>> Narrator: From theCUBE studios in Palo Alto in Boston, connecting with thought leaders all around the world, this is theCUBE Conversation. >> Hello everyone, welcome to theCUBE Conversation here in Palo Alto, in our studios of theCUBE, I'm John Furrier, your host. We're here during the crisis of COVID-19 doing remote interviews. I come into the studio, we've got a quarantine crew are here, getting the interviews, getting the stories out there and of course, the story we're going to continue to talk about is the impact of COVID-19, and how we're all getting back to work, either working at home or working remotely and virtually certainly, but as things start to change, we're going to start to see events, mostly digital events, and we're here to talk about an event that's coming up called the Failover Conference from Gremlin which is now gone digital because it's April 21st. But I think what's important about this conversation that I want to get into is, not only talk about the event that's coming up, but talk about the scale problems that are being highlighted by this change in work environment, working at home. We've been talking about the at-scale problems that we're seeing whether it's a flood of surge of traffic and the chaos that's ensuing across the world and with this pandemic. So I'm excited, I've two two great guests, Alberto Fernando, senior vice president of marketing in Gremlin and Tammy Butow, principal site reliability engineer, or SRE. Guys thanks for coming on. Appreciate it, thank you. >> Thanks. >> Thanks for having me. >> Alberto, I want to get to you first. We've know each other before. You've been in this industry. We've been all talking about the cloud native, cloud scale for some time. It's kind of inside the ropes, it's inside baseball. Tammy, you're a site reliability engineer. Everyone knows Google, knows how cloud works. This is large scale stuff. Now with the COVID-19, we're starting to see the average person, my brother, my sister, our family members and people around the world go, "Oh my God, this is really a high impact." This change of behavior, this surge of web, whether it's traffic on the internet or work at home tools that are inadequate, you start to see (laughs) the statistical things that were planned for, not working well, and this actually maps the things that we've been talking about in our industry. Alberto, you've been on this. How are you guys doing? >> Yeah. >> And what's your take on this situation we're in right now? >> Yeah, we're doing pretty well as a company. We were born as a distributed organization to begin with, so for us working in a distributed environment from all over the world is common practice day-to-day. Personally, I'm originally from Italy, my parents, my family, is Milan and Bergamo of all places, so I have to follow the news with extra care and it becomes so much clear nowadays that the technology is not just a powerful tool to enable our businesses but it also is so critical for our day-to-day life, and thanks to video calls, I can easily talk to my family back there every day. So that's really important. So yes, we've been talking for a long time as you mentioned about complex systems at scale and reliability often in the context of mission critical applications, but more and more of these systems need to be reliable also when it comes to back office systems that enable people to continue to work on a daily basis. >> Yeah, well our hearts go out to your family and your friends in Italy, and I hope everyone stays safe there (speaks faintly) a tough situation continues to be a challenge. Tammy, I want to get your thoughts. How's life going for you? You're a site reliable engineer. What you deal with on the tech side is now (laughs) happening in the real world. It's mind blowing to me that we're seeing these things happen, it's a paradigm that needs attention. How do you look at it as a SRE, dealing with mostly on the tech side now seeing it play out in real life? >> It's been such an interesting situation, obviously really terrible for everybody to have to go through and deal with, so one of the things that I specialize in as a site reliability engineer is incident management and so for example, I previously worked at Dropbox where I was the incident manager on call for 500 million customers, it's like 24/7 shift. These large scale incidents, you really need to be able to act fast. There are two very important metrics that we track and care about as a site reliability engineer. The first one is mean time to detection. How fast can you detect that something is happening? Obviously, if we detect an issue faster then you've got a better chance of making the impact lower so you can contain the blast radius. I like to explain it to people like, if you have a fire in your sauce bin in your kitchen, and you put it out, that's way better than waiting until your entire house is on fire. And the other metric is mean time to resolution. So how long does it take you to recover from the situation? So yeah, this is a large scale, global incident right now that we're in. >> Yeah, I know you guys do a lot, talk about chaos, theory and that applies. A lot of math involved, we all know that, but I think we need to look at the real world. This is now going to be table stakes and there's now a line in the sand here, pre-pandemic, post-pandemic, and I think you guys have an interesting company, Gremlin, in the sense that this is a complex system and that if you think about the world we're going to be living in, whether it's digital events that you guys have one coming up or how to work at home or tools that humans are going to be using, it's going to be working with systems, right? So you have this new paradigm going to be upon us pretty quickly and it's not just buying software mechanisms or software, it's a complex system, it's distributed computing, it's an operating system. I mean this is kind of the world. Can you guys talk about the Gremlin situation of how you guys are attacking these new problems and these new opportunities that are emerging? >> Sure, I can talk about that. So yeah, one of the things I've always specialized in over the last ten years is chaos engineering. And so the idea of chaos engineering is that your injecting failure on purpose to uncover weaknesses. So that's really important in distributed systems, with distributed cloud computing, all these different services that you're kind of putting together. But the idea is if you can inject failure, you can actually figure out what happens when I inject that small failure? And then you can actually go ahead and fix it. One of the things I like to say to people is focus on what you're top five critical systems are. Let's fix those first. Don't go for low hanging fruit. Fix the biggest problems first, get rid of the biggest amount of pain that you have as a company, and then you can go ahead and actually... If you think about Pareto principle, the 80/20 rule, if you fix 20% of your biggest problems, you'll actually solve 80% of your issues. That always works. It's something that I've done while working at the National Australia Bank doing chaos engineering. Also at Gremlin, at Dropbox and I help a lot of our customers do that too. >> Alberto, talk about the mindset involved. It's the most counter intuitive. Whoa! Whoa! Risk! The biggest system. >> Yeah >> I don't want to touch those. They're working fine right now. And then these problems just gestate, they kind of hang around to the bin in the kitchen fire, this is okay, I don't want to touch it. The house is still working. So this is kind of a new mindset. Could you talk about what your take is on that? Is the industry there? I mean, it was a kind of a corner case, you had Netflix, you had the Chaos Monkey those days and then now it's a DevOps practice, for a lot of folks, you guys are involved in that. What's the appetite and what's the progress of chaos engineering in mainstream case? >> Yeah, it's interesting that you mentioned DevOps, and recently Gartner came up with a new, revisited DevOps framework that has chaos engineering in the middle of the lifecycle management of your application. And the reality is that systems have become so complex in infrastructure, so many layers of abstractions. You have hundreds of services if you're doing microservices, but even if you're not doing microservices, you have so many applications connected to each other, build really complex workflows and automation flows. It's impossible for traditional QA to really understand where the vulnerability are in terms of resiliency, in terms of quality. Too often the production environment is also too different from the staging environment, and so you need a fundamentally different approach to go and find where your weaknesses are and find them before they happen, before you end up finding yourself in a situation like the one we're into today and you are not prepared. And so, so much of what we talk about is giving a tool and the methodology for people to go and find these vulnerabilities. Not so much about creating chaos, but it's about managing chaos that is built into our current system and exposing those vulnerabilities before they create problem. And so that's a very scientific methodology and tooling that we bring to market and we help customers well. >> Tammy, I want to get your thoughts on something. We used to riff a lot with our 10th unit CUBE, we've had a lot of conversation we've riffed over the years, but you know when the surge of Amazon web services came out it was pretty obvious that cloud's amazing and look at the startups that were born, you mentioned Dropbox, you worked there. These companies, all these born on the cloud, these hyper scale, companies built from scratch, great way to scale up. And we used to joke about Google, people would say, "I would like a cloud like Google," but no one has Googles use cases. And Google really pioneered the SRE concept, and you got to give 'em a lot of props for that. But now we're kind of getting to a world where it's becoming Google-like. There's more scale now than ever before. It's not a corner case, it's becoming more popular and more of a preferred architecture, this large scale. What's your assessment of the main stream enterprises, how far are they in your mind, are they there with chaos? Are they close? Are they doing it? How does someone develop an SRE practice to get the Google-like scale? 'Cause Google has an amazing network, they got large scale cloud, they have SRE's, they've been doing it for years. How does a company that's transforming their IT (laughs) have SRE's? >> That's a great question. I get asked this a lot as well. One of our goals at Gremlin is to help make the internet more reliable for everybody. Everyone using the internet, all of the engineers who are trying to build reliable services, and so I'm often asked by companies all over the world, how do we create an SRE practice and how do we practice chaos engineering? But you can get started actually rolling out your SRE program. Based on my experiences, I've done it. So when I worked at Dropbox, I worked with a lot of people who had been at Google, they've been at YouTube, they were there when SRE was rolled out across those companies, and then they brought those learnings to Dropbox, and I learned from them. But also the interesting thing is if you look at enterprise companies, so large banks. Say for example, I worked at the National Australia Bank for six years, we actually did a lot of work that I would consider chaos engineering and SRE practices. So for example, we would do large scale disaster recovery, and that's where you'd fail over an entire data center to a secret data center in an unknown location, and the reason is 'cause you're checking to make sure that everything operates okay if there's a nuclear blast. That's actually what you have to do and you have to do that practice every quarter. But if you think about it, it's not very good to only do it once a quarter. You really want to be practicing chaos engineering and injecting failure on purpose. I think actually, I prefer to do it three times a week, so I do it a lot. But I'm also someone who likes to work out a lot and be fit all the time so I know that if you do something regularly, you get great results. So that's what I always tell everyone. >> Yeah, get the reps in, as we say, get stronger, get the muscle memory. >> Yep, exactly. >> Guys, talk about the event that's coming up. You've got an event that was scheduled, physical event and then you were right in the planning mode and then the crisis hits. You're going digital, going virtual, it's really digital, but it's digital. It's on the internet. So how are you guys thinking about this? I know its out there. It's April 21st. Can you share some specifics around the event? Who should be attending and how do they get involved online? >> Yeah, the event really came together about a month ago when we started to see all the cancellations happening across the industry because of COVID-19 and we were extremely engaged in the community and we have a lot of talks and we were seeing a lot of conferences just dropping and so speakers losing their opportunity to really share their knowledge with respect with how you do reliability and topics that we focus on. And so we quickly pivoted as a company and created a new online event to give everyone in the community the opportunity to just failover to a new event as the conference name says and have those speakers who'll have lost their speaking slots have a new opportunity to go share their knowledge. And so that came together really quickly, we shared the idea with a dozen of our partners and everyone liked it and all the sudden this thing took off like crazy and just a month where we are approaching 4,000 registrations, we have over 30 partners signed up and supporting the initiative. A lot of past partners as well covering the event. So it was impressive to see the amount of interest that we were able to generate in such a short amount of time. And really, this is a conference for anybody who is interested in resiliency. If you want to know from the best on how to build business continuity across systems, people and processes, this is a great opportunity at no cost really. It's a free conference. >> And the target persona and the audience you want to have attend is what? SREs or folks doing architectural work? What's the target >> Yeah >> person to attend? >> Architects, SREs, developers, business leaders who care about the quality and the reliability of their applications, who need to help create a framework and a mindset for their organizations that speaks to what Tammy was saying a minute ago. Having that constant practice on a daily basis about go and finding how to improve things. >> You know, Tammy we've been going to physical events with theCUBE and extracting the signal from the noise and distributed it digitally for 10 years and I got to ask you because now that those events have gone away, you talk about chaos and injecting failure. Doing these digital events is not as easy as just live streaming, it's hard to replicate the value of a physical event, years of experience and standards, roles and responsibilities to digital. A different consumption environment, it's asynchronous, you're trying to create a synchronous environment. It's its own complex system, so I think a lot of people who are experimenting and learning (laughs) from these events because it's pretty chaotic. So, I'd love to get your thoughts on how you look at these digital events as a chaos engineer. How should people be looking at these events? How are you guys looking at... I mean, obviously you want to get the program going, get people out there, get the content, but to iterate on this, how do you view this? >> It is really different. So I actually like to compare it to fire drills in SRE. So often what you do there is you actually create a fake incident or a fake issue, so you just, you were saying, "Let's have a fire drill." Similar to when you're in a building and you have a fire drill that goes off and you have wardens and everything and you all have to go outside. So we can do that in this new world that we're all in all of the sudden. A lot people have never run an online event and now all of a sudden they have to. So what I would say is like, do a fire drill. Run a fake one before you do the actual one to make sure that everything does work okay. My other tip is make sure that you have backup plans. Backup plans on backup plans on backup plans. As an SRE, I always have at least three to five backup plans. I'm not just saying plan A and plan B, but there's also a C, D, and E and I think that's very important and even when you're considering technology, one of the things we say with chaos engineering is, if you're using one service, inject failure and make sure that you can fail over to a different alternative servers in case something goes wrong. >> Yeah, hence the Failover Conference, which is the name of the conference. (chuckles) >> Exactly! >> Yeah, well we certainly are going to be sending a digital reporter there, virtually. If you need any backup plans, obviously we have the remote interviews here. If you need any help, let us know, really appreciate it. Great to see you guys. And thanks for sharing. Any final thoughts on the conference? What happens when we get through the other side of this? I'll give you guys a final word. We'll start with Alberto, with you first. >> Yeah, I think when we are on the other side of this, we'll understand even more the importance of effective resilience, architecting and testing. As a provider of tools and methodologies for that, we think we will be able to help customers when we do a significant leap forward on that side. And the conference is just super exciting. I think it's going to be a great event. I encourage everyone to participate. We have tremendous lineup of speakers that have incredible reputation in their field so I'm really happy and excited about the work that the team has been able to do with our partners put together at this type of event. >> Okay, Tammy. >> Yeah, for me, I'm actually going to be doing the opening keynote for the conference and the topic that I'm speaking about is that reliability matters more now than ever. And I'll be sharing some, bizarre, weird incidents that I have worked on myself that I have experienced, really critical strange issues that have come up. But yeah, I'm really looking forward to sharing that with everybody else, so please come along, it's free. You can join from your own home and we can all be there together to support each other. >> You got a great community support and there's a lot of partners, Press Media and ecosystem and customers, so congratulations Gremlin, having a conference on April 21st called the Failover Conference. TheCUBE and SiliconANGLE have a digital reporter there that will be covering the news. Thanks for coming on and sharing. I appreciate the time. I'm John Furrier in the Palo Alto studio with remote interview with Gremlin around their Failover Conference, April 21st. It's really demonstrating, in my opinion, the at scale problems that we've been working on the industry, now more applicable than ever before as we get post-pandemic with COVID-19. Thanks for watching. Be back. (calm music)

from the cube studios in Palo Alto in Boston connecting with thought leaders all around the world this is a cube conversation hello everyone welcome to the cube conversation here in Palo Alto our studios of the cube I'm showing for your host we're here during the crisis of Cove in nineteen doing remote interviews I come into the studio we've got a quarantine crew or here getting the interviews getting the stories out there and of course the story we continue to talk about is the impact of Kovan 19 and how we're all getting back to work either working at home or working remotely and virtually certainly but as things start to change we can start to see events mostly digital events and we're here to talk about an event that's coming up called the failover conference from gremlin which is now gone digital because it's April 21st but I think what's important about this conversation that I want to get into is not only talk about the event that's coming up but talk about these scale problems that are being highlighted by this change in work environment working at home we've been talking about the at scale problems that we're seeing whether it's a flood of surge of traffic and the chaos that's ensuing across the world with this pandemic so I'm excited have two great guests Alberto Ferran auto senior vice president marketing gremlin and Tammy Bhutto principal site reliability engineer or SRE guys thanks for coming on appreciate it thank you Thank You Alberto I want to get to you first you know we've known each other before you've been in this industry we all we've been all been talking about the cloud native cloud scale for some time it's kind of inside the ropes it's inside baseball Tami your site reliability engineer everyone knows Google knows how well cloud works this is large-scale stuff now with The Cove in 19 we're starting to see the average person my brother my sister our family members and people around the world go oh my god this is really a high impact this change of behavior the surge of you know whether whether it's traffic on the internet or work at home tools that are inadequate you start to see these statistical things that were planned for not working well and this actually Maps the things that we've been talking about it in our industry Alberto you've been on this how you guys doing and what's your what's your take on this situation we're in right now yeah yeah we're we're doing pretty well as a company we were born as a distributed organization to begin with so for us working in a distributed environment from all over the world is is common practice day-to-day personally you know I'm originally from Italy my parents my family is Milan and Bergen audible places so I have to follow the news with extra care and so much in me it becomes so much clearer nowadays that technology is not just a powerful tool to enable our businesses but it also is so critical for our day-to-day life and thanks to you know video calls I can easily talk to my family back there every day Wow so that's that's really important so yes we've been talking for a long time as you mentioned about complex systems at scale and reliability often in the context of mission-critical applications but more and more these systems need to be reliable also when it comes to back office systems that enable people to continue to work on a daily basis yeah well our hearts go out to your family and your friends in Italy and hope everyone's stay safe there no that was a tough situation continues to be a challenge Tammy I want to get your thoughts how is life going for you you're a sight reliable engineer what you deal with on the tech side is now happening in the real world it's it's almost it's mind-blowing and to me that we're seeing these these things happen it's it's a paradigm that needs attention and whew look at it as a sre dealing a most from a tech side now seeing it play out in real life it's such an interesting situation really terrible so one of the things that I specialize in as a site reliability engineer is incident management and so for example I previously worked at Dropbox where I was you know the incident manager on call for 500 million customers you know it's like 24/7 and these large-scale incidents you really need to be able to act fast there are two very important metrics that we track and care about as a site reliability engineer the first one is mean time to detection how fast can you detect what something is happening obviously if you detect an issue faster and you've got a better chance of making the impact lower so you can contain the blast radius I like to explain it to people like if you have a fire in your sauce bin in your kitchen and you put it out that's way better than waiting until your entire house is on fire and the other metric is mean time to resolution so how long does it take you to recover from the situation so yeah this is a large-scale global incident right now that we're in yeah I know you guys do a lot of talk about chaos theory and that applies a lot of math involved we all know that but I think when you go look at the real world this is gonna be table stakes and you know there's now a line in the sand here you know pre-pandemic post pandemic and i think you guys have an interesting company gremlin in the sense that this is this is a complex system and if you think about the world we're going to be living in whether it's digital events that you guys are have one coming up or how to work at home or tools that humans are going to be using it's going to be working with systems right so you have this new paradigm gonna be upon us pretty quickly and it's not just buying software mechanisms or software it's a complex system it's distributed computing and operating so I mean this is kind of the world can you guys talk about the gremlin situation of how you guys are attacking these new problems and these new opportunities that are emerging one of the things that I've always specialized in over the last 10 years is chaos engineering and so the idea of chaos engineering is that you're injecting failure on purpose to uncover weaknesses so that's really important in distributed systems with distributed you know cloud computing all these different services that you're kind of putting together but the idea is if you can inject failure you can actually figure out what happens when I inject that small failure and then you can actually go ahead and fix it one of the things I like to say to people is you know focus on what your top 5 critical systems are let's fix those first don't go for low-hanging fruit fix the biggest problems first get rid of the biggest amount of pain that you have as a company and then you can go ahead and like actually if you think about Pareto principle the 80/20 rule if you fix 20% of your biggest problems you actually solve 80% of your issues that always works something that I've done while working at National Australia Bank doing chaos engineering also what gremlin at Dropbox and I help a lot of our customers do that to albariño talk about the mindset involved it's almost counterintuitive whoa-oh-oh risk the biggest system and I don't want to touch those there working fine right now and then these problems just gestate they kind of hang around to the bin in the kitchen fire you know mist okay I don't want to touch it the house is still working so this is kind of a new mindset could you talk about what your take is on that is the industry there I mean oh it was a kind of a corner case you know you had Netflix you had the chaos monkey those days and then now it's the DevOps practice for a lot of folks you guys are involved in that what's the what's the appetite what's the progress of chaos engineering and mainstream yeah it's interesting that you mentioned DevOps and you know recently Gartner came up with a new revisited devil scream work that has chaos engineering in the middle of the lifecycle of your application and the reality is that systems have become so complex in infrastructure so many layers of abstractions you have hundreds of services if you're doing micro services but even if you're not doing micro services you have so many applications connected to each other build really complex workflows and automation flows it's impossible for traditional QA to really understand well the vulnerability are in terms of resiliency in terms of quality too often the production environment is also too different from the staging environment and so you need a fundamentally different approach to go and find where your weaknesses are and find them before they happen before you end up finding yourself in a situation like the one we're in today and you're not prepared and so much of what we talk about is giving it >> and the methodology for people to go and find these vulnerabilities not so much about creating cause chaos but it's about managing sales that is built into our current system and exposing those vulnerabilities before they create problem and so that's a very scientific methodology and and and tooling that we would bring to market and we help customers with Tammy I want to get your thoughts on so you know we used to riff a lot of to our 10th you know cube we've had a lot of conversation we've ripped over the over the years but you know when the surge of Amazon Web Services came out as pretty obvious the clouds amazing and look at the startups that were born you mentioned Dropbox you work there these comings and all these born in the cloud these hyper scale comes built from scratch great way to scale up and we used to joke about Google people say I would like a cloud like Google but no one has Google's use cases and Google really pioneered the sre concept and you gotta give them a lot of props for that but now we're kind of getting to a world where it's becoming Google like there's more scale now than ever before it's not a corner case it's becoming more popular and more of a preferred architecture this large scale what's your assessment of the of the mainstream enterprises how far are they did in your mind our way are they there with Castle they clothed how they doing it how does someone take how does someone develop an SRE practice to get the Google like scale because Google has an amazing network they got large-scale cloud they have sres they've been doing it for years how does a company that's transforming their IT have expertise it's a great question I get asked this a lot as well one of our goals at Bremen is to help make Internet more reliable for everybody everyone using the Internet all of the engineers who are trying to build reliable services and so I'm often asked by you know companies all over the world how do we create an SRE practice and how do we practice chaos engineering and so actually how you can get started actually rolling out your sre program based on my experiences I've done it so when I worked at Dropbox I worked with a lot of people who had been at Google they've been at YouTube they were there when was rolled out across those companies and then they brought those learnings to Dropbox and I learned from them but also the interesting thing is if you look at enterprise companies so large banks say for example I worked at a National Australia Bank for six years we actually did a lot of work that I would consider chaos engineering and sre practices so for example we would do large-scale disaster recovery and that's where you fail over an entire data center to a secret data center in an unknown location and the reason is because you're checking to make sure that everything operates okay if there's a nuclear blast that's actually what you have to do and you have to do that practice every quarter so but but if you think about it it's not very good to only do it once a quarter you really want to be practicing chaos engineering and injecting failure on this I think actually my I prefer to do it three times a week do I do it a lot but I'm also someone who likes to work out a lot and be fit all the time so I know that do something regularly you get great results so that's what I always tell us yeah I get the reps in as we say you know get get stronger at the muscle memory guys talk about the event that's coming up you got an event that was schedules physical event and then you were right in the planning mode and then the crisis hits you going digital going virtual it's really digital but it's digital that's on the internet so how are you guys thinking about this I know I it's out there it's April 21st can you share some specifics around the event well who should be attending and how they get involved online yeah yeah they vent really came about about together about a month ago when we started to see all the cancellations happening across the industry because of code 19 and we are extremely engaged with in the community and we have a lot of talks and we are seeing a lot of conferences just dropping and so speakers losing their opportunity to share their knowledge with respect to how you do reliability and topics that we focus on and so we quickly people it as a company and created a new online event to give everyone in the community the opportunity to you know they'll over to a new event as the president as a as the conference name says and and have those speakers will have lost their speaking slots have a new opportunity to go share their knowledge and so that came together really quickly we share the idea with a dozen of our partners and everyone liked it and all the sudden this thing took off like crazy in just a month where we are approaching you know four thousand registrations we have over 30 partners signed up and supporting the initiative a lot of a lot of past partners as well covering the event so it was impressive to see the amount of interest that that we were able to generate in such a short amount of time and really this is a conference for anybody who is interested in resilience and if you want to know from the best on how to build business continuity of persistence people and processes this is a great opportunity at no cost we need some free conference and the target persona and the audience you want to have a ten is what Sree Zoar folks doing architectural work and what's that that's the target yes and to attend our cadets s Ari's developers business leaders who care about the quality and reliability of their applications who need to help create a framework and a mindset for their organization that speaks to what Tammy was saying a minute ago having that constant crap is on a daily basis about who and finding how to improve things you know Tammy we've been doing going to physical events with the cube and extracting the signal of the noise and distributing it digitally for ten years and I got to ask you because now that those are those events have gone away you talk about chaos and injecting failure these doing these digital events is not as easy it's just live streaming it's it's hard to replicate the value of a physical event years of experience and standards roles and responsibilities to digital different consumption environments a synchronous you're trying to create a synchronous environment it's its own complex system so I think a lot of people are experimenting and learning from these events because it's pretty chaotic so I'd love to get your thoughts on how you look at these digital events as a chaos engineer how should people be looking at these events how are you I was looking at it you know I also want to get the program going get people out there get the content but you have to iterate on this how do you view this it is really different so I actually like to compare it to fire drills in SRA so often what you do there is you actually create a fake incident or a fake issue so you just you know you're saying let's have a fire drill similar to like you know when you're in a building and you have a fire drill that goes off you have wardens and everything and you all have to go outside so we can do that in this new world that we're all in all of a sudden you know a lot of people have never run an online event and now all of a sudden they have to so what I would say is like do a fire drill um run up you know a baked one before you do the actual on one to make sure that everything does work okay my other tip is make sure that you have backup plans backup plans on backup plans on backup plans like as in SRA I always have at least three to five backup plans like I'm not just saying plan a and Plan B but there's also a C D and E and I think that's very important and you know even when you're considering technology one of the things we say with chaos engineering is you know if you're using one service inject failure and make sure that you can fail over to a different alternative service in case something goes wrong yeah hence the failover conference which is the name of the conference yeah yeah well we certainly are gonna be sending a digital reporter there virtually if you need any backup plans obviously we have the remote interviews here if you need any help let us know really appreciate it I'll great to see you guys and thanks for sharing any final thoughts on the conference how what what happens when we get through the other side of this I'll give you guys a final word we'll start with Alberto with you first yeah I think one when we are on the other side of this will will understand even more the importance of effective resilience architecting and and and testing I think you know as a provider of tools and methodologies for that we we think we will be able to help customers do we do a significant leap forward on that side and the conference is just super exciting I think it's going to be a great I encourage everyone to participate we have tremendous lineup of speakers that have incredible reputation in their fields so I'm really happy and and excited about the work that the team has being able to do with our partners put together this type of event okay Tammy yes ma'am I'm actually going to be doing the opening keynote for the conference and the topic that I'm speaking about is that reliability matters more now than ever and I'll be sharing some you know bizarre weird incidents that I've worked on myself that I've experienced you know really critical strange issues that have come up but yeah I just I'm really looking forward to sharing that with everybody else so please come along it's free you can join from your own home and we can all be there together to support each other you got a great community support and there's a lot of partners press media and an ecosystem and customers so congratulations gremlin having a conference on April 21st called the failover conference the qubits look at angle we'll have a digital reporter there we covering the news thanks for coming on and sharing and appreciate the time I'm Jeff we're here in the Palo Alto series with remote interview with gremlin around there failover conference April 21st it's really demonstrating in my opinion the at scale problems that we've been working on the industry now more applicable than ever before as we get post pandemic with kovin 19 thanks for watching be back [Music]

hello welcome everyone to thecube's coverage here in monaco i'm john furrier host of thecube the monaco crypto summit is happening we're here for the full day and tonight at the yacht club for special presentations crypto team is here digital bits and the industry's gathering and we get some great guests lined up throughout the day our first guest is michael gord co-founder and ceo of gda capital michael welcome to thecube cube great lunch on so we're kicking off the day here we got a lot of a lot of commentary around crypto and also we're in monaco so kind of a special inaugural event why this event why are people gathering here in monaco monaco has traditionally been a top financial jurisdiction but and there has been crypto events here before but never with participation from from prince albert so this being the first event first blockchain focus event in monaco that has participation from prince albert has brought a has brought a global audience and the fact that digital bets is intending to there's a a lot of excitement and and what uh what digital bits is going to be coming to market with yeah and i think i talked to alberto the founder and ceo of digitalbits um i've known him for many years he's a tech guy by heart but he's been in the trenches doing a lot of work over the years in crypto and one of the things i think digital bits has nailed this first the name's amazing but they got real deals i saw our announcement a couple days ago less than 48 hours roma soccer team has a new player they brought the big roll out digitalbits is on the uniform on the front of it huge crowd great visibility so this is a real trend where the the assets of physical and digital coming together there's certainly a lot of hype and a lot of kind of like cleaning up right now in the market but this train is definition is happening training has left the station there's been a lot of over the past decade a lot of startups building in the on blockchains and some of those startups have become big companies but big traditional enterprises have been slow to adopt digital assets and uh digitalbits is really well positioned to bring a lot of those and bring a lot of enterprise participation to the blockchain yeah i mean we met a couple days ago and we were talking in um at the hotel um you're you've been at this for a while you got some great successes talk about your firm what are you guys doing gda what are some of the things you're working on uh you're doing some investment what are some of the angles you're taking bets you've made things you're looking at yeah so i'm a serial entrepreneur and investor i've been focused on the mainstream adoption digital assets for the last decade went about that in in various different ways as i have as i've matured but the way our business looks now is uh is focused on bridging the gap between institutional capital markets and the blockchain and helping institutional capital participate in the market um so we help digital assets with their with their public offering we've gotten into traditional public markets through uh the blockchain moon acquisition corp spac that one of my co-founders is director of we have a brokerage business that does a few hundred million dollars about the transaction volume collateralized lending business we just started some some funds principal investments and then we incubate our own companies internally in category new categories like the metaverse nfts and um other things like that so pretty diversified across the boxing cabinet market at this point and in general looking to create solutions to um help the traditional capital market and the boxing cabinet market get get deeper exposure here you know it's interesting i hear you're speaking about the um how you guys are handling your your view of the landscape multiple moving parts on the investment thesis a lot of integration of instruments and vehicles it's a new creative structural change i mean if you look at just the money how crypto and the future of money this this cultural shift it's also some structural change on how to invest how to manage the investments how to bring on like incubation into most capital public private at the same time on the other side of the coin you have the entrepreneurial energy of um a lot of entrepreneurial ideas you see a lot of creative artists the creator culture has emerged in the past year and a half as a massive wave but to me that's just an application on top of the new infrastructure if you look at all the big investment houses that are pouring billions of whether it's industrial horowitz or other big vcs moving and shifting it's all the same game it's the infrastructure platform applications and it's but it's different it's not what we used to see because it decentralized how do you react to that what's your view on that concept you see it the same way yeah i think that there's everything with blockchains is novel but almost all of it we've seen before so um we've had games before now with the blockchain we have the ability to earn income by playing games we've had exchanges before but they've always been a centralized organization that everything that is now built on blockchains exists in the traditional internet or capital market or game industry or or whatever uh that you know there has been art for generations there's been uh now the ability to have art on the blockchain with provable nft like every everything is innovative because of the decentralization aspect but it's not it's not the first thing the first time that we've seen any of this stuff it's almost interesting you're seeing it recycling all the same concepts on the old web kind of come in the new web and there's also a gen z angle especially the metaverse metaverse the constant theme i'm seeing is hey you want to watch sports you can watch in the metaverse and do it differently and not have to attend so you know the whole pandemic has shown us that hybrid virtual and hybrid is coming together and so i see a huge tsunami of innovation coming from just the tailwind post pandemic i think still massive value in a real event like this us being able to sit in front of each other as real people is uh not replicatable in the metaverse but to be in monaco is not possible for everyone because uh visa reasons because they have something you know it's just you have to be here today is not possible for a hundred percent of the world or for a sports game or for a concert or for a music premiere movie premiere really anything that's happening in the real world is not the metaverse is not gonna replace the real world but it is gonna create a massive additional audience to anything that's happening in the real world that anyone around the world can participate and how amazing would it be for uh for someone from zimbabwe someone from sydney and someone from brazil to all be interested in what digital bits is doing in monaco and what prince albert is you know how how how how the monarchical crypto summit is looking to position monaco in the future of cryptocurrency the kind of theme of this event and they have the amazing fortune to meet in the metaverse it doesn't replace well i mean i think i mean i think this is a great point this to me is going to be the holy grail in my opinion i agree if you look at the notion of presence we're face to face we're here there's people here so we peace we see each other in the lobby maybe he's out sightseeing at dinners so when you have that face to face that's the scarce resource right that's going to be the intimacy sometimes it's not even just to learn about what the pro what's going on but if we're present here how do we create that same experience when you have presence not just some icon chatting but like just movement knowing that you're there connected to people first party is going to be no one's really done it well i think the metaverse is to me is showing the path to being a first-class citizen digitally with a real-time event it's new so it is possible to communicate in the metaverse through through a microphone so if if you're beside someone then similar to the real world you can say you know hey how's it going what do you think about the presentation or or whatever you want and if you're speaking in a conversational way then the person beside you will hear what the person down the hall might might not um it's also that i've i've seen new features in certain like experiences that are coming to market that kind of take the google hangout or skype yeah like video infrastructure and put that in so we could choose to have our cameras on which is it's getting better but it of course doesn't replace real presence there's no doubt in my mind that in near future soon sooner or later there's gonna be a guest sitting right next to you that's not here okay there will be a hologram model where people will be interviewed will have capability to visualize that person they'll be in a metaverse they'll be queuing up for interviews this is a game this is a mind-blowing thing i mean if you just think about that concept that we could have participation in real time here with expressions with their with their digital expression their icon whatever whatever their nfts are so i think this is going to be the blending of how communities gather and i think ultimately how truth and and journalism and news is going to change so to me yeah we're super excited we're here obviously because we want to get the stories and you know we love what digital bits is doing prince albert certainly a relevant figure on the global stage um i think this is a signal for a lot of things to come indeed indeed all right so final question before we move on what's your hottest thing you got going on what are you looking at what are you most excited about um well just just this conference um we've got quite a lot of of companies we have exposure in that are that are presenting and a lot of them are coining new new new niches of the market so um we have uh um we've spoken about a lot about the metaverse we have you know i'm and i think the metaverse is probably the the thing that i'm overall most excited about i think it's the next multi-trillion dollar market that feels like bitcoins in but in addition to that we have the first regenerative finance platform that is that is presenting here that's using decentralized finance and and blockchain technology to create a model that people can earn income while mining carbon credits essentially with an objective of having first boxing all blocking protocols but eventually creating a leader board of carbon positive businesses where businesses will challenge their competitors to be more carbon positive in a way that actually earns them earn some income outside of the potential value what's the name of that company that's kyoto protocol uh we have the first entertained to earn a company that is is presenting here it's playgood um the first uh e-commerce metaverse platform so integrated directly into e-commerce without needing to i think the future of the metaverse is is social links you have you know finest in the metaverse and you have all of the all the logos of metaverses that you have experiences in which is cool yeah that that's uh but then you're you're going out of the native website instead of having a um instead of you know native to the to the website having a metabolism experience so they're doing that um yeah really cool awesome final question one more final question i got for you because you made me think of it so metaverse obviously hot is there going to be an open metaverse you start to see walled gardens and you got facebook they got slam dunk by the u.s uh in terms of monopolistic move for buying a exercise act which you know i can i i don't think that was a good move by the u.s i think i let him do that but but there they're they're kind of the wall garden model the old facebook i mean decentralized about open yeah historically if we go back in time there's always open and closed infrastructure in the internet um there was there is companies building open infrastructure companies building closed infrastructure and we could have been talking in 1992 about whether the private intranet will create mass adoption or the open internet will create mass adoption and not that the the intranet is probably is even today still a multi-billion dollar per year business but it's not a multi-trillion dollar per year per year you know infrastructure like the public internet same with the blockchain in 2012 2013 um private blockchains were all the rage by banking raising hundreds of millions of dollars to build up private boxing infrastructure and private blockchains are generating probably today still multi-billion dollars of revenue annually but they haven't accrued multi-trillion dollars like the public watching has i think the same thing will be in the metaverse there will be open and closed infrastructure um but event and there already is close you know fortnight and and games are are essentially closed metaverses just without ownable land um i always look at the i'm old school i look at aol they had they monopolized dial up internet like where the hell did that go you know history so again yeah we don't know it's going to be maybe a connection a connection point between these open metaverses we'll see maybe i'm investment update michael thanks for coming on thecube appreciate you kicking off the event here monaco crypto summit powered by digital bits presented by digital bits uh the company really and behind all the innovation here and the companies i'm john furrier with more coverage after this short break thanks john [Music] you

>>Bye from San Francisco. It's the cube covering RSA conference, 2020 San Francisco brought to you by Silicon angle media. >>Hey, welcome back. Everyone's keeps coverage here in San Francisco at the Moscone center for RSA conference 2020 I'm John, your host, as cybersecurity goes to the next generation as the new cloud scale, cyber threats are out there, the real impact a company's business and society will be determined by the industry. This technology and the people that a cube alumni here, caramel Jaffer, SVP, senior vice president of strategy and corporate development for iron net. Welcome back. Thanks to Shawn. Good to be here. Thanks for having so iron net FC general Keith Alexander and you got to know new CEO of there. Phil Welsh scaler and duo knows how to scale up a company. He's right. Iron is doing really well. The iron dome, the vision of collaboration and signaling. Congratulations on your success. What's a quick update? >> Well look, I mean, you know, we have now built the capability to share information across multiple companies, multiple industries with the government in real time at machine speed. >>Really bringing people together, not just creating collected security or clip to defense, but also collaborating real time to defend one another. So you're able to divide and conquer Goliath, the enemy the same way they come after you and beat them at their own game. >> So this is the classic case of offense defense. Most corporations are playing defense, whack-a-mole, redundant, not a lot of efficiencies, a lot of burnout. Exactly. Not a lot of collaboration, but everyone's talking about the who the attackers are and collaborating like a team. Right? And you guys talk about this mission. Exactly. This is really the new way to do it. It has, the only way it works, >> it is. And you know, you see kids doing it out there when they're playing Fortnite, right? They're collaborating in real time across networks, uh, to, you know, to play a game, right? You can imagine that same construct when it comes to cyber defense, right? >>There's no reason why one big company, a second big company in a small company can't work together to identify all the threats, see that common threat landscape, and then take action on it. Trusting one another to take down the pieces they have folk to focus on and ultimately winning the battle. There's no other way a single company is gonna be able defend itself against a huge decency that has virtually unlimited resources and virtually unlimited human capital. And you've got to come together, defend across multiple industries, uh, collectively and collaboratively. >> Do you mean, we talked about this last time and I want to revisit this and I think it's super important. I think it's the most important story that's not really being talked about in the industry. And that is that we were talking last time about the government protects businesses. If someone dropped troops on the ground in your neighborhood, the government would protect you digitally. >>That's not happening. So there's really no protection for businesses. Do they build their own militia? Do they build their own army? Who was going to, who's going to be their heat shield? So this is a big conversation and a big, it brings a question. The role of the government. We're going to need a digital air force. We're going to need a digital army, Navy, Navy seals. We need to have that force, and this has to be a policy issue, but in the short term, businesses and individuals are sitting out there being attacked by sophisticated mission-based teams of hackers and nation States, right? Either camouflaging or hiding, but attacking still. This is a huge issue. What's going on? Are people talking about this in D C well, >> John, look not enough. People are talking about it, right? And forget DC. We need to be talking about here, out here in the Silicon Valley with all these companies here at the RSA floor and bring up the things you're bringing up because this is a real problem we're facing as a nation. >>The Russians aren't coming after one company, one state. They're coming after our entire election infrastructure. They're coming after us as a nation. The Chinese maybe come after one company at a time, but their goal is to take our electoral properties, a nation, repurpose it back home. And when the economic game, right, the Iranians, the North Koreans, they're not focused on individual actors, but they are coming after individual actors. We can't defend against those things. One man, one woman, one company on an Island, one, one agency, one state. We've got to come together collectively, right? Work state with other States, right? If we can defend against the Russians, California might be really good at it. Rhode Island, small States can be real hard, defends against the Russians, but if California, Rhode Island come together, here's the threats. I see. Here's what it's. You see share information, that's great. Then we collaborate on the defense and work together. >>You take these threats, I'll take those threats and now we're working as a team, like you said earlier, like those kids do when they're playing fortnight and now we're changing the game. Now we're really fighting the real fight. >> You know, when I hear general Keith Alexander talking about his vision with iron net and what you guys are doing, I'm inspired because it's simply put, we have a mission to protect our nation, our people, and a good businesses, and he puts it into kind of military, military terms, but in reality, it's a simple concept. Yeah, we're being attacked, defend and attack back. Just basic stuff. But to make it work as the sharing. So I got to ask you, I'm first of all, I love the, I love what he has, his vision. I love what you guys are doing. How real are we? What's the progression? >>Where are we on the progress bar of that vision? Well, you know, a lot's changed to the last year and a half alone, right? The threats gotten a lot, a lot more real to everybody, right? Used to be the industry would say to us, yeah, we want to share with the government, but we want something back for, right. We want them to show us some signal to today. Industry is like, look, the Chinese are crushing us out there, right? We can beat them at a, at some level, but we really need the governor to go do its job too. So we'll give you the information we have on, on an anonymized basis. You do your thing. We're going to keep defending ourselves and if you can give us something back, that's great. So we've now stood up in real time of DHS. We're sharing with them huge amounts of data about what we're seeing across six of the top 10 energy companies, some of the biggest banks, some of the biggest healthcare companies in the country. >>Right? In real time with DHS and more to come on that more to come with other government agencies and more to come with some our partners across the globe, right? Partners like those in Japan, Singapore, Eastern Europe, right? Our allies in the middle East, they're all the four lenses threat. We can bring their better capability. They can help us see what's coming at us in the future because as those enemies out there testing the weapons in those local areas. I want to get your thoughts on the capital markets because obviously financing is critical and you're seeing successful venture capital formulas like forge point really specialized funds on cyber but not classic industry formation sectors. Like it's not just security industry are taking a much more broader view because there's a policy implication is that organizational behavior, this technology up and down the stack. So it's a much broad investment thesis. >>What's your view of that? Because as you do, you see that as a formula and if so, what is this new aperture or this new lens of investing to be successful in funding? Companies will look, it's really important what companies like forge point are doing. Venture capital funds, right? Don Dixon, Alberta Pez will land. They're really innovating here. They've created a largest cybersecurity focused fund. They just closed the recently in the world, right? And so they really focus on this industry. Partners like, Kleiner Perkins, Ted Schlein, Andrea are doing really great work in this area. Also really important capital formation, right? And let's not forget other funds. Ron Gula, right? The founder of tenable started his own fund out there in DC, in the DMV area. There's a lot of innovation happening this country and the funding on it's critical. Now look, the reality is the easy money's not going to be here forever, right? >>It's the question is what comes when that inevitable step back. We don't. Nobody likes to talk about it. I said the guy who who bets on the other side of the craps game in Vegas, right? You don't wanna be that guy, but let's be real. I mean that day will eventually come. And the question is how do you bring some of these things together, right? Bring these various pieces together to really create long term strategies, right? And that's I think what's really innovative about what Don and Alberto are doing is they're building portfolio companies across a range of areas to create sort of an end to end capability, right? Andrea is doing things like that. Ted's doing stuff like that. It's a, that's really innovation. The VC market, right? And we're seeing increased collaboration VC to PE. It's looking a lot more similar, right? And now we're seeing innovative vehicles like stacks that are taking some of these public sort of the reverse manner, right? >>There's a lot of interests. I've had to be there with Hank Thomas, the guys chief cyber wrenches. So a lot of really cool stuff going on in the financing world. Opportunities for young, smart entrepreneurs to really move out in this field and to do it now. And money's still silver. All that hasn't come as innovation on the capital market side, which is awesome. Let's talk about the ecosystem in every single market sector that I've been over, my 30 year career has been about a successful entrepreneurship check, capital two formation of partnerships. Okay. You're on the iron net, front lines here. As part of that ecosystem, how do you see the ecosystem formula developing? Is it the same kind of model? Is it a little bit different? What's your vision of the ecosystem? Look, I mean partnerships channel, it's critical to every cyber security company. You can't scale on your own. >>You've got to do it through others, right? I was at a CrowdStrike event the other day. 91% of the revenue comes from the channel. That's an amazing number. You think about that, right? It's you look at who we're trying to talk about partnering with. We're talking about some of the big cloud players. Amazon, Microsoft, right? Google, right on the, on the vendor side. Pardon me? Splunk crashes, so these big players, right? We want to build with them, right? We want to work with them because there's a story to tell here, right? When we were together, the AECOS through self is defendant stronger. There's no, there's no anonymity here, right? It's all we bring a specialty, you bring specialty, you work together, you run out and go get the go get the business and make companies safer. At the end of the day, it's all about protecting the ecosystem. What about the big cloud player? >>Cause he goes two big mega trends. Obviously cloud computing and scale, right? Multi-cloud on the horizon, hybrids, kind of the bridge between single public cloud and multi-cloud and then AI you've got the biggies are generally will be multiple generations of innovation and value creation. What's your vision on the impact of the big waves that are coming? Well, look, I mean cloud computing is a rate change the world right? Today you can deploy capability and have a supercomputer in your fingertips in in minutes, right? You can also secure that in minutes because you can update it in real time. As the machine is functioning, you have a problem, take it down, throw up a new virtual machine. These are amazing innovations that are creating more and more capability out there in industry. It's game changing. We're happy, we're glad to be part of that and we ought to be helping defend that new amazing ecosystem. >>Partnering with companies like Microsoft. They didn't AWS did, you know, you know, I'm really impressed with your technical acumen. You've got a good grasp of the industry, but also, uh, you have really strong on the societal impact policy formulation side of government and business. So I want to get your thoughts for the young kids out there that are going to school, trying to make sense of the chaos that's going on in the world, whether it's DC political theater or the tech theater, big tech and in general, all of the things with coronavirus, all this stuff going on. It's a, it's a pretty crazy time, but a lot of work has to start getting done that are new problems. Yeah. What is your advice as someone who's been through the multiple waves to the young kids who have to figure out what half fatigue, what problems are out there, what things can people get their arms around to work on, to specialize in? >>What's your, what's your thoughts and expertise on that? Well, John, thanks for the question. What I really like about that question is is we're talking about what the future looks like and here's what I think the future looks like. It's all about taking risks. Tell a lot of these young kids out there today, they're worried about how the world looks right? Will America still be strong? Can we, can we get through this hard time we're going through in DC with the world challenges and what I can say is this country has never been stronger. We may have our own troubles internally, but we are risk takers and we always win. No matter how hard it gets them out of how bad it gets, right? Risk taking a study that's building the American blood. It's our founders came here taking a risk, leaving Eagle to come here and we've succeeded the last 200 years. >>There is no question in my mind that trend will continue. So the young people out there, I don't know what the future has to hold. I don't know if the new tape I was going to be, but you're going to invent it. And if you don't take the risks, we're not succeed as a nation. And that's what I think is key. You know, most people worry that if they take too many risks, they might not succeed. Right? But the reality is most people you see around at this convention, they all took risks to be here. And even when they had trouble, they got up, they dust themselves off and they won. And I believe that everybody in this country, that's what's amazing about the station is we have this opportunity to, to try, if we fail to get up again and succeed. So fail fast, fail often, and crush it. >>You know, some of the best innovations have come from times where you had the cold war, you had, um, you had times where, you know, the hippie revolution spawn the computer. So you, so you have the culture of America, which is not about regulation and stunting growth. You had risk-taking, you had entrepreneurship, but yet enough freedom for business to operate, to solve new challenges, accurate. And to me the biggest imperative in my mind is this next generation has to solve a lot of those new questions. What side of the street is the self driving cars go on? I see bike lanes in San Francisco, more congestion, more more cry. All this stuff's going on. AI could be a great enabler for that. Cyber security, a direct threat to our country and global geopolitical landscape. These are big problems. State and local governments, they're not really tech savvy. They don't really have a lot ID. >>So what do they do? How do they serve their, their constituents? You know, look John, these are really important and hard questions, but we know what has made technology so successful in America? What's made it large, successful is the governor state out of the way, right? Industry and innovators have had a chance to work together and do stuff and change the world, right? You look at California, you know, one of the reasons California is so successful and Silicon Valley is so dynamic. You can move between jobs and we don't enforce non-compete agreements, right? Because you can switch jobs and you can go to that next higher value target, right? That shows the value of, you know, innovation, creating innovation. Now there's a real tendency to say, when we're faced with challenges, well, the government has to step in and solve that problem, right? The Silicon Valley and what California's done, what technology's done is a story about the government stayed out and let innovators innovate, and that's a real opportunity for this nation. >>We've got to keep on down that path, even when it seemed like the easier answer is, come on in DC, come on in Sacramento, fix this problem for us. We have demonstrated as a country that Americans and individual are good at solve these problems. We should allow them to do that and innovate. Yeah. One of my passions is to kind of use technology and media to end communities to get to the truth faster. A lot of, um, access to smart minds out there, but young minds, young minds, uh, old minds, young minds though. It's all there. You gotta get the data out and that's going to be a big thing. That's the, one of the things that's changing is the dark arts of smear campaigns. The story of Bloomberg today, Oracle reveals funding for dark money, group biting, big tech internet accountability projects. Um, and so the classic astroturfing get the Jedi contract, Google WASU with Java. >>So articles in the middle of all this, but using them as an illustrative point. The lawyers seem to be running the kingdom right now. I know you're an attorney, so I'm recovering, recovering. I don't want to be offensive, but entrepreneurship cannot be stifled by regulation. Sarbanes Oxley slowed down a lot of the IPO shifts to the latest stage capital. So regulation, nest and every good thing. But also there's some of these little tactics out in the shadows are going to be revealed. What's the new way to get this straightened out in your mind? We'll look, in my view, the best solution for problematic speech or pragmatic people is more speech, right? Let's shine a light on it, right? If there are people doing shady stuff, let's talk about it's an outfit. Let's have it out in the open. Let's fight it out. At the end of the day, what America's really about is smart ideas. >>Winning. It's a, let's get the ideas out there. You know, we spent a lot of time, right now we're under attack by the Russians when it comes to our elections, right? We spent a lot of time harping at one another, one party versus another party. The president versus that person. This person who tells committee for zap person who tells committee. It's crazy when the real threat is from the outside. We need to get past all that noise, right? And really get to the next thing which is we're fighting a foreign entity on this front. We need to face that enemy down and stop killing each other with this nonsense and turn the lights on. I'm a big believer of if something can be exposed, you can talk about it. Why is it happening exactly right. This consequences with that reputation, et cetera. You got it. >>Thanks for coming on the queue. Really appreciate your insight. Um, I want to just ask you one final question cause you look at, look at the industry right now. What is the most important story that people are talking about and what is the most important story that people should be talking about? Yeah. Well look, I think the one story that's out there a lot, right, is what's going on in our politics, what's going on in our elections. Um, you know, Chris Krebs at DHS has been out here this week talking a lot about the threat that our elections face and the importance about States working with one another and States working with the federal government to defend the nation when it comes to these elections in November. Right? We need to get ahead of that. Right? The reality is it's been four years since 2016 we need to do more. That's a key issue going forward. What are the Iranians North Koreans think about next? They haven't hit us recently. We know what's coming. We got to get ahead of that. I'm going to come again at a nation, depending on staff threat to your meal. Great to have you on the QSO is great insight. Thanks for coming on sharing your perspective. I'm John furrier here at RSA in San Francisco for the cube coverage. Thanks for watching.

>> live from Las Vegas it's the cube, covering Magento Imagine 2019. Brought to you by Adobe. >> Hey welcome back to the cube, Lisa Martin with Jeff Frick live at The Wynn Las Vegas for Magento Imagine 2019, with about 3500 people here give or take a few. We're very pleased to welcome Magento evangelist Ben Marks to the Cube, Ben welcome >> Thank you for having me, I appreciate you making time. >> And thanks for bringing the flair to our set. >> I've got to let people know where my allegiances lie, right? >> So this is the first Magento Imagine post adobe acquisition, that was announced about a year ago completed about six or seven months ago. You have a very strong history with Magento the last 10 years, Magento is very much known for their developer community, their open source history and DNA. Talk to us about, how things are now with the community and really the influence that the developers have. >> Well if it's up to me we retain this really strong influence in the business. I mean at the the core of Magento since its inception the very humble beginnings that it had back in back in 2007 has been this this developer ecosystem. And that is what takes the software basically all the output and all of the expertise and intuition that we have that we put into our products and our services, it only goes so far. Now it is a platform that tends to fit in a lot of places but it only goes so far and we have that last mile, that is the most important distance that we cross and we cannot do it without this ecosystem. They are the ones that they know, they understand the merchant requirements, they understand the vertical, they understand the region, they understand cross border concerns, whatever it may be they know our product from an expert perspective and then they take that and they make it make sense. That being the case, Adobe I think so far has shown excellent stewardship in terms of recognizing the value. A big part of that 1.7 billion price tag, they paid for the community. They knew this ecosystem was the real, has always been the x-factor in Magento and so they've been very diligent, well now that I'm an employee we've been very introspective about what that means as part of adobe, is part of this this massive set of opportunities and new addressable market that we have. And we're just all trying to make sure that we look after all of these people who are at the end of the day probably our biggest champions. >> Just curious how you've been able to maintain that culture because to be kind of open source and open source first timer, first isn't the right word but open source neutral or pro, along with your proprietary stuff and to really engage developers it's such a special town and as a special culture because by rule you're saying that there's more smart people outside of our walls than inside of our walls and embracing and loving that. But you guys have gone through all kinds of interesting kind of evolutions on the business side in terms of ownership and management. How've you been able to maintain that? And what is kind of the secret sauce? Why are the developers so passionate to continue to develop a Magento? Because let me tell you we go to a lot of conferences and a lot of people are trying really hard to get that developer to spend that next time working on their platform versus a different one. >> Yeah, well you know it's endemic to our culture that whether it's a developer, someone who's working who's an expert in administering Magento stores, just whatever someone's focus is in this ecosystem, it is interesting we've always had at the underpinning everything has been this open source ethos. So from the very beginnings of Magento, the creators Roy Rubin and Yoav Kutner, they sought out as they announced this Magento thing back in the day. They intentionally made it open-source because they knew that, that had been proved by a previous open-source commerce software and they knew that that was really where they were going to win that was the force multiplier. Again the thing that would get them into markets that they couldn't address with their very small agency that they were walking out of. So through the years that grew and in large part we can thank the Doc community, especially in Germany, the Dutch community, there's just the general open source ethos there. But I learned about open source from Magento, I had someone help me out when I was first starting at my first week working with Magento as a developer there was no documentation, I had to go into a chatroom and ask for help and this guy he actually spent about a couple of hours helping me and we remain close friends to this day. But at the end of it I'm like so should I pay you? And he was this guy this guy from outside of Heidelberg he's just no this is open source, is like just as you learn give it back. And that's a perfect summation for a big part of the spirit here. It helps who are in commerce, there's money kind of flowing all around but at the end of the day we provide options, we provide flexibility where there's nothing wrong with the sass platforms there's nothing wrong with some of the the larger like API driven platforms, it's just at some point if you have a custom requirement that they can't satisfy and that happens regularly, guess what? You got to go with the platform that gives you the extensibility. So they feel a sense of ownership I think because of that and they're sort of proud to take this wherever they can. >> So with the Adobe acquisition being complete around six eight months you mentioned Adobe doing a good job of welcoming this community but you also talked about this core ethos that Magento brings. I believe in the press release, announcing the acquisition last year, Adobe said open source is in our DNA. Have you found that one to be true? And two how much has the Magento open source community been able to sort of open the eyes and maybe open the door to Adobe's ethos of embracing it? >> Let's see how much trouble can I get in to today? >> So I have a good counterpart over Alberto Dobby and it's a stretch for me to call him a counterpart. He's got his JD,he's been big in the open source world for since forever but, Matt Asay probably... >> CUBE alum >> ...if you follow tech online, you've seen this post, you've seen him as an postulating on open source and it was interesting a lot of us were asking the same question from Magento world because a lot of us remembere the eBay days and an eBay had a sort of a different plan and vision for Magento that ultimately, that whole thing they were trying to create just didn't work out. Magento survived, but we're a bit wary we all knew it was coming it's the natural progression from private equity ownership but really, where is this open source that we were told about? And Matt is a kind of a big a piece there but as it turns out he jumped on Twitter immediately when none of us was supposed to be talking about anything of course but that's in Matt's nature. Because there is a lot of open source at Adobe in fact there's a lot of open source technology that underpins even these Enterprise Solutions that they offer. I visited with with several of our team members in the Basel office and there are Apache Software Foundation board members. I mean you want to to talk about the beginnings of open source and the impact its had on the world? These are some of these people and so yes it's there I think it's not a secret to say that Adobe really hasn't done a great job of telling that story. So as I've met and kind of toured around with some of the Adobe vice presidents who've been visiting here and I love that they're engaged. They get this, they want this to expand. It's been it's been really interesting watching them and encounter this and then start to be inspired by us as much as we are inspired by again the opportunities that exist as we all come together. >> It's great, yeah and Matt's been on his Trevi a week cover, CNCF and will be a cube con I think next week and in Barcelona so we're huge advocates, but so it's such a different way of looking at the world again accepting that there's more smart people outside your four walls than are inside your four walls. Which just by rule is the way that it has to be, you can't hire all the smart people. So to use that leverage and really build this develop wrapped advocacy is a really tremendous asset. >> Better together, is what we say, and it could not be true. I mean there there is no way we could know at all, we can't hope to. So what we've done actually in the last couple of years really under some brilliant leadership by Jason Woosley we've been able to double down on our open-source investment and I'd say that was a moment when we truly became an open-source company with through and through because we spun up and we took our best architects and just put them on a project called community engineering that they're dedicated to enabling contribution of fixes improvements and features from our ecosystem. So by doing that we all of a sudden we now have worldwide engineering that is that they're all experts in their individual domains so that line of code that some contributor from somewhere is contributing, he or she has become an expert let's say in something as glamorous like totals calculation like the logic that has to go into that. Because of their real-world experience we get the highest quality code that's just backed up by a lot of trial and tribulation. And from that we basically get to cover all of our bases and they tend to write things in a way that's way more extensible than probably we could ever envision. I don't know of a better formula for having a product that satisfies something so varied and challenging and just constantly evolving as e-commerce. >> Well and I think Jason mentioned this morning that the community engineering program was only launched a couple of years ago. >> Literally a two years ago February. >> So significant impacts in a very short period of time. >> Yeah we were fascinated to see that while we'd had this kind of haphazard almost ad hoc open source engagement up to that point, once we really built machinery around it We've we've managed to build something that is a model for any other company that wants to try to do this. Once we did that we very quickly got to some of our big releases where over 50% of the new lines of code were written externally. And that was cool for about a week and then we realized that that's not even the story the story is everything else I talked about which is just that degree of ownership that degree of informed engineering that we would never come up with on our own. And it was a real signal to this very patient and resilient ecosystem that hey, we're all in this together. And of course we've done that also, we've replicated that with our developer documentation, it's all open source and able to be contributed to and we sort of look at how that can expand and even to the point where our core architecture team now all of their discussions so you can go to github.com/magento, you can see our backlog, you could see where we're discussing features and kind of planning what's coming next. You can also go to our architecture repository and you see all of our core architects having their dialogue with each other in public so that the public is informed and they can be involved and that is literally the highest stage I believe of open source evolution. >> That's a great story now the other great thing though that it don't be brought to you is some really sophisticated marketing tools to drive the commerce in your engine, so I'm just curious your perspective. You've been playing in this for a long time but you guys are really kind of taken over at the transactional level now to have that front-end engagement tools, partners, methodologies, I mean you got to be excited. >> Well really so going back to my, I remember my agency days I remember why some of the Google Analytics code looks the way it does because I remember the product that it was before. Urgent analytics right and I remember when we could first do split tests and one of the first cool projects I ever worked on in Magento 1.1 was sort of parsing Google's cookies to be able to sort of change the interface of Magento and test that for conversion rights. And to think of how far we've come, now we have the power and the mandate really to absolutely know everything about the customer experience, the customer journey and then I'm sitting there in our keynotes you know in the general session yesterday, looking up and I'm looking at the slide and I'm seeing like 14 trillion transactions that are captured in our various apparatus and I think that it's tremendous responsibility, it's tremendous power. And if we if we combine, if we use this insight responsibly, what we do is we continue to do what I think Magento has done all along which has allowed us to be at not just at the forefront of where commerce evolves but really to set the standard that consumers begin to expect. And I know we've all felt it, when you have when you have that experience and it feels very full of friction I know we can do better and I will immediately go away from any website that makes it hard for me to do what I want to do any website that seems like they are kind of a partner on my journey that's where I mean that's we're going to spend my time and my money and that's really what we're trying to really lean into here. >> Which is essential, because as you mentioned if I'm doing something on my phone I expect a really fast transaction and there's friction points, I'm gone. I will be able to find another service or product that meets my need because there is so much choice and there's so much competition for almost every product and service. So being able to leverage the power of advertising, analytics, marketing and commerce to really deliver the fundamentals of the business needs to truly manage the customer experience is a game changer. >> Yap it is so what we're what we're looking to these days you know Magento, just before the acquisition was announced made a tremendous investment to start up it's completely independent trade association called the Magento Association. It's a place for our community to collect under. And and when we're here and Magento is still a big champion of ours a big source of investment and we are you know we are looking and I kind of wear both hats right because I'm a board member of that group as well as being a Magento Adobe employee. But one of the focus that we have is still that collaborative spirit where we start to carry the message and the capabilities of this tooling so that we can ensure that this ecosystem remains and powered to deliver the experiences that our customers and their customers expect. >> Absolutely, well Ben thank you so much for sharing your knowledge and your enthusiasm and passion >> Yeah did that come through I was hoping. >> You could next time dial it up a little bit more. >> Okay good. >> Awesome and bring more flair. >> I'll bring more flair next time. [Lisa Mumbling] >> I'm still wondering what happened to the capes? >> The magician master capes yes. >> I can I can probably go grab you a couple. >> That would be awesome orange is my favorite color. >> Good to know. >> Ben it's been a pleasure having you on the program we look forward to next year. >> Likewise thank you both. >> Our pleasure. For Jeff Rick, I'm Lisa Martin and you are watching theCube live at Magento imagine 2019 from Vegas. Thanks for watching. (upbeatmusic)

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

live from San Juan Puerto Rico the cube covering blockchain unbound brought to you by blockchain industries hey welcome back everyone live here at the cube in Puerto Rico for our extended coverage exclusive coverage two days wall-to-wall I'm John for the coast the cube co-founder Silk'n angle Media Inc we're here at Alber geo founder of digital bits I owe two days our racket here in Puerto Rico Puerto Rico great to see you thanks for having me guys keep alumnae you're like you know my wingman on the crypto yeah we both were at poly Connie - you're the only cube alumni their first show in crypto as we start our tour now we have a mask probably like 40 interviews so now have 40 new cube alumni but a great community growing a new level of interesting dynamics I want to get your reaction to in any wave there's always a start entrepreneurs making things happen then the promoters the promoters and the entrepreneurs cheerlead each other they cheer lead but it gets up to the point where there's a lot of growth and then the next levels a new set of stakeholders investors global players new stakeholders governments are it's happening now for me this is the moment I starting to see the ecosystem going to that next level blockchain unbound the event we're here at Puerto Rico is a combination of developer conference industry conference investor conference economic world forum rolled into one so it's kind of a unique thing you've been doing a lot of presentations your sponsor here even though your startup a lot of conversations do you agree with that your thoughts your reaction yeah there's definitely the topics or the presentations both yesterday and today have covered all those areas that you discussed with in addition to die would say there's a focus on Puerto Rico itself I mean this particular event that we chose to sponsor which like to point out that everyone is promoting our logo simply by wearing the lanyard for the event but you promise not even out yet no we actually we had an announcement this week so we issued a press release basically articulating for everyone to understand the vision for our blockchain and also announcing that it's going to be launched on Monday so we're really excited about that the team's been working really hard over the past you know number of months working away and we have more exciting news that obviously would be coming up very shortly in terms of what we've done and so forth but our actual blockchain network is going live on Monday I know slaughter is also a sponsor they had a hot deal you've a hot deal your Protestant alia is coming out on Monday you have an announcement what is the product the digital bits it's an open-source project yeah so what's it going to end blockchain infrastructure protocol so I'm watching you know network that we've launches but anybody can tokenize on this blockchain however the specific vision for our project is to support the loyalty rewards industry we see a huge 1/3 of points every year that I guess you go unredeemed the in the United States alone is over 100 billion dollars and perceived value points sitting on the balance sheets of these issuers from retailers airlines so on and so forth it's a huge liquidity issue that number grows every year and so that's what that's one dot o and blockchain has the opportunity to bring loyalty rewards obviously many other things into to dot o and change that game of them and eliminate tremendous amount of friction and challenges that traditionally been experienced by consumers businesses and so forth in the space and so on our blockchain businesses whether it's their existing loyalty program or new loyalty Ramkin tokenize that program on our blockchain and you know so we're not ourselves operating loyalty program but we are very much supporting that industry and in addition to that these various points that are tokenized on our blockchain can be you know consumers could trade points say four points be and so on that's awesome also al you've been also active in the community here in Puerto Rico I've noticed that you've been involved in a lot of activities here on site Puerto Rico since the hurricane sideways big problems aid now getting back on its feet of this community has been doing a lot of stuff you've been very answering that what's going on explain to the people what is the vibe in Puerto Rico is it is it rebounding is it rebound is on the rebounding coming back the role of check the attacks breaks there's a lot of things going on here and there's a number of events obviously this week and going into early next week under this theme called restart week you know from what we've all learned is that there's still a lot of parts of the cylon without power and so forth what's really great I think about this event among other things is that all the proceeds from this event it's a non-profit so go to the people of Puerto Rico and beyond that there is a community here whether it's you know early in the morning for the course of the day and so forth they can you know arrange initiatives and what-have-you to you know do things here to help give back and there's a not I don't think it's just isolated this week has obviously been a lot of news in terms of things that have been happening leading up to to now and and things happening in the future blockchain you and the botching community put the current securities and so forth are really focused on wanting to help you know this island and I think it's a wonderful Island I mean it's you know it's my first visit here but I you know it's it's not it's not hard to fall in love with Barbara Cuba's landed here for two days we're wrapping up two days of coverage what's your observation in the hallways I hear a lot of things happening I heard one VC our investor not VC but now a token investor seven deals mo use a lot of smart people here so the block tower guy earlier I see all the legacy whales are here so the entrepreneurs are here a lot money flowing around there you know so there's obviously a lot of news in terms of how regulation is evolving some jurisdictions faster than others in terms of the introduction of clarity and what-have-you but that clearly doesn't appear to be flopping the enthusiasm in blockchain I mean and it's just further validation in terms of how powerful this technology really is and and you know we'll continue to find its way into into society and so forth I you know well I think it's people have faith that you know in some of these jurisdictions that aren't necessarily moving as quickly that they'll get there and and so you know as a result of that people just continue to stay in the game because it's great to be early so I got to ask you about the just overall activities on-site off-site cowan agendas around the corner tomorrow yes response to there as well by the way well you're flush with cash why sponsor I'm just curious um so because you're a start-up you don't have a product that's right but you pray to the company yes yeah and so we were getting our brand out there now we're coming out of stealth mode this is the first event that we chose to sponsor when agent obviously being the second and so very important we want to let consumer as businesses you know the community know what what we're doing with watching and you know we have and again the course of the next few weeks additional announcements will be making in terms of great people that are involved great partners and so course we're really excited to get that up and the utter in the open and at the end of the day when you build a product marketing is important alright and so this is a great community to support proceeds are going to the this particular event foresees go to a great cause and a lot of great people here so you know among the people on the planet that we would love to have know what we were up to and so that's why we made the decision so as you're doing an IC oh we're not doing an IC engine yeah okay what what are you doing so we have a lot of interest obviously in our project and you know we basically are taking alternative compliant approach to to this and we'll be announcing that obviously at some point in the future but when I said the legal practice no one in practice that one I'll try to knock you off your game go back and rephrase the question so how are you financing this so the great thing is that we've done nothing crypto in terms of creating you know having capital to build this so meeting your own capital yeah we had our own capital so digital bits was born in a company called fuse chamber so a few chain races traditional equity to go do what it wanted to do and among those things was to give birth to this open source project called digit the digital bits project and so you know we didn't need to prematurely create a token just for the sake of having a funding event so we would have capital to build this we did not need to do anything crypto related to be able to have capital to build a blockchain now you are doing crypto related so the show what what's happening with us is that again the network goes live on Monday will be clearly distributing for the market the utility and you know organically you'll see use of what we've done and obviously during stealth mode we evangelize with key partners and prospective partners which gonna be on that your launch who's gonna be using your chain so it will be obviously businesses that are looking to tokenize but in addition you have names we have names what you know unfortunately I can't say the art this time I get announced my money we will be announcing in the future yeah so not on Monday okay I'm Monday we we've Monday on the launch will announce who are amongst the new additions to the team as well on Monday I've been following the launch will will now so who some of the partners are as well well rumor has it you got a hot deal I can tell by your body language you try not to reveal it what's been the reaction for this project it's been phenomenal I mean it's you know obviously as an entrepreneur to to see a vision become a reality and for others share to share that enthusiasm is is is you know it's humbling and so but you know we're very focused we know it's still you know it's a saying that I like you know you know you know with in early in the early days it's not necessarily the time to you know crack open the champagne you still have to demonstrate product market fit you have to help build a market in our particular case so there's a lot of hard work launch it's a start line it's just like it's only a step along the whole process so a lot more steps ahead but we're very focused we know we believe we know what we need to do and it's gonna be a phenomenal year for us all right what's coolest thing you heard this week and the weirdest thing you heard this week no coming no calm that was the weirdest thing you heard okay we know some weird things going on ow cube alumni wingman on the crypto for the cube great to see you good to have you back on thank you very much good stuff Alberto entrepreneur founder of digital bits yo I'm John furry - cube more coverage here in Puerto Rico blockchain unbound after the short break

>> Live from Las Vegas. It's the cute covering knowledge sixteen Brought to you by service. Now here your host, Dave, Alon and Jeffrey. >> Welcome back to knowledge. Sixteen. Everybody, This is the Cube, Cuba Silicon Angles Flagship program. We go out to the events and we extract the signal from the noise We're here. This is Day two for us. Will be going wall to wall for three days. That knowledge sixteen hashtag No. Sixteen. Chris Beatty is Here's the CEO. Relatively new CEO. It's service now. Chris, Thanks for coming on the Cube. It's going to be here. So you are hosting the CEO Decisions event Yesterday >> I was an event. We had a lot of CEOs, a lot of energy in the room, you know, one of the main main themes. Wass. You know, technology change happens all the time, but really one of the leadership challenge is right and what courage is required of leaders to really break through the status quo and get to that next level. We talked a lot about the importance of getting the right culture right within it, and that's a and what it really means to have a service mindset right throughout the enterprise. And as our vocabulary becomes the same inside it and across all the departments, right, as a leader, how do you enact that change so really a lot about the human element, as opposed to, you know, the technology part of it? >> Yes. So a lot of discussions over the past several service now knowledge comes in one year, Frank said. He sort of threw down the gauntlet and CEOs. They have to be business leaders. No longer Is that just a technology roll? Others have come on. The Cuban said. Well, you know, CEOs role. They gotta choose. They're gonna choose a technical path or a business path or data path. Even Chief Date officer. What do you thoughts on the >> I mean, >> there's a >> lot of press about the role. The CEO, right? And if you go back years and anything from Seo's dead, it is a relevant right. It's going the way of the dodo bird. Teo CEOs Morse strategic than ever, disrupting and creating new business models. I think the answer is somewhere in between, and it's probably changes, you know, depending on the day of the week. Right. So CEOs have a base job which is running, you know, the technology infrastructure of any company running the applications. But I do agree with Frank in terms of CEOs up, leveling their responsibilities and taking on the responsibility for more. I could tell you what I take responsibility for, right And yes, it's I t. But the overall velocity of our business. How fast can we run with everything Hiring employees, closing our books. Every single process in the company is powered by an IT platform, right? And so high tea is really in a unique position, and it has a bird's eye view of the organization to really help. Dr Velocity and Velocity is everything. How can you outflank your competition? The other thing I see think CEOs need to take responsibility for is maximizing the productivity of every single employee in the company. Right now, if you take that on, you start to look at things a little bit differently. It's not about projects, it's really about outcomes. And you know what measurable things are we delivering? And last and certainly not least, I think, the responsibility for customer experiences again. Customer experiences are powered by platform CEOs have the ability that influence every single one of those experiences and make it great and more and more as we look towards the future with things like automated bots and augmented reality customer. Your actions are going to become human to platform, and that's going to increase its relevance in that >> so and thinking about CIA imperatives of, you know, the bromide of eighty percent of the dollars we spend is on keeping the lights on twenty percent of innovation of That's a real number, No, but nobody seems to argue with it. Yeah, you >> hear that number a lot, but I think the good organizations actually do measure that number so they actually they will know what their number is and that service. Now we've done a lot of work, so our ratio is actually sixty percent run the business forty percent on innovation, and we're driving that down. So it's uneven. Fifty fifty split. I think that where you don't want to go is spending too little time on what I call the utility computing because that's the fabric that gets work done right. It's everything from networking and email and all those basic services you still need to have. Those aren't going anywhere collaboration services. >> I'd like to split it up into a little finer grain. I wonder if you could comment run the business grow the business transformed the business. Now maybe you're maybe you're always transforming your business, I don't know. But in >> terms of have to be >> in terms of but specific spending on initiatives to transform the business is that a reasonable, reasonable way to look at your portfolio was >> absolutely right. And I think if you're not doing things that transform your business, you're you're not acting with enough urgency. So my view on it is identify the big rocks right that we need to knock down, make sure we make room for those, even if it's at the cost of the grow or run part of the budget. Because if you're not getting those things done again, back to that getting left behind things were moving too quick. You got to keep pace. So make room for the transformation somehow, and that means squeezing every bit of automation that you can. How did the run part of the business, which is something I've used service now for in my past. I used to be a customer. I bought the platform twice over before I joined the company, and we did it a lot, and I'm doing it now, now that I'm at service now, >> that's one of Frank's requirements to become a CEO. I think. How >> do you >> measure that? That split. You said you're sixty today. Like to be a fifty, a lot of CEOs going. I have no idea how to measure that. I look at my projects are, but guess how do you do it? >> And it's tough we actually use. Not surprisingly, are Ownit Financial Management module to do that. And so technology's technology would we take all of our G L data and we map it to a taxonomy of business services in certain business services we know are not transformative, but they're a run part of the business, and we do that mapping once than every month. We can look at actuals against it. We can look at our unit costs, but the other begin put his projects right, which is again also in our platform, so able to look at those two things together and data driven segmentation of our spend too many times I see ninety organizations. They do it as one time exercise as part of annual planning. Then they don't look at it again until the next year. Annual planning. But there's a lot of runway in between and decisions we're making every day, which you should be making based upon data. But instead you're doing on perhaps nine months ago information. >> So you essentially categorize the business process, the business services as run or Growler training farm and on an ongoing basis. >> Absolutely. And you do the math and the most dynamic part of it, his projects. So every one of our projects, when we look at our portfolio, we look at our project portfolio by business areas, the sales marketing HR finance so on. But then we also do categorize our portfolio by Is this just sort of keep the lights on activity? But it's a project we still need to dio, or is it growing the business in somewhere? Is it truly helping us transform the way we operate >> on reasonable people? Khun, sit down and agree on sort of what those look like and >> short, and we also adjust accordingly. Also, do a top down allocation of what percentage do we want to go into each bucket, and that's not the same for each area because different parts of our business are different maturity cars, different pressures on them. I wouldn't want to be very transfer meitiv with RGL, right? That's not an area I want to innovate on. But with our sales and marketing organization, absolutely. We want to be in high innovation. Hi, experimentation, whatever we can do to help dry. >> So that's a top down bottom up exercise with the executive team says Okay, >> sideways inputs from everywhere. You know, one of the things I think CEOs it is a coming to fund CEOs to dio is manage spend. But more importantly, where people spending their time right, that's inarguably a fixed costs. We have a set of people where they spending their time and are they spending their time on the right things? And if you get that right, the rest could get a lot easier. >> So Secretary Gates last night speaking Teo, you know, maybe roughly one hundred CEOs and your your CEO decisions Conference gave the thumbs down on consensus management, and I sense just a little bit of discomfort in the room because CEOs is a hard job. But you serve a lot of different masters if you will, and as well you've got heads of application development you got, you know, architects, you got the business to serve, and so there's a lot of consensus building. And so he got questions on How do you do it? What was your reaction to that? Your colleagues, You know, which >> one was your science? They asked him a question. And because he said Consensus building doesn't work into an outside person looking in, it would seem like by nature. Everything in the government is consensus oriented. He had a lot of examples actually, where he did things against his own team's conviction, but he felt like that change was necessary. So it's two things I think Dr Gates has dealt with monumental organizations, right? Texas A and M is the smallest organization of those the CIA and the D. O D. Department of Defense has three million people, so the scale is unlike what most enterprise CEOs are leaders have seen. So when when he talked about not being consensus oriented, he viewed it as a requirement, and I actually agree with him. If you're trying to disrupt the status quo, you can't be consensus oriented. I don't think you'LL move fast enough, and most of time you won't get very far. So I think it's incumbent upon leaders to be the ones that break the status quo and say, We've got to change. And But what? What Dr Gates did describe is that if people are informed about why, from their leader enough, even if they disagree, they can get on board. And he brought up numerous examples of where he had conversations with Congress and people within the d. O d about change. He wanted to drive, and even though they were very opposed to it, they got on board because they intellectually could understand why. And over time, he won over hearts and minds >> about your priorities. So you come in relatively new tow service now. So first of all first impressions, any any surprises, pleasant or unpleasant? And what your priorities. >> So coming in no surprises. I had had a lot of admiration for the company as a customer, and now that I'm here, I love the culture. The culture is very execution oriented, get stepped on, very customer focused. You know, when we when we talk about our go to market, we really talk a lot about what's going to be most important for our customers. What pressures are customers under what problems can be solved for him? It's really not a discussion around squeezing. You know, the maximum margin out of each customer, which I think is fantastic way drive pretty hard. But but we're also very team oriented culture, so that's been great. My priorities at service. Now, when I think about my six strategic themes that I'm focused on growth eyes hugely important that service now. Right now, it's a lot of time I spend, fails and marketing effectiveness and innovation. And what can we do to drive, help, drive growth from a night perspective? Working with our partner organization, helping our partners? I do business with us easier things like partner portals and things like that. Ah, velocity. I mentioned earlier driving velocity through every department at the Enterprise at service now and really maniacally going after business process automation. And the great thing is, we have a platform that makes it easy, right and Ivax full access to that platform. So self service catalogs and knowledge base, but really going department by department saying, How do we do that? Analytics. Obviously we want to continue to measure and improve our business. But we're starting to do a lot more with Predictive Analytics, right? And how can we use data to really predict next best actions in a variety of arenas? Uh, security is the gift that keeps on giving for every CEO never ending. It's >> just one of those things that'll Teo you got, you >> got, you got to accept it and then really focus on team, right? I think talent and team and culture hugely important. You could have the best plans, you know, on paper. But if you don't have the right talent and culture within your team to get it done, I don't think you're getting very far operational. Rigor is a big one for me and a Metrix based approach to managing our business and driving outcomes. So when I look at projects that I execute for the organization on time and on budget, that's fine. That's table stakes. Really. What I'm after is on benefit, right? Are we delivering the benefits that we said we were going to get? And last, but certainly not least a part of my job is now on now. What? What we mean by now? On now is me being our best in first customer. And that's a very strategic level, working with product management to help them, you know, with roadmap features and things like that that I think all of our CEO's would need also upgrading early. So hopefully we can iron out the bugs before all of our customers and then consuming our own your products and implement it internally, learning the lessons within our four walls that we can inform our fields they could help our customers. >> How about on benefit? What percentage of projects are on benefit? That's another one of these things. Seventy percent of the projects fail. It was a number one on the market research, even >> that even that's a problem that fail is identified as not being on time or on. But right now, I view that is interesting but not compelling. Are you delivering the outcome? And so we're early. I've only been at service now six months, but I know in the past, through rigor and even making it a metric that's important have gotten to an eighty five percent hit rate on benefit. Certainly you could do better, but some of the benefits we have realised, with our platform eighty three percent increase in productivity. Leveraging R R R R application, but examples outside of Ice D, where we've eliminated forty five hundred hours of work from our financial close by putting email and manual checklist on your platform. Eighty five percent reduction in time that we spent hours spent on on boarding new employees. I mean, the list goes on and on, but it's a requirement in my organisation. When you're doing a project, you gotta have an outcome and set an aspirational outcome. Because if you talk about ten percent improvement and anything, that's sort of easy to get it. If you tell yourself I need to get a seventy percent improvement, it forces you to really rethink things and think differently. And I think that's our job. Is leaders to set those set the bar really high and then sharp teams have the resources to go after it. >> So even if you're late and over budget, if you get that, I didn't say that I later over, but I was asked, so that's got three. So that's a that's a prerequisite to be on time and on budget, >> and we're not perfect, but our target is to be ninety five percent on time, ninety five percent on budget, knowing you're gonna have five percent, you know, wiggle room and ninety five percent on benefit. >> What is on. So when you talk to the board, switch topics about security, what should be on the CEO's checklist for communicating to the board about security? So So >> I think it's really about risk, right? And what risks do we think we have? What's the likelihood of those risks? And what's the plan to mitigate those risk? I don't think security should be talked about in a This is Donner. That's done because you're never really done right. It's risk management, and the bad guys continue to innovate faster than the good guys. So what's your current security posture? What's the state of your risks and how are you mitigating them and in what time frame you know the stuff about? You know, we have a deal. P. We have ideas. We have I ps. I mean, the list of acronyms is interesting at a more tactical level, but at a board level, I think it's really risk management. >> So I promise I wanted before Ortiz talk about mitigating risk. But is there a place for a narrative that says you'd only mitigate so much? You're going to get penetrated. It's how you respond absolutely is critical. And I can I, as the CEO can lead that response or whomever is the >> appropriate person? I think you you have to do everything you possibly can Teo secure your perimeter. But it's known that you are going to get breach. Just a fact. So then it really becomes How quickly can you identify the fact that you have anomalous activity happening on your network of data? How quickly can you mitigate it? And in the past, when I was at various sign JD issue, a lot of that was manual right You have. You know, you have a piece of bad malware on the Enterprise. You may even know what assets. Um, it's on where you think you know. Usually I think you know, and then you really find out later where it's gone. But tying those assets to risk meaning what? Business services, it is it my CFO's laptop? Or is it? You know, the the you know, the person in AP. So you treated a little bit differently. And is it the infrastructure that supports our badge reader? Or is it our ear piece system? Right, So that's the missing piece. And I do thank our security organization and our our business unit, Shawn, because they've actually built a solution. Help solve that where you can go from security incident. Piece of Alberto Asset to Business service to employ within minutes, which that used to be half a day, at least half a day is a long time in a security incident. >> Yeah, so there's that magic number of whatever it is two hundred five days to detect a penetration? Yes, very. Do you feel like your organization can compress that? Is that a viable metric to be focused on? >> It's certainly a viable metric to focus on in terms of knowledge, off again anomalous activity. I don't think we're near two hundred five days, but absolutely we are focused on it because we need to secure not only our data but the data that our customers in trust without trust, >> meaning you feel as though you could detect much in a much shorter time frame, and they have some interesting. You haven't depending >> on the wrist right? Without getting into a lot of the details. >> Yeah, So we'll see you. But implicit in that is that you have a sense of the value of your data, your assets your I p what you're saying you've got a pretty good visibility on. >> Is that right? Yeah, we d'Oh. We spent a lot of time making sure our security posture is solid again customers and trust us with their data. We take that responsibility very seriously. >> Not speaking for service now, but just general knowledge of your colleagues Do you feel as though the lack of ability to value data assets negatively affect people's ability? T appropriately spend resources >> on security? It's tough because one of the first things you need to do in security say, what do I need to secure first? And then you say, OK, well, that's my core. I pee. Where's my core I pee stored? I would argue that a lot of companies don't even know because it's scattered on different file shares and different servers, and then you don't know whether people are putting it on box or drop box or one of the many storied sites out there so keep key. First step, I think for a lot of organizations is really just getting a handle on where their I P is. >> Right? All right, Count Chris, Thank you very much. Appreciate you coming on last. Give the last word. Uh, knowledge sixteen for you. What's the kind of bumper sticker? Is the truck's pulling away from its been awesome. I mean, >> just talking with customers and fellow CEOs. You know, we're all in this journey together towards this service enabled enterprise, but it is about leadership and just courage to bust through this current status quo that were in within the enterprise to get to that next level of efficiency. >> Thanks a lot of fun. Well, congratulations on the new role on DH hosting at a hostel conference just caught the tail end of it. But it looked like great energy >> because a lot of >> had some really good discussions with some of your colleagues. So really great coming on. Thank you. Alright. Keep right there, buddy. That's the Cuba bit back from knowledge. Sixteen, Las Vegas. Right after this >> every once in a while.