>>Hello everyone and welcome back to The Cube's Continuing coverage of AWS Reinvent. My name is Savannah Peterson and I am absolutely thrilled for this segment. We are joined by leaders at Cisco App Dynamics, as well as Royal Caribbean. The two have been working together for over five years, leveraging full stack observability. We're gonna dig in, but first of all, please welcome Alice from Royal Caribbean and Greg from Cisco App, app Dynamics to the show. Hey friends. >>Hi. How are you doing? >>I'm excited, clearly. How are you doing, Greg? >>I'm doing fantastic. Thanks for having me on the show today. >>Hey, it's our, it is absolutely our pleasure. Alice, I have to start with you. I don't think there are too many industries that have gotten as much coverage as cruising has over the last couple of years. You've been working with Royal Caribbean for over a decade, so you've seen it through the stormy seas of the pandemic, if you will. What has the last few years and the last few months been like for you? >>You know, it's, it's really been a wild ride. To your point, we were sailing high and then I don't think any other industry experience what we did in Covid, that you walked in one day and then that day the whole industry shut down. So it was a, it was a big challenge for us. And then as soon as we shut down and we weathered the storm with Covid, then we have what we called our healthy and return to service. So as quickly as it stopped, we had to start sailing again. So it's, it's really been a challenge, but we're happy to be back on our feet and heading in the right direction now. >>I, I really hope we can continue the sailing metaphors throughout the course of this interview. And you, you nailed that for a segment. Alice, I'm, I'm, I'm so, I'm so here for it. I, I, I wanna talk about how you've worked together, but I wanna give Greg a second to chime in here. So Greg, you're the executive CTO at Cisco App Dynamics. How, how have you and the team, whether the last two and a half years? >>Well, you, you know, it's interesting, the, the pandemic really brought together an interesting conundrum, right? So on, on one hand, you had, you know, the, the, the consumers, the end users that became very reliant on digital services. They had a function in a way that was very performing, right? So, 84% of the respondents that we had come back through a report called the App Attention Index, came back and said that digital services were, were really instrumental for them to, to get back to some level of normalcy. But the interesting part that came about that is that out of those respondents, 60% of them blame the brand if the, if the application did not work the way they expected it. So they didn't really care about the, it's in the back end, right? So when you look at, yeah, you look at the shift in the IT department, the IT department had to go out and, and quickly innovate, quickly start to introduce new services, which ultimately brought together a, a sprawl in their technology stack. So when you're adding to it, you're not taking things away, you're continuously growing. So finding that that, that the problems or the, the root cause of an application issue became more difficult. So that's where, you know, from an app, Cisco AppDynamics perspective, you know, we're one of the leading observability and app application performance monitoring tools. So we help customers like Ro Caribbean to be able to zero in on root cause and ensure that their end users have that best experience. It's, >>It's, it's, I I'm smiling as someone who was a, a former waitress and I can remember the amount of times I was scolded for something that happened that was far out of my control and the complex layers of the kitchen. And I think that, that anyone who's, who's had a, a poor customer experience while interacting with a brand may or may not intentional, I think it's actually sometimes very unintentional to your point, get frustrated with said brand. I can imagine that is an experience and a priority that you have at Royal Caribbean. Alice, how, how has Full Stack Observability played a role in your, in your team's ability to, to serve the customers and your, and keep your community engaged during this, this very kind of wobbly time? >>Yeah, you know, we have, have really worked hard to improve and remove friction from our guest vacation. And we wanna keep them on vacation and having a great time. You know, we say we don't really sell a cruise. We sell an experience. So we use App AppDynamics to monitor those key applications that our guests are interacting with to ensure that they're having that experience that we expect, you know, we've learned that just because a system or a server says, Hey, I'm up 99% of the time, that doesn't mean that my guests are experiencing that same type of stability, you know? So once again, we really worked well with App Dynamics. They've partnered with us to ensure that, you know, our guests are getting that vacation experience they're looking for. >>Do you think, just a follow up there, do you think that you would have advanced in the ways that you have working with Cisco App Dynamics and across functions over the last few years without this crunch, was necessity the mother of invention for you to any degree? >>You know, I don't, I don't think that the Crunch brought it on cuz we, like I said, we started this journey back in 2017 and we're not unlike a lot of companies where we're on this maturity ride where we wanna go from being reactive, where our guests are telling us something is broken to being preventive. Definitely, you know, COVID played into this because I think we learned to do less, you know, more with less. So, you know, we, you know, it's very hard in the cruise industry. We did take a hit, but we were able to use the app dynamics tools to ensure that our systems were running with having less people also watching those systems. So less eyes on glass, more automation, >>And that's a more, with more, more stability, more credibility, and more transparency is definitely something that we're all looking forward. And, and it's nice to see that implemented, especially at scale when you're dealing with so many customers from all over the world trying to access your service and, and wanting that personalized experience. Greg, what does it feel like for you as a leader to hear someone like Alice say how powerful your tool has been in ensuring that customer experience? >>Yeah, that's, you know, it's absolutely fantastic and especially, you know, Alice is absolutely right. You know, the, the, the cruise industry was really, had a very unique challenge in front of them, and I, I really applaud the folks at Royal Caribbean for stepping up to make sure that when the pandemic eased, so to speak, that they, that the experience to the customer was actually even better, right? So when we were able to work and partner together to make sure that, you know, the, the, the user experience is topnotch, the availability is there, the, the, the, the resiliency of their platform is there. So by, by working with customers like Royal CRI and is really one of the, the, the shining stars that we can talk about that really help make a big difference in, you know, that post pandemic era to be able to really do what's right for the customer. >>How often are you engaging with customers like Alice as a team? How big is that feedback in your product roadmap? >>Oh, personally, I, I'm, I'm engaged with customers on a daily basis and I see it fr across the map from many different industries. And, you know, a lot of folks had different challenges, but the, the ultimate commonality that I've seen across, you know, multiple industries is that, you know, when you, when we're in that pandemic state, digital services were the only way that they, their customers were interacting with, with them. So, you know, when you, when you're looking at a, at a bank or you're looking at a, you know, different types of travel agencies and organizations that, you know, like rural Caribbean as well, that, that really had that opportunity to, to focus on what's the most valuable thing to them, which is user experience. It's a very, very common common trend that we saw. And, you know, you see an expedited path of, of, of digital transformation happen. And really that's where we partner with, you know, customers like Royal Caribbean and, and many others across different industries to make sure that that, that the, the business outcomes were being driven towards the, the proper direction. As well as that, you know, the, the user experience, and I don't think I can emphasize user experience as being so critically important anymore than I've already have, but it's really the, one of the most valuable currencies most organizations have. >>I, one of my favorite lines is, is community is your first defensible asset. And you know, I, you can, you can talk about user experience as much as you want on here. At the end of the day, if people aren't having a positive interaction with your brand or your product, it's probably not going to last super long unless it's legacy. And we won't have to go down that rabbit hole today, >>Especially if I can add there's a lot of competition there. Course, right? There's a lot of competition out there. So if your applications do not perform, or your digital services do not perform, the end user has the quick ability to just quickly delete and move on. And, and the same thing with, with what Alice sees in the, in the cruise industry, you know, you have an opportunity to rise to the top and I, I really applaud them for taking advantage of that, that opportunity. Community. >>Community. Yeah. Well, I'm, I'm here for both of you cheering each other on certainly the, the water level rises together. That's >>Right. Alice, >>What sort of, what sort of challenges are you taking on currently that you're able to disclose? What, what sort of leaps do you think, or doesn't have to be leaps, but what, what kind of experience are you hoping to continue to enhance for Royal Caribbean customers? >>So I think, you know, one of our big challenges that we've, you know, we've announced that we do have a relationship with starlink, so that's going to improve our satellite connectivity, and it really is a game changer for our industry. It's very exciting and, and, but it puts the, it puts the user back in the forefront once again. You know, right now, you know, with our current connectivity, it's all about managing that bandwidth. You know, we're hoping to go to that state where bandwidth isn't at a high cost, so now we're gonna be even able to watch our user interaction more from ship to shore, you know, and you're, and you're, we're maybe moving to that area where we're thinking cloud first from a shift. If you think about it, we've got 50 plus data centers floating around the world, so that connectivity is key. Now we're opening up that bandwidth now I need to see how that, how the transactions are performing as we come off ship. You know, with that, once again, that cloud first mentality, it's a super exciting time for us. And I really see, you know, AppD is gonna play a role in that. >>I, I I, I love that visual just for a second of 50 data centers with also surrounded by people having a very wonderful time on board. What a, what a nice spot. I, I can't say that every data center I've ever been to is, is glamorous, fun or sexy as being on a Royal Caribbean ship. However, I, I hope that we move perhaps in that direction. We were just at super computing a few weeks ago and it was great to see all the hardware there. So you never know. What role do you see yourself in the team and, and Cisco app Dynamics playing in that future for companies like Royal Caribbean, Greg? >>You know, it's really, it's really staying right lockstep with our customers as they move through that digital transformation efforts. The key piece is that we look at it from that full stack view. So we offer full stack observability, which, you know, if you look at the challenges that we want to go after is traditional IT departments were historically siloed pretty significantly between, you know, network and infrastructure security app dev. So ensuring that we can get our customers to, to be able to have that common view that shows what's the real important pieces across all domains. So when they start moving down the path of digital transformation, that's an opportunity to also revamp how their processes are that people interact and the technology that they use to be able to deliver the proper business outcomes. So we talk a lot with our customers around full stack observability, but the key part is business context. >>So if you have a big effort for digital transformation, you're starting to add new services to it, how do you know if it's actually impacting the business in a positive or negative way? So by us implementing the, the business context to ensure that you understand the investments being made that you can show to your business leaders is showing an uptick and the business outcomes you're, you're going after, it's really, really about a strong partnership with our customers, but also ensuring that their business is being positively impacted by our technology to be able to help them really align the teams and be able to have the right desired outcomes. >>I love that Greg and I love that customer first. That community first attitude, it's something that you both share. Final question for the two of you, and I'm gonna start with you, Alice, since I suspect you've probably been on more cruises than Greg and I combined, though I could be making a wild assumption. Where are you cruising to next? >>You know, I just got off the cruise, so next up I wanna revisit the Galapagos. I think the Galapagos is the best place to go, and if you haven't done it, that's absolutely where you should go. >>Oh, it's a beautiful trip. Greg, have you ever done the Galapagos? Is that gonna be your next Royal Caribbean cruise? >>I have never done the Galapagos, but I may just have made it to my list. >>Fantastic. Well, I second Alice's endorsement on that. I, I had the pleasure of going about a decade ago. Very magical place that teaches you a lot about nature, much like the two of you have taught us very extensively about full stack absorbability, how it applies to user experience, customer experience, and the ocean that I am currently staring at here in Pacifica, California. Alice, thank you so much for joining us from Miami Greg to you in Colorado. I hope that you both continue to work in harmony together and that we can all see each other on the friendly sees soon. Thank you all for tuning in to our AWS reinvent coverage. This is the cube. My name's Savannah Peterson, and we look forward to seeing you for our next segment.

>> From theCUBE studios in Palo Alto and Boston, bringing you data-driven insights from theCUBE in ETR. This is Breaking Analysis with Dave Vellante. >> Every CEO is figuring out the right balance for new hybrid business models. Now, regardless of the chosen approach, which is going to vary, technology executives, they understand they have to accelerate their digital and build resilience as well as optionality into their platforms. Now, this is driving a dramatic shift in IT investments. And at the macro level, we expect total spending to increase at as much as 8% or even more in 2021, compared to last year's contraction. Investments in cybersecurity, cloud collaboration that are enabling hybrid work as well as data, including analytics, AI, and automation are at the top of the spending priorities for CXOs. Hello everyone. And welcome to this week's Wiki Bond Cube insights, powered by ETR. In this Breaking Analysis, we're pleased to welcome back Erik Bradley, who is the chief engagement strategist at our partner, ETR. Now in this segment, we're going to share some of the latest findings from ETR's surveys and provide our commentary on what it means for the markets, for sellers, and for buyers. Erik, great to see you, my friend. Welcome back to Breaking Analysis. >> Thank you for having me, always enjoy it. We've got some fresh data to talk about on this beautiful summer Friday, so I'm ready to go. >> All right. I'm excited too. Okay, last year we saw a contraction in IT spending by at least 5%. And now we're seeing a snapback to, as I said, at least 8% growth relative to last year. You got to go back to 2007 just before the financial crisis to see this type of top line growth. The shift to hybrid work, it's exposed us to new insidious security threats. And we're going to discuss that in a lot more detail. Cloud migration of course picked up dramatically last year, and based on the recent earnings results of the big cloud players, for now we got two quarters of data, that trend continues as organizations are accelerating their digital platform build-outs, and this is bringing a lot of complexity and a greater need for so-called observability solutions, which Erik is going to talk about extensively later on in this segment. Data, we think is entering a new era of de-centralization. We see organizations not only focused on analytics and insights, but actually creating data products. Leading technology organizations like JP Morgan, they're heavily leaning into this trend toward packaging and monetizing data products. And finally, as part of the digital transformation trend, we see no slow down in spending momentum for AI and automation, generally in RPA specifically. Erik, anything you want to add to that top level narrative? >> Yeah, there's a lot to take on the macro takeaways. The first thing I want to state is that that 8, 8.5% number that started off at just 3 to 4% beginning of the year. So as the year has continued, we are just seeing this trend in budgets continue to accelerate, and we don't have any reason to believe that's going to stop. So I think we're going to just keep moving on heading into 2021. And we're going to see a banner year of spend this year and probably next as well. >> All right, now we're going to bring up a chart that shows kind of that progression here of spending momentum. So Erik, I'm going to let you comment on this chart that tracks those projections over time. >> Erik: Yeah. Great. So thank you very much for pulling this up. As you can see in the beginning part of the year, when we asked people, "What do you plan to spend throughout 2021?" They were saying it would be about a 4% increase. Which we were happy with because as you said last year, it was all negative. That continues to accelerate and is only hyper accelerating now as we head into the back half of the year. In addition, after we do this data, I always host a panel of IT end users to kind of get their feedback on what we collected, to a man, every one of them expects continued increase throughout next year. There are some concerns and uncertainty about what we're seeing right now with COVID, but even with that, they're planning their budgets now for 2022 and they're planning for even further increases going forward. >> Dave: Great, thank you. So we circled that 8%. That's really kind of where we thought it was going to land. And so we're happy with that number, but let's take a look at where the action is by technology sector. This chart that we're showing you here, it tracks spending priorities back to last September. When I believe that was the point, Erik, that cyber became the top priority in the survey, ahead of cloud collaboration, analytics, and data, and the other sectors that you see there. Now, Erik, we should explain. These areas, they're the top seven, and they outrank all the other sectors. ETR tracks many, many other sectors, but please weigh in here and share your thoughts on this data. >> Erik: Yeah. Security, security, security. It hasn't changed. It had really hasn't. The hybrid work. The fact that you're behind the firewall one day and then you're outside working from home the next, switching in and out of networks. This is just a field day for bad actors. And we have no choice right now, but to continue to spend, because as you're going to talk about in a minute, hybrid's here to stay. So we have to figure out a way to secure behind the firewall on-prem. We also have to secure our employees and our assets that are not in the office. So it is a main priority. One of the things that point out on this chart, I had a couple of ITN users talk to me about customer experience and automation really need to move from the right part of that chart to the left. So they're seeing more in what you were talking about in RPA and automation, starting to creep up heading into next year. As cloud migration matures, as you know, cybersecurity spending has been ramping up. People are going to see a little bit more on the analytics and a little bit more on the automation side going forward. >> Dave: Great. Now, this next data view- well, first of all, one of the great things about the ETR dataset is that you can ask key questions and get a time series. And I will tell you again, I go back to last March, ETR hit it. They were the first on the work from home trend. And so if you were on that trend, you were able to anticipate it. And a lot of investors I think took advantage of that. Now, but we've shown this before, but there's new data points that we want to introduce. So the data tracks how CIOs and IT buyers have responded to the pandemic since last March. Still 70% of the organizations have employees working remotely, but 39% now have employees fully returning to the office and Erik, the rest of the metrics all point toward positives for IT spending, although accelerating IT deployments there at the right peaked last year, as people realized they had to invest in the future. Your thoughts? >> Erik: Yeah, this is the slide for optimism, without a doubt. Of the entire macro survey we did, this is the most optimistic slide. It's great for overall business. It's great for business travel. This is well beyond just IT. Hiring is up. I've had some people tell me that they possibly can't hire enough people right now. They had to furlough employees, they had to stop projects, and they want to re accelerate those now. But talent is very hard to find. Another point to you about your automation and RPA, another underlying trend for there. The one thing I did want to talk about here is the hybrid workplace, but I believe there's another slide on it. So just to recap on this extremely optimistic, we're seeing a lot of hiring. We're seeing increased spending, and I do believe that that's going to continue. >> Yeah I'm glad you brought that up because a session that you and I did a while ago, we pointed out, it was earlier this year, that the skill shortage is one potential risk to our positive scenario. We'll keep an eye on that, but so I want to show another set of data that we've showed previously, but ETR again, has added some new questions in here. So note here that 60% of employees still work remotely with 33% in a hybrid model currently, and the CIO's expect that to land on about 42% hybrid workforce with around 30% working remotely, which is around, it's been consistent by the way on your surveys, but that's about double the historic norm, Eric. >> Erik: Yeah, and even further to your point Dave, recently I did a panel asking people to give me some feedback on this. And three of those four experts basically said to me, if we had greed run this survey right now, that even more people would be saying remote. That they believe that that number, that's saying they're expecting that number of people to be back in office, is actually too optimistic. They're actually saying that maybe if we had- cause as a survey launched about six, seven weeks ago before this little blip on the radar, before the little COVID hiccup we're seeing now, and they're telling me that they believe if we reran this now that it would be even more remote work, even more hybrid and less returned to the office. So that's just an update I wanted to offer on this slide. >> Dave: Yeah. Thank you for that. I mean, we're still in this kind of day to day, week to week, month to month mode, but I want to do a little double click on this. We're not going to share this data, but there was so much ETR data. We got to be selective. But if you double click on the hybrid models, you'll see that 50% of organizations plan to have time roughly equally split between onsite and remote with again around 30 or 31% mostly remote, with onsite space available if they need it. And Erik, very few don't plan to have some type of hybrid model, at least. >> Yeah, I think it was less than 10% that said it was going to be exclusively onsite. And again, that was a more optimistic scenario six, seven weeks ago than we're seeing right now throughout the country. So I agree with you, hybrid is here to stay. There really is no doubt about it. from everyone I speak to when, you know, I basically make a living talking to IT end users. Hybrid is here to stay. They're planning for it. And that's really the drive behind the spending because you have to support both. You have to give people the option. You have to, from an IT perspective, you also have to support both, right? So if somebody is in office, I need the support staff to be in office. Plus I need them to be able to remote in and fix something from home. So they're spending on both fronts right now. >> Okay. Let's get into some of the vendor performance data. And I want to start with the cloud hyperscalers. It's something that we followed pretty closely. I got some Wiki bond data, that we just had earnings released. So here's data that shows the Q2 revenue shares on the left-hand side in the pie and the growth rates for the big four cloud players on the right hand side. It goes back to Q1 2019. Now the first thing I want to say is these players generated just under $39 billion in the quarter with AWS capturing 50% of that number. I said 39, it was 29 billion, sorry, with AWS capturing 50% of that in the quarter. As you're still tracking around a third in Alibaba and GCP in the, you know, eight or 9% range. But what's most interesting to me, Erik, is that AWS, which generated almost 15 billion in the quarter, was the only player to grow its revenue, both sequentially and year over year. And Erik, I think the street is missing the real story here on Amazon. Amazon announced earnings on Thursday night. The company had a 2% miss on the top line revenues and a meaningful 22% beat on earnings per share. So the retail side of the business missed its revenue targets, so that's why everybody's freaked out. But AWS, the cloud side, saw a 4% revenue beat. So the stock was off more than 70% after hours and into Friday. Now to me, a mix shift toward AWS, that's great news for investors. Now, tepid guidance is a negative, but the shift to a more profitable cloud business is a huge positive. >> Yeah, there's a lot that goes into stock price, right? I remember I was a director of research back in the day. One of my analysts said to me, "Am I crazy for putting a $1,000 target on Amazon?" And I laughed and I said, "No, you're crazy if you don't make it $2,000." (both chuckling) So, you know, at that time it was basically the mix shift towards AWS. You're a thousand percent right. I think the tough year over year comps had something to do with that reaction. That, you know, it's just getting really hard. What's that? The law of large numbers, right? It's really hard to grow at that percentage rate when you're getting this big. But from our data perspective, we're seeing no slowdown in AWS, in cloud, none whatsoever. The only slowdown we're seeing in cloud is GCP. But to, you know, to focus on AWS, extremely strong across the board and not only just in cloud, but in all their data products as well, data and analytics. >> Yeah and I think that the AWS, don't forget folks, that funds Amazon's TAM expansion into so many different places. Okay. As we said at the top, the world of digital and hybrid work, and multi-cloud, it's more complicated than it used to be. And that means if you need to resolve issues, which everybody does, like poor application performance, et cetera, what's happening at the user level, you have to have a better way to sort of see what's going on. And that's what the emergence of the observability space is all about. So Erik, let me set this up and you have a lot of comments here because you've recently had some, and you always have had a lot of round table discussions with CXOs on this topic. So this chart plots net score or spending momentum on the vertical axis, and market share or pervasiveness in the dataset on the horizontal axis. And we inserted a table that shows the data points in detail. Now that red dotted line is just sort of Dave Vellante's subjective mark in the sand for elevated spending levels. And there are three other points here. One is Splunk as well off is two-year peak, as highlighted in the red, but Signal FX, which Splunk acquired, has made a big move northward this last quarter. As has Datadog. So Erik, what can you share with us on this hot, but increasingly crowded space? >> Yeah. I could talk about the space for a long time. As you know, I've gotten some flack over the last year and a half about, you know, kind of pointing out this trend, this negative trend in Splunk. So I do want to be the first one to say that this data set is rebounding. Splunk has been horrific in our data for going back almost two years now, straight downward trend. This is the first time we're seeing any increase, any positivity there. So I do want to be fair and state that because I've been accused of being a little too negative on Splunk in the past. But I would basically say for observability right now, it's a rising tide lifts all boats, if I can use a New England phrase. The data across the board in analytics for these observability players is up, is accelerating. None more so than Datadog. And it's exactly your point, David. The complexity, the increased cloud migration is a perfect setup for Datadog, which is a cloud native. It focuses on microservices. It focuses on cloud observability. Old Splunk was just application monitoring. Don't get me wrong, they're changing, but they were on-prem application monitoring, first and foremost. Datadog came out as cloud native. They, you know, do microservices. This is just a perfect setup for them. And not only is Datadog leading the observability, it's leading the entire analytics sector, all of it. Not just the observability niche. So without a doubt, that is the strongest that we're seeing. It's leading Dynatrace new Relic. The only one that really isn't rebounding is Cisco App Dynamics. That's getting the dreaded legacy word really attached to it. But this space is really on fire, elastic as well, really doing well in this space. New Relic has shown a little bit of improvement as well. And what I heard when I asked my panelists about this, is that because of the maturity of cloud migration, that this observability has to grow. Spending on this has to happen. So they all say the chart looks right. And it's really just about the digital transformation maturity. So that's largely what they think is happening here. And they don't really see it getting, you know, changing anytime soon. >> Yeah, and I would add, and you see that it's getting crowded. You saw a service now acquired LightStep, and they want to get into the game. You mentioned, you know, last deck of the elk stack is, you know, the open source alternative, but then we see a company who's raised a fair amount of money, startup, chaos search, coming in, going after kind of the complexity of the elk stack. You've got honeycomb, which has got a really innovative approach, Jeremy Burton's company observes. So you have venture capital coming in. So we'll see if those guys could be disruptive enough or are they, you know, candidates to get acquired? We'll see how that all- you know that well. The M and A space. You think this space is ripe for M and A? >> I think it's ripe for consolidation, M and A. Something has to shake out. There's no doubt. I do believe that all of these can be standalone. So we shall see what's happened to, you mentioned the Splunk acquisition of Signal FX, just a house cleaning point. That was really nice acceleration by Signal FX, but it was only 20 citations. We'd looked into this a little bit deeper. Our data scientists did. It appears as if the majority of people are just signaling spunk and not FX separately. So moving forward for our data set, we're going to combine those two, so we don't have those anomalies going forward. But that type of acquisition does show what we should expect to see more of in this group going forward. >> Well that's I want to mention. That's one of the challenges that any data company has, and you guys do a great job of it. You're constantly having to reevaluate. There's so much M and A going on in the industry. You've got to pick the right spots in terms of when to consolidate. There's some big, you know, Dell and EMC, for example. You know, you've beautifully worked through that transition. You're seeing, you know, open shift and red hat with IBM. You just got to be flexible. And that's where it's valuable to be able to have a pipeline to guys like Erik, to sort of squint through that. So thank you for that clarification. >> Thank you too, because having a resource like you with industry knowledge really helps us navigate some of those as well for everyone out there. So that's a lot to do with you do Dave, >> Thank you. It's going to be interesting to watch Splunk. Doug Merritt's made some, you know, management changes, not the least of which is bringing in Teresa Carlson to run go to market. So if you know, I'd be interested if they are hitting, bouncing off the bottom and rising up again. They have a great customer base. Okay. Let's look at some of the same dimensions. Go ahead. You got a comment? >> A few of ETR's clients looked at our data and then put a billion dollar investment into it too. So obviously I agree. (Dave laughing) Splunk is looking like it's set for a rebound, and it's definitely something to watch, I agree. >> Not to rat hole in this, but I got to say. When I look back, cause theCUBE gives us kind of early visibility. So companies with momentum and you talk to the customers that all these shows that we go to. I will tell you that three companies stood out last decade. It was Splunk. It was Service Now and Tableau. And you could tell just from just discussions with their customers, the enthusiasm in that customer base. And so that's a real asset, and that helps them build them a moat. So we'll see. All right, let's take a look at the same dimensions now for cyber. This is cybersecurity net score in the vertical, and market share in the horizontal. And I filtered by in greater than a hundred shared in because just gets so crowded. Erik, the only things I would point out here is CrowdStrike and Zscaler continue to shine, CyberArk also showing momentum over that 40% line. Very impressively, Palo Alto networks, which has a big presence in the market. They've bounced back. We predicted that a while back. Your round table suggested people like working with Palo Alto. They're a gold standard. You know, we had reported earlier on that divergence with four to net in terms of valuation and some of the challenges they had in cloud, clearly, you know, back with the momentum. And of course, Microsoft in the upper, right. It's just, they're literally off the charts and obviously a major player here, but your thoughts on cyber? >> Erik: Yeah. Going back to the backdrop. Security, security, security. It has been the number one priority going back to last September. No one sees it changing. It has to happen. The threat vectors are actually expanding and we have no choice but to spend here. So it is not surprising to see. You did name our three favorite names. So as you know, we look at the dataset, we see which ones have the most positive inflections, and we put outlooks on those. And you did mention Zscaler, Okta and CrowdStrike, by far the three standouts that we're seeing. I just recently did a huge panel on Okta talking about their acquisition of Auth Zero. They're pushed into Sale Point space, trying to move just from single sign on and MFA to going to really privileged account management. There is some hurdles there. Really Okta's ability to do this on-prem is something that a little bit of the IT end users are concerned about. But what we're seeing right now, both Okta and Auth Zero are two of the main adopted names in security. They look incredibly well set up. Zscaler as well. With the ZTNA push more towards zero trust, Zscaler came out so hot in their IPO. And everyone was wondering if it was going to trail off just like Snowflake. It's not trailing off. This thing just keeps going up into the right, up into the right. The data supports a lot of tremendous growth for the three names that you just mentioned. >> Yeah. Yeah. I'm glad you brought up Auth Zero. We had reported on that earlier. I just feel like that was a great acquisition. You had Okta doing the belly to belly enterprise, you know, selling. And the one thing that they really lacked was that developer momentum. And that's what Auth Zero brings. Just a smart move by Todd McKinnon and company. And I mean, so this, you know, I want to, I want to pull up another chart show a quick snapshot of some of the players in the survey who show momentum and have you comment on this. We haven't mentioned Snowflake so far, but they remain again with like this gold standard of net score, they've consistently had those high marks with regard to spending velocity. But here's some other data. Erik, how should we interpret this? >> Erik: Yeah, just to harp on Snowflake for a second. Right, I mean the rich get richer. They came out- IPO was so hyped, so it was hard for us as a research company to say, "Oh, you know, well, you know, we agree." But we did. The data is incredible. You can't beat the management team. You can't beat what they're doing. They've got so much cash. I can't wait to see what they do with it. And meanwhile, you would expect something that debuted with that high of a net score, that high of spending velocity to trail off. It would be natural. It's not Dave, it's still accelerating. It's gone even higher. It's at all time highs. And we just don't see it stopping anytime soon. It's a really interesting space right now. Maybe another name to look at on here that I think is pretty interesting, kind of a play on return to business is Kupa. It's a great project expense management tool that got hit really hard. Listen, traveling stopped, business expense stopped, and I did a panel on it. And a lot of our guys basically said, "Yeah, it was the first thing I cut." But we're seeing a huge rebound in spending there in that space. So that's a name that I think might be worth being called out on a positive side. Negative, If you look down to the bottom right of that chart, unfortunately we're seeing some issues in RingCentral and Zoom. Anything that's sort of playing in this next, you know, video conferencing, IP telephony space, they seem to be having really decelerating spending. Also now with Zoom's acquisition of five nine. I'm not really sure how RingCentral's going to compete on that. But yeah, that's one where we debuted for the first time with a negative outlook on that name. And looking and asking to some of the people in our community, a lot of them say externally, you still need IP telepany, but internally you don't. Because the You Cast communication systems are getting so sophisticated, that if I have Teams, if I have Slack, I don't need phones anymore. (chuckling) That you and I can just do a Slack call. We can do a Teams call. And many of them are saying I'm truly ripping out my IP Telepany internally as soon as possible because we just don't need it. So this whole collaboration, productivity space is here to stay. And it's got wide ranging implications to some of these more legacy type of tools. >> You know, one of the other things I'd call out on this chart is Accenture. You and I had a session earlier this year, and we had predicted that that skill shortage was going to lead to an uptick in traditional services. We've certainly seen that. I mean, IBM beat its quarter on the strength of services largely. And seeing Accenture on that is I think confirmation. >> Yeah that was our New Year prediction show, right Dave? When we made top 10 predictions? >> That's right. That was part of our predictions show. Exactly, good memory. >> The data is really showing that continue. People want the projects, they need to do the projects, but hiring is very difficult. So obviously the number one beneficiary there are going to be the Accentures of the world. >> All right. So let's do a quick wrap. I'm going to make a few comments and then have you bring us home, Erik. So we laid out our scenario for the tech spending rebound. We definitely believe last year tracked downward, along with GDP contraction. It was interesting. Gardner doesn't believe, at least factions of Gardner don't believe there's a correlation between GDP and tech spending. But, you know, I personally think there generally is some kind of relatively proportional pattern there. And I think we saw contraction last year. People are concerned about inflation. Of course, that adds some uncertainty. And as well, as you mentioned around the Delta variant. But I feel as though that the boards of directors and CEOs, they've mandated that tech execs have to build out digital platforms for the future. They're data centric. They're highly automated, to your earlier points. They're intelligent with AI infused, and that's going to take investment. I feel like the tech community has said, "Look, we know what to do here. We're dealing with hybrid work. We can't just stop doing what we're doing. Let's move forward." You know, and as you say, we're flying again and so forth. You know, getting hybrid right is a major priority that directly impacts strategies. Technology strategies, particularly around security, cloud, the productivity of remote workers with collaboration. And as we've said many times, we are entering a new era of data that's going to focus on decentralized data, building data products, and Erik let's keep an eye on this observability space. Lot of interest there, and buyers have a number of choices. You know, do they go with a specialist, as we saw recently, we've seen in the past, or did they go with the generalist like Service Now with the acquisition of LightStep? You know, it's going to be interesting. A lot of people are going to get into this space, start bundling into larger platforms. And so as you said, there's probably not enough room for all the players. We're going to see some consolidation there. But anyway, let me give you the final word here. >> Yeah, no, I completely agree with all of it. And I think your earlier points are spot on, that analytics and automation are certainly going to be moving more and more to that left of that chart we had of priorities. I think as we continue that survey heading into 2022, we'll have some fresh data for you again in a few months, that's going to start looking at 2022 priorities and overall spend. And the one other area that I keep hearing about over and over and over again is customer experience. There's a transition from good old CRM to CXM. Right now, everything is digital. It is not going away. So you need an omni-channel support to not only track your customer experience, but improve it. Make sure there's a two way communication. And it's a really interesting space. Salesforce is going to migrate into it. We've got Qualtrics out there. You've got Medallia. You've got FreshWorks, you've got Sprinkler. You got some names out there. And everyone I keep talking to on the IT end user side keeps bringing up customer experience. So let's keep an eye on that as well. >> That's a great point. And again, it brings me back to Service Now. We wrote a piece last week that's sort of, Service Now and Salesforce are on a collision course. We've said that for many, many years. And you've got this platform of platforms. They're just kind of sucking in different functions saying, "Hey, we're friends with everybody." But as you know Erik, software companies, they want to own it all. (both chuckling) All right. Hey Erik, thank you so much. I want to thank you for coming back on. It's always a pleasure to have you on Breaking Analysis. Great to see you. >> Love the partnership. Love the collaboration. Let's go enjoy this summer Friday. >> All right. Let's do. Okay, remember everybody, these episodes, they're all available as podcasts, wherever you listen. All you got to do is search Breaking Analysis Podcast, click subscribe to the series. Check out ETR's website at etr.plus. They've just launched a new website. They've got a whole new pricing model. It's great to see that innovation going on. Now remember we also publish a full report every week on WikiBond.com and SiliconAngle.com. You can always email me, appreciate the back channel comments, the metadata insights. David.Vellante@SiliconAngle.com. DM me on Twitter @DVellante or comment on the LinkedIn posts. This is Dave Vellante for Erik Bradley and theCUBE insights powered by ETR. Have a great week, a good rest of summer, be well. And we'll see you next time. (inspiring music)

>>Live from Barcelona, Spain. It's the Cube covering Cisco Live 2020 right to you by Cisco and its ecosystem partners. >>Welcome back to the Cube's live coverage here at Cisco Live 2020 in Barcelona, Spain. I'm jumpers student of cube coverage. We've got a lot of stuff going on in Cisco Multi cloud and cloud technology. Quantification of Cisco's happening in real time is happening right now. Cloud is here here to stay. We got two great guests unpack what's going on in cloud native and networking and applications as the modern infrastructure and software evolves. We got you. Gene Kim, global product marketing. Compute Storage at Cisco Global marketing manager and Rob Gori, senior director. Cloud Solution Marketing Guys come back. Thanks for coming back. Appreciate it. Great to see you Barcelona guys. So, Bobby, we've had multiple conversations and you see that from the sales force given kind of the the discussion in the motivation Cloud is big. It's here. It's here to stay. It's changing. Cisco AP I first week here in all the products, it's changing everything. What's the story now? What's going on? >>I would say you know the reason why we're so excited about the launch here in Barcelona is because this time it's all about the application of spirits. I mean, the last two years we've being announcing some really exciting stuff in the cloud space where I think about all the announcements with AWS is the Googles the azure, so the world. But this time it really boils down to making sure that is incredibly hyper distributive world. There is an application explosion. Ultimately, we will help for the right operation stools and infrastructure management tools to ensure that the right application experience will be guaranteed for the end customer. And that's incredibly important because at the end, what really really matters is that you will ensure the best possible digital experience to your customer. Otherwise, ultimately nothing's gonna work. And, of course, you're gonna lose your brand and your customers. >>One of the main stories that we're covering is the transformation of the industry. Also, Cisco and one of the highlights to me was the opening keynote. You had APP dynamics first, not networking. Normally it's like what's in the hood? Routers and the gear. No, it was about the applications. This is the story we're seeing. It's kind of a quiet unveiling. Its not get a launch, but it's evolving very quickly. Can you share what's going on behind this? All this? >>Absolutely. It's exactly along the lines of what I was saying a second ago, in the end that the reason why we're driving the announcement, if you want from the application experience side of the House, is because with Appdynamics, we already have very, very powerful application performance management, which it's evolving extremely rapidly. First of all, Appdynamics can correlate not just the application for four months to some technology, maybe eyes, but through actual business KP eyes. So app dynamics can give you, for instance, serial time visibility off, say, a marketing funnel conversion rates transactions that you're having in your in your business operation. Now we're introducing an incredibly powerful new capability that takes the bar to a whole new level. And that's the Appdynamics experience. Journey maps. What are those? It's actually the ability off, focusing not so much on front ends and back ends and the business performances, but really focusing on what the user is seen in front of his or her screen. And so what really matters is capturing the journey that given user of your application is being and understanding whether the experience is the one that you want to deliver or you have, like, a sudden drop off somewhere. And you know why this is important because in the end we've been talking about is the problem of the application, performance issues or performance. It could be a badly designed page. How do you know? And so this is a very precious information they were giving to application developers know, just through the idea. Ops, guys, that is incredibly gracious. >>Okay, you want to get this in. So you just brought up that journey. So that's part of the news. Just break down real quick. One minute what the news is. >>Yeah, so we have three components. The 1st 1 as you as you correctly pointed out, is really the introduction of the application. The journey maps, right. The experience journey maps. That's very, very important. The second he's way are actually integrating Appdynamics with the inter site. Actually, inter site the optimization manager, the workload optimization, workload, optimizer. And so because there is exchange of data between the two now, you are in a position to immediately understand whether you have an application problem. We have a worker problem for structure problem, which is after me, where you really need to do as quickly as you can. And thirdly, way have introduced a new version of our hyper flex platform, which is hyper converge flagship platform for Cisco with a fully containerized version, the tax free if you want as well, that is a great platform for containerized applications. >>So you do and what I've been talking to customers last few years. When they go through their transformational journey, there's the modernization they need to do. The pattern I've seen most successful is first, modernize the platform often HD I is, you know, an option for that. It really simplifies the environment, reduces the silos on, has more of that operational model that looks closer to what the cloud experience is. And then, if I've got a good platform, then I can modernize the applications on top of it. But often those two have been a little bit disconnected. It feels like the announcements now that they are coming together. What are you seeing? What're you hearing? How your solutions at solving this issue >>exactly. I mean, as we've been talking to our customers, a lot of them are going through a different application. Modernizations and kubernetes and containers is extremely important to them. And to build a container cloud on Prem is extremely one of their needs. And so there's three distinctive requirements that they've kind of talk to us about. A lot of it has to be ableto it's got to be very simple, very turnkey, fully integrated, ready to turn on the other. One is something that's very agile, right? Very Dev Ops friendly and the third being a very economic container cloud on prim. So as you mentioned, High Flex Application Platform takes our hyper converge system and build on top of it a integrated kubernetes platform to deliver a container as a service type capability. And it provides a full stack, fully supported element platform for our customers, and one of the best great aspects of it is it's all managed from inter site, from the physical infrastructure to the hyper converge layer to all the way to the container management. So it's very exciting to have that full stack management and inter site as well. >>It's great to see you, John and I have been following this kubernetes wave since the early early days. Fabio mentioned integrations with the Amazons and Googles of the world because, you know, a few years ago you talk to customers and they're like, Oh, well, I'm just going to build my own community. Nobody ever said that is easy now. Just delivering as a service seems to be the way most people want it. So if I'm doing it on Amazon or Google, they've got their manage service that I could do that or that there partners we're working with. So explain what you're doing to make it simpler in the data center environment. Because on Prem absolutely is a piece of that hybrid equation that customers need. >>Yes, so, essentially from the customer experience perspective, as I mentioned, very fairly turnkey right from the hyper flex application platform we're taking are happening for software were integrating a application virtualization layer on top of it analytics k VM based. And then on top of that, we're integrating the kubernetes stack on top of as well. And so, in essence, right? It's a fully curated kubernetes stack that has all the different elements from the networking from the storage elements and provide that in a very turnkey way. And as I mentioned, the inter site management is really providing that simplicity that customers need for that management. >>Fabio This is the previous announcements you've made with the public clouds. This just ties into those hybrid environments. That's exactly a few years ago. People like, Oh, is there going to be a distribution that wins in kubernetes? We don't think that's the answer, but still, I can't just move between kubernetes. You know seamlessly yet. But this is moving toward that >>direct. Absolutely. A lot of customers want to have a very simple implementation. At the same time, they weren't off course a multi cloud approach and I really care about marking the difference between multi cloud hybrid Cloud has been a lot of confusion. But if you think about a multi cloud is re routed into the business need or harnessing innovation from wherever it comes from, you know the different clouds capability from things, and you know what they do today. Tomorrow it could even change, so people want optionality, so they want a very simple implementation that's integrated with public cloud providers that simplifies their life in terms of networking, security and application of workload management. And we've been executing towards that goal so fundamentally simplify the operations of these pretty complex kind of hybrid apartments. >>And once you nail that operations on hybrid, that's where multi cloud comes in. That's really just a connection point. >>Absolutely, you know, you might know is an issue. So in order to fulfill your business, your line of business needs you. Then you have a hybrid problem, and you want to really kind of have a consistent production grade environment between things on Prem that you own and control versus things that you use and you want to control better. Now, of course, they're different school thoughts. But most of the customers who are speaking with really want to expand their governance and technology model right to the cloud, as opposed to absorb in different ways of doing things from each and every time. >>I want to unpack a little bit of what you said earlier about the knowing where the problem is, because a lot of times it's a point, the finger at the other first, it's the application promising the problem, so I want to get into that. But first I want to understand the hyper flex application platform. Eugene, if you could just share the main problem that you guys solve, what are some of the pain points that customers had? What problem does the AP solved? >>Yeah, as I mentioned, it's really the platform for our customers to modernize the applications on right, and it addresses those things that they're looking for as far as the economics right, really? The ability to provide a full stack container experience without having to, you know, but bringing any third party hyper visor licenses as well support costs that's well integrated. There you have your integrated, hyper converged storage capability. You have the cloud based management, and that's really developing. You provide that developer dev ops simplicity from that agility that they're looking for internally as well as for their production environments. And then the other aspect is the simplicity to manage all this right and the entire life cycle management >>as well. So it's the operational side of the hole in under the covers hobby on the application side where the problem is because this is where I'm a bit skeptical, Normal rightfully so. But I can see a problem where it's like Whose fault is it? Applications, problem or the network? I mean, it runs on where? Sears Workloads, Banking app. It's having trouble. How do you know where the problem is? And how do you solve that problem with what's going on for that specific issue? >>Absolutely. And you know, the name of the game here is breaking down this operational side, right? And I love what are appdynamics VP? GM Any? Whitaker said. You know, he has this terminology. Beast develops, which it may sound like an interesting acrobatics, but it's absolutely too. The business has to be part of this operational kind of innovation because, as you said, you know, developer just drops their containers and their code to the I T. Ops team, but you don't really know whether the problem a certain point is going to be in the code or in the application is actually deployed. Or maybe a server that doesn't have enough CPU. So in the end, it boils down to one very important thing. You have to have visibility, insights and take action at every layer of the stack. Instrumentation. Absolutely. There are players that only do it in their software overlay domain. The problem is, very often these kind of players assume they're underneath. Things are fine, and very often they're not. So in the end, this visibility inside in action is the loop that everybody's going after these days, too, Really get to the next. If you want a generational operation, where you gotta have a constant feedback loop and making it more faster and faster because in the end you can only win in the marketplace, right? So your I T ops, if you're faster than your competitors, >>will still still questioning the GM of APP Dynamics. Run, observe, ability. And he's like, No, it's not a feature, it's everywhere. So he's comment was observe. Abilities don't really talk about it because it's a big in. You agree with that? >>Absolutely. It has to be at every layer of the stack, and only if you have visibility inside an action through the entire stock, from the software all the way to the infrastructure level that you can solve the problems. Otherwise, the finger pointing quote unquote will continue, and you will not be able to gain the speed you need. >>Okay, so The question on my mind I want to get both of you guys could weigh in on this is that if you look at Cisco as a company, you got a lot going on. You guys huge customer base core routers to know applications. There's a lot going on a lot of a lot of complexity. You got I o. T. Security members talking about that. You got the WebEx rooms totally popular. It's got a lot of glam, too, and having the WebEx kind of, I guess, what virtual presence was telepresence kind of model. And then you get cloud. Is there a mind share within the company around how cloud is baked into everything? Because you can't do I ot edge without having some sort of cloud operational things. Stuff we're talking about is not just a division. It's kind of it's kind of threads everywhere across Cisco. What's the what's the mind share right now within the Cisco teams and also customers around cloud ification? >>Well, I would say it's it's a couple of dimensions. The 1st 1 is the cloud is one of the critical domains of this multi domain architecture. That, of course, is the cornerstone of Cisco's. The knowledge is strategy, right? If you think about it, it's all about connecting users to applications wherever they are and not just the users to the applications themselves. Like if you look at the latest US from I. D. C. 58% of workloads is heading to a public cloud, and the edge is like the data center is exploding many different directions. So you have this highly distributed kind of fabric. Guess what sits in between. All these applications and micro services is a secure network, and that's exactly what we're executing upon. Now that's the first kind of consideration. The second is if you look at the other civil line. Most of the Cisco technology innovation is also going a direction of absorbing cloud as a simplified way of managing all the components or the infrastructure. You look at the hyper flex. AP is actually managed by Inter site, which is a SAS kind of component. This journey started long time ago with Cisco Iraqi on then, of course, we have sass properties like WebEx. Everything else absolutely migrate borders. >>We've been reporting Eugene that five years ago we saw the movement where AP, eyes were starting to come in when you go back five years ago. Not a lot of the gear and stuff that Cisco had AP eyes. Now you got AP eyes building in all the new products that you see the software shift with you intent based networking to APP dynamics. It's interesting. It's you're seeing kind of the agile mindset. This is something you and I talk all the time. But agile now is the new model. Is it ready for customers? I mean, the normal enterprises still have the infrastructure and separated, and they're like, Okay, how do I bring it together? What do you guys see in the customer base? What's going on with that early adopters, Heavy duty hardcore pioneers out there. But you know, the general mainstream enterprise. Are they there yet? Have they had that moment of awakening? >>Yeah, I mean, I think they they are there because fundamentally, it's all about ensuring that application experience. And you could only ensure the application experience right by having your application teams and infrastructure teams work together. And that's what's exciting. You mentioned Ap eyes and what we've done. They were with APP dynamics, integrating with inner sight workload. Optimizer as you mentioned all the visibility inside in action and what APP Dynamics has provides. Provide that business and end user application performance experience. Visibility Inter site. It's giving you visibility on the underlining workload, and the resource is whether it's on prim in your private data center environment or in a different type of cloud providers. So you get that full stack visibility right from the application all the way down to the bottom and then inter site local optimizer is then also optimizing the resource is to proactively ensure that application experience. So before you know, if we talk about someone at a check out and they're about there's of abandonment because the function is not working, we're able to proactively prevent that and take a look at all that. So, you know, in the end, I think it's all about ensuring that application experience and what we're providing with APP Dynamics is for the application team is kind of that horizontal visibility of how that application performing and at the same time, if there's an issue, the infrastructure team could see exactly within the workload topology, where the issue is and entertain safely, whether it be manual intervention or even automatically our ops capability. Go ahead and provide that action so the action could be, you know, scaling out the VM that's on Prem or looking at new, different type of easy to template in the cloud. That's a very exciting about this. It's really the application experience is now driving and optimize the infrastructure in real >>time. And let me flip your question like, Do you even have a choice, John, when you think about in the next two years 50% more applications? If you're a large enterprise here, 5 to 7000 apps you have another 2 3000 applications just coming into into the and then 50% of the existing ones that are going to be re factor lifted and shifted the replace or retired by SAS application. It's just like a tsunami that's that's coming on you and oh, by the way, because again the micro services kind of effect the number of dependencies between all these applications is growing incredibly rapidly, Like last year, we were eight average interdependencies for applications. Now we have 20 so in Beijing imaginable happens as you are literally flooded with this can really you have to ensure that your application infrastructure fundamentally will get tied up as quickly as you can >>see. You and I have been talking for at least five years now, if not longer. Networking has been the key kind of last change over clarification. I would agree with you guys. I think last question because I wanted to get your perspective. But think about it. It's 13 years since the iPhone so mobile has shown people that mobile app can change business. But now you get the pressure of the networks. Bringing that pressure on the network or the pressure of the network to be better than programmable is the rise of video and data. I mean, you got mobile check now you got it. Video. I mean more people doing video now than ever before. Videos of consumer. Well, it's streaming. You got data? These two things absolutely forced customers to deal with it. >>But what really tipped the balance? John is actually the SAS effect is the cloud effect because, as you know, it's an I t. So the inflection points. Nothing gets a linear right. So once you reach a certain critical mass of cloud apps, and we're absolutely they're already all of a sudden your traffic pattern on your network changes dramatically. So why in the world are you continuing? Kind of, you know, concentrating all of your traffic in your data center and then going to the Internet. You have to absolutely open the floodgates at the branch level and as close to the users this possible, and that it implies a radical change of the >>way I would even add to that. And I think you guys are right on where you guys are going. It may be hard to kind of tease out with all the complexity with Cisco, but in the keynote, the business model shifts come from SAS. So you got all this technical stuff going on. You have the sass ification, or cloud changes the business models so new entrants can come in and existing players get better. So I think that whole business model conversation never was discussed at Cisco Live before in depth. Okay, run your business, connect your hubs campus move packets around Dallas applications in business model, >>but also the fact that there is increasing number off software capabilities and so fundamental. You want to simplify the life of your customers through subscription models that help the customer buying a using what they really need the right at any given point in time, all the way to having enterprise agreements. >>I also think that's about delivering these application experiences free for small, different experience. That's really what's differentiating you from your competitors, right? And so that's a different type of >>shift as well. Well, you guys have got a good That's a good angle on this cloud. I love it. I got to ask the question. What can we expect next from Cisco? More progression along cloud ification? What's next? >>Well, I would say we've been incredibly consistent, I believe in the last few years in executing on our cloud strategy, which again is sent around helping customers really gluing this mix, set off data centers and clouds to make it work as one right as much as possible. And so what we really deliver is networking security and application performance management, and we're integrating this more and more on the two sides of the equation, right? The data center side and the public cloud side and more more integrated in between all of these layers again, to fundamentally give you this operational capability to get faster and faster. We'll continue doing so and >>we'll get you set up before we came on camera that you were talking to sales teams. What are they? What's the vibe with sales team? They get excited by this. What's the >>oh yeah, feedback. And absolutely, from the inter site work optimizer and the app Dynamics side. It's very exciting for them. Switch the conversation they're having with their customers, really from that application experience and proactively ensuring it. And on the hyper flex application platform side, this is extreme exciting with providing a container cloud to our customers. And you know what's coming down is more and more capabilities for our customers to modernize the applications on hyper >>flex. You guys are riding a pretty big waves here at Cisco in a cloud way to get the i o t. Security wave. Great stuff. Thanks for coming in. Thanks for sharing the insights. Appreciate it. >>Thank you for having >>coverage here in Barcelona. I'm John. First, Minutemen back with more coverage. Fourth day of four days of cube coverage. Be right back after this short break. >>Yeah, yeah, yeah.

>>Fly from Barcelona, Spain. It's the cube covering Cisco live 2020 route to you by Cisco and its ecosystem partners. >>Hello everyone. Welcome back to the cubes live coverage. Four days here in Barcelona, Spain for Cisco live 2020 kicking off the year. Great event. I'm Jafar way my co Stu Miniman, our next guest, Danny Winokur, general manager of app dynamics, part of Cisco and special keynoter headlining the event, the networking show headlining by the app development story. Any welcome to the cube. Thanks for joining us. Thank you. It's good to be here. So one of the big signals, I think it was a shot across the bow to the industry, but also internally within Cisco has been the multi-year movement around getting API APIs built into the products. You start to see dev ops become network ops. Now with app dynamics, digging down into the infrastructure provide great value, but in a DevOps way. This is, this is the top story in my mind. You've led the keynote, which was very unusual for Cisco. Was it planned that way? Tell us some of the background. >>Well, it was planned that way. And I think part of what we're recognizing is that in the world that we're now living in where applications have moved to become the center of the business, you have business initiatives encoded in applications and that's what actually drives the use of technology in the organization. So it really starts with the application. And Cisco of course recognizes that and that has implications for the way we think about the entire technology stack. And so we see it as an opportunity to actually make the infrastructure and the people that actually buy and work with the infrastructure, the infrastructure engineers and operations teams, network engineers and network operations teams, they become much more relevant by actually looking at how the technologies and the work that they do are actually placed within the context of the application and how that application and the experiences within it are delivering a business result to the larger organization. >>Yeah, and one of the big trends, how she's doing, I were early days in the cloud, watch Amazon rise up. No one kind of saw that common. Most of the insiders did, but API APIs were key, but the word dev ops was started around that time. Infrastructure as code makes a lot of sense. Programmable infrastructure. That's right. You guys picked up on that. We've been covering that for now for a four years around programmable networking and you guys have been just goes, been shifting the products, but during the keynote you mentioned biz dev ops, which I thought was a very fascinating stake in the ground. Could you explain what you meant by that? Because if I think what you're saying is true, this is now another layer of opportunity that takes advantage of all the scale. The agility. Efficiency. >>Yeah, that's right. That's right. So I mean, what's what's going on is companies that now say, okay, my business is now in my app. The app has become the business. They have to now figure out how do they iterate very, very quickly on that application. And in order to iterate very quickly, the business team, the development team and the operations teams need to work together in a closed loop operating model. Because if they don't work together closely, they have two big problems, right? One is the business initiatives which move very quickly, can't get encoded quickly enough in the application and the application falls behind and the business suffers. Number two, they can't produce winning experiences because executives like us sitting in a conference room with an idea for an experience are almost always wrong about what's going to work for the end-users. The way it works in the modern world and what we know from digital native organizations that have pioneered this is that you actually have to form user research and a hypothesis from it and it in your application and get it quickly in front of your users with real time measurement and telemetry and then you use that to inform yourself in real time around what's working and what's not. >>You reform your hypothesis, make that adjustment reimplementing code, get it back out and iterate and iterate and the more shots on goal that you're able to take with the velocity of iteration, the more likely you are to get to the winning experience. So biz dev ops is really around getting those three teams, the business team, the development team, and the operations team working together with velocity in a new operating model that allows you to actually gain the competitive advantage that's necessary in an experience driven application centric world where the infrastructure and development team and the business are now all working together in tandem, in lockstep. >>The antennae had really interesting stuff as we all know that the organizational construct in the silos often slow down that that innovation and growth we watched for years developers, they find their tools, they do their thing, but as you said, it's got to be connected with the business. I want to make sure I understand. We've seen somewhat places where some of the tooling actually is getting people together because they have common data. You give the business people things in their colors and languages as opposed to the developers. They need different things out of it, but it's a, it's a backbone or back plane buildings together. So are those business product owners or business leaders actually coming into and seeing things? Is it at that level, the >>really important point, right? The problem that we've seen in the traditional operating model is not only are the teams siloed, but the technologies and the data that they rely upon keep them siloed. And so as the changes in the market are pushing them to work together for the reasons I said, they need common tooling and common data sets. And so what we're actually doing at Cisco is connecting app dynamics to the tools that are beneath it in the stack. Like what we announced yesterday with the inner site inner site workload optimizer and what we've previously done with ACI for the software defined data center networking fabric so that you can actually have each team, each persona use a tool that they're comfortable with that's specialized for their domain, but the datasets are now connected. So it gives them a single source of truth that allows them, instead of finger-pointing when something goes wrong or they need to optimize, they're able to actually have a shared source of truth and they can say, okay, I understand my domain here, I understand my domain here, but they're telling me the same thing, and that makes it easier for them to collaborate in this closed loop, the operating model. >>Whereas it was harder to do that when they were looking at their separate tools and separate data. One of the things I want to get your thoughts on, Danny, is as coming from the app dynamics side now at Cisco, you've seen a lot of modern used the word modern applications. The modern architecture is evolving. People see the picture, they know what to do. Most enterprises outside of the the pioneers, they're like, okay, I love the idea of biz dev ops, but Hey, I'm just trying to figure out which cloud I'm going to use. Right. Okay. So take me through how you engage with that because you're kind of, you might be ahead of the curve on the thought process, but I'm just trying to crop the cloud and it's impacted me as a notarized. What do you say to that? What's that? What's your answer to that? >>I mean, what we see going on right now is that in almost every single organization that has their business now running in the apps, those apps are hybrid multi-cloud apps, right? They recognize that in order to iterate quickly on the front end of the application, they probably need to use some of the latest cloud based technologies, either in the public cloud or in a private cloud on premise us. But they also have other components of their architecture that are going to be using something more like web technologies or client server technologies or in some organizations still mainframe technologies for backend data access. And so you end up with this sort of diverse array of layered tech stacks across different deployment environments in a multi-cloud world. And they have to work together seamlessly. And so part of what we've done is innovate lenses within app dynamics that actually give you a view through that complexity so that you can focus on what really matters most. >>And that was yesterday's announcement of the experience journey map that we have from app dynamics, right? It compliments what we've done before with business transactions and business IQ and adds a new lens that is focused on the screens that the end users are actually seeing in their browser or on their mobile device. And it automatically uses AI and ML technology to map a screen by screen journey flow through the application that the user's actually seen and experienced seeing and experiencing. And within that screen-based view, it gives you business data like abandonment rate and it correlates it down to the technical performance of what's actually being served to the user on that screen so that you can quickly determine where are the technology issues across this broad hybrid multi-cloud estate. Where are they actually surfacing issues or not on the screens that your users are seeing. >>So you can now prioritize the warnings on the back end based on what your users really need you to address right away. So if I hear you correctly, what you're saying is essentially cause instrumentation. You mentioned that earlier data is critical. So what you're saying is you could have abandonment rates say's an app or whatever and say maybe there's a DDoS attack on, on a switch or a firewall. So I might want to scale that up with policy. So you're seeing, you're coordinating technical remedies or architectural changes based upon what you know, the business logic, is that what you're kind of getting at? That's exactly right. So we know from data that we have from our app attention index, that 50% of users are willing to pay more for a competitor's product if it performs and gives them a better experience. And worst yet 63% of users and the app potential index have told us that if they get a subpar digital experience, they're going to go out and actually not only leave but bad mouth, the experience that they had and spread ill will about your application. >>So what has to happen in that world is you have to actually relate your business performance data to the user experience within the screen, through the experience journey map into the backend application components, which is the business transaction and then down through intersite into the layers of the infrastructure where you can actually get into the chassies, the blades, the fans, the Dems and the network. So essentially it's like auto scale and concept that will, you know, in cloud that's right. Fly to the app level and a feature by feature basis. That's right. And you can do it exactly. You can do it within the context of the key experiences that have been prioritized as the ones that contribute the greatest impact of your business results. And you can work load optimize and scale infrastructure dynamically and automatically. Final, final point on this cause a good thread here. >>So final question is, okay, now prove it to me. How much money did I make? Can you guys tie that to actual dollars? Because then on the client's side, do they have to program then? No. So you can within app dynamics, through our business IQ capabilities, tell us through the interface of their product, what are the pieces of business data that are the key measures of your business success. It could be dollars, it could be cents, it could be skews, it could be a product ID, it could be an abandonment rate or a funnel conversion through your funnel. You tell us what are those metrics that you need and we will actually introspect, pull them out and give you a real time ROI. It is. That's what it is. So, so Denny, the thing I've been trying to chomp at the bid here, I'm agreeing with a lot of what you're saying. >>There was a trend that was all over everywhere that we went in 2019 that I heard and haven't heard you use a certain word. It's observability. Certain people are like one of the biggest trends of 2020 help us understand your viewpoint on observability what you're hearing from customers because much of the language you're talking about of that systems view resonates as what we're talking about. Observability so just not fond of the word or none. Not trying to jump on that bandwagon. It's a buzzword. What I'm talking about is full stack observability. That's exactly what it is. You can go from the business to the end user experience, the application, the compute infrastructure, the network infrastructure and the security domain that wraps at all and you can actually now see with telemetry that we're pulling in from each of those layers whether it's using app dynamics or using some of the instrumentation that Cisco has across those other infrastructure layers and security layers of the stack. >>We pull that all together with AI and ML produce insights and then provide an API that allows integration with systems for automation and action that is not only full stack observability it's full stack observability paired with the ability to implement an AI ops operating model that then supports a biz dev ops way of working for the company. You might want to throw in horizontal observability too because you know with cloud you've got horizontal scalable across deployment. Exactly across your deployment environment and from an application standpoint, everything from kind of traditional model is through microservices. Do things with serverless do are absolutely we have, we have agent technologies that take care of the very latest serverless technologies. We have things for Kubernetes cluster monitoring, we have support for CloudWatch and then going all the way back to the other side. Of course, traditional job applications.net applications back to mainframes IIB. >>We monitor and support all of that. It's the broadest array of visibility of what you're going to cabbage in the company working for you, the all the cool stuff. Cloud native Coobernetti's we've tried, we let, we like to be the cool kids. Magic questions. So I got to ask you, since you've got a good view up and down the stack and across multiple domains and workloads and clouds, what do you think, going into 2020 with this show and beyond, what is the most important story you think that people are talking about and what's the most important story that you think people should be talking about? I think the most important thing that's going on right now is figuring out how to connect across the different technologies and the different layers, right? We're coming from a place where there's naturally been a specialization within each of the domains. >>The whole point now is about multi domain and actually connecting the different layers of the technology stack to produce insights that allow for movement in this lock step higher velocity model. Because what we know from all of the data and all of the experience with customers is that the winners and an experience driven world are those that can actually implement with velocity, not break things and deliver well-designed, beautiful experiences. And in order to do that, you need to be able to connect these different technologies and get the teams that traditionally run them working together in a much more collaborative, what are people missing? What should we be people be focused on. Outside of that, what other areas that either the media or customers, what are the, what are some of the hidden gems out there that people should really pay attention to? Well, I think, I mean I think there's a lot of exciting innovation that is going on in some of the new cloud native technologies in the cloud native architectures. >>The other thing that I think is a little bit of a hidden thing that a lot of people haven't realized is that the cloud is great for some of the really high velocity, fast moving things, but it's not always the most efficient or the least, sorry, the most cost effective way, least least costly way of running everything and so we actually do see some recoil back to these hybrid environments where people are actually now running some cloud technologies on premise us and so I think that's an area to watch as we see some of the public cloud players, obviously out of the traditional players bringing cloud innovation, but running that on premises in a way that connects seamlessly to elastic scalable public cloud resources that work together in tandem. I guess last >>question I had for you, I think it was in your keynote, I heard you talk about customers using app D as being agents of transformation. Just what advice do you give them? You know, where are some of the stumbling blocks that if they don't have a conversation or understand a certain architecture that they're going to run into some issues? >>Yeah. So for us, an agent of transformation is the sort of notion of a change agent in the organization that recognizes the things we've been talking about where the world is going and is seeking to be that disruptive force of change inside the company. And in order to do that, what we have found is they're most successful when they get their hands on hard cold data, right? That's how you convince an organization. You show them the data and you connect the data and the technology to a business result. And so the most effective change agents have been able to go into the depths of the technology. They've been able to correlate data sets up and down the stack and then walk into the board room at the executive level and show in an undeniable evidence based way that these layers of technology are producing this business result and the organization needs to invest to accelerate that. And that's >>jail model too. You just get the data and iterate. Double down on absolutely what you want. It brings it all the way up to the boardroom. Danny, thanks so much for taking the time to share that. Great insights. I'll give you a minute to get a plug in for app dynamics. What do you guys got going on? Which shows you're going to be at the coming year, actually Cisco live in America. Any other event you going to be there? Any investment areas? Give a quick plug for what's going on. >>Yeah, no, I appreciate it. The next big one for us is on February the 20th we're running a global virtual event called app dynamics transform 2020 which is our annual showcase where we bring together all of the latest and greatest innovations that app dynamics has across what we're doing with AI and ML. Everything that we're doing around new experiences, cloud native technologies, the AI ops operating model, our vision for the central nervous system for it, and we're going to showcase all of that demo and talk about our roadmap. So it's a global live virtual event. Come to our website, aptdynamics.com and please tune it. Right. Well, congratulations for your success and thank you. Love to have you come into our studio. Talk about what you're doing with video because that's a hard, hard problem. We talked to Sri about that. Thanks for coming. I really appreciate it. Thank you guys. Yeah, appreciate it. We're here in the cube AptDynamics headlining the keynote at Cisco systems. A networking company turned into a data company, a video company, an instrumentation company. Application can be all now in one. Just the cube bringing you all the data here in Barcelona. I'm John. We'll be back with more live coverage after this short break.

(upbeat music) >> From Washington D.C. it's theCUBE. Covering ScienceLogic Symposium 2019. Brought to you by ScienceLogic. >> I'm Stu Miniman and you're watching theCUBE's exclusive coverage of ScienceLogic Symposium 2019 here at the Ritz-Carlton in Washington D.C. Happy to welcome to the program a first time guest off the keynote stage this morning Bailey Szeto who is the Vice President of Customer and Seller Experience IT at Cisco. Thanks for coming and joining us. >> My pleasure. >> All right so Bailey, I've actually, you know I've watched, and partnered, and worked with Cisco my entire career but you actually changed my view of something about Cisco in your keynote this morning. And that's, you know, you said that 99% of Cisco's 50 billion dollars plus is transacted online so I should be thinking of you more as like Amazon.com you know, than as, you know the networking giant I've know my entire career. >> Well You know it's certainly true that most of our revenue comes through our online presence but it's perhaps in a different manner than what you're thinking right? So obviously we do do some business direct and we might have some stragglers selling, buying something with a credit card, but that's not the bulk of our business. The bulk of our business is through primarily partners, resellers and when I say online I meant B to B transactions. >> No no. I totally understand Bailey and what I love is you're in Cisco IT. >> That's right. >> And therefore we're not going to talk about a lot of the networking pieces. We're going to talk about what runs Cisco's business and you have the pieces and you know client success and support and all those run, and even, I didn't even realize the employee engagement all runs through you know Cisco.com >> That's right. >> And I love you did a nice little video. Gave all of those that have been in the industry. You kind of go through and look at the history of like oh okay there's the HTML stuff I used to code. >> That's right, that's right. >> Back in the 90s through all of the updates and yeah we definitely-- >> I was just expecting the little triangle with the guy like shoveling dirt under construction. You know the shovel right? >> Yeah the 404 not found. >> That's right, that's right. >> I know if I go to Cisco.com/go/product name that usually was a short cut to get me to some of the things I care about but for those people who weren't here for the key note or who might not know as much give us a little bit about you know your purview and kind of the scale and scope of what you do. >> Yeah so at Cisco I'm in Cisco IT. But I'm responsible for supporting all of the revenue generation portions of the company. So that's specifically marketing and what they do, sales and what sales does. Cisco services is a very big part of our company so I support the services organization. And most recently Cisco's been on a journey to really kind of move from a once and done hardware sales motion to a full reoccurring revenue type of stream. So we've stood up the whole customer success motion. And so I run the IT portions of that as well. And last but not least you heard me mention that 85% of our revenue actually comes through our partners. So I support all the systems that are partners interact with as well. >> Yeah it's interesting so we've done theCUBE at Cisco Live the last two years. >> Sure. >> And there's a observation I made a year ago when I started going to that show. And it was you know, if I'm a networking person but this applies to you know most people in IT, I used to manage stuff I could touch and go, I understand where it is and how I touch it and everything. Now a lot of what I have to deal with is outside of my purview and therefore I need to get into that environment kind of pair that with you know companies like yourself that are inquisitive. And so you have lots of change going on and lots of things that are in your environment there so we know change is the only constant in our industry. >> Without a doubt. >> So maybe give us a little bit of those dynamics and how that impact what's happening in your world. >> Yeah so I mean we talked a bit about my responsibilities and one of this is Cisco.com It's probably one of the more important platforms that I'm responsible for from an IT perspective. But I also mentioned that Cisco's a very, we grow through acquisitions a lot. It's one of our basic business strategies. And so every time we buy a company it's a big rush to kind of take that acquired company and integrate their online presence into Cisco.com right? So once a company is acquired we don't want people to think of it as a separate company both from a kind of marketing perspective but more importantly we're actually integrating that product into our Cisco ecosystem as well. So just having to move all that technology into Cisco.com is certainly a big job. But I think you are maybe asking this from a different perspective as well which is to say okay you know new technology is being introduced all the time and while it makes sense from a company portfolio perspective I think as a former IT person you're going to agree with me it makes our jobs a little bit more difficult. It's both a blessing and a curse right? From the perspective it's a blessing in that we get this great new technology to incorporate and use in our running of the business but it also adds a lot of complexity and so it's pretty important that we have both the systems and processes to be able to manage all that complexity in our infrastructure really. >> All right so infrastructure monitoring. >> Yes. >> Something you spent a lot of time talking about. I guess I'll set it up when I talked to my friends in the networking space these days or a lot of it, the joke is if you say single pane of glass they are going to spell it P-A-I-N because we understand that there's not one tool to rule them all. >> Right. >> Yes that I might have a primary piece but in the virtualization world I had to plug in to V Center and you know Cisco has you know you laid out a broad portfolio of various tools up and down and across the stack from you know security down to physical and upper layer and plus all the acquisitions. So can you lay out a little bit as to you know where ScienceLogic fits and there's a number of Cisco's tooling that that integrates in with. >> Yeah so when I talked about our journey with ScienceLogic you know Cisco of course has a number of tool and capabilities to take care of the pieces that we are known for. For example Application Dynamics is a great company that we bought and provides great insight into application health. But obviously in a network perspective right we have Cloud Management software, security software that type of thing and so I think what we realized in Cisco IT what my team realized is that it really isn't about a single system to rule them all it's about trying to find multiple platforms that can work together and really share data so as to drive richer insights. And so I think maybe the industry has been on a bit of a wrong path think it's you know it's not Lord of The Rings, one ring to rule them all or whatever right? It's about being able to use multiple applications but having the right data insides move around as needed so that depending on your lens or your role in IT whether you're a network guy or an application guy that you're going to use the tool that's more most natural to yourself but pulling in the right amount of data from those other parts to be able to get the right insight. >> Yeah I saw your closing slide mirrored the theme we've seen at the show of superheroes. So the super power everybody needs in IT today is how do I leverage my data and we understand that it probably takes more like the Avengers to be able to put those together because data is everywhere. >> Yeah the funny thing is that that wasn't actually a set theme. I think we must all have Avengers on our mind because everyone independently came up with the super hero concept. >> Yeah no spoilers on End Game either way though. >> That's right, that's right. >> Excellent so you know can you just bring us inside of some of that ScienceLogic journey? My understanding you're probably the largest enterprised employment of it so you know we always love to talk about scale and what that means and how it's been in your viewpoint. >> Yeah you know we actually before ScienceLogic we actually had our own system that Cisco IT wrote right and so you know as IT professionals we always think we can do it better than anyone else but we've reached a point where just so much technology and so much complexity came to the market that we really wanted to find a solution that would really kind of enable us to grow into the future with all the things that are happening right whether you're talking about Virtualization with Containers or you know Cloud native applications or Multicloud, these are all technology trends that have made our jobs in IT incredibly complex. And so we started to look for what could we replace our home grown monitoring platform with and ultimately we decided that ScienceLogic was the best fit for us. And since we've deployed it we as with most things we tend to stretch the scale especially with our vendors and so I think we are the largest ScienceLogic enterprise customer at this point. But we are seeing incredible benefits in terms of being able to connect ScienceLogic's Infrastructure Monitoring with our own Application Dynamics and really marry the two for those insightful bits that we get from both. >> All right so one of the big themed discussion here is that journey toward AI Ops. >> Yes. >> While we speak actually I've got a team in Mountainview that is at the DevNet Create Show which Cisco helped organize. >> Sure. >> We're doing two days of interviews there and DevSecOps is probably one of the key topics their going to be talking about. In your keynote this morning I heard IT Ops in a discussion there so bring us inside a little bit organizationally you know what you're seeing you know your viewpoint on these various trends that are you know helping to modernize you know transform operations. >> Yeah I think from a operations organization standpoint you're going to see the applications team and the infrastructure team work even closer together. Maybe one of the things that didn't really make super clear in my keynote this morning is I actually work on kind of the app side of the house right? I'm the direct interface to the business. And as such I actually don't interface with ScienceLogic directly but I'm a strong partner with my infrastructure team who are I think they are all sitting over there that do run ScienceLogic right and so in today's world you really can't just say oh this is infa problem they are going to deal with it. Because of that really big mix of well is it an infrastructure problem, is it an application health problem? And a lot of times it's both. And so organizationally it might be two separate organizations but the need to work together is you know even greater today than ever before. >> You're preaching to the choir. I mean when we launched Virtualization and then later when Containers came around there was the nirvana that oh I'm going to have some unit of infrastructure where the application people just don't need to worry about it. >> Right. >> You know serverless from it's name seems to imply that but we understand that eventually you know there's networking, there's storage, there's compute all underneath these kind of things. >> That's right. >> It's just repackaging so you know the applications important you know I'm long time infrastructure guy. >> That's right >> But, the number one rule is the reason we are here is to run that application and make sure your data you know gets where it needs to be otherwise you know we're not here just to power things. >> That's right. And I just realized I probably would get in trouble if I said it's actually the application, infrastructure, and of course the network all has to work together. >> Yeah well that's a given. Can you just we talked a little bit about App Dynamics you know when I think about Cisco you know broad portfolio, you know the SD-WAN, the ACI how do some of those fit into this discussion are there tie ins with what ScienceLogic is doing? >> It absolutely does. So as I talked about it when we talked about that collection of super heroes it's not a single super hero it's not a duo either it's really a big team. It's The Avengers right? And so when you think about Cisco's portfolio we have a lot of additional components needed to provide that modern operating IT operating platform right? So we talked about a lot about Application Dynamics we talked about ScienceLogic but what Cisco brings to the mix is things like ACI, Tetration, Policy Enforcement, Multicloud Management. So all those things again have to work together like The Avengers do to provide that modern platform. >> Yeah you mentioned multicloud and I know in your keynote you talked about AWS and GCP. >> That's right. >> How's Cloud changing things in your world? >> It absolutely is again it's I'll go back to the it's both a blessing and a curse right? The blessing is enormous capability that we get from the Cloud, enormous flexibility. As and example using Cisco.com as an example we host a lot of you know a lot of public information about our products and websites and data sheets and that type of thing on Cisco.com. And then a couple years ago we decided we're going to refresh the engagement of Cisco.com We wanted to make it much more personalized. We wanted to incorporate video. Those are all great things but the moment you try to throw video and guess what? Native video whether it be in English or French or Chinese or Japanese depending on where you are well that put an enormous strain on our infrastructure and if you had to travel if the packets had to travel from Japan to the United States to our data center that would slow things down. So we took advantage of Public Cloud to really kind of push out the content to the edges so that we could get localized content as close to the customer as possible. That's the great thing about it. But again the management of that increasing complexity right so both a blessing and a curse. AWS, GCP, we are using for doing a lot of video streaming work. And so again great capabilities from that platform as well. >> All right so we saw this week a lot of announcements of some of the integrations Service Now and App Dynamics were two of the ones that highlighted that I think impacted you. Anything from the announcements that is particularly excited you and I guess final on that is there anything roadmap wise that you know you'd be looking directionally for this phase to evolve towards? >> Yeah I think I was excited to see in fact that's one of the main reasons why we chose ScienceLogic in the first place was the quality and the amount of integrations that they have right? And so we're also a big Service Now customer and we see the benefits of automatically open cases in Service Now when ScienceLogic detects an issue as an example right? And I would say going forward we'll be looking to either have out of the box or if needed you know Cisco IT will build something even more integrations with the Cisco products. We already have App Dynamics but as I mentioned we have a lot of other components that are critical to the network and so we'll be looking for tighter integration and all this to drive really drive data together so that we can get to what I think what most people at this conference are hoping to achieve which is really driving towards automation and AI Ops right? So that's really the desire for I think for everyone attending this conference. It's certainly our desire in Cisco IT. And you know I'm looking forward to working with ScienceLogic to building out that roadmap. >> You know so I guess final question for you you talked about that automation, where are you when it comes to we look at you know things like machine learning and automation which if you listen to the analyst that spoke this morning is like you want to make sure you separate those things. >> That's right. >> We understand you know any of us that have done process and operations is you know you can automate a really bad process and it's not a good thing. >> That's right, that's right. >> So where are you on that journey? What do you see? You know what are the barriers that keep us from kind of the nirvana where you know oh geez I can actually just seal off the data center and let everything run? >> Right I think it's funny you mentioned Cisco Live so actually I present on a topic of AI at Cisco Live as well. So what this other speaker talked about really hit home with me understanding what is AI really. Because I think there's a general perception in the press that it's like this magical fairy dust you can just sprinkle on everything and it like makes everything perfect right? AI is really good at pattern recognition but you still need to put some check points and really have human beings kind of check the work of AI right? And so you know we actually have seen data center outages not Cisco but in the press when AI runs amok right? And so I think the first step of automation that's a given. We want to do that but that involves a lot of human beings kind of looking at the data and deciding okay these sequence of events can be cured by this set of automation. AI Ops is a something that's a whole different thing if you followed the definition of AI to say okay let the computer do it all on its own. I don't think we're there yet. I think we have a ways to go. And I certainly wouldn't trust want to trust our you know multi billion dollar business to AI Ops at this point in time. >> Well Bailey there's an event we did a couple years ago with a couple professors from MIT that are really forward looking on this and they say it's racing with the machines because people plus machines will always do better >> Yes. >> Than people alone or machines alone and hopefully that keeps some of us that are a little bit worried about the Skynets of the world taking over from getting a little bit too paranoid all of a sudden. >> I totally agree with that statement. In fact the quote that jumps in my head is "Better together". And I'll close with ScienceLogic App Dynamics better together. People AI better together. >> All right well Bailey since you ended on a perfect quote there thank you so much for joining and I hope to see you at Cisco Live San Diego. >> Fantastic, my pleasure. >> All right and thank you so much for watching theCUBE as always, I'm Stu Miniman here at ScienceLogic 2019 in Washington D.C. (upbeat music)

>> Announcer: Live from Las Vegas, it's theCUBE covering AWS re:Invent 2017, presented by AWS, intel, and our ecosystem of partners. >> Welcome back everyone, live here in Las Vegas. This is theCUBE's exclusive coverage of AWS re:Invent Amazon Web Services annual conference, forty-five thousand people here. Huge event. This is the industry bellwether for Cloud computing now, soon to be IT public sector, IOT, AI, as Amazon sets the trends. TheCUBE's got the coverage. I'm John Furrier with Stu Miniman. Our next two guests is Barry Russell, general manager and (mumbles) for Amazon Web Services Marketplace, hot and on fire, growing, and Thomas Wyatt, chief strategy officer at App Dynamics, partner of AWS. Welcome to theCUBE. >> It's great to be here guys. >> Thank you. >> Partner central, lot of love going on in the partnerships because Amazon has an enabling platform. They lower the costs, increase the value, and increase the wealth creation flowing around. You guys are taking advantage of that. >> Absolutely, so with AppDynamics, we're helping customers with their Cloud migration to Amazon. You know, applications really are becoming the foundation of the modern business and understanding the performance of those applications, the users, the application, the business metrics themselves is critical, as this really signifies the brand for most companies. So as they are moving their workloads over to Amazon, it's critical they really understand how things are performing and make sure that they perform well in that new environment. And so the relationship we've had together has been phenomenal in helping that happen. >> (mumbles) done a lot of work, though, on the app side. And it's interesting, and the hottest trend right now that we're seeing, certainly in this Cloud conversion, IT in particular, as well as other markets, I mentioned IOT and AI, obviously hot as hell as well, is the instrumentation of the data is super critical. >> Yes, yes. >> And that is not new to you guys. But it's now becoming apparent that it's easier to do in the Cloud than it was before. >> Sure. >> What do you see? I mean you must look at the Cloud and be like, man this is so awesome, horizontally scalable, but all the goodness of having that instrumentation. What's your take on that? >> Right so it really starts with that. Instrumentation provides you the insights in real time necessary to take advantage of the optimizations that Cloud provides you, so the ability to scale up, scale down. If you know how your application is performing in real time, you take that guesswork out. And I think that's really what, leveling AppDynamics with Amazon really gives you that capability, the best of both worlds. >> Yeah, Barry, the application monitoring space, you have a number of really good partners here. Amazon also has some of their own pieces. How do you balance that sort of engagement? We've seen, you know the partner summit I saw some really good slides up there. We've interviewed a number of the partners of this space, but want to get your viewpoint. Well, first, AppDynamics makes their software available as SaaS, which is a pretty quickly growing trend, with all sorts of customers, you know, particularly enterprise customers wanting to move to that model. And then we work with AppDynamics to come up with a specific use case for the workloads that are migrating over, particularly with customers that are migrating large amount of workloads as they're shutting down data centers. And we make those available to those customers and provide them with a choice. And once we document that technical use case we can put that in the hands of our SAs, our solution architects, Proserv teams, and consulting partners like 2nd Watch and Slalom, Accenture, and Deloitte, to help advise the customer on which third-party software meets those workload needs best. >> Thomas, you know, Cisco's got a pretty sizable presence at this show. I was mentioning, you know, this is the second recently acquired company of Cisco that we've had on the program this week. I mean, they spent billions of dollars on AppDynamics, bunch of others. Cisco has always been an acquisitive company, but, you know, what is the kind of acceleration of Cloud, mean for Cisco. How are companies like AppDynamics helping along that shift for Cisco's business? >> Yeah, that's a great question. I think the way to think about it is, Cisco's really been helping our customers with their networking, their data center, security, but it was a critical missing component for us was really understanding application intelligence and how end users and businesses are impacted by the infrastructure. And so, bringing AppDynamics into part of Cisco, which we're running it fairly autonomously, but having the ability to connect to other infrastructure-related products to provide more real-time intelligence is a key part of the strategy. So bringing those things together and then complementing that with our Cloud partners, and the marketplace has really made that super easy for us now, from the context of making it easier to buy AppDynamics with AWS. That combination has been super powerful. >> Talk about the marketplace dynamics that you're trying to create, Barry, because you obviously got a good thing going. What are you doing to create the incentives, to create a frictionless environment? Because obviously you don't want any friction, but you got growth. >> Barry: We do. >> What are some of the speed bumps you're hitting? How are you addressing it? How are you with AppDynamics of the world? Is there incentive programs? Is there joint selling? How should partners think about that? And then I'd love to get your reaction to Amazon's programs. >> Well there's one key thing that we launched a couple of weeks ago. It's called seller private offers. And what it enabled us to do, and it was kind of a missing piece, was for a seller to work with a customer, so AppDynamics working with a customer, to negotiate on best price and terms for a longer period of duration of use, one, two, or three year subscription. That enabled the customer to get the best terms and price to run the software on AWS, and it also enabled sales teams, for example, working with Cisco and AppDynamics, to sell in a way that they were more accustomed to once a customer was familiar with the software. And then we announced... >> Renewals' a recurring revenue. >> Right. >> Right. >> They're smiling over there. >> And then we paired it with enterprise contract that we launched on Tuesday. Which was a negotiated set of terms to remove a ton of friction around legal negotiation of standard contract terms between software vendors and enterprise buyers, and so we're trying to innovate between both the buyer and the seller at all times. >> So until you can actually voice order product, you're gonna always be chippin' away at the friction? >> Barry: Always. >> Thomas: Right. >> All right, your reaction to Amazon, how are they a partner? You can tell the truth even though he's standing right there. >> Thomas: No absolutely. >> Come on... >> I mean, here's the key thing. We've been a marketplace partner for several quarters now. We're seeing huge transactions flow through that, and as part of that, the two key things that we're finding. The first one is the deal sizes are expanding, and largely because there's a lot of comfort from the end customers at the combination of AppDynamics working closely with AWS, ensuring those systems are integrated, that they work well together, they can be procured together, there's common bill. Those kind of capabilities have really helped us. The second thing is, we're proving that we can help accelerate the pace of Cloud migration. So, we're seeing on average our enterprise customers are getting through the Cloud 30% faster by using the two solutions together. >> So they like the buying methodology. >> Thomas: That's right. >> And speed of deployment. >> The speed of deployment and the fact that when they get there, they know their environment's going to be very stable. They have that additional assurance because they've got the performance monitoring metrics before they make the move, and then once they get there they have it. Because the AppDynamics really provides you that visibility across both. So, thinking about it from... >> So I saw the announcement, it was one click was it Andy who put up one click something? Was that a marketplace deal? I saw it on the keynote yesterday. It might have been one click (mumbles), I don't know. >> I don't think it was associated with the marketplace. We do still have that feature. Yeah, so. >> So things are going good? You're happy? >> Yeah, I mean a great example, NASDAQ spoke yesterday with Barry, Heather Abbott, and talked about their experience about moving their workloads over to AWS and how AppDynamics was instrumental to help them understand the dependencies of their environment before they made that transition. There are so many great examples of that, and that's why we think... >> All right, so final question for you, then I know Stu wants to jump in, Andy Jassy told me when I interviewed him last week for the event, customers vote with their workloads. What are the workloads that you're seeing moving over? What kinds of workloads fit into this new style, this new guard model of... >> I would say a couple years ago it was primarily new apps, building from the ground up. Now it's the mission critical stuff. It's the important things that people are running their businesses on, moving those over, and I think that's part of the reason why AppD is becoming more integrated into that, is because AppD instruments generally the most critical applications, not necessarily the third and fourth tier. So the typical workloads that impact revenue, impact customer engagements, are ones that are now being... >> So you're at the center of all the migrations? >> Thomas: Yeah. >> Awesome. >> So the one, can't let you go without asking, beyond just getting to the Cloud, I'm wondering what you're seeing from customers and how you're working with them on moving along from just instances to containerization and even serverless. >> Yeah, in the enterprise space we're definitely seeing the phase one was just move the existing VMs over. Now it's refactoring and reestablishing the products and the architectures based on the modern technologies like Lamba and Serverless, and other things. It's all great. It's a really exciting time. >> Thomas Wyatt, chief strategy officer AppDynamics, happy partner obviously (mumbles) workloads are moving to the Cloud. Barry Russell, general manager of the place making it happen. >> Congratulations, Barry, on your success. >> Thank you. >> And AppDynamics >> Thank you. >> Congratulations on your acquisition with Cisco. Big deal. You guys are driving a big part of their transformation. >> Barry: Yes. Congratulations to you guys as well. >> Thank you. >> Of course, Amazon's taking no prisoners here at re:Invent, 45,000 people. I'm John Furrier (mumbles) more live coverage from day 3 after this short break.