, the view gets a little bit simpler, but there's still no real pattern. It's not clear how to micro segment this, right? And this is where the power of Netsil comes in. This is a fairly naive view. This is what tool operating at layer four just looking at ports and TCP traffic would give you. But by doing deep packet inspection, Netsil can get into the services layer. So instead of grouping these interactions by hostname, let's group them by service. So you go service tier. And now you can see this is a much simpler picture. Now I have some patterns. I have a couple of load balancers, an HA proxy and an Nginx. I have a web application front end. I have some application servers running authentication services, search services, et cetera, a database, and a database replica. I could go ahead and micro segment at this point. It's quite possible to do it at this point. But this is almost too granular a view. We actually don't usually want to micro segment at individual service level. You think more in terms of application tiers, the tiers that different services belong to. So let me go ahead and group this differently. Let me group this by app tier. And when I do that, a really simple picture emerges. I have a load balancing tier talking to a web application front end tier, an API tier, and a database tier. Four tiers in my application. And this is something I can work with. This is something that I can micro segment fairly easily. So let's switch over to-- >> Before we dot that though, do you guys see how he gave himself the pseudonym called Dom Toretto? >> Focus Sunil, focus. >> Yeah, for those guys, you know that's not the Avengers theme, man, that's the Fast and Furious theme. >> Rajiv: I think a year ahead. This is next years theme. >> Got it, okay. So before we cut over from Netsil to Flow, do we want to talk a few words about the power of Flow, and what's available in 5.6? >> Sure so Flow's been around since the 5.6 release. Actually some of the functionality came in before that. So it's got invisibility into the network. It helps you debug problems with WLANs and so on. We had a lot of orchestration with other third party vendors with load balancers, with switches to make publishing much simpler. And then of course with our most recent release, we GA'ed our micro segmentation capabilities. And that of course is the most important feature we have in Flow right now. And if you look at how Flow policy is set up, it looks very similar to what we just saw with Netsil. So we have load blancer talking to a web app, API, database. It's almost identical to what we saw just a moment ago. So while this policy was created manually, it is something that we can automate. And it is something that we will do in future releases. Right now, it's of course not been integrated at that level yet. So this was created manually. So one thing you'll notice over here is that the database tier doesn't get any direct traffic from the internet. All internet traffic goes to the load balancer, only specific services then talk to the database. So this policy right now is in monitoring mode. It's not actually being enforced. So let's see what happens if I try to attack the database, I start a hack against the database. And I have my trusty brute force password script over here. It's trying the most common passwords against the database. And if I happen to choose a dictionary word or left the default passwords on, eventually it will log into the database. And when I go back over here in Flow what happens is it actually detects there's now an ongoing a flow, a flow that's outside of policy that's shown up. And it shows this in yellow. So right alongside the policy, I can visualize all the noncompliant flows. This makes it really easy for me now to make decisions, does this flow should it be part of the policy, should it not? In this particular case, obviously it should not be part of the policy. So let me just switch from monitoring mode to enforcement mode. I'll apply the policy, give it a second to propagate. The flow goes away. And if I go back to my script, you can see now the socket's timing out. I can no longer connect to the database. >> Sunil: Got it. So that's like one click segmentation and play right now? >> Absolutely. It's really, really simple. You can compare it to other products in the space. You can't get simpler than this. >> Got it. Why don't we got back and talk a little bit more about, so that's Flow. It's shipping now in 5.6 obviously. It'll come integrated with Netsil functionality as well as a variety of other enhancements in that next few releases. But Netsil does more than just simple topology discovery, right? >> Absolutely. So Netsil's actually gathering a lot of metrics from your network, from your host, all this goes through a data pipeline. It gets processed over there and then gets captured in a time series database. And then we can slice and dice that in various different ways. It can be used for all kinds of insights. So let's see how our application's behaving. So let me say I want to go into the API layer over here. And I instantly get a variety of metrics on how the application's behaving. I get the most requested endpoints. I get the average latency. It looks reasonably good. I get the average latency of the slowest endpoints. If I was having a performance problem, I would know exactly where to go focus on. Right now, things look very good, so we won't focus on that. But scrolling back up, I notice that we have a fairly high error rate happening. We have like 11.35% of our HTTP requests are generating errors, and that deserves some attention. And if I scroll down again, and I see the top five status codes I'm getting, almost 10% of my requests are generating 500 errors, HTTP 500 errors which are internal server errors. So there's something going on that's wrong with this application. So let's dig a little bit deeper into that. Let me go into my analytics workbench over here. And what I've plotted over here is how my HTTP requests are behaving over time. Let me filter down to just the 500 ones. That will make it easier. And I want the 500s. And I'll also group this by the service tier so that I can see which services are causing the problem. And the better view for this would be a bar graph. Yes, so once I do this, you can see that all the errors, all the 500 errors that we're seeing have been caused by the authentication service. So something's obviously wrong with that part of my application. I can go look at whether Active Directory is misbehaving and so on. So very quickly from a broad problem that I was getting a high HTTP error rate. In fact, usually you will discover there's this customer complaining about a lot of errors happening in your application. You can quickly narrow down to exactly what the cause was. >> Got it. This is what we mean by hyperconvergence of the network which is if you can truly isolate network related problems and associate them with the rest of the hyperconvergence infrastructure, then we've essentially started making real progress towards the next level of hyperconvergence. Anyway, thanks a lot, man. Great job. >> Thanks, man. (audience clapping) >> So to talk about this evolution from invisible infrastructure to invisible data centers is another customer of ours that has embarked on this journey. And you know it's not just using Nutanix but a variety of other tools to actually fulfill sort of like the ambition of a full blown cloud stack within a financial organization. And to talk more about that, let me call Vijay onstage. Come on up, Vijay. (rock music) >> Hey. >> Thank you, sir. So Vijay looks way better in real life than in a picture by the way. >> Except a little bit of gray. >> Unlike me. So tell me a little bit about this cloud initiative. >> Yeah. So we've won the best cloud initiative twice now hosted by Incisive media a large magazine. It's basically they host a bunch of you know various buy side, sell side, and you can submit projects in various categories. So we've won the best cloud twice now, 2015 and 2017. The 2017 award is when you know as part of our private cloud journey we were laying the foundation for our private cloud which is 100% based on hyperconverged infrastructure. So that was that award. And then 2017, we've kind of built on that foundation and built more developer-centric next gen app services like PAS, CAS, SDN, SDS, CICD, et cetera. So we've built a lot of those services on, and the second award was really related to that. >> Got it. And a lot of this was obviously based on an infrastructure strategy with some guiding principles that you guys had about three or four years ago if I remember. >> Yeah, this is a great slide. I use it very often. At the core of our infrastructure strategy is how do we run IT as a business? I talk about this with my teams, they were very familiar with this. That's the mindset that I instill within the teams. The mission, the challenge is the same which is how do we scale infrastructure while reducing total cost of ownership, improving time to market, improving client experience and while we're doing that not lose sight of reliability, stability, and security? That's the mission. Those are some of our guiding principles. Whenever we take on some large technology investments, we take 'em through those lenses. Obviously Nutanix went through those lenses when we invested in you guys many, many years ago. And you guys checked all the boxes. And you know initiatives change year on year, the mission remains the same. And more recently, the last few years, we've been focused on converged platforms, converged teams. We've actually reorganized our teams and aligned them closer to the platforms moving closer to an SRE like concept. >> And then you've built out a full stack now across computer storage, networking, all the way with various use cases in play? >> Yeah, and we're aggressively moving towards PAS, CAS as our method of either developing brand new cloud native applications or even containerizing existing applications. So the stack you know obviously built on Nutanix, SDS for software fine storage, compute and networking we've got SDN turned on. We've got, again, PAS and CAS built on this platform. And then finally, we've hooked our CICD tooling onto this. And again, the big picture was always frictionless infrastructure which we're very close to now. You know 100% of our code deployments into this environment are automated. >> Got it. And so what's the net, net in terms of obviously the business takeaway here? >> Yeah so at Northern we don't do tech for tech. It has to be some business benefits, client benefits. There has to be some outcomes that we measure ourselves against, and these are some great metrics or great ways to look at if we're getting the outcomes from the investments we're making. So for example, infrastructure scale while reducing total cost of ownership. We're very focused on total cost of ownership. We, for example, there was a build team that was very focus on building servers, deploying applications. That team's gone down from I think 40, 45 people to about 15 people as one example, one metric. Another metric for reducing TCO is we've been able to absorb additional capacity without increasing operating expenses. So you're actually building capacity in scale within your operating model. So that's another example. Another example, right here you see on the screen. Faster time to market. We've got various types of applications at any given point that we're deploying. There's a next gen cloud native which go directly on PAS. But then a majority of the applications still need the traditional IS components. The time to market to deploy a complex multi environment, multi data center application, we've taken that down by 60%. So we can deliver server same day, but we can deliver entire environments, you know add it to backup, add it to DNS, and fully compliant within a couple of weeks which is you know something we measure very closely. >> Great job, man. I mean that's a compelling I think results. And in the journey obviously you got promoted a few times. >> Yep. >> All right, congratulations again. >> Thank you. >> Thanks Vijay. >> Hey Vijay, come back here. Actually we forgot our joke. So razzled by his data points there. So you're supposed to wear some shoes, right? >> I know my inner glitch. I was going to wear those sneakers, but I forgot them at the office maybe for the right reasons. But the story behind those florescent sneakers, I see they're focused on my shoes. But I picked those up two years ago at a Next event, and not my style. I took 'em to my office. They've been sitting in my office for the last couple years. >> Who's received shoes like these by the way? I'm sure you guys have received shoes like these. There's some real fans there. >> So again, I'm sure many of you liked them. I had 'em in my office. I've offered it to so many of my engineers. Are you size 11? Do you want these? And they're unclaimed? >> So that's the only feature of Nutanix that you-- >> That's the only thing that hasn't worked, other than that things are going extremely well. >> Good job, man. Thanks a lot. >> Thanks. >> Thanks Vijay. So as we get to the final phase which is obviously as we embark on this multi-cloud journey and the complexity that comes with it which Dheeraj hinted towards in his session. You know we have to take a cautious, thoughtful approach here because we don't want to over set expectations because this will take us five, 10 years to really do a good job like we've done in the first act. And the good news is that the market is also really, really early here. It's just a fact. And so we've taken a tiered approach to it as we'll start the discussion with multi-cloud operations, and we've talked about the stack in the prior session which is about look across new clouds. So it's no longer Nutanix, Dell, Lenova, HP, Cisco as the new quote, unquote platforms. It's Nutanix, Xi, GCP, AWS, Azure as the new platforms. That's how we're designing the fabric going forward. On top of that, you obviously have the hybrid OS both on the data plane side and control plane side. Then what you're seeing with the advent of Calm doing a marketplace and automation as well as Beam doing governance and compliance is the fact that you'll see more and more such capabilities of multi-cloud operations burnt into the platform. And example of that is Calm with the new 5.7 release that they had. Launch supports multiple clouds both inside and outside, but the fundamental premise of Calm in the multi-cloud use case is to enable you to choose the right cloud for the right workload. That's the automation part. On the governance part, and this we kind of went through in the last half an hour with Dheeraj and Vijay on stage is something that's even more, if I can call it, you know first order because you get the provisioning and operations second. The first order is to say look whatever my developers have consumed off public cloud, I just need to first get our arm around to make sure that you know what am I spending, am I secure, and then when I get comfortable, then I am able to actually expand on it. And that's the power of Beam. And both Beam and Calm will be the yin and yang for us in our multi-cloud portfolio. And we'll have new products to complement that down the road, right? But along the way, that's the whole private cloud, public cloud. They're the two ends of the barbell, and over time, and we've been working on Xi for awhile, is this conviction that we've built talking to many customers that there needs to be another type of cloud. And this type of a cloud has to feel like a public cloud. It has to be architected like a public cloud, be consumed like a public cloud, but it needs to be an extension of my data center. It should not require any changes to my tooling. It should not require and changes to my operational infrastructure, and it should not require lift and shift, and that's a super hard problem. And this problem is something that a chunk of our R and D team has been burning the midnight wick on for the last year and a half. Because look this is not about taking our current OS which does a good job of scaling and plopping it into a Equinix or a third party data center and calling it a hybrid cloud. This is about rebuilding things in the OS so that we can deliver a true hybrid cloud, but at the same time, give those functionality back on premises so that even if you don't have a hybrid cloud, if you just have your own data centers, you'll still need new services like DR. And if you think about it, what are we doing? We're building a full blown multi-tenant virtual network designed in a modern way. Think about this SDN 2.0 because we have 10 years worth of looking backwards on how GCP has done it, or how Amazon has done it, and now sort of embodying some of that so that we can actually give it as part of this cloud, but do it in a way that's a seamless extension of the data center, and then at the same time, provide new services that have never been delivered before. Everyone obviously does failover and failback in DR it just takes months to do it. Our goal is to do it in hours or minutes. But even things such as test. Imagine doing a DR test on demand for you business needs in the middle of the day. And that's the real bar that we've set for Xi that we are working towards in early access later this summer with GA later in the year. And to talk more about this, let me invite some of our core architects working on it, Melina and Rajiv. (rock music) Good to see you guys. >> You're messing up the names again. >> Oh Rajiv, Vinny, same thing, man. >> You need to back up your memory from Xi. >> Yeah, we should. Okay, so what are we going to talk about, Vinny? >> Yeah, exactly. So today we're going to talk about how Xi is pushing the envelope and beyond the state of the art as you were saying in the industry. As part of that, there's a whole bunch of things that we have done starting with taking a private cloud, seamlessly extending it to the public cloud, and then creating a hybrid cloud experience with one-click delight. We're going to show that. We've done a whole bunch of engineering work on making sure the operations and the tooling is identical on both sides. When you graduate from a private cloud to a hybrid cloud environment, you don't want the environments to be different. So we've copied the environment for you with zero manual intervention. And finally, building on top of that, we are delivering DR as a service with unprecedented simplicity with one-click failover, one-click failback. We're going to show you one click test today. So Melina, why don't we start with showing how you go from a private cloud, seamlessly extend it to consume Xi. >> Sounds good, thanks Vinny. Right now, you're looking at my Prism interface for my on premises cluster. In one-click, I'm going to be able to extend that to my Xi cloud services account. I'm doing this using my my Nutanix credential and a password manager. >> Vinny: So here as you notice all the Nutanix customers we have today, we have created an account for them in Xi by default. So you don't have to log in somewhere and create an account. It's there by default. >> Melina: And just like that we've gone ahead and extended my data center. But let's go take a look at the Xi side and log in again with my my Nutanix credentials. We'll see what we have over here. We're going to be able to see two availability zones, one for on premises and one for Xi right here. >> Vinny: Yeah as you see, using a log in account that you already knew mynutanix.com and 30 seconds in, you can see that you have a hybrid cloud view already. You have a private cloud availability zone that's your own Prism central data center view, and then a Xi availability zone. >> Sunil: Got it. >> Melina: Exactly. But of course we want to extend my network connection from on premises to my Xi networks as well. So let's take a look at our options there. We have two ways of doing this. Both are one-click experience. With direct connect, you can create a dedicated network connection between both environments, or VPN you can use a public internet and a VPN service. Let's go ahead and enable VPN in this environment. Here we have two options for how we want to enable our VPN. We can bring our own VPN and connect it, or we will deploy a VPN for you on premises. We'll do the option where we deploy the VPN in one-click. >> And this is another small sign or feature that we're building net new as part of Xi, but will be burned into our core Acropolis OS so that we can also be delivering this as a stand alone product for on premises deployment as well, right? So that's one of the other things to note as you guys look at the Xi functionality. The goal is to keep the OS capabilities the same on both sides. So even if I'm building a quote, unquote multi data center cloud, but it's just a private cloud, you'll still get all the benefits of Xi but in house. >> Exactly. And on this second step of the wizard, there's a few inputs around how you want the gateway configured, your VLAN information and routing and protocol configuration details. Let's go ahead and save it. >> Vinny: So right now, you know what's happening is we're taking the private network that our customers have on premises and extending it to a multi-tenant public cloud such that our customers can use their IP addresses, the subnets, and bring their own IP. And that is another step towards making sure the operation and tooling is kept consistent on both sides. >> Melina: Exactly. And just while you guys were talking, the VPN was successfully created on premises. And we can see the details right here. You can track details like the status of the connection, the gateway, as well as bandwidth information right in the same UI. >> Vinny: And networking is just tip of the iceberg of what we've had to work on to make sure that you get a consistent experience on both sides. So Melina, why don't we show some of the other things we've done? >> Melina: Sure, to talk about how we preserve entities from my on-premises to Xi, it's better to use my production environment. And first thing you might notice is the log in screen's a little bit different. But that's because I'm logging in using my ADFS credentials. The first thing we preserved was our users. In production, I'm running AD obviously on-prem. And now we can log in here with the same set of credentials. Let me just refresh this. >> And this is the Active Directory credential that our customers would have. They use it on-premises. And we allow the setting to be set on the Xi cloud services as well, so it's the same set of users that can access both sides. >> Got it. There's always going to be some networking problem onstage. It's meant to happen. >> There you go. >> Just launching it again here. I think it maybe timed out. This is a good sign that we're running on time with this presentation. >> Yeah, yeah, we're running ahead of time. >> Move the demos quicker, then we'll time out. So essentially when you log into Xi, you'll be able to see what are the environment capabilities that we have copied to the Xi environment. So for example, you just saw that the same user is being used to log in. But after the use logs in, you'll be able to see their images, for example, copied to the Xi side. You'll be able to see their policies and categories. You know when you define these policies on premises, you spend a lot of effort and create them. And now when you're extending to the public cloud, you don't want to do it again, right? So we've done a whole lot of syncing mechanisms making sure that the two sides are consistent. >> Got it. And on top of these policies, the next step is to also show capabilities to actually do failover and failback, but also do integrated testing as part of this compatibility. >> So one is you know just the basic job of making the environments consistent on two sides, but then it's also now talking about the data part, and that's what DR is about. So if you have a workload running on premises, we can take the data and replicate it using your policies that we've already synced. Once the data is available on the Xi side, at that point, you have to define a run book. And the run book essentially it's a recovery plan. And that says okay I already have the backups of my VMs in case of disaster. I can take my recovery plan and hit you know either failover or maybe a test. And then my application comes up. First of all, you'll talk about the boot order for your VMs to come up. You'll talk about networking mapping. Like when I'm running on-prem, you're using a particular subnet. You have an option of using the same subnet on the Xi side. >> Melina: There you go. >> What happened? >> Sunil: It's finally working.? >> Melina: Yeah. >> Vinny, you can stop talking. (audience clapping) By the way, this is logging into a live Xi data center. We have two regions West Coat, two data centers East Coast, two data centers. So everything that you're seeing is essentially coming off the mainstream Xi profile. >> Vinny: Melina, why don't we show the recovery plan. That's the most interesting piece here. >> Sure. The recovery plan is set up to help you specify how you want to recover your applications in the event of a failover or a test failover. And it specifies all sorts of details like the boot sequence for the VMs as well as network mappings. Some of the network mappings are things like the production network I have running on premises and how it maps to my production network on Xi or the test network to the test network. What's really cool here though is we're actually automatically creating your subnets on Xi from your on premises subnets. All that's part of the recovery plan. While we're on the screen, take a note of the .100 IP address. That's a floating IP address that I have set up to ensure that I'm going to be able to access my three tier web app that I have protected with this plan after a failover. So I'll be able to access it from the public internet really easily from my phone or check that it's all running. >> Right, so given how we make the environment consistent on both sides, now we're able to create a very simple DR experience including failover in one-click, failback. But we're going to show you test now. So Melina, let's talk about test because that's one of the most common operations you would do. Like some of our customers do it every month. But usually it's very hard. So let's see how the experience looks like in what we built. >> Sure. Test and failover are both one-click experiences as you know and come to expect from Nutanix. You can see it's failing over from my primary location to my recovery location. Now what we're doing right now is we're running a series of validation checks because we want to make sure that you have your network configured properly, and there's other configuration details in place for the test to be successful. Looks like the failover was initiated successfully. Now while that failover's happening though, let's make sure that I'm going to be able to access my three tier web app once it fails over. We'll do that by looking at my network policies that I've configured on my test network. Because I want to access the application from the public internet but only port 80. And if we look here under our policies, you can see I have port 80 open to permit. So that's good. And if I needed to create a new one, I could in one click. But it looks like we're good to go. Let's go back and check the status of my recovery plan. We click in, and what's really cool here is you can actually see the individual tasks as they're being completed from that initial validation test to individual VMs being powered on as part of the recovery plan. >> And to give you guys an idea behind the scenes, the entire recovery plan is actually a set of workflows that are built on Calm's automation engine. So this is an example of where we're taking some of power of workflow and automation that Clam has come to be really strong at and burning that into how we actually operationalize many of these workflows for Xi. >> And so great, while you were explaining that, my three tier web app has restarted here on Xi right in front of you. And you can see here there's a floating IP that I mentioned early that .100 IP address. But let's go ahead and launch the console and make sure the application started up correctly. >> Vinny: Yeah, so that .100 IP address is a floating IP that's a publicly visible IP. So it's listed here, 206.80.146.100. And that's essentially anybody in the audience here can go use your laptop or your cell phone and hit that and start to work. >> Yeah so by the way, just to give you guys an idea while you guys maybe use the IP to kind of hit it, is a real set of VMs that we've just failed over from Nutanix's corporate data center into our West region. >> And this is running live on the Xi cloud. >> Yeah, you guys should all go and vote. I'm a little biased towards Xi, so vote for Xi. But all of them are really good features. >> Scroll up a little bit. Let's see where Xi is. >> Oh Xi's here. I'll scroll down a little bit, but keep the... >> Vinny: Yes. >> Sunil: You guys written a block or something? >> Melina: Oh good, it looks like Xi's winning. >> Sunil: Okay, great job, Melina. Thank you so much. >> Thank you, Melina. >> Melina: Thanks. >> Thank you, great job. Cool and calm under pressure. That's good. So that was Xi. What's something that you know we've been doing around you know in addition to taking say our own extended enterprise public cloud with Xi. You know we do recognize that there are a ton of workloads that are going to be residing on AWS, GCP, Azure. And to sort of really assist in the try and call it transformation of enterprises to choose the right cloud for the right workload. If you guys remember, we actually invested in a tool over last year which became actually quite like one of those products that took off based on you know groundswell movement. Most of you guys started using it. It's essentially extract for VMs. And it was this product that's obviously free. It's a tool. But it enables customers to really save tons of time to actually migrate from legacy environments to Nutanix. So we took that same framework, obviously re-platformed it for the multi-cloud world to kind of solve the problem of migrating from AWS or GCP to Nutanix or vice versa. >> Right, so you know, Sunil as you said, moving from a private cloud to the public cloud is a lift and shift, and it's a hard you know operation. But moving back is not only expensive, it's a very hard problem. None of the cloud vendors provide change block tracking capability. And what that means is when you have to move back from the cloud, you have an extended period of downtime because there's now way of figuring out what's changing while you're moving. So you have to keep it down. So what we've done with our app mobility product is we have made sure that, one, it's extremely simple to move back. Two, that the downtime that you'll have is as small as possible. So let me show you what we've done. >> Got it. >> So here is our app mobility capability. As you can see, on the left hand side we have a source environment and target environment. So I'm calling my AWS environment Asgard. And I can add more environments. It's very simple. I can select AWS and then put in my credentials for AWS. It essentially goes and discovers all the VMs that are running and all the regions that they're running. Target environment, this is my Nutanix environment. I call it Earth. And I can add target environment similarly, IP address and credentials, and we do the rest. Right, okay. Now migration plans. I have Bifrost one as my migration plan, and this is how migration works. First you create a plan and then say start seeding. And what it does is takes a snapshot of what's running in the cloud and starts migrating it to on-prem. Once it is an on-prem and the difference between the two sides is minimal, it says I'm ready to cutover. At that time, you move it. But let me show you how you'd create a new migration plan. So let me name it, Bifrost 2. Okay so what I have to do is select a region, so US West 1, and target Earth as my cluster. This is my storage container there. And very quickly you can see these are the VMs that are running in US West 1 in AWS. I can select SQL server one and two, go to next. Right now it's looking at the target Nutanix environment and seeing it had enough space or not. Once that's good, it gives me an option. And this is the step where it enables the Nutanix service of change block tracking overlaid on top of the cloud. There are two options one is automatic where you'll give us the credentials for your VMs, and we'll inject our capability there. Or manually you could do. You could copy the command either in a windows VM or Linux VM and run it once on the VM. And change block tracking since then in enabled. Everything is seamless after that. Hit next. >> And while Vinny's setting it up, he said a few things there. I don't know if you guys caught it. One of the hardest problems in enabling seamless migration from public cloud to on-prem which makes it harder than the other way around is the fact that public cloud doesn't have things like change block tracking. You can't get delta copies. So one of the core innovations being built in this app mobility product is to provide that overlay capability across multiple clouds. >> Yeah, and the last step here was to select the target network where the VMs will come up on the Nutanix environment, and this is a summary of the migration plan. You can start it or just save it. I'm saving it because it takes time to do the seeding. I have the other plan which I'll actually show the cutover with. Okay so now this is Bifrost 1. It's ready to cutover. We started it four hours ago. And here you can see there's a SQL server 003. Okay, now I would like to show the AWS environment. As you can see, SQL server 003. This VM is actually running in AWS right now. And if you go to the Prism environment, and if my login works, right? So we can go into the virtual machine view, tables, and you see the VM is not there. Okay, so we go back to this, and we can hit cutover. So this is essentially telling our system, okay now it the time. Quiesce the VM running in AWS, take the last bit of changes that you have to the database, ship it to on-prem, and in on-prem now start you know configure the target VM and start bringing it up. So let's go and look at AWS and refresh that screen. And you should see, okay so the SQL server is now stopping. So that means it has quiesced and stopping the VM there. If you go back and look at the migration plan that we had, it says it's completed. So it has actually migrated all the data to the on-prem side. Go here on-prem, you see the production SQL server is running already. I can click launch console, and let's see. The Windows VM is already booting up. >> So essentially what Vinny just showed was a live cutover of an AWS VM to Nutanix on-premises. >> Yeah, and what we have done. (audience clapping) So essentially, this is about making two things possible, making it simple to migrate from cloud to on-prem, and making it painless so that the downtime you have is very minimal. >> Got it, great job, Vinny. I won't forget your name again. So last step. So to really talk about this, one of our favorite partners and customers has been in the cloud environment for a long time. And you know Jason who's the CTO of Cyxtera. And he'll introduce who Cyxtera is. Most of you guys are probably either using their assets or not without knowing their you know the new name. But is someone that was in the cloud before it was called cloud as one of the original founders and technologists behind Terremark, and then later as one of the chief architects of VMware's cloud. And then they started this new company about a year or so ago which I'll let Jason talk about. This journey that he's going to talk about is how a partner, slash customer is working with us to deliver net new transformations around the traditional industry of colo. Okay, to talk more about it, Jason, why don't you come up on stage, man? (rock music) Thank you, sir. All right so Cyxtera obviously a lot of people don't know the name. Maybe just give a 10 second summary of why you're so big already. >> Sure, so Cyxtera was formed, as you said, about a year ago through the acquisition of the CenturyLink data centers. >> Sunil: Which includes Savvis and a whole bunch of other assets. >> Yeah, there's a long history of those data centers, but we have all of them now as well as the software companies owned by Medina capital. So we're like the world's biggest startup now. So we have over 50 data centers around the world, about 3,500 customers, and a portfolio of security and analytics software. >> Sunil: Got it, and so you have this strategy of what we're calling revolutionizing colo deliver a cloud based-- >> Yeah so, colo hasn't really changed a lot in the last 20 years. And to be fair, a lot of what happens in data centers has to have a person physically go and do it. But there are some things that we can simplify and automate. So we want to make things more software driven, so that's what we're doing with the Cyxtera extensible data center or CXD. And to do that, we're deploying software defined networks in our facilities and developing automations so customers can go and provision data center services and the network connectivity through a portal or through REST APIs. >> Got it, and what's different now? I know there's a whole bunch of benefits with the integrated platform that one would not get in the traditional kind of on demand data center environment. >> Sure. So one of the first services we're launching on CXD is compute on demand, and it's powered by Nutanix. And we had to pick an HCI partner to launch with. And we looked at players in the space. And as you mentioned, there's actually a lot of them, more than I thought. And we had a lot of conversations, did a lot of testing in the lab, and Nutanix really stood out as the best choice. You know Nutanix has a lot of focus on things like ease of deployment. So it's very simple for us to automate deploying compute for customers. So we can use foundation APIs to go configure the servers, and then we turn those over to the customer which they can then manage through Prism. And something important to keep in mind here is that you know this isn't a manged service. This isn't infrastructure as a service. The customer has complete control over the Nutanix platform. So we're turning that over to them. It's connected to their network. They're using their IP addresses, you know their tools and processes to operate this. So it was really important for the platform we picked to have a really good self-service story for things like you know lifecycle management. So with one-click upgrade, customers have total control over patches and upgrades. They don't have to call us to do it. You know they can drive that themselves. >> Got it. Any other final words around like what do you see of the partnership going forward? >> Well you know I think this would be a great platform for Xi, so I think we should probably talk about that. >> Yeah, yeah, we should talk about that separately. Thanks a lot, Jason. >> Thanks. >> All right, man. (audience clapping) So as we look at the full journey now between obviously from invisible infrastructure to invisible clouds, you know there is one thing though to take away beyond many updates that we've had so far. And the fact is that everything that I've talked about so far is about completing a full blown true IA stack from all the way from compute to storage, to vitualization, containers to network services, and so forth. But every public cloud, a true cloud in that sense, has a full blown layer of services that's set on top either for traditional workloads or for new workloads, whether it be machine-learning, whether it be big data, you know name it, right? And in the enterprise, if you think about it, many of these services are being provisioned or provided through a bunch of our partners. Like we have partnerships with Cloudera for big data and so forth. But then based on some customer feedback and a lot of attention from what we've seen in the industry go out, just like AWS, and GCP, and Azure, it's time for Nutanix to have an opinionated view of the past stack. It's time for us to kind of move up the stack with our own offering that obviously adds value but provides some of our core competencies in data and takes it to the next level. And it's in that sense that we're actually launching Nutanix Era to simplify one of the hardest problems in enterprise IT and short of saving you from true Oracle licensing, it solves various other Oracle problems which is about truly simplifying databases much like what RDS did on AWS, imagine enterprise RDS on demand where you can provision, lifecycle manage your database with one-click. And to talk about this powerful new functionality, let me invite Bala and John on stage to give you one final demo. (rock music) Good to see you guys. >> Yep, thank you. >> All right, so we've got lots of folks here. They're all anxious to get to the next level. So this demo, really rock it. So what are we going to talk about? We're going to start with say maybe some database provisioning? Do you want to set it up? >> We have one dream, Sunil, one single dream to pass you off, that is what Nutanix is today for IT apps, we want to recreate that magic for devops and get back those weekends and freedom to DBAs. >> Got it. Let's start with, what, provisioning? >> Bala: Yep, John. >> Yeah, we're going to get in provisioning. So provisioning databases inside the enterprise is a significant undertaking that usually involves a myriad of resources and could take days. It doesn't get any easier after that for the longterm maintence with things like upgrades and environment refreshes and so on. Bala and team have been working on this challenge for quite awhile now. So we've architected Nutanix Era to cater to these enterprise use cases and make it one-click like you said. And Bala and I are so excited to finally show this to the world. We think it's actually Nutanix's best kept secrets. >> Got it, all right man, let's take a look at it. >> So we're going to be provisioning a sales database today. It's a four-step workflow. The first part is choosing our database engine. And since it's our sales database, we want it to be highly available. So we'll do a two node rack configuration. From there, it asks us where we want to land this service. We can either land it on an existing service that's already been provisioned, or if we're starting net new or for whatever reason, we can create a new service for it. The key thing here is we're not asking anybody how to do the work, we're asking what work you want done. And the other key thing here is we've architected this concept called profiles. So you tell us how much resources you need as well as what network type you want and what software revision you want. This is actually controlled by the DBAs. So DBAs, and compute administrators, and network administrators, so they can set their standards without having a DBA. >> Sunil: Got it, okay, let's take a look. >> John: So if we go to the next piece here, it's going to personalize their database. The key thing here, again, is that we're not asking you how many data files you want or anything in that regard. So we're going to be provisioning this to Nutanix's best practices. And the key thing there is just like these past services you don't have to read dozens of pages of best practice guides, it just does what's best for the platform. >> Sunil: Got it. And so these are a multitude of provisioning steps that normally one would take I guess hours if not days to provision and Oracle RAC data. >> John: Yeah, across multiple teams too. So if you think about the lifecycle especially if you have onshore and offshore resources, I mean this might even be longer than days. >> Sunil: Got it. And then there are a few steps here, and we'll lead into potentially the Time Machine construct too? >> John: Yeah, so since this is a critical database, we want data protection. So we're going to be delivering that through a feature called Time Machines. We'll leave this at the defaults for now, but the key thing to not here is we've got SLAs that deliver both continuous data protection as well as telescoping checkpoints for historical recovery. >> Sunil: Got it. So that's provisioning. We've kicked off Oracle, what, two node database and so forth? >> John: Yep, two node database. So we've got a handful of tasks that this is going to automate. We'll check back in in a few minutes. >> Got it. Why don't we talk about the other aspects then, Bala, maybe around, one of the things that, you know and I know many of you guys have seen this, is the fact that if you look at database especially Oracle but in general even SQL and so forth is the fact that look if you really simplified it to a developer, it should be as simple as I copy my production database, and I paste it to create my own dev instance. And whenever I need it, I need to obviously do it the opposite way, right? So that was the goal that we set ahead for us to actually deliver this new past service around Era for our customers. So you want to talk a little bit more about it? >> Sure Sunil. If you look at most of the data management functionality, they're pretty much like flavors of copy paste operations on database entities. But the trouble is the seemingly simple, innocuous operations of our daily lives becomes the most dreaded, complex, long running, error prone operations in data center. So we actually planned to tame this complexity and bring consumer grade simplicity to these operations, also make these clones extremely efficient without compromising the quality of service. And the best part is, the customers can enjoy these services not only for databases running on Nutanix, but also for databases running on third party systems. >> Got it. So let's take a look at this functionality of I guess snapshoting, clone and recovery that you've now built into the product. >> Right. So now if you see the core feature of this whole product is something we call Time Machine. Time Machine lets the database administrators actually capture the database tape to the granularity of seconds and also lets them create clones, refresh them to any point in time, and also recover the databases if the databases are running on the same Nutanix platform. Let's take a look at the demo with the Time Machine. So here is our customer relationship database management database which is about 2.3 terabytes. If you see, the Time Machine has been active about four months, and SLA has been set for continuously code revision of 30 days and then slowly tapers off 30 days of daily backup and weekly backups and so on, so forth. On the right hand side, you will see different colors. The green color is pretty much your continuously code revision, what we call them. That lets you to go back to any point in time to the granularity of seconds within those 30 days. And then the discreet code revision lets you go back to any snapshot of the backup that is maintained there kind of stuff. In a way, you see this Time Machine is pretty much like your modern day car with self driving ability. All you need to do is set the goals, and the Time Machine will do whatever is needed to reach up to the goal kind of stuff. >> Sunil: So why don't we quickly do a snapshot? >> Bala: Yeah, some of these times you need to create a snapshot for backup purposes, Time Machine has manual controls. All you need to do is give it a snapshot name. And then you have the ability to actually persist this snapshot data into a third party or object store so that your durability and that global data access requirements are met kind of stuff. So we kick off a snapshot operation. Let's look at what it is doing. If you see what is the snapshot operation that this is going through, there is a step called quiescing the databases. Basically, we're using application-centric APIs, and here it's actually RMAN of Oracle. We are using the RMan of Oracle to quiesce the database and performing application consistent storage snapshots with Nutanix technology. Basically we are fusing application-centric and then Nutanix platform and quiescing it. Just for a data point, if you have to use traditional technology and create a backup for this kind of size, it takes over four to six hours, whereas on Nutanix it's going to be a matter of seconds. So it almost looks like snapshot is done. This is full sensitive backup. You can pretty much use it for database restore kind of stuff. Maybe we'll do a clone demo and see how it goes. >> John: Yeah, let's go check it out. >> Bala: So for clone, again through the simplicity of command Z command, all you need to do is pick the time of your choice maybe around three o'clock in the morning today. >> John: Yeah, let's go with 3:02. >> Bala: 3:02, okay. >> John: Yeah, why not? >> Bala: You select the time, all you need to do is click on the clone. And most of the inputs that are needed for the clone process will be defaulted intelligently by us, right? And you have to make two choices that is where do you want this clone to be created with a brand new VM database server, or do you want to place that in your existing server? So we'll go with a brand new server, and then all you need to do is just give the password for you new clone database, and then clone it kind of stuff. >> Sunil: And this is an example of personalizing the database so a developer can do that. >> Bala: Right. So here is the clone kicking in. And what this is trying to do is actually it's creating a database VM and then registering the database, restoring the snapshot, and then recoding the logs up to three o'clock in the morning like what we just saw that, and then actually giving back the database to the requester kind of stuff. >> Maybe one finally thing, John. Do you want to show us the provision database that we kicked off? >> Yeah, it looks like it just finished a few seconds ago. So you can see all the tasks that we were talking about here before from creating the virtual infrastructure, and provisioning the database infrastructure, and configuring data protection. So I can go access this database now. >> Again, just to highlight this, guys. What we just showed you is an Oracle two node instance provisioned live in a few minutes on Nutanix. And this is something that even in a public cloud when you go to RDS on AWS or anything like that, you still can't provision Oracle RAC by the way, right? But that's what you've seen now, and that's what the power of Nutanix Era is. Okay, all right? >> Thank you. >> Thanks. (audience clapping) >> And one final thing around, obviously when we're building this, it's built as a past service. It's not meant just for operational benefits. And so one of the core design principles has been around being API first. You want to show that a little bit? >> Absolutely, Sunil, this whole product is built on API fist architecture. Pretty much what we have seen today and all the functionality that we've been able to show today, everything is built on Rest APIs, and you can pretty much integrate with service now architecture and give you your devops experience for your customers. We do have a plan for full fledged self-service portal eventually, and then make it as a proper service. >> Got it, great job, Bala. >> Thank you. >> Thanks, John. Good stuff, man. >> Thanks. >> All right. (audience clapping) So with Nutanix Era being this one-click provisioning, lifecycle management powered by APIs, I think what we're going to see is the fact that a lot of the products that we've talked about so far while you know I've talked about things like Calm, Flow, AHV functionality that have all been released in 5.5, 5.6, a bunch of the other stuff are also coming shortly. So I would strongly encourage you guys to kind of space 'em, you know most of these products that we've talked about, in fact, all of the products that we've talked about are going to be in the breakout sessions. We're going to go deep into them in the demos as well as in the pods. So spend some quality time not just on the stuff that's been shipping but also stuff that's coming out. And so one thing to keep in mind to sort of takeaway is that we're doing this all obviously with freedom as the goal. But from the products side, it has to be driven by choice whether the choice is based on platforms, it's based on hypervisors, whether it's based on consumption models and eventually even though we're starting with the management plane, eventually we'll go with the data plane of how do I actually provide a multi-cloud choice as well. And so when we wrap things up, and we look at the five freedoms that Ben talked about. Don't forget the sixth freedom especially after six to seven p.m. where the whole goal as a Nutanix family and extended family make sure we mix it up. Okay, thank you so much, and we'll see you around. (audience clapping) >> PA Announcer: Ladies and gentlemen, this concludes our morning keynote session. Breakouts will begin in 15 minutes. ♪ To do what I want ♪

Published Date : May 9 2018

SUMMARY :

PA Announcer: Off the plastic tab, would you please welcome state of Louisiana And it's my pleasure to welcome you all to And I'd like to second that warm welcome. the free spirit. the Nutanix Freedom video, enjoy. And I read the tagline from license to launch You have the freedom to go and choose and having to gain the trust with you over time, At the same time, you spent the last seven, eight years and apply intelligence to say how can we lower that you go and advise with some of the software to essentially reduce their you know they're supposed to save are still only 20%, 25% utilized. And the next thing is you can't do So you actually sized it for peak, and bring the control while retaining that agility So you want to show us something? And you know glad to be here. to see you know are there resources that you look at everyday. So billions of events, billing, metering events So what we have here is a very popular are everywhere, the cloud is everywhere actually. So when you bring your master account that you create because you don't want So we have you know consumption of the services. There's a lot of money being made So not only just get visibility at you know compute So all of you who actually have not gone the single pane view you know to mange What you see here is they're using have been active in Russia as well. to detect you know how can you rightsize So one click, you can actually just pick Yeah, and not only remove the resources the consumption for the Nutanix, you know the services And the most powerful thing is you can go to say how can you really remove things. So again, similar to save, you're saying So the idea is how can we give our people It looks like there's going to be a talk here at 10:30. Yes, so you can go and write your own security So the end in all this is, again, one of the things And to start the session, I think you know the part You barely fit in that door, man. that's grown from VDI to business critical So if we hop over here to our explore tab, in recent releases to kind of make this happen? Now to allow you to full take advantage of that, On the same environment though, we're going to show you So one of the shares that you see there is home directories. Do we have the cluster also showing, So if we think about cloud, cloud's obviously a big So just like the market took a left turn on Kubernetes, Now for the developer, the application architect, So the goal of ACS is to ensure So you can deploy however many of these He hasn't seen the movies yet. And this is going to be the number And if you come over to our office, and we welcome you, Thanks so much. And like Steve who's been with us for awhile, So I remember, so how many of you guys And the deployment is smaller than what we had And it covers a lot of use cases as well. So the use cases, we're 90%, 95% deployed on Nutanix, So the plan going forward, you actually asked And the same thing when you actually flip it to AHV And to give you a flavor of that, let me show you And now you can see this is a much simpler picture. Yeah, for those guys, you know that's not the Avengers This is next years theme. So before we cut over from Netsil to Flow, And that of course is the most important So that's like one click segmentation and play right now? You can compare it to other products in the space. in that next few releases. And if I scroll down again, and I see the top five of the network which is if you can truly isolate (audience clapping) And you know it's not just using Nutanix than in a picture by the way. So tell me a little bit about this cloud initiative. and the second award was really related to that. And a lot of this was obviously based on an infrastructure And you know initiatives change year on year, So the stack you know obviously built on Nutanix, of obviously the business takeaway here? There has to be some outcomes that we measure And in the journey obviously you got So you're supposed to wear some shoes, right? for the last couple years. I'm sure you guys have received shoes like these. So again, I'm sure many of you liked them. That's the only thing that hasn't worked, Thanks a lot. is to enable you to choose the right cloud Yeah, we should. of the art as you were saying in the industry. that to my Xi cloud services account. So you don't have to log in somewhere and create an account. But let's go take a look at the Xi side that you already knew mynutanix.com and 30 seconds in, or we will deploy a VPN for you on premises. So that's one of the other things to note the gateway configured, your VLAN information Vinny: So right now, you know what's happening is And just while you guys were talking, of the other things we've done? And first thing you might notice is And we allow the setting to be set on the Xi cloud services There's always going to be some networking problem onstage. This is a good sign that we're running So for example, you just saw that the same user is to also show capabilities to actually do failover And that says okay I already have the backups is essentially coming off the mainstream Xi profile. That's the most interesting piece here. or the test network to the test network. So let's see how the experience looks like details in place for the test to be successful. And to give you guys an idea behind the scenes, And so great, while you were explaining that, And that's essentially anybody in the audience here Yeah so by the way, just to give you guys Yeah, you guys should all go and vote. Let's see where Xi is. I'll scroll down a little bit, but keep the... Thank you so much. What's something that you know we've been doing And what that means is when you have And very quickly you can see these are the VMs So one of the core innovations being built So that means it has quiesced and stopping the VM there. So essentially what Vinny just showed and making it painless so that the downtime you have And you know Jason who's the CTO of Cyxtera. of the CenturyLink data centers. bunch of other assets. So we have over 50 data centers around the world, And to be fair, a lot of what happens in data centers in the traditional kind of on demand is that you know this isn't a manged service. of the partnership going forward? Well you know I think this would be Thanks a lot, Jason. And in the enterprise, if you think about it, We're going to start with say maybe some to pass you off, that is what Nutanix is Got it. And Bala and I are so excited to finally show this And the other key thing here is we've architected And the key thing there is just like these past services if not days to provision and Oracle RAC data. So if you think about the lifecycle And then there are a few steps here, but the key thing to not here is we've got So that's provisioning. that this is going to automate. is the fact that if you look at database And the best part is, the customers So let's take a look at this functionality On the right hand side, you will see different colors. And then you have the ability to actually persist of command Z command, all you need to do Bala: You select the time, all you need the database so a developer can do that. back the database to the requester kind of stuff. Do you want to show us the provision database So you can see all the tasks that we were talking about here What we just showed you is an Oracle two node instance (audience clapping) And so one of the core design principles and all the functionality that we've been able Good stuff, man. But from the products side, it has to be driven by choice PA Announcer: Ladies and gentlemen,

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Dr. Shannon Vallor, Santa Clara University | Technology Vision 2018


 

>> Hey welcome back, everybody. Jeff Frick here with the CUBE. We're at the Accenture Technology Vision 2018, actually, the preview event, 'about 200 people. The actual report comes out in a couple of days. A lot of interesting conversations about what are the big trends in 2018 in Accenture. Surveyed Paul Daugherty and team and really excited. Just was a panel discussion to get into a little bit of the not exactly a technology, but really the trust and ethics conversations. We're joined by Dr. Shannon Vallor. She's a professor at Santa Clara University. Dr. Vallor, great to see you. >> Great to be here, thank you! >> So you were just on the panel, and of course there was a car guy on the panel. So everybody loves this talk about cars and autonomous vehicles. You didn't get enough time. (chuckles) So we've got a little more time, which is great. >> Great! >> But one of the things that you brought up that I think was pretty interesting is really, kind of a higher-level view of what role technology plays in our life before. And you said before it was ancillary, it was a toy, it was a gimmick. It was a cool new car, a status symbol, or whatever. But now technology is really defining who we are, what we do, how we interact, not only with the technology of other people. It's really taken such a much more fundamental role with a bunch more new challenges. >> Yeah, and fundamentally that means that these new technologies are helping to determine how our lives go, not just whether we have the latest gadget or status symbol. Previously, as I said, we tended to take on technologies as ornaments to our life, as luxuries to enrich our life. Increasingly, they are the medium through which we live our lives, right? They're the ways that we find the people we want to marry. They're the ways that we access resources, capital, healthcare, knowledge. They're the ways that we participate as citizens in a democracy. They are entering our bodies. They're entering our homes. And the level of trust that's required to really welcome technology in this way without ambivalence or fear, it's a kind of trust that many technology companies weren't prepared to earn. >> Jeff: Right, Right. >> Because it goes much deeper than simply having to behave in a lawful manner, or satisfy your shareholders, right? It means actually having to think about whether your technologies are helping people live better lives, and whether you're earning the trust that your marketing department, your engineers, your salespeople are out there trying to get from your customers. >> Right. And it's this really interesting. When you talked about a refrigerator, I just love that example 'cause most people would never let their next door neighbor look into their refrigerator. >> Shannon: Or their medicine cabinet, right? >> Or their medicine cabinet, right. And now you want to open that up to automatic replenishment. And it's interesting 'cause I don't think a lot of companies that came into the business with the idea that they were going to have this intimate relationship with their customers to a degree, and a personal responsibility to that data. They just want to sell them some good stuff and move on >> Sure. >> to the next customer. >> Yes. >> So it's a very different mindset. Are they adjusting? How are the legacy folks dealing with this? >> Well, the good news is, is that there are a lot more conversations happening about technology and ethics within industry circles. And you even see large organizations coming together to try to lead in an effort to develop more ethical approaches to technology design and development. So, for example, the big five leaders in AI have come together to form the partnership for AI and social good. And this is a really groundbreaking movement that could potentially lead other industry participants to say, "Hey we need to get on board with this, "and we have to start thinking >> Right. >> "about what ethical leadership looks like for us," as opposed to just a sort of PR kind of thing. Yeah, we throw the word "ethics" on a few websites or slides and then we're good, right? >> Right. >> It has to go much deeper than that. And that's going to be a challenge. But it has to be at a level where rank and file workers and project managers have procedures that they know how to go through that involve ethical analysis, prediction, and preparing ethical responses to failures or conflicts that might arise. >> Right, there's just so many layers to this that we could go on for a long time. >> Sure. >> But the autonomous band has kicked up. >> Yes, yes! >> But one of the things is when you're collecting the data for a specific purpose, and you put all the efficacy in as to why and how, and what you're going to treat, what you don't know is how that data might be used by someone else next week, >> Yes. >> next year, >> Yes. >> ten years from now. >> Absolutely. >> And you can't really know because there's maybe things that you aren't aware of. So a very difficult challenge. >> And I think we have to just start thinking in terms of different kinds of metaphors. So data up until now has been seen as something that had value and very little risk associated with it. Now our attitudes are starting to shift, and we're starting to understand that data carries not just value, not just the ability to monetized, but immense power. And that power can be both constructive or destructive. Data is like jet fuel, right? It can do great things. >> Right. >> But you've got to store it carefully. You have to make sure that the people handling it are properly trained. That they know what can go wrong. >> Right. >> Right? That they've got safety regimes in place. No one who handles jet fuel treats it the way that some companies treat data today. But today, data can cause disasters on a scale similar to a chemical explosion. People can die, lives can be ruined, and people can lose their life savings over a breach or a misuse of data that causes someone to be unjustly accused of fraud or a crime. So we have to start thinking about data as something much more powerful than we have in the past. >> Jeff: Right. >> And you have the responsibility to handle it appropriately. >> Right, but we're still so far away, right? We're still sending money to the Nigerian prince who needs help getting out of the airport at Newark Airport. I mean, even just the social, >> Yes. >> the social factors still haven't caught up. And then you've got this kind of whole API economy where so many apps are connected to so many apps. >> Right. >> So even, where is the data? >> Yeah. >> And that's before you even get into a plane flying over international borders while you send an email, I mean. >> Right, yes. >> The complexity is crazy! >> Yep, and we're never going to get a handle on all of it. So one of the things I like to tell people is, it's important not to let the perfect become the enemy of the good, right? >> Jeff: Right. >> So the idea is, yes, the problem is massive. Yes, it's incredibly complex. Can we address every possible risk? Can we forestall every possible disaster? No. Can we do much better than we're doing now? Absolutely. So, I think, the important thing is not to focus on how massive the problem or the complexities are, but think about how can we move forward from here to get ourselves in a better and more responsible position. And there's lots of ways to do that. Lots of companies are already leading the way in that direction. So I think that there's so much progress to be made that we don't have to worry too much about the progress that we might never get around to making. >> Right, right. But then there's this other interesting thing that's going on that we've seen with kind of the whole "fake news," right? Which is algorithms are determining what we see. >> Shannon: Yes. >> And if you look at the ad tech model as kind of where the market has taken over the way that that operates, >> Shannon: Yep. >> there's no people involved. So then you have things happen like what happened with YouTube, where advertisers' stuff is getting put into places where they don't want it. >> Yeah. >> But there's really no people, there's no monitoring. >> Yes. >> So how do you see that kind of evolving? 'Cause on one hand, you want more social responsibility and keeping track of things. On the other hand, so much is moving to software, automation, and giving people more of what they want, not necessarily what they need. >> Well, and that means that we have to do a much better job of investing in human intelligence. We have to, for every new form of artificial intelligence, we need an even more powerful provision of human intelligence to guide it, to provide oversight. So what I like to say is, AI is not ready for solo flight, right? And a lot of people would like that to be the case because, of course, you can save money if you can put an automated adjudication system in there and take the people out. But we've seen over and over again that that leads again and again to disaster and to huge reputational losses to companies, often huge legal liabilities, right? So we have to be able to get companies to understand that they are really protecting themselves and their long-term health if they invest in human expertise and human intelligence to support AI, to support data, to support all of the technologies that are giving these companies greater competitive advantage and profitability. >> But does the delta in the machine scale versus human scale just become unbearable? Or can we use the machine scale to filter out the relatively small number of things that need a person to get involved. I mean. >> Yeah, and the-- >> How do you see some kind of some best practices? >> Yeah, so the answer depends on the industry, depends upon the application. So there's no one size fits all solution. But what we can often do is recognize that typically human and AI function best together, right? So we can figure out the ways in which the AI can amplify the human expertise and wisdom, and the human expertise can fill in some of the gaps that still exist in artificial intelligence. Some of the things that AIs just don't see, just don't recognize, just aren't able to value or predict. And so when we figure out the ways that human and artificial intelligence can compliment each other in a particular stetting, then we can get the most reliable results, and often the fairest and safest results. They might not always be the most efficient from the narrow standpoint of speed and profit, right? >> Jeff: Right, right. >> So they have able to step back and say at the end of the day, quality matters, trust matters. And just as if we put together a shoddy project on the cheap and put it out there, it's going to come back to bite us. If we put shoddy AI in place of important human decisions that affect human lives, it's going to come back to bite us. So we need to invest in the human expertise and the human wisdom, which has that ethical insight to round out what AI still lacks. >> So do you think the execution of that trust building becomes the next great competitive advance? I mean, >> Yeah. >> nobody talks about that right? Data's the new oil, >> Sure! And blah, blah, blah, blah, blah. And software defined, AI driven automation, but that's not necessarily only to the goal in road, right? There's issues. >> Right. >> So is trust, you think? >> Absolutely. >> The next great competitive differentiator? >> Absolutely. I think in the long run it will be. If you look at, for example, the way that companies like Facebook and Equifax have really damaged, in pretty profound ways, the public perception of them as trustworthy actors in, not just the corporate space, right? But in the political space for Facebook, in the economic space for Equifax. And we have to be able to recognize that those associations of a major company with that level of failure are really lasting, right? Those things don't get forgotten in one news cycle. So I think we have to recognize that today people don't know who to trust, right? It used to be that you could trust the big names, the big Fortune 500 companies. >> The blue chips, right. >> The blue chips, right. >> Right. >> And then it was the little fly by night companies that you didn't really know whether you could trust, and maybe you'd be more cautious in dealing with them. Now the public has no way of understanding which companies will genuinely fulfill the trust in the relationship >> Right. >> that the customer gives them. And so there's a huge opportunity from a competitive standpoint for companies to step up and actually earn that trust and say, in a way that can be backed up by action and results, "Your data's safe with us," right? "Your property's safe with us. "Your bank account is safe with us. "Your personal privacy is safe with us. "Your votes are safe with us. "Your news is safe with us." >> Right. >> Right? And that's the next step. >> But everyone is so cynical that, unfortunately Walter Cronkite is dead, right? >> Sure. >> We don't trust politicians anymore. We don't trust news anymore. We don't trust, now more and more, the companies. So it's a really kind of rough world in the trust space. >> Yeah! >> So do you see any kind of (chuckles) silver lining? I mean, how do we execute in this kind of crazy world where you just don't know? >> Well, what I like to say is that you have to be cautiously optimistic about this because society simply doesn't keep going without some level of trust, right? Markets depend on trust. Democracy depends on trust. Neighborhoods depend on trust, right? >> Jeff: Right. >> So either trust comes back into our lives at some deep level or everything falls apart. Frankly, those are the only choices. So if nature abhors a vacuum, and right now we have a vacuum of trust, then there's a huge opportunity for people to start stepping into that space and filling that void. So I'd like to focus on the positive potential here rather than the worst case scenario, right? The worst case scenario is, we keep going as things have been going and trust in our most important institutions continues to crumble. Well, that just ends in societal collapse >> Right, right. >> one way or the other. If we don't want to do that, and I presume that if there's anything we can all agree on, it's that that's not where we want to go. >> Right. >> Then now is the time for companies, if need be, to come together and say, "We have to step into this space "and create new trusted institutions and practices "that will help stabilize society and drive progress "in ways that aren't just reflected in GDP "but are reflected in human wellbeing, "happiness, a sense of security, a sense of hope. "A sense that technology actually does gives us a future "that we want to to be happy about moving into." >> Right, right. >> Right? >> So I'll give you the last word. >> Sure. >> We'll end on a positive note. What are some examples of companies or practices that you see out there as kind of shining lights that other people should be either aware of, emulate. Let's talk about the positive before we >> Sure. cut you lose. >> Well, one thing that I mentioned already is the AI partnership that has come together with companies that are really leading the conversation along with a lot of other organizations like AI Now, which is an organization on the East Coast that's doing a lot of fantastic work. There are a lot of companies supporting research into ethical development, design, and implementation of new technologies. That's something we haven't seen before, right? This is something that's only happened in the last two or three years. It's an incredibly positive development. Now we just have to make sure that the recommendations that are developed by these groups are actually taken onboard and implemented. And it'll be up to many of the industry leaders to set an example of how that can be done because they have the resources >> Right. >> and the ability to lead in that way. I think one of the other things that we can look at is that people are starting to become less naive about technology. Perhaps the silver lining of the loss of trust is the ability of consumers to be a little wiser, a little more appropriately critical and skeptical, and to figure out ways that they can, in fact, protect their interests. That they can actually seek out and determine who earns their trust. >> Right. >> Where their data is safest. And so I'm optimistic that there will be a sort of meeting, if you will, of the public interest and the interests of technology developers who really need the public to be on board, right? >> Jeff: Right. >> You can't make a better world if society doesn't want to come along with you. >> Jeff: Right, right. >> So my hope is, and I'm cautiously optimistic about that, that these forces will come together and create a future for us that we actually want to move into. >> All right, good. I don't want to leave on a sad note! >> Great, yes. >> Dr. Shannon Vallor, she's positive about the future. It's all about trust. Thanks for taking a few minutes. >> Thank you. >> I'm Jeff Frick, she's Dr. Shannon. Thanks for watching. We'll catch you next time. (upbeat techno music)

Published Date : Feb 14 2018

SUMMARY :

but really the trust and ethics conversations. So you were just on the panel, But one of the things that you brought up They're the ways that we find the people we want to marry. It means actually having to think about whether I just love that example that came into the business with the idea How are the legacy folks dealing with this? to say, "Hey we need to get on board with this, as opposed to just a sort of PR kind of thing. that they know how to go through that we could go on for a long time. And you can't really know not just the ability to monetized, but immense power. You have to make sure that the people handling it that causes someone to be unjustly accused And you have the responsibility I mean, even just the social, the social factors still haven't caught up. And that's before you even get into a plane flying So one of the things I like to tell people is, that we don't have to worry too much about the progress But then there's this other interesting thing So then you have things happen On the other hand, so much is moving to software, Well, and that means that we have to do a much better job that need a person to get involved. and the human expertise can fill in some of the gaps So they have able to step back and say but that's not necessarily only to the goal in road, right? So I think we have to recognize that you didn't really know whether you could trust, that the customer gives them. And that's the next step. in the trust space. you have to be cautiously optimistic about this So I'd like to focus on the positive potential here and I presume that if there's anything we can all agree on, if need be, to come together and say, Let's talk about the positive before we in the last two or three years. and the ability to lead in that way. and the interests of technology developers if society doesn't want to come along with you. that these forces will come together and create a future I don't want to leave on a sad note! Dr. Shannon Vallor, she's positive about the future. We'll catch you next time.

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Sheila FitzPatrick, NetApp & Paul Stringfellow, Gardner Systems | NetApp Insight Berlin 2017


 

>> Announcer: Live from Berlin, Germany, it's theCUBE, covering NetApp Insight 2017. Brought to you by NetApp. (upbeat music) >> Welcome back to theCUBE's live coverage of NetApp Insight 2017, here in Berlin, Germany. I'm your host, Rebecca Knight, along with my co-host, Peter Burris. We are joined by Shelia Fitzpatrick, she is the Chief Privacy Officer of NetApp, and Paul Stringfellow who is a Technical Director at Gardner Systems. Shelia, Paul, thanks so much for joining us. >> Thank you. >> Thank you for inviting us. >> So, I want to talk about data privacy. The general data protection regulation, the EU's forthcoming laws, GDPR, are going to take effect in May of next year. They represent a huge fundamental change about the way that companies use data. Can you just set the scene for our viewers and explain what these changes mean? >> Sure, happy to. As you said, GDPR is the newest regulation, it will replace the current EU directive, goes into effect May 25th of 2018. It has some fundamental changes that are massively different than any other data privacy laws you've ever seen. First and foremost, it is a legal, compliance and business issue as opposed to a technology issue. It's also the first extra-territorial regulation, meaning, it will apply to any organization anywhere in the world, regardless of whether or not they have a presence in Europe. But if they provide goods and services to an EU resident, or they have a website that EU residents would go to to enter data, they are going to have to comply with GDPR, and that is a massive change for companies. Not to mention the sanctions, the sanctions can be equal to 20 million Euro or 4% of a company's annual global turnover, pretty phenomenal sanctions. There are a lot of fundamental changes, but those are probably the biggest right there. >> What are some of the biggest challenges that companies are... I mean, you talked about the threat of sanctions and just the massive implications of what companies need to do to prepare? >> To really prepare, as I'm talking to customers, they really need, unfortunately a lot of companies are just thinking about security. And they're thinking, well as long as we have encryption, as long as we have tokenization, as long as we're locking down that data, we're going to be okay. I'm saying, no. It first and foremost starts with building that legal compliance program. What does your data privacy program look like? What personal data are you collecting? Why are you collecting it? Do you have the legal right to collect it? Part of GDPR requires unambiguous, explicit, freely-given consent. Companies can no longer force or imply consent. A lot of times when you go on to websites the terms and conditions are so impossible to understand that people just tick the box (laughs). Well, under GDPR, that will no longer be valid because it has to be very transparent, very easily understandable, very readable. And people have to know what organizations are doing with their data. And it puts ownership and more control of data back into the hands of the data subject, as opposed to the organizations that are collecting data. SO those are some of the fundamental changes. For the Cloud environment, for instance, for a lot of big hyperscalers, GDPR now puts obligations on data processors which is very different from the current regulation. SO that's going to be a fundamental change of business for a lot of organizations. >> Now, is it just customers or is it customers and employees as well? >> It's customers, employees, suppliers, it's any personal data that an organization collects, regardless of the relationship. >> SO what does it mean? Does it mean that I'm renting your data? Does it mean that I, 'cause you now own it, it's not me owning it. >> I own it, that's right. >> What are some of the implications of how folks are going to monetize some of these resources? >> SO what it actually means is, as an organization that's collecting data, you have to have a legal and valid business reason for needing that data. SO part of GDPR requires what's called, data minimization. You should only be collecting the minimal amount of data you need in order to provide the service you're going to provide, or manage the relationship you're going to manage. And you are never, as an organization, the owner of that data, you're the data steward. I am giving you permission to use my data for a very specific reason. You can't take liberties with that data. You can't do, what I call, scope-creep which is, once you have the data, "Oh, I can do whatever I want "with that data," no you can't. Unless I have consented to it, you cannot use that data. And so, that is going to be a major change for organizations to deal with and it doesn't matter if it's your employee data, your customer data, your partner data, your alternative worker data, your supplier data. Whose ever data you have, you better be transparent about that data. >> Shelia, you haven't once mentioned technology. Paul, what does this mean from a technology perspective? >> I suppose it's my job to mention technology? >> As Shelia will tell you, the GDPR, it should not be driven by IT. Because it's not an IT problem, it's absolutely a legal and compliance issue. However, I think there's a technology problem in there. So for lots of things that Shelia is talking about, in terms of understanding your data, in terms of being able to find data, being able to remove data when you no longer need to use it, that's absolutely a technology problem. And I think, actually, maybe something you won't hear said very often, I'm a real fan of GDPR, I think a it's long overdue it's probably because Shelia's been beating me round the head for the last 12 months >> I have. >> about it. But, I think it's one of those things that's long overdue to all of us within enterprises, within business, who hold and look after data. Because what we've done, traditionally, is that we just collected tons and tons of data and we bought storage 'cause storage could be relatively cheap, we're moving things to the Cloud. And, we've got absolutely no control, no management, no understanding of what the data is, where it is, who has access to it? Does anybody even access it, I'm paying for it, does anybody even use it? And I think what this is, for me, if GDPR wasn't a regulatory thing that we had to do, I think it's a set of really good practices that, as organizations, we should be looking to follow anyway. And technology plays a small part in that, it will enable organizations to understand the data better, it will enable those organizations to be able to find information as and when they need it. When somebody makes a subject access request, how are you going to find that data without appropriate technology? And I think, first and foremost, it's something that is forcing organizations to look at the way they culturally look after data within their business. This is no longer about, "Let me just keep things forever and I won't worry about it." This is a cultural shift that says data is actually an asset in your business. And as Shelia actually mentioned before, and something I'll pinch in future, the data is not mine, I'm just the custodian of that data while you allow me to be so. So I should treat that like anything else I'm looking after on your behalf. SO I think it's those kind of fundamental shifts that will drive technology adoption, no doubt, to allow you to do that, but actually, it's much more of a cultural shift in the way that we think of data and the way that we manage data in our businesses. >> Well you're talking about it as this regulation that is long overdue, and it will cause this cultural shift. So what will be different in the way that companies do business and the way that they treat their customer data, and their customer's privacy? And their employee's privacy, too, as you pointed out? >> Well, and part of the difference is going to be that need for transparency. So companies are going to have to be very upfront about what they're doing with the data, as Paul said. You know, why are they collecting that data, and they need to think differently about the need for data. Instead of collecting massive amounts of data that you really don't need, they need to take a step back and say, "This is the type of relationship "I'm trying to manage." Whether it's an employment relationship, whether it's a customer relationship, whether it's a partner relationship. What is the minimum amount of information I need in order to manage that relationship? So if I have an employee, for instance, I don't need to know what my employee does on their day off. Maybe that's a nice thing to know because I think well, maybe we can offer them a membership to a gym because they like to work out? That's not a must-have, that's a nice-to-have. And GDPR is going to force must-haves. In order to manage the employment relationship I have to be able to pay you, I have to be able to give you a job, I have to be able to provide benefits, I have to be able to provide performance evaluations and other requirements, but if it's not legally required, I don't need that data. And so it's going to change the way companies think about developing programs, policies, even technology. As they start to think about how they're developing new technology, what data do they need to make this technology work? And technology has actually driven the need for more privacy laws. If you think about IoT, artificial intelligence, Cloud. >> Mobile. >> Absolutely. Great technology, but from a privacy perspective, the privacy was never a part of the planning process. >> In fact, in many respects it was the exact opposite. There were a whole bunch of business models, I mean if you think about it in the technology industry, there's two fundamental business models. There's the ad-based business model, which is, "Give us all your data "and we'll figure out a way to monetize it." >> Absolutely. >> And there's a transaction-based business model which says, "We'll provide you a service "and you pay us, and we promise to do something "and only something with your data." >> Absolutely. >> It's the difference between the way Google and Facebook work, and say, Apple and Microsoft work. SO how is this going to impact these business models in ways of thinking about engaging customers at least where GDPR is the governing model? >> Well, it is going to force a fundamental change in their business model. SO the companies that you mentioned, that their entire business model is based on the collection and aggregation of data, and in some cases, the selling of personal data. >> Some might say screwing you. >> Some might definitely say that, especially if you're a privacy attorney, you might say that. They offer fabulous services and people willingly give up their privacy, that's part of the problem, is that they're ticking the box to say, "I want to use Facebook, I want to use Twitter, "I want to use LinkedIn "because these are great technologies." But, it's the scope-creep. It's what you're doing behind the scenes that I don't know how you're using my data. SO transparency is going to become more and more critical in the business model and that's going to be a cultural, as Paul said, a cultural shift for companies that their entire business model's based on personal data. They're struggling because they're the companies that, no matter what they do, they're going to have to change. They can't just make a simple, change their policy or procedure, they have to change their entire business model to meet the GDPR obligations. >> And I think from, like Shelia says there, and obviously GDPR's very much around, kind of, private data. Well, the conversation we're having with our customers is, is a much wider scope than that, it is all of the data that you own. And it's important, I think, organizations need to stop being fast and loose with the information that they hold because not only is the private information about those people there that, you know, me and you, and that we don't want that necessarily leaked across the well to somebody who might look to exploit that for some other reason. But, that might be, business confidential information, that might be price list, it might be your customer list. And, at the moment, I think in lots of organizations we have a culture where people from top to bottom in an organization don't necessarily understand that. SO they might be doing something where, we had a case in UK recently where some records, security arrangements for Heathrow Airport were found on a bus. So somebody copied them to a USB stick, no encryption, somebody copied it to a USB stick, thought it was okay to take home and leave in the back of, probably didn't think it was okay to leave in the back of the taxi, but certainly thought it was okay to take that information home. And you look at that and think, well, what other business asset that that organization held would they have treated with such disdain, almost to say "I just don't care, this is just ones and zeroes, "why would I care about it?" It's that shift that I think we're starting to see. And I think it's that shift that organizations should have taken a long time ago. We talk to customers, and you hear of events like this all the time, data is the new gold, data is the new precious material of your choice. >> Which it really isn't. It really isn't, here's why I say that because this is the important thing and leads to the next question I was going to ask you. Every asset that's ever been conceived follows the basic laws in economic scarcity. Take gold, you can apply to that purpose, you can make connectors for a chip, or you can use it as a basis for making jewelry or some other purpose. But, data is fungible in so many ways. You can connect it and in many respects, we talked about it a little bit earlier, the act of making it private is, in many respects, the act of turning it into an asset. SO one of the things I want to ask you about, if you think about it, is that, there will still be a lot of net new ways to capture data that's associated with a product or service in a relationship. SO we're not saying that GDPR is going to restrict the role that data plays, it's just going to make it more specific. We're still going to see more IoT, we're still going to see more mobile services, as long as the data that's being collected is in service to the relationship or the product that's being offered. >> Yeah, you're absolutely right. I mean, one of the things that I always say is that, GDPR's intent is not stop organizations from collecting data, data is your greatest asset, you need data to manage any kind of relationship. But, you're absolutely right in what it's going to do is force transparency, so instead of doing things behind the scenes where nobody has any idea what you're doing with my data, companies are going to have to be extremely transparent about it and think about how it's being used. You talked about data monetization, healthcare data today is ten times more valuable than financial data. It is the data that all hackers want. And the reason is, is because you take even aggregate and statistical information through, say trial clinics, information that you think there's no way to tie it back to a person, and by adding just little elements to it, you have now turned that data into greater value and you can now connect it back to a person. SO data that you think does not have value, the more we add to it and the more, sort of, profiling we do, the more valuable that data is going to become. >> But it's even more than that, right? Because not only are you connecting it back to a person, you're connecting it back to a human being. Whereas financial data is highly stylized, it's defined, it's like this transaction defining, and there's nothing necessarily real about it other than that's the convention that we used to for example, do accounting. But, healthcare data is real. It ties back to, what am I doing, what drugs am I taking, why am I taking them, when am I visiting somebody? This is real, real data that provides deep visibility into the human being, who they are, what they face, and any number of other issues. >> Well, if you think about GDPR, too, they expanded the definition of personal data under GDPR. SO it now includes data, like biometric and genetic information that is heavily used in the healthcare industry. It also includes location data, IP information, unique identifiers. SO a lot of companies say, "Well, we don't collect personal data "but we have the unique identifiers." Well, if you can go through any kind of process to tie that back to a person, that's now personal data. SO GDPR has actually the first entry into the digital age as opposed to the old fashioned processing. Where you can now take different aspects of data and combine it to identify a human being, as you say. >> So, I got one more question. This is something of a paradox, sorry for jumping in, but I'm fascinated by this subject. Something of a paradox. Because the act of making data private, at least to the corporation, is an act of creating an asset, and because the rules of GDPR are so much more specific and well thought through than most rules regarding data, does it mean that companies that follow GDPR are likely, in the long run, to be better at understanding, taking advantage of, and utilizing their data assets? That's the paradox. Most people say, "I need all the data." Well, GDPR says, "Maybe you need to be more specific "about how you handle your data assets." What do you think, is this going to create advantages for certain kinds of companies? >> I think it absolutely is going to create advantages in two ways. One, I see organizations that comply with GDPR as having a competitive advantage. Because, number one it goes down to trust. If I'm going to do business with Company A or Company B, I'm going to do business with the company that actually takes my personal data seriously. But, looking' at it from your point of view, absolutely. As companies become more savvy when it comes to data privacy compliance, not just GDPR, but data privacy laws around the world, they're also going to see more of that value in the data, be more transparent about it. But, that's also going to allow them to use the data for other purposes, because they're going to get very creative in how having your data is actually going to benefit you as an individual. SO they're going to have better ways of saying, "But, by having your data I can offer you these services." >> GDPR may be a catalyst for increased data maturity. >> Absolutely. >> Well, I wanna ask you about the cultural shift. We've been talking so much about it from the corporate standpoint, but will it actually force a cultural shift from the customer standpoint, too? I mean, this idea of forcing transparency and having the customer understand why do you need this from me, what do you want? I mean, famously, Europeans are more private than Americans. >> Oh much so. As you've said, "Just click accept, okay, fine, "tell me what I need to know, "or how can I use this website?" >> Well, the thing is that, it's not necessarily from a consumer point of view, but I do think it's from a personal point of view from everybody. SO whether you work inside an organization that keeps data, that's starting to understand just how valuable that data might be. And just to pick up on something, that just to pop at something you were saying before, I think one of the other areas where this has business benefit is that that better and increased management and maturity, actually I think is actually a great way, that better maturity around how we look after our data, has huge impact. Because, it has huge impact in the cost of storing' it, if we want to use Cloud services why am I putting things there that nobody looks at? And then, looking at maintaining this kind of cultural shift that says, "If I'm going to have data in my organization, "I'm no longer going to have it on a USB stick "and leave it in the back of a cab "when it's got security information "of a global major airport on it. "I'm going to think about that "because I'm now starting to understand." And this big drive about, people starting to understand how the information that people keep about you has a potential bigger impact, and it has a potential bigger impact if that data, yeah, we've seen data breach, after data breach after data breach. You can't look at the news any day of the week without some other data breach and that's partly because, a bit like health and safety legislation, GDPR's there because you can't trust all those organizations to be mature enough with the way that we look after our data to do these things. SO legislation and regulations come across and said, "Well, actually this stuff's really important "to me and you as individuals, "so stop being fast and loose with it, "stop leaving it in the back of taxis, "stop letting it leak out your organization "because nobody cares." And that's driving a two-way thing, here, it's partly we're having to think more about that because actually, we're not trusting organizations who are looking after our data. But, as Shelia said, if you become an organization that has a reputation for being good with the way they lock their data, and look after data, that will give you a competitive edge alongside, actually I'm being much more mature, I'm being much more controlled and efficient with how I look after my data. That's got big impact in how I deliver technology and certainly, within a company. Which is why I'm enthusiastic about GDPR, I think it's forcing lots and lots of long-overdue shift in the way that we, as people, look after data, architect technology, start to think about the kind of solutions and the kind of things that we do in the way that we deliver IT into business and enterprise across the globe. >> I think one of the things, too, and Paul brought it up, is he mentioned security several times. And, as Paul knows, one of my pet peeves is when companies say, "We have world-class security, "therefore we're compliant with GDPR." And I go, "Really, so you're basically locking down data "you're not legally allowed to have? That's "what you're telling me." >> Like you said earlier, it's not just about having encryption everywhere. >> Exactly, and it's funny how many companies say "Well, we're compliant with GDPR "because we encrypt the data." And I go, "Well, if you're not legally allowed "to have that data, that's not going to help you at all." And, unfortunately, I think that's what a lot of companies think, that as long as we're looking at the security side of the house, we're good. And they're missing the whole boat on GDPR. >> It's got to be secure. >> It's got to be secure. >> But-- >> You got to legally have it first. >> Exactly. The chicken and the egg. >> But, what's always an issue with security, around data and the stuff that Shelia talked about is quite a lot, is that one of the risks you have, is you can have all the great security in the world but, if the right person with the right access to the right data has all the things that they should have, that doesn't mean that they can't steal that data, lose that data, do something with that data that they shouldn't be doing, just because we've got it secured. SO we need to have policies and procedures in place that allow us to manage that better, a culture that understands the risk of doing those kinds of things, and maybe, alongside technologies that identify, unusual use of data are important within that. >> Well, Paul, Shelia, thank you so much for coming on the show, it's been a fascinating conversation. >> Thank you very much, appreciate it. >> Yeah, thanks for having us on, appreciate it. >> I'm Rebecca Knight for Peter Burris, we will have more from NetApp Insight here in Berlin in just a little bit. (upbeat music)

Published Date : Nov 14 2017

SUMMARY :

Brought to you by NetApp. she is the Chief Privacy Officer of NetApp, the EU's forthcoming laws, GDPR, are going to take effect and business issue as opposed to a technology issue. and just the massive implications of what companies need the terms and conditions are so impossible to understand regardless of the relationship. Does it mean that I, 'cause you now own it, And so, that is going to be a major change for organizations Shelia, you haven't once mentioned technology. being able to remove data when you no longer need to use it, to allow you to do that, but actually, it's much more And their employee's privacy, too, as you pointed out? Well, and part of the difference is going to be the privacy was never a part of the planning process. I mean if you think about it in the technology industry, which says, "We'll provide you a service SO how is this going to impact these business models SO the companies that you mentioned, in the business model and that's going to be a cultural, it is all of the data that you own. SO one of the things I want to ask you about, And the reason is, is because you take even aggregate other than that's the convention that we used to and combine it to identify a human being, as you say. in the long run, to be better at understanding, I think it absolutely is going to create advantages and having the customer understand "tell me what I need to know, that just to pop at something you were saying before, "you're not legally allowed to have? Like you said earlier, "to have that data, that's not going to help you at all." The chicken and the egg. is that one of the risks you have, on the show, it's been a fascinating conversation. I'm Rebecca Knight for Peter Burris, we will have more

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Rory Budnick, Procore | Grace Hopper 2017


 

>> Narrator: Live from Orlando, Florida, it's theCUBE, covering Grace Hopper's Celebration of Women in Computing. Brought to you by Silicon Angle Media. >> Welcome back to theCUBE's coverage of the Grace Hopper Conference. I'm your host, Rebecca Knight. We are joined by Rory Budnick. She is the engineering manager at Procore. Thanks so much for joining us. >> Thanks for having me. >> So tell our viewers a little bit more about Procore. >> Sure, so, we make cloud-based construction project management software. So what that means is everything in your construction project can be stored in Procore, everything from the budget for the project, to the drawings that your subcontractors need to see on the job site. >> And so these are two, it's mixing construction and engineering, two very male dominated fields all in one. So, talk a little bit about what your experience at Procore has been so far in your career. >> Sure, so, I joined Procore when there were 150 people, which was a little over three years ago, and now there are over 1000, we're in international markets, it's a whole different ballgame. It's been an awesome experience. I feel like I've gotten to grow with the company. I started out as an individual contributor and now I'm a manager. I've been involved in a lot of hiring at Procore, and so, we talk about two things here at Grace Hopper, in terms of getting more women in tech, more female software engineers. One of those is the pipeline, and two being retention. So, in terms of the pipeline, being in hiring is important, right? Being here, having a Procore booth, making sure that we are having our recruiters talk to female software engineers in the first place. And, in terms of retention, Procore has been just a really supportive place to work. I mean, me being here is a testament to that, but things like unlimited time off. >> Unlimited time off? >> Yeah, it's one of the many perks. I mean, it's just a comfortable office space, where we're making diversity a priority, and realizing that our employees need to be happy to get the best work done. It's definitely the most supportive company I've ever worked at in that respect. >> Now, research shows that women engineers really go into this field because they like to solve real world problems. So, can you talk a little bit about the kind of technology challenges that engineers face at Procore? >> Sure, that's one of the things I love about Procore is that we work on really tangible problems, so you see the payoff, you hear it directly from the customers. So, like, I work on the Drawings team. Drawings is one of our flagship tools. People upload all their drawings for a project, and we make sure that people are always working off the current set, which is really important, so that you don't have to do any rework, and you stay on budget and on time. >> And these are the headaches of any major home project too, is the fact that the timeline always slips and the budget always balloons. >> Yes, whether it's a home project or it's La Guardia Airport, which is one of the projects that's in Procore, it's the same problems. So, we get to work on things like making sure that clients are working off of that current set. What's the best way to do that? We hear their real world problems, like different ways to keep track of drawing revisions, and we make sure we adjust for whatever their method is of doing that. The biggest thing that we're working on right now, technically, is scaling, which is an exciting problem. We're working a lot on performance. We have about two million users, so it's sort of like the best problem to have where we have such high demand that now we need to meet it. So, a lot of the real world problems that we're solving, we have pretty solid solutions in place, we just need to scale to meet that demand. >> And as you said, the company is growing so much, so how are you making sure that it stays and remains that comfortable place to work as it gets bigger? >> That has been very interesting to watch. It's just been a great professional development experience for me, as a growing manager. And I think that the key thing we're doing is, in hiring, we look for three qualities, and they are ownership, optimism, and openness. They all start with Os, so it's easy to remember. But we really do look for those qualities in people, and find people that, you know, demonstrate that ownership, want to run with a project, feel like they're showing, that they put their self-worth in the project, and so they're willing to go the extra mile. In terms of optimism, doing well with change. I mean, growing that quickly, we're looking for people who work well with change, are excited about our growth. >> Rebecca: Are adaptable. >> Exactly, and then-- >> Rebecca: Openness. >> Openness, yeah, I almost forgot the last one. Openness, for me, where I see that the most at Procore is just communication from the executives. No matter who you are, you could go up to one of them and start a conversation, and they make a point of doing, you know, all hands meetings where they're communicating what the top company priorities are, what our investors are saying, things that you wouldn't think that an individual contributor would even be aware of. They lay it all out there. >> So, I mean, it sounds great, the idea that the lowest person on the totem pole can go up to a senior manager and give her input on a new idea, or pitch something. How does it really work, though? I mean, how do you empower that junior employee? >> I mean, I think a lot of that's individual management, but an example I can think of, in terms of empowering individuals' ideas at Procore is we just started a diversity and inclusion council as part of our efforts to kind of begin tackling the problem of increasing the number of women in tech. So, that means that 20 employees are meeting, they're funded by the company, and they get to figure out their takeaways, figure out their initiatives, and that's fully supported by the executives. >> Great, great, great. So, here you are at Grace Hopper. This is your second Grace Hopper. What is your takeaway from this conference? How would you describe the energy? >> It's incredibly inspiring. It's like being in a bubble for a few days. You know, it makes me want to extend that out into the real world. Melinda Gates yesterday was amazing, Debbie Sterling this morning. >> Rebecca: Who's the founder of GoldieBlox. >> Yeah, it's just, it just reminds me of that saying, you can't be what you can't see, and this is the opportunity for people to see. Procore sent about 30 women, and this is showing them, here are these women in leadership, here are women who have had really long careers in tech, so it's possible for you too. >> And, you know, you're not one of the new entrants to this field. You're already having a successful career, but you're also not a veteran. What keeps you going, even in spite of the Google manifesto, and the headlines that we read about the bleak numbers of women in leadership roles? >> I mean, I would be lying if I said those things didn't hurt, and it's really a mind game, where you have to sort of self-manage, and believe in yourself despite what other people are saying, not give people's opinions power over what your abilities actually are. >> And what's your advice to the young women here at Grace Hopper, who maybe it's their first time being here? >> I mean, my advice for actually attending the conference would be just make the most of it. >> Rebecca: And how does one make the most of it? I mean, it is big, it's overwhelming, 18000 people. >> Yeah, it definitely is. I think, for me, I'm a big note taker. I write down those big takeaways and I revisit them. So, you know, in six months, when another one of these articles comes out with negative news about women in tech, I can revisit that and kind of feel bolstered by that. >> Rebecca: Are you hopeful that things are changing? >> Yes, I am hopeful-- >> And you're on the ground floor here. I mean, you're one of the women fighting the good fight every day. >> That's nice to hear, and I think, you know, last year's Grace Hopper, there were 13000 people, this year there's 18000. Things are trending in the right direction. For me, I think that pipeline problem is something I think about a lot, and getting young girls interested in technology. For me, I didn't start coding until I was done with college, so it's important to me that people are aware of the possibilities at a young age. >> Well, Rory, thanks so much for joining us. It's been a lot of fun talking to you. >> Yeah, great talking to you too. >> Thank you. We will have more from the Grace Hopper Conference, just after this.

Published Date : Oct 12 2017

SUMMARY :

Brought to you by Silicon Angle Media. She is the engineering manager at Procore. everything from the budget for the project, And so these are two, it's mixing So, in terms of the pipeline, and realizing that our employees need to be happy the kind of technology challenges so that you don't have to do any rework, and the budget always balloons. so it's sort of like the best problem to have where and find people that, you know, demonstrate that ownership, just communication from the executives. So, I mean, it sounds great, the idea that and that's fully supported by the executives. So, here you are at Grace Hopper. into the real world. and this is the opportunity for people to see. and the headlines that we read about and it's really a mind game, where you have to I mean, my advice for actually attending the conference Rebecca: And how does one make the most of it? So, you know, in six months, when another one of these fighting the good fight every day. are aware of the possibilities at a young age. It's been a lot of fun talking to you. We will have more from the Grace Hopper Conference,

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