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**DO NOT PUBLISH** Appdynamics Alice McElroy and Greg Ostrowski


 

>>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.

Published Date : Nov 23 2022

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from Royal Caribbean and Greg from Cisco App, app Dynamics to the show. How are you doing, Greg? Thanks for having me on the show today. the stormy seas of the pandemic, if you will. in Covid, that you walked in one day and then that day the whole industry shut down. How, how have you and the team, whether the last two and a half years? So that's where, you know, is an experience and a priority that you have at Royal Caribbean. you know, our guests are getting that vacation experience they're looking for. So, you know, we, you know, it's very hard in the cruise industry. Greg, what does it feel like for you as a leader to hear someone like Alice say So when we were able to work and partner together to make sure that, you know, but the, the ultimate commonality that I've seen across, you know, know, I, you can, you can talk about user experience as much as you want on here. and the same thing with, with what Alice sees in the, in the cruise industry, you know, Alice, So I think, you know, one of our big challenges that we've, you know, we've announced that we do have a relationship So you never know. So we offer full stack observability, which, you know, if you look at the challenges that investments being made that you can show to your business leaders is showing an uptick and the business outcomes you're, That community first attitude, it's something that you I think the Galapagos is the best place to go, and if you haven't done it, Greg, have you ever done the Galapagos? I hope that you both continue to work in harmony together and that we can all see each other

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Linda Tong, Cisco AppDynamics & Garrick Linn, Match.com | AWS re:Invent 2021


 

(upbeat music) >> Hello, welcome back to theCUBE's coverage of AWS re:Invent 2021. We're here in the studios in Palo Alto, California. Two great guests Linda Tong, general manager of Cisco AppDynamics and Garrick Linn, architect of operations at Match.com. Thanks for joining us. We're talking about AppDynamics, Match.com and customer experience. Mainly around cloud migration. So Linda, great to see you and Garrick, thanks for coming on theCUBE. >> Great to see you again. Thank you for having us. >> Same here. >> Linda, you're a CUBE alumni. we've talked about cloud migration application performance, modern application development, all powered by the Cloud, right? So this is really key and people are relying on the cloud and cloud scale and data to drive the digital transformation, the digital services and applications right now. How has the pandemic affected your customers and their expectations for digital experiences? >> Oh boy, I mean the pandemic has been, it has been rough for our customers, you know, and part of that is what Garrick's going to tell you a little bit more about today, but folks are seeing this increase in expectancy of accelerated speed and delivering innovation, building great applications and iterating on them quickly. And frankly, their customers' demands we're engaging with them through digital services. And that has led to this massive increase in, one, the types of technologies that they're consuming to build and deliver these applications. And two the complexity upon how they actually wrap their arms around it and understand what's going on and deliver these great experiences. And so it's been a rough road for our customers and what we find with AppDynamics and Cisco is our ability to partner with our customers to help them wrap their arms around that complexity. >> John: Garrick, I'd love to get your commentary on this because I'll say, Match.com has been at large-scale for many, many years, and now the pandemic comes in now a new user experience, more accelerated, more action, more things are happening, right? So this is truly the hybrid world coming together. I mean, it is kind of the same game, but kind of new patterns are emerging. What have you seen in the pandemic around the expectations and the services and you guys are providing in the digital experiences? >> Yeah, sure. So as you mentioned, Match has been around for quite some time. We've been here for over 25 years. We have an interesting mix, heterogeneous, technology, some old stuff, some new stuff. A lot of the mentality that we try to bring is to innovate. The pandemic was, it brought a lot of uncertainty. We weren't really sure how people were going to react. Was it going to be everybody kind of hunkers down on dating definitely is something that requires human interaction in multiple levels. And it turned out that people were still very much interested in getting to a place where they can find human connections and you know Match as a premium product tries to make that delightful. And so we had our hands full, especially at the beginning, things like, by checking the video features, how does that work? What are the expectations? Is that going to creep people out? If we try to offer that, are they going to use it? How are they going to date? How are they going to talk? How can we make sure that they're safe? All these kinds of things went into it. And so when we have been using AppDynamics for you know, years now, well before the pandemic, and we use that in order to get a gauge, not just on the type of traffic and load, but also, "Hey, you've got these new features, "how do they fit into this huge complex environment?" And so some of those timelines that maybe were a little bit more relaxed were very much accelerated, And like a lot of companies, we had to figure out how to deliver on that. >> John: Yeah, Linda, I want to get your thoughts. We've talked about in the past, AppDynamics has been a leader in really accelerating the value for customers. Now with the pandemic, you mentioned these new experiences are being pulled in from the physical world, right? So you have things that were happening on digital in the application space. Now you have more experiences coming in because there's no places to meet face to face. Now it's coming together, but people have been seeing the value. Well, if I can't meet in person Match.com are going to do some things, new things, online chat, whatever. This dynamic of old way, new way is changing and cloud is powering that. What are you seeing in terms of your customers' journeys around what was once pre-pandemic and now post-pandemic? >> Well, a big part of that is more and more of these experiences rely on digital services and these amazing sort of ways to connect with each other and in a very digital space, expectations of customers have changed. So not only do you experience applications and you want it to be simple, easy to use, delightful, and it delivers on the needs that you want. But on top of that, you expect it to be performant. You expect it to be secure. You expect there to be frankly, no hiccups whatsoever, because now this is your way to connect with others. This is your way to find dates or go on dates. And the last thing you want, is watching your screen pixelate, as you're trying to have an important conversation. And these kinds of experiences and these challenges as people build more and more of these digital services to build these connections, frankly, require a lot more of folks like Garrick and his team. They now have to deliver amazing experiences with perfect performance, no security risks, no bumps in the night. And that's really tough, right? Expectations have gone through the roof. >> John: Yeah, the whole story on that one point, just to kind of add live in this was that that whole concept of moving fast used to take months, right? I mean, weeks, months, now it's days and hours. So months to weeks, days and hours but Garrick, this is the challenge. This is the opportunity with the cloud. Can you just take us through your cloud journey and your goals and some of the impacts that has had on your transition to the cloud? What does that look like? >> Yeah, so we've had our on-prem data centers for quite some time, and we started putting our toe in, I guess, although it was a kind of intense at the beginning, just trying to get people on board and to say, "Hey, this is possible." We started out with a fairly small SWAT team then managed within a couple of months, working closely with our developers. We have a lot of smart people, you know, with background or overall, just security folks over devs to just demonstrate that we could do it. So we managed to take something like 80% of our front end traffic for most of the day, just kind of spinning that up, learning lessons from that, knowing what we didn't know. AppDynamics, if we didn't have that would have been almost impossible to get a read if for no other reason, then just one little tidbit. We used to have a data center in Virginia. And so physics being what it is, you know, there's just been a flight that we have to contend with. And for a couple, few years, we hadn't had the 30 millisecond or so round trip latency on there. So all of a sudden we're going back to the cloud that reintroduced this latency. So what does that mean? Will you be asked to sort of glide by and absorb it? How do we track it? How can we figure out what the Delta is between, you know, here's how we've done things on-prem. Here's how it looks out here. If you are the cross, you know, calls and, you know, AppDynamics was what we used to be able to get a read and say, "Hey, look, it isn't as good as we know we can make it, but it's something, it's a starting point. Here's why, we can show you the graphs. We can show you the data. Let's do this thing." So we then pulled back and we have focused this year on actually our affinity apps, which is a collection of applications that are also going to be okay just in, and so we've been asked to get those completely migrated over. We're going to be running in hybrid mode for a while. We're going to need to be able to compare apples to apples, apples to orangutans, all that. And this is one of the main things for you, we describe. >> {John] If I can just follow up on that just real quick, because I think this is a good point. You got the data points, you double down on that. You're looking at real data, and then you look at success and you double down, that's the playbook. So, and the other thing is that you guys actually have a real operation that's running full throttled, right? (John laughs) So, yeah, so I can see that nice balance. What does the future look like beyond that? Because when you got a business that's scaling, it's running, it's like changing the airplane engine out at 30,000 feet. You got to continue to push the envelope. >> Yup, so, and no, exactly right. Again, we're a premium product. And so we've got to back that up. And that means, maintaining high availability. And so over the next few years, we're going to be looking at what have we already do? What can we move in piecemeal kind of way where it makes sense? What are the things that we can rethink? We're also using AppDynamics as part of our containerization initiative. You know, we've got lots of virtual infrastructure, but what is it, again, what does it look like on-prem, in a container, go down the list of different things that might be different. And then to be able to compare that to what it looks like, in the cloud. So it's going to be a while yet, but like a lot of companies, when we got into this, we didn't think it was going to be done in six months. Even if we have to deliver those features at a much faster rate, we know that the long haul, we got to make smart decisions and plan the capacity, and, you know, get there. (chuckles) >> John: That's a real pragmatic approach. Linda, you and I both are sports fans. We've talked in the past about sports, and the old adage, what inning are we in growth? It's to use that baseball metaphor. I would say it's a double header, game one won by the cloud, game two is happening now. And the trend is this end-to-end mature, operationally focused customer base. And IT, where IT has shifted to the cloud right now. And they're having this new view of what modern is. End-to-end, understanding different stacks relative to applications. It's not as simple as it was before, but it's relevant. Can you share your views on how that's playing out because, or do you agree with that? And do you see that as an important part of the customer? >> Yeah, I mean, I think it's, that complexity that the IT organizations are seeing now, as they fully adopt the cloud for all their new applications and start to migrate some of their existing applications over. That world is only increasing in complexity. The way that you can virtualize your applications, break them out into millions of services, the dependencies you have on third party applications or SaaS services. These things only add that many more data points that you now have to cover and think about and make sure that those things deliver upon their SLAs, right? And wrapping your arms around that requires a partner to help you separate signal from noise. Because now you're going into a world without simplicity that you just mentioned has gotten to some point where it's beyond what you can actually sort of keep in your mind. Beyond what you can just look at data and sift through and understand, you really need tools and systems that come together, and understand that data for you and start to represent your business to you in a new way and abstract away those layers of complexity. While you do that, because I think, as you talk about those innings, that first inning, second inning, or rather first game, second game in the series, it's not a full migration to the cloud, right? There are going to be some applications that stay on-prem that stay in their traditional environments and may never move. And then some of them are going to go hybrid. Some will keep parts of the applications on-prem, and they're going to start to modularize components of it. And so it's not going to be sort of a mass scale migration. And then we're all in the promised land. And we deal with the cloud complexity. It's going to be ever increasing complexity. As we now introduce so many variants of applications, so many variants of technology, and what people are going to need is someone who can help them cover that entire estate and understand it at scale. >> John: Yeah, I mean, I think it's the enterprise conversion, if you will of cloud operations on-premises because of the reasons. And now you've got the edge. Garrick, this is the whole kind of end-to-end stack conversation view. And by the way, there isn't one tech stack to rule them all because you have different use cases. You might have an application that needs a financial gateway or have other capabilities. So integration's huge. This only increases the point Linda was making about complexity behind the scenes. How does AppDynamics help you with this for Match.com? >> So we have quite a bit of infrastructure, you know, a lot of it is shared, well, most of all, maintaining, sandboxes for user data and that sort of thing. And so now the navigating that space is always interesting. So for instance, one of the new things that we have coming out is Star.com It's out there right now. It's a dating site that's geared towards single parents. It does share some of the infrastructure, but we're realizing what that means, how is that different, how our registration flow is different, how our subscription flow is different. Where are the things that DevOps are actively trying to improve on and rethink? That's one of the things that we try to focus on when we're trying to kind of pick out, like, is this a good candidate to move over to the cloud sooner or later? Is this a good candidate for something that needs to be maybe bake a little bit more? And having established those baselines with the shared infrastructure, and having a pretty good understanding of how they react, how they work really helps us, you know, tee up these new initiatives and in front of those needs in a more efficient way. So yeah, absolutely. >> John: What's some of the activity you guys seen? And what's the peak activity on Match.com these days? >> Yeah, so dating apps in general, but not so particular we use a nested or breast fractal peak, and it's a pattern that, from what they told me back in the old days, took a little while to realize was a thing. And not just like, oh we changed something and then did this and produced that. So every evening is our peak basically. So with taking time zones into account, obviously, in the United States from about five to 10 o'clock at night or so, we get this, growing, burst of traffic. So that can be anywhere from 23% sometimes. It kind of varies. Then we have a weekly peak where every, you know, Sunday and Monday we expect a higher amount of traffic than we would other days. And it kind of makes sense from an Archer psychology kind of standpoint where, you know, you're coming off of dates, you're trying to set dates up. That's where a lot of that activity is. And then we have a yearly peak, which goes from around Christmas to President's day. Believe it or not, it's President's day, it's not Valentine's day. And so the sort of thing where when we're trying to plan for capacity and we do a lot of, what cost squeeze tests, were not quite as I guess, engineering, but hey, what does it look like if we go down in capacity by 50%, what happens? where are the weak points? A January, Monday night is very different from a May, Thursday in June (chuckles). So we have to predict, we can anticipate some of that, but we don't know for sure, a lot can change in a year. So when we're preparing for a yearly peak, we really have to pay attention. We have to prep. We have to plan for that and work with that to figure out how we can get through it and maintain that level of service. >> That's awesome, and AppDynamics to help you to do that. I'd love to get a bot to give me the optimal dating times, to share with my single friends. Great stuff. Linda, thank you for coming. Great to see you. Congratulations on a great case study. Great story. How large-scale applications and are working in the modern cloud. So congratulations on your success. Thanks for coming on theCUBE. Appreciate it. >> Awesome, thank you, so good to be here. >> Okay, CUBE coverage of re:Invent 2021. I'm John Furrier with theCUBE. Thanks for watching. (upbeat music)

Published Date : Nov 30 2021

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So Linda, great to see you Great to see you again. How has the pandemic And that has led to this and now the pandemic comes in A lot of the mentality that we Match.com are going to do some things, And the last thing you want, This is the opportunity with the cloud. that are also going to be okay just in, is that you guys actually And then to be able to compare that and the old adage, what a partner to help you to rule them all because you something that needs to be the activity you guys seen? And so the sort of thing where to help you to do that. Okay, CUBE coverage of re:Invent 2021.

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Linda Tong, AppDynamics & Dave McCann, Amazon Web Services | AWS re:Invent 2020


 

>> Narrator: From around the globe, it's theCUBE with digital coverage of AWS re:Invent 2020 sponsored by Intel, AWS and our community partners. >> Hello, welcome back to theCUBE's Virtual Coverage of AWS re:Invent 2020 virtual. Normally we're in person. This year because of the pandemic, we're doing it remote. We're Cube Virtual covering AWS re:Invent Virtual. I'm John for your host. We are theCUBE Virtual, two great guests here Linda Tong a general manager, AppDynamics and Dave McCann vice-president of AWS migration, marketplace and control services. Welcome to theCUBE. >> Thanks so much for having us. >> Good to see you again John. >> Linda we were talking to some AppDynamics folks and some of your customers, obviously we've been following the growth of the marketplace for many years. The confluence of the tailwinds of the innovation going on with COVID and post COVID strategies is about helping customers where they are and they're not in the office anymore. They got to get the job done. This is really important on this cloud migration of getting software in the hands of people to write these modern apps. It's a big theme. What's your perspective on this right now, because you guys are partnered with Amazon, share your vision. >> Yeah, absolutely. And you nailed it. It's with COVID-19 our customers like IT organizations are finding this need to accelerate their migration to the cloud. And what's more important is they're finding that more and more of their customers are engaging through digital experiences and with the influx of people leaning on those digital experiences during COVID, performance issues are becoming more and more apparent. And so we're helping our customers as they migrate to the cloud. And specifically to AWS, it's a big partnership for us because we need to understand how our customers and how they manage performance through these transitions can stay flawless so that they can manage those experiences for their end users. >> Yeah, Dave, I've been watching this discovery observation space, observability, service meshes, Kubernetes, cloud native higher level services have really gotten popularity have gone mainstream. So there's more and more demand for I won't call it point products. That's an old term, but in the cloud, these are just higher level services that people are adopting more of. You're seeing huge pickup in the marketplace of companies who are selling through there and engaging but it's not just selling, you're integrating. What's your vision for all of this? >> So, John, you're absolutely right. Our customers as they migrate more and more applications to the cloud and in some regulated industries they still have applications running on premise. They're really actually standing up a new operating model where they not only want observability of what's going on but I feel what we would call service management framework or a set of tools to manage the application portfolio. And companies around the world are putting together new common instance of AWS native services, such as CloudWatch CloudTrail, Service Catalog, AWS Config, Control Tower with best in class vendors like Cisco AppDynamics. And each company is building their own collection of tools into management framework that allows them to optimally modernize and manage their application portfolio. And it's a rising topic around the world. >> Linda, I want to get back to you on AppDynamics you're the leader of the team as general manager, congratulations. You know a little bit about software in the cloud and CloudScale and your career going back to Google now at AppDynamics you've seen a lot of the changes. What specifically value do you see AppDynamics and Amazon bringing to the market today? Because the world's changed. It's still large scale, there's faster speed but you can't just buy things like anymore, I've got to go in send a ticket request, go to procurement, developers want to integrate immediately. They need to integrate when they see a problem they got to integrate technology. This seems to be a trend. What's your, where is AppDynamics bringing the value of AWS to the market? >> Absolutely I think it's threefold. One it's for a lot of these developers, as they start to migrate their applications and modernize them with AWS and all the great services that are available we can partner to help them with that modernization effort while giving them visibility into the performance of those applications to make sure that they don't miss a beat as they deploy those on these new sets of services over AWS. The second thing is, for those customers that are leveraging AWS for that migration, we have a seamless integration between AppDynamics and AWS. So you can buy our service directly through AWS marketplace. So that becomes a really easy procurement. And then on top of that, as, a lot of developers have to manage hybrid employments, so new modern applications has done AWS as well as some of their traditional applications that are talking to each other. They can get that full end to end visibility leveraging AppDynamics so that they can understand what's going on across the entirety of their business as they start to lead these transformations across our organization. >> Dave, just comment on if you can, 'cause I know a little bit about some of the things you put in place, the enterprise I forget development or sales program where at the prices can be more friendly. I think this is kind of a use case where this is proving enterprises can get what they need in the marketplace that not only is it successful but you have traction with this. What's you take on... >> There's a number of motions that we're doing there John, to help large companies around the world who may have, dozens, hundreds and in comes cases with fortune 100 they're thousands of applications. And so you actually have to solve multiple challenges that the company has. On the procurement side, we're obviously working with AppDynamics to publish as a service right in AWS marketplace. And we have over 300,000 customers worldwide only AWS marketplace who are subscribing to software and provisioning out to hundreds and thousands of developers, all of whom are using their own AWS accounts. So on that provisioning and subscription experience we work deeply with the AppDynamics team to meet that a really seamless experience from discovery to provision to meter and billing. On the interoperability front, as Linda mentioned, our customers want these best in class tools like AppDynamics to work well with the other AWS services so that they can really have a very modern DevOps pipeline for those applications that are moving to more of a CICD model. And for people who are still running in a bit more of an Intel, ITSM model, they've still got to manage and monitor applications that haven't quite got there in the full modernization stack. So this is actually happening not just with the customer, the enterprise or with the ISV AppDynamics, this transitions' also working with all the consulting firms. And a lot of the large software resellers around the world, the computer centers of Europe the right spaces, the presidios of North America. The DXEs of Asia Pacific. These consulting partners are also using tools such as AppDynamics so to become a managed service provider. And in some cases on that journey to the cloud no join the customer saying I'm really busy I'm modernizing applications. Hey consulting partner, can you manage some part of my infrastructure, some part of my stack? And tools like AppDynamics and Kubernetes and AWS become really central tool kits to the new emerging managed service providers that are all around the world. >> Yeah, and I talked about this years ago with Andy Jassy and I think we were riffing on this run this new set of category creations of services and companies. Linda this appears to be one of those cases where, there's a category with existing spend and existing customers. So what he just said is interesting. And I want to get your thoughts because these are these points of these new areas where AppDynamics can potentially help enterprises. What are some of the areas that you see AppDynamics helping enterprises in their cloud adoption journey 'cause they want some cloud native we see Hybrid and all the announcements, Outpost, now Edge it's a distributed computer. You need to have software at every piece of the puzzle. So what's your, what areas can you share specifically? >> Absolutely and so, like Dave was just saying it's, as these organizations start to make these major cloud migrations, one, their applications are getting actually significantly more complex than they've ever been. And they're now spanning a much broader ecosystem than they've ever spanned before. So that the kind of coverage that IT organizations and DevOps needs to cover not only is seeing this explosion of data but it's also now spanning areas of control that some of these folks have never had to think about before. And so the value of AppDynamics is our ability to be able to ingest data from your cloud native applications your traditional applications, all different sources of domain data that you want to get including things like security data. So we can start to correlate that in a meaningful way and then tie that back to business insights. And so the way that AppDynamics is actually bringing value to the table is not only helping our customers get visibility across the entire stack, but actually only surfacing the most meaningful insights to help them act on that those performance issues that they might see and more meaningfully manage their businesses. >> Linda I think you guys are onto something really big not just on the wave and just the positioning but one of the trends that we're reporting and we're going to be teasing out all week three weeks here is automation is great but that's just baseline. Everything is a service really speaks to some of the things that you guys have to put in place 'cause the mandate is everything should be a service. Now, I mean, I'm overgeneralizing but that's generally the ivory tower C suite message. Make it as a service cloud scale is beautiful, but then you when you pass it down to the teams, that's like that's not easy boss. It's not easy to do. That's really kind of what you're getting at here. It's not just automation and DevOps. It's the business model. >> Absolutely it's the intelligence it's once you create thousands and thousands of services, how do you manage them effectively and know what matters and what doesn't? >> Dave your final word here on on this point is when you think about that if you believe that to be true, then I'm just going to be downloading services whenever I need them. So it's almost like quasi self service managed services kind of coming together in real time or with my off base there. What's your take on that? >> No, we're actually working together with that dynamic and so all these kinds of things. So as we proliferate services, John and, AWS has got over 175 services and application is made up of many components. So how do you actually correlate an associate all the resources that make up that application? And if you think about dynamics name is the application and dynamics what's going on with the application. So we actually just launched today service catalog application registry, which is a new API surface for the AWS service catalog that allows you to define NGS on all the AWS resources from a cloud formation stack set all the way down into an easy to instance and associate that's an application known. And so the higher level of abstraction is what we talked about is management of the application. And what customers want to do, CIO's want to manage the application all the resources associated through the application whether the application is running well, is it secure? Is it on budget? Whether it's actually running? So application management is kind of where people are going even though their application is made up of dozens of associated services. So this is the next frontier. >> Well you guys are just great to have on world-class partnership two leaders, AppDynamics, story history they continue to do well. And even now with the world going on, Dave congratulations on your success. Final question for both of you is, where's the partnership go from here? I think it's a great success story. What's in the store for the future? >> Linda. >> Yeah to the moon. It's look AWS is an amazing partner. And Dave is a great guy to work with and where we are going is to help our customers build world-class applications and be able to manage them and modernize those effectively. And there's no way we could do that without partners at AWS. So it's a, there's a long-term relationship here. >> Well, congratulations, Linda Tong general manager AppDynamics. Thanks for coming on, and virtually at least we'll see you on the Interwebs during the next couple of weeks here, Virtual re:Invent Dave McCann. Of course, we'll see you again and great to watch you continue to grow. Is there any new title is going to add to your thing marketplace now it's migration, control services come on. >> With innovation culture we keep innovating. >> Great to have you guys on. Thanks for, thanks for sharing, appreciate it. >> John, Linda thank you very much. >> Thanks. >> Thanks for that great insight. Really appreciate it. I'm John from theCUBE you're watching coverage of re:Invent 2020. This is theCUBE virtual. (upbeat music)

Published Date : Dec 8 2020

SUMMARY :

Narrator: From around the globe, Welcome to theCUBE. in the hands of people to as they migrate to the cloud. pickup in the marketplace And companies around the world of AWS to the market? as they start to lead about some of the things you put And a lot of the large software Linda this appears to be So that the kind of coverage of the things that you going to be downloading about is management of the application. story history they continue to do well. And Dave is a great guy to work with and great to watch you continue to grow. we keep innovating. Great to have you guys on. Thanks for that great insight.

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Ron Teeter, Jobvite and Steven Long, AppDynamics, part of Cisco | AWS re:Invent 2020


 

(upbeat music) >> From around the globe, it's the CUBE. With digital coverage of AWS reinvent 2020 sponsored by Intel, AWS and our community partners. Hello, and welcome back to the CUBE's coverage. Virtual coverage of AWS reinvent 2020. It's three weeks we're going on, we're on the ground here in Palo Alto. Doing the remote CUBE, CUBE virtual. We are virtual CUBE here. Wall-to-wall coverage over the three weeks. Got a great segment here, Steven Long regional CTO for AppDynamics and Ron Teeter chief architect with Jobvite. Gentlemen, thank you for joining me on the segment. Appreciate it. Thanks for coming on the CUBE Virtual. >> Thanks for having us. >> Great to be here. >> I wish we were in person. Normally we are, but with the pandemic, it's hard. Steven at AppDynamics. I want to ask you, you've got a customer here. We're going to dig into the use cases of the transformation journey, multiple wave transformation which I'm excited to talk about. But talk about AppDynamics. What's the big story for you guys at re:Invent, quickly get 10 seconds to explain. >> Yeah, sure. AppDynamics is the number one world's leading APM vendor and we're there to be the full stack observability platform. And in that we're talking today about our deep code insights, really to gain that visibility into production, securely capture data and really get that context through a dynamic application. So that you can find the problem and fix it right the first time. >> Great. Thanks. Thanks for that insight. Ron, I want to get into you're the chief architect which means you get the keys to the kingdom at Jobvite. You got to look over the landscape. You got to have the 20 mile stare out to the future but you also got to deal with the reality present here. And it's a tough one. When you go back, this is a terrible year a lot of weirdness, a lot of craziness but everyone's hurting, but they're retooling or they have a tailwind behind their back. So they're either accelerating faster or they're retooling. What does transformation mean to you these days? >> Yeah, so for Jobvite we had a distributed workforce prior to the pandemic shutdown. And what it did for us is it actually forced us to go all in on why can't we work remote all the time? Why do we care where we have facilities? And so we've gotten really good at scaling our organization and being productive remote. Now we actually can hire anywhere we want to, right? And that gives us more leverage and opportunities to scale our DMS going into '21. >> Awesome. Now from a technology standpoint, I'm hearing a couple of different stories, there's two extremes is the... I'll say airlines or those kinds of markets where there's not a lot of business happening, but they're retooling. And then you got obviously video or anything virtual modern applications. It's a surge in business so you have to move faster. Speed is critical. How do you retool in an environment where you've got remote which is totally productive, get that. But now I got more teams. I got to coordinate, I got to communicate. I got to make decisions, architectural decisions. They're big ones. And cloud certainly is here. You've got hybrid and you got the edge big themes this week. How do you look at that? >> The way we look at it, Jobvite has the longevity to remember what it was like from 2008 to 2013. we took that economic recession to build two additional products and launch them into the market in 2013 so that we could ride that wave of growth to drive our business objectives. And we're doing the same thing now. Hiring is a fluid market and this year hiring was way down, right? We saw a 60% drop in open requisitions on our platform alone. And you could see it just dive in March but it started coming back in August and September. And so at this point, we're now post pandemic. So the hiring rates right now are higher than they've been all year. They're very close to where they were last year for the same time. And we expect that to continue to climb as businesses continue to evaluate whether or not it's safe to scale. For us, this lull means we've got an opportunity to make changes to our infrastructure, that aren't going to be disruptive to our customers. But also allow us to get out in front of that so that we can go into '21 with a very strong product focus by taking care of some of the technical debt now. That's exactly what we've been doing is investing in ourselves so that we can operate faster with more agility next year. >> That's worth calling out and mentioning. That's great insight. It really is. You got to come out of the pandemic with a growth strategy. I hear all the CXOs and CSOs in particular dealing with all the security uses but they've got to have the growth strategy. Steven, this is where I think the cloud speed scale the operating model of software networks compute. You're seeing that now get back into the swing of things. That's always been the holy trinity, if you will, of technology, network compute, and storage. Now it's got the cloud and you've got an operating model. We're back to kind of a groove swing here. How does AppDynamics and the Amazon all fit together into this kind of journey? >> Yeah, and if we really look at AppDynamics, we focus on that digital experience. And I think when the pandemic hit we saw 95% of customers that we surveyed in our agents of transformation COVID survey that their priorities shifted. And 95% of those said, within that shift the digital experience became front and center. And so when you're operating in the cloud and you want to have that full stack observability not just from the end user and not just from your application perspective but also from your business perspective. And in any given business the application is the north star of the business. So placing the emphasis on that AppDynamics and surfacing what's actually happening at eliminating blind spots during this pandemic where it's more important than ever to have the best digital experience because that's the brand loyalty really, is that digital experience. >> Ron, I want to ask you, you mentioned something earlier you were talking about how you seized on the opportunity to virtual at home and you retool. But also you mentioned some of the macro conditions in the market, jobs are down, the other on the backup on the upswing. But the geographic hiring is a huge deal. I can almost imagine that's kind of an unforeseen use case where, I mean, it's kind of like working at home. Yeah, X percentage of people be working at home. We plan for that in our disaster recovery or disruption management whatever they do, now 100% people work at home. Now, 100% people looking for jobs. You probably need to rethink the use case because when you have a platform, you've got to think, okay how do I serve my customers who might have a need to recruit from more geographical places? That's a coding thing. So how do you do that stuff? Take us through the mindset of what goes on in your world. >> Yeah, so one of the nice things about building Jobvite as a hiring platform and a sourcing engine is, we use it, right? We now need to solve the same kinds of problems internally that our customers are facing, right? And so we control the software, we understand the problem. And so it's just a matter of deciding these are the things that we're going to prioritize next. We saw a very active summer of social justice outrage, and a lot of that stems from the lack of diversity and inclusive in hiring. And we're already responding to that by delivering features into the product line to help our customers address that in their places. And the key to this is speed. I think you mentioned it and Steve's talked about it as well, right? The ability to move quickly, safely it's the grail that everybody's looking for. And you have to have the right partners to make that successful. >> So I got to ask you then, what are the main benefits you see as you've got working at AppDynamics obviously you're a good customer there. As we're talking through it, you've got a great environment. You're a leader, and how to take advantage of these opportunities and code and shift. What's the benefits of AppDynamics in that equation? >> The key there that we see with AppDynamic's Cisco is the scale and the amount of innovation that they can drive through their product line. One of the things that Steve and I were talking about earlier this year during their transform event, was this deep code insights component which is really production runtime debugging. So imagine I can knock out my meantime to repair, my zero trust and my accelerated solutions of early detection in one solution, right? I can take something that would normally take hours, if not days, into minutes to resolve. The impact on an organization of just one simple feature like that is tremendous when people understand what it can do for them. And it's been invaluable for us. >> Well, you got the speed and the scale with the cloud. So take me through that impact. Because one of the things that's being discussed heavily here at re:Invent and in the industry is the new normal and the new realities we're living in, post pandemic as well. What's going to come out of it. And that is the expectations of the users and is going to drive the new experiences. That's kind of the theme. So the question is whether that's developers or end users or consumers or business users. That's huge, for applications to know what the user experience may be because we don't know what they expect and you don't have the right security (laughs). It kind of all crashes. So what's your... I mean you're nodding your head, weigh in, please. >> Yeah, so I heard a comment earlier from one of my peers in the industry, that is basically saying that nine months ago he had 400 facilities and now he has 18,000. Trying to imagine securing that environment For us, the way we think about it is, work is where you're at. And so we solve the access problems and the tooling problems a long time ago for Jobvite. But we'd been doing for our customers is delivering mobile recruiting solutions. So imagine I don't even need my desktop to complete the hiring process. I can work through the negotiations with a recruiter. I can talk to the candidate, I can text them. One of the big things that we released in early access last month was our new intelligent messaging platform. So that recruiters and hiring managers can have a much more rich conversation with candidates on the mobile device where the candidate is, right? And that's how we're trying to bring this new reality to the marketplace and say, "I can't assume that somebody has a browser and an email client anymore," right? Texting-- >> I mean that's a huge point. I mean, the joke Steven is, it's just distributed computing again 'cause there's really no cloud, there's no... If you think about the edge it's everything is the operating environment. Edge is the data center, edge is the cloud, edge is someone else's place. So if you're thinking about what Ron just said, 18,000 facilities, their homes or wherever, everything has to be looked, that's distributed computing we've been there before, right? I mean. >> Yeah and I think the way Ron, I think describes it, is highly accurate in his company, obviously, but in many companies where, if you've got those 18,000 end points in distributed computing you need to be able to gain visibility into production. And production could be a piece of code living anywhere. And if you can gain that and do that in a secure way which what we do AppDynamics, with our deep code insights, then you can look at data on demand and you can begin to understand the context of what's happening for that end user experience. And you can line up a watch point to watch the code that's executing. And then if it's not working you can actually see how it's not working, recreate that and actually fix it right the first time because you can actually see the code and production in the cloud in this distributed environment. And really be it's more powerful way to operate to reduce time when something happens that you need to fix. >> I was talking to a friend yesterday about this. We weren't on camera. I wish the cameras were rolling. But I'd love to get you guys' reaction to this, because we were saying... I remember when I broke into the business as a young CS major in the late '80s. We had to install everything by hand the software, you install stuff on a server. Or had stuff on a machine and then you put it on a server, you put it in a data center, all those things, right? The young kids then come in and saying, "Okay, I just use the cloud." The next generation and they never installed anything. They don't even know what an installation pack is. Now the next generation's not going to have versions. So you start to get into this notion of evolution with software, because if it's software operated you don't know what version you're running. It shouldn't be disruptive. And the point is this is where I think you guys are getting to here is, the holy grail is there's no disruption. You're running your software at home. Your reaction to that kind of evolution. >> Yeah, you want to take that Steve first? >> Yeah, sure. I mean, it's like you said, the way that code has gone to be delivered and executed is it explodes and disappears. And if there is no way to track that and trace that and understand it, the generation we're in of code, that's a femoral. What's it going to be next? And where's it going to go? And will it ever live anywhere that's alive? The technologies are really being pushed and that's the exciting part. And that's why from an AppDynamics perspective, we're investing in open telemetry is distributed tracing. So as you got distributed computing, we do distributed tracing. And we really look at the problem and provide solutions for our customers. >> Awesome. Ron, your time. I mean, observability, if you can't observe it, you can't measure it. You don't understand, it opens up a lot of things. You got to have the observation space and that's everything. It's hard. >> Yeah. Yeah. And especially as we transition from visual physical servers to virtual hosts, to virtual processes, to virtual functions, right? At some point it's the, I don't even know how to measure capacity for a function in the cloud, right? Let alone try to understand well, what's the cost going to be before I actually deploy it and measure what it's going to cost, right? So these are some of the areas where I think a lot of companies are struggling in understanding how do I move something I'm traditionally very comfortable with. This, I know how much a host costs and I can put my software on there and I can run the CPU at 100% and then I know what I'm getting. But as you start moving into virtual processes and virtual functions, it makes it so much more difficult to think about how you do that capacity planning and budgeting exercise in advance. One of the things that we do with observability is we can test it and we can measure it. And then based on that measure we can make predictions about, okay, this is what it looks like in Def, let's extrapolate what that looks like in production, just by scaling the load. And in areas where you've taken IO and network out of the equation that kind of extrapolation works very well. >> That's awesome. Congratulations on a great a use case, Ron. Thanks for sharing your story, Steven. >> Of course. >> Thanks for coming along and highlighting this great use case and congratulations on having a killer product with observability of AppDynamics. We've been following your work as a company and now at Cisco. So yeah, it's killer software. >> Thanks. Modern software is upon us again the next levels here, gentlemen, thank you for your time. Appreciate the insight >> It been a pleasure. >> Welcome. Thank you for the opportunity. >> Okay, This is the CUBE's virtual covers. We are the CUBE virtual. This is what we do now. We're not in person, but we're remote. When we get back to real life, we'll be back on the scene. We're still doing the interviews. Thanks for watching re:Invent coverage 2020 virtual. (soft music)

Published Date : Dec 2 2020

SUMMARY :

Thanks for coming on the CUBE Virtual. of the transformation journey, and fix it right the first time. mean to you these days? and opportunities to scale And then you got obviously video that aren't going to be and the Amazon all fit together and you want to have that on the opportunity to virtual And the key to this is speed. So I got to ask you then, what One of the things that Steve And that is the expectations of the users and the tooling problems a I mean, the joke Steven is, and actually fix it right the first time And the point is this is and that's the exciting part. You got to have the observation and I can run the CPU at 100% Thanks for sharing your story, Steven. and highlighting this great use case again the next levels here, Thank you for the opportunity. Okay, This is the

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Danny Winokur, AppDynamics | Cisco Live EU Barcelona 2020


 

>>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.

Published Date : Jan 29 2020

SUMMARY :

Cisco live 2020 route to you by Cisco and its ecosystem So one of the big signals, And Cisco of course recognizes that and that has implications for the way we think about the entire technology stack. that takes advantage of all the scale. the operations teams need to work together in a closed loop operating model. get it back out and iterate and iterate and the more shots on goal that you're able to take with the Is it at that level, the And so as the changes in the market are pushing them to work together for the reasons I One of the things I want to get your on the front end of the application, they probably need to use some of the latest cloud based technologies, a new lens that is focused on the screens that the end users are actually seeing in their browser So you can now prioritize the warnings on the back end based on what your users really need So what has to happen in that world is you have to actually relate your business performance data You tell us what are those metrics that you need You can go from the business to the end user experience, the application, We pull that all together with AI and ML produce insights and then provide an API that It's the broadest array of visibility of what you're going to cabbage in the company working for you, And in order to do that, you need to be able to connect these most efficient or the least, sorry, the most cost effective way, Just what advice do you give And so the most effective change agents have been able to go into the depths of the technology. Danny, thanks so much for taking the time to share that. Just the cube bringing you all the data here in

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Thomas Wyatt, AppDynamics & Ben Nye, Turbonomic | Cisco Live US 2019


 

>> Live from San Diego, California It's the queue covering Sisqo live US 2019 Tio by Cisco and its ecosystem. Barker's >> Welcome Back. We're here at the San Diego Convention Center for Sisqo Live 2019 30th year The show. 28,000 in attendance. I'm stupid, and we're actually at the midpoint of three days of life water wall coverage here and happy to bring back to the program to Cube alumni first. To my right is Ben I, who is the CEO of Turban on Mick. And sitting next to him is Thomas wide, who's the chief marketing and strategy officer of AP Dynamics or APD? Ia's everybody calls them here at the show. Gentlemen, thanks so much for joining us. Thank you. All right, So, Thomas, first of all, we had you on it, reinvent like soon after the acquisition of AP ti Bisys. Go. It's been about two years, and I believe it's been about two years that turban Onyx been partnering with Cisco. So let's start with you. And you know what? What changed in those two years? >> Yeah, it's been amazing. Two years ago, we were on the doorstep of an I P O and it's been a rocketship ride ever since. You know AP Dynamics. After the last two years, the businesses more than doubled team sizes more than doubled, and today we're really happy to be the largest and fastest growing provider of application for miss monitoring in the market. But the reason why, that is, is because our customers are embarking on the sigil transformation, and the application has really become the foundation of their modern day business. That's the way brands are engaging with their users. And but now more than ever, and then the application landscape has gotten way more complex, with micro services and multiple clouds and all of the threats that go on in the infrastructure. And so what Hap Dynamics has been doing is just really providing that really time business and application performance that our customers need to ensure business outcomes. We think of ourselves as Thie Marie for the application or the infrastructure. >> That's awesome. So then, you know it's been interesting to watch in the networking space the last few years. For the most part, applications used to be That's just this thing that ran through the pipes every once in a while, I need to, you know, think about performance. I need to make sure I got buffer credits or, you know, it's now going East West rather the north south and the like. But it was solutions like turban on IQ that sat on top of it and helped understand and help people manage their application. Of course. AP ti pulling that story together even tighter. So, you know, give us the latest we've talked to you. It's just go live before an important partnership. What was the latest in your world, >> boy? The well, so one of the things we're doing is we're building an actual bundle together without D. And if you think about a PM, you're getting the application topology as well as response time and use a response time, which is critical to maintaining the brand and the digital economy that we're talking about. What when you look at every one of those hops and the application of there's a entire application stack that sits underneath a resource ing stack and what we're doing is we're bringing in a R M, which is application re sourcing management with a I so that they're automatically adjusting the resource is in all times continuously in order to support the performance needs that Abdi is showing us when you put together a PM plus a r m. You have total application performance and that customers air really, uh, queuing to so much so that we've actually decided to put this bundle officially together in the marketplace. We just became the first ap TI re sell software product, and now we're taking not to market as C one plus happy. >> Well, congratulations on that is harder ship, Thomas. Bring us inside the customers a little bit. What does this mean for them? You know what that journey we talk about, you know, for, you know, last 10 15 years, you gotta break down those silos. It's not just the networking team, you know, tossing over some band within Leighton, see and write them coming back. And I need some more. No, no, we're not going. You know, we're not going to give you any service level agreement or anything like that, because that's not our job. To what? We'll just set this up and you use what you got. So what would happen in >> trend that we're seeing is a move toward this concept of a iob, which is the really the consolidation of bringing and user application network and infrastructure monitoring closer together and tying that together with a base insights to Dr Automation and Action and very similar to what turbo gnomic specializes in here. And so what we're seeing is, you know, the combination of Cisco plus APP Dynamics. Plus, companies like Turbo is beginning to build that self healing, self learning environment where developers and environments need to be able to drive automation on that. Automation ultimately gets tomb or innovation when you can reduce the mundane tasks, really take a lot of our developers time. And so we're really excited about some of the work we're doing together when you think about the ability to take really time business insights from the application and reprogrammed the network based on the needs of the AP or change out the workloads and move them around on different servers, depending on the needs of the AP, these are all things that combination of Turbo, Cisco and epidemics are doing together. >> Yeah, actually, I did a whole show down in D. C a couple months ago, Cisco Partner. We're focused on a I ops. And, you know, we understand customers had a lot of tools that they have to deal with. We need to simplify this environment, allow them tow, you know, focus on their business, not managing this complex environment of all these tools. How does that whole concept of II ops and, you know, automating this environment managing my workloads? You know what? What do you sing with your customers? >> I think all the customers are saying, Look, there's too many tools today. They don't need another resource monitor, et cetera. What they need is they need to understand, through the lens of the application, all the resource dependencies. So instead of looking at a field of servers and saying, I have five nines availability or storage or whatever, what they really want to see is whatever the servers and storage and resource is dependent on this specific up that runs the bank or the CPD company of the manufacturer. And can I make sure that those re sources are supporting performance of the application? And that's is this total application performance concept, much more so than than whether I have five nines availability and all my other host accents? >> Yeah, absolutely. Did you have a comment on other Guy's >> gonna say We're seeing so many different customers in different verticals, Whether it's retail, hospitality, automakers, they're all benefitting from the cloud migration. And now that they have the cloud migration, the ability to have that elasticity of their workloads, they're scaling in and out based on the application demands. This is becoming critical. This is no longer a luxury for the most cloud eight of companies in the world. Enterprises with mission critical systems are all becoming dependent on these more modern technologies. And I think they need partners like ours more than ever. >> Yeah, One of the questions we've had is you talk to customers today and they are multi cloud. But that multiyear hybrid cloud is a bunch of pieces and one of our premises. We ask, from a research standpoint, how can this some of those pieces be more valuable than just the independent pieces alone, you know, kind of one plus one with, you know, an extra factor talk a little bit about the customers. And also, you know, what does this combination do that I couldn't just, you know, grab these pieces together and kind of make it work in my portfolio of those, you know, dozens of tools that I have. >> What glad. But I think the customers one of things this needed. We literally announced his partnership publicly two weeks ago and already have closed the 1st 2 just out of momentum that that folks are realizing the need to be able to say, Look, I can host my applications on Prem with a number of different vendors, I can host my applications off Prem with a number of different vendors. But the real question is, where am I going to get the most performance? Where can I do it in a compliant way with all my policies and how can I make sure that I'm doing it cost effectively? And when there's a multiplicity of tradeoffs where I can choose, then it's incumbent upon each of those vendors, strategic as they are to be able to offer the best service, the best performance, the best compliance and resource ing, and that's what we're bringing to him. And I think that's why you're seeing that a pipeline is built to several double digit millions and already deals are closing everything I'd >> add to that Is that, you know, going back to the point around a ops in the evolution of a lot of these modern ing and automation technologies. >> A lot of our >> customers have a hybrid environment of different tools and providers that they leverage. And so one of the things that were really focused on is an open ecosystem where you'd be able to ingest data sources from various different players. Some of them can be Cisco, Turman, Onyx and Abdi. But some of them can be other providers that are also have very good products in very specific domains. I think the key is that being ableto be ableto bring that data together, Dr Cross domain correlation in a more automated way than ever before, leveraging some of the more modern AI ai capabilities, which drives the action ing that people really need. And that is really the automation step is where customers start to see the benefits. But I think the better and more valuable the data that you have, the better automation you could do because your predictability of your algorithms are much better at that >> point. All right, been your customers that have rolled out that this solution I know the joint solutions brand new. But what? What is then the key metrics? Howto they define success how today they know you know that they they've reached that success. >> So first and foremost, the line of business. Who's the customer to central it? Whether it's hosted or not, they care the most. That performance does not degrade and is always improving. Okay, But when they do that and they can show that, then a ll the decision that the rest of central takes down in fromthe container layer to the pods that a virtual to the cloud I asked on Prem in off those become acceptable choices for central i t. To make because fundamentally, Lina businesses saying, Yep, we're good, right? So that's where we're seeing the value of being able to see the response time and bridging the application performance to the application resource ing that frankly hasn't ever been solved in five decades of it. And I think it goes back to a Thomas was just saying It's the quality of the analytics that comes from a iob. I don't think people need more tools to capture more data. There's a lot of data out there. The question is, can you make it actionable? And are your analytics correct? And, frankly, are they the best? And I think we see that that's been a big parcel of what we've done during the two years Cisco's told us on multiple occasions it's the fastest software O AM they've had by bringing it through, starting with the data center team and growing up through traditional Cisco and then with their purchase of Abdi two years ago. That combination makes a ton of sense, and now you've got the top all the way to the bottom. And that's a pretty special spot, I think un replicated by any other strategic today. Yeah, the other thing, >> I just added, That is the importance of being able to monitor the business in real time as well. And so a lot of what we've talked about are the technology analytics, the operational analytics that we run our business on, but being able to correlate the business transactions running through the application, so users what their journey looks like, they're, you know, abandonment, rates, revenues, you know, the ability to engage with the users, tying that back to the specific infrastructure in a way that's used to be a bit of black box before. Now that all comes a life by the combination of these technologies. >> So Thomas big trends we see at this show. So a Cisco's transformation towards a software company and the world of multi cloud abdi plays a pretty important piece of that. You know, discussion. Talk a little bit about kind of where you are and you know where do you see Cisco moving along that journey and then, you know, help tie in where turban Ah, Mick Fitz. >> Yeah. So I think it really goes back to the fact that as our customers are making this digital transformation, they're really looking at a variety of infrastructures. You know, cloud providers to be able to offer these applications. And what Appdynamics has done is really created this monitoring fabric that sits across any infrastructure and it tightly ties to the business value of the application. So if you combine that with a lot of what Cisco's doing around connectivity securing the clouds, securing the infrastructure around it and tying that Teo where we're strong and networking and bringing all that together, I think fundamentally, we've got a lot of the pieces of the puzzle to truly enable a i ops, but we don't have them all. And I think that's what's important, that we partner with people like Ben because it brings together a set of automation capability around application resource ing that we don't have and our customers are better suited working with with Ben and team on that. So how do we integrate those things in a frictionless way and make that part of our sales process? That's really what this partnerships all about. >> All right, then where do we see the partnership going down the road? >> I think it's going to get more exciting. So right now we're pulling unit Election Lee from Abdi. I think we're going to go right back the other way. That Thomas referred to, which is one of my favorite parts of Abdi. Is the business like you? Yeah, it's where you say, What is the cost of the late and see in anyone? Hop and where do the Bandon rates? Abandonment rates happen from consumers on that application right now, we can price for the first time what's the cost of the late sea in that one tear and across the across the application overall. And then, more importantly, what do we do about it? Well, that's the resource ing and the digestion is being resolved in real time. And so I think, the ability look att, the resiliency of applications both across and up and down the a p m plus the a r m and being able to guarantee or assure performance, total application performance. That's a big message. >> All right, what would I give you both? Just fun. A word here, you know, about halfway through the conference here in San Diego. Thomas, >> I would just say that the energy that we're seeing, the feedback we're getting from customers in the business insights part of the world of solutions been phenomenal. I think there's so many more developer oriented, application developer oriented individuals that's just go live than ever before. And I think that serves both of our business is quite well. >> Look, I think this has been a great show, but one of the things you're going to see is all of these vendors who have had global presence for in this case, 30 years. Sisqo live 30 years long But now being able to think through how do I become that much more application relevant? You know, if you think about transformation of application is going to come top down, not bottom up. And so, while we have all the evolution and, frankly disruption happening, digital disruption happening across it, the way to know which of the ones that are going to stick, they're going to come top down. And I think the moves that they're making all the way through buying happy all the way through partnering with C warmer turban Ah, Mick has been emblematic of what that opportunity is in the marketplace on the realization that customers care about their applications, their applications run their business. And you've got to look at the topology and you gotta look and response time and you gotta look at the resource ing. But that's a really fun spot for us to be in together. >> Bennett Thomas Congratulations on the expanded partnership and thanks again for joining us on the Cube. Thanks to you. All right, we're here in the Definite zone. Three days, Walter Wall coverage. Arms to Minuteman, David Long days in the house. Lisa Martin's here to we'll be back with lots more coverage. Thanks for watching the Cube

Published Date : Jun 11 2019

SUMMARY :

Live from San Diego, California It's the queue covering And you know what? That's the way brands are engaging with their users. I need to, you know, think about performance. the performance needs that Abdi is showing us when you put together a PM plus a r m. You know what that journey we talk about, you know, for, And so what we're seeing is, you know, We need to simplify this environment, allow them tow, you know, company of the manufacturer. Did you have a comment on other Guy's And now that they have the cloud migration, the ability to have that elasticity of their workloads, Yeah, One of the questions we've had is you talk to customers today and they are multi cloud. And I think that's why you're seeing that a pipeline is built to several double digit millions add to that Is that, you know, going back to the point around a ops in the evolution of a lot And that is really the automation step is where customers start to see the you know that they they've reached that success. that the rest of central takes down in fromthe container layer to the pods that a virtual to the cloud I just added, That is the importance of being able to monitor the business in real time as well. moving along that journey and then, you know, help tie in where turban Ah, Mick Fitz. And I think that's what's important, that we partner with people like Ben because I think it's going to get more exciting. All right, what would I give you both? And I think that serves both of our business is quite well. And I think the moves that they're making all the way through buying happy all the way through partnering with Bennett Thomas Congratulations on the expanded partnership and thanks again for joining us on the Cube.

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Emmanuel Offiong, Enterprise & Prathap Dendi, AppDynamics | AWS re:Invent 2018


 

>> Live from Las Vegas, it's theCUBE, covering AWS re:Invent 2018. Brought to you by Amazon Web Services, Intel, and their ecosystem partners. >> And welcome back to Las Vegas. We are at AWS re:Invent, along with Rebecca Knight, I'm John Walls. A lot of energy still behind us here. >> It's amazing. >> Have you noticed that? >> This is day three, people, wow. >> And again, I know a lot of you watching, you come to shows, you attend these things, and you realize that day three sometimes can be a little bit >> Sleepy, yeah. >> Slower, yeah. Not so here, this place is still very much alive. >> Sin City. >> Yeah. Easy, easy now. (group chuckles) We're joined by a couple of gentlemen right now to join us here, Prathap Dendi, who is the General Manager of Growth Initiatives and Commercialization at AppDynamics. Prathap, thank you for being with us. >> Oh, great to be here. >> And Emmanuel Offiong, who is Vice President of Enterprise at Wyndham Hotels. Emmanuel, now usually the conversation in here is, hey, how ya doin', where are you staying? We don't have to ask you that. (group chuckles) We know, right. >> Right. >> So you're good to go at Wyndham. So, first off, let's just talk about, I'd like to get your ideas, we've talked about the show, I mean, how do you feel? You're probably around here quite a bit, Prathap, at various shows and what have ya, your thoughts about what you're seeing here at AWS re:Invent 2018? >> For starters, I think you guys need at least 10 more Cubes because I've been watching the activity here. It's just, you know, crazy, right? A lot of high energy here, a lot of cloud stories, multi-cloud stories, really feed on that, a lot of innovation that's being announced here. >> Alright, and Emmanuel, we hear this a lot, right, customers who are making that big digital jump, you're making that leap, and, in some cases, it's a bit of a leap of faith, right, in some respects. Let's go back to before that, the genesis of your decision, what was the impetus and what were your reservations, and what are your reservations still, for that matter, going forward? >> Sure, so I actually joined Wyndham about three years ago when we were trying to undertake this digital journey, and what we realized was that there was a lot of competition with our online travel agents, and we weren't really bringing in customers the way we thought we could, and so we realized that our digital platforms were antiquated. They weren't speaking to our customers in terms of increased loyalty and such, and so we knew that we had to make a change. We knew that in today's economy, in order to attract customers, we had to be more digital friendly. We had to provide a seamless experience, and we had to make sure that, on all of our platforms, that customers were able to check-in and check-out on their mobile platforms very easily. >> You mentioned online travel agents, but just talk a little bit about this era of hoteling. Has it become so much more competitive, particularly with the rise of Airbnb and other VRBOs? >> It has, it really has, so the Expedias, the Airbnbs of the world, they've really embraced technology, more so than maybe the traditional hospitality companies have, and so that's why you'll see companies like ourselves starting to make investments in technology, making investments into digital transformation. >> So you have your aha moment, we need to move forward, we need a digital transformation so you begin to look for partners. What were you looking for? >> Couple of things, so we were looking at transformation on three levels, for digital, infrastructure management, and data, and so, in terms of a partner, what we wanted to do is we were looking for someone to help us ease that journey. We knew the journey was going to be rough, especially from where we started, so we were looking for a partner like AWS that was going to help us sort of make that scale into modern-day technology very quickly. >> Alright, so when you talk about a digital journey, I just want to back up a little bit. What exactly does that encompass in your case? I mean, I'm thinking you've got your website, you've got your reservation, you know, you've got all these microservices running on your site, you know, it's all good, it's all fine. What weren't you doing specifically germane to your business that AppDynamics is now getting you back up to speed and getting you into the 21st century, if you will? >> Sure, so let me give you some context then. When we talk about customers, we talk about two sets of customers. There are guests who walk in through the door, and then there are franchisees. We're a franchise-based company so let's speak to our guests. In regards to our guests, our check-in/check-out process wasn't as seamless as it could be, right. It wasn't very mobile friendly at the time so those were the things that we were looking to change, and in regards to our franchisees, their ultimate goal is they want to be able to check revenue. They want to be able to check rates, change rates. They want to be able to see what their competitors are doing, and they want to be able to do that very seamlessly and on a mobile platform, and we didn't have those capabilities available to them at the time. >> If I may say something? >> Please. >> It's interesting when we see leaders like Emmanuel talk about digital transformation, they're not talking about I.T. transformation, they're not talking about servers going away, infrastructure. It's really refreshing to see customers talk about business model changes. What I see, you know, Scott and Emmanuel, their team has done a great job about focusing on what is it about the business model that needs to change, and really getting that end-user experience journey, like you asked, right from the time they log-in to requesting a service or changing some reservation, all of that is what they're capturing, and it's really complex, and I know he's quite humble to say, oh, we've done it at scale, but this is hard stuff, to make it simple for the end-user passes the complexity down to the systems, and that's what the team at Wyndham was able to do and we're lucky, AppDynamics, to be part of that journey that monitors the end-to-end performance of the end-user journeys, and then importantly correlate that to business outcomes. You know, do we actually have more partners coming in? Is the full journey faster now, now that we've gone to AWS, is it really impacting the business or is it just I.T. spin? So that's really a good caller to see that digital transformation is really a business model change not just an I.T. change. >> So the business model, so walk us through exactly what you did for this transformation and this cloud migration too. >> Sure, so the first step was realizing that we had to start to migrate some workloads to the cloud, and the reason why we knew we had to go to the cloud was, like I said before, we wanted to get out of the business of managing infrastructure, right, so we said we're going to take our workloads to the cloud. Well, going to the cloud, especially with the type of workloads we were looking at, is often a very complicated and complex adventure, and that's where AppDynamics came in for us, right. We knew we needed something that was going to allow us to see end to end where we started from, and when we migrate to the cloud, have that same level of visibility to ensure that we didn't do two things, right. We're protecting the brand, and we want to make sure we protect our customer experience. Those are the two things that were most important to us as a part of this journey. >> From a security standpoint, huge concern, right? I mean, it has been for a while, but when you go public and what exposure there might be, how have you two kind of dealt with that because, obviously, you're dealing with financial information, with customer information, there's a lot of proprietary stuff that you're getting from your folks that you have to protect, and, obviously, internally as well. So talk about the security component. >> Yeah, happy to go first. It used to be just about five, six years ago, application was seen as a separate silo or a separate layer, and security was different and experience was different. What we're now seeing is every business function is getting really melded into that one concept of end-user experience so security becomes, not an afterthought, but actually is part of the design construct, right, and what we've seen with customers like Wyndham is they have gotten so much better at measuring right from the click stream of from reservation to fulfillment, and looking for anomalies in that data, right, so security correlation to the application data is out of the box now so that's the pre-design for architecture groups like Emmanuel's. >> Sure, yeah, so I (chuckles) I think you said it very well. >> I'll say what he said, right? (group chuckles) >> Well, when you're thinking about this migration, which began in, when did this journey begin? >> Couple years ago. >> Couple of years ago. So, now, was there resistance to it? As you said, you were really at this tipping point where you said we got to do something different here. We've got a lot of different competition coming at us from different angles. >> Yeah, so there was some level of internal concern, I would say, but we worked through that, right. It's really about, at the end of the day, we migrated 8,400 hotels across 18 brands onto this new platform, right, so it's not insignificant so you can imagine, right, the amount of internal conversations that needed to happen to get something like that accomplished. >> And what haven't you done? Obviously, this is a multi-year process. You can't snap your fingers and it's going to be done. I assume you're in a still a nascent stage of this, and you have much more work to do. >> Yep, now we're focused on data, right. Now, we're focused on grabbing insights from the data that we've put into the cloud. We've migrated most of what we were looking to migrate over the last two years, if you will, and now we're lookin' at how do we get more insights from the data that's available to us? >> Alright, and is that something that your company can play with as well? >> And Amazon and AWS themselves so I think over the years what I've seen, you know, I've been an engineer in this career, now in the business side, you co-system around application stack has gotten so transparent, right, so customers like Wyndham are able to purchase best of breed solutions like AppDynamics on AWS marketplace, click of a button. There's no long cycles of value so you quickly get to the value, and then once the journey starts, it's really all about the customer. They're generating trillions of data set every day across their business. Our goal is to see how can we bubble up the impact of that investment to their line of business? How quickly are the customers getting on board, making their decisions versus having to worry about the servers and the infrastructure. That's what we're seeing in a big way. >> Well, and as you said before, this is a business model change. It wasn't just a technology change so how have your customers seen this? How are they reacting? What are your franchisees seeing? How has the business changed? >> From our perspective, the customers love it, and we can measure that in terms of our bookings. We're up 75% in terms of mobile bookings as a result of some of these changes that we've made. Our customers have given us feedback that the experience is much more seamless. Our franchisees have given us feedback that, you know what, it's easier to use our services. >> Yeah, all I want is the best rate. (group laughs) Just give me the best rate, Emmanuel, alright, and I'm a happy camper. >> The statistic that he shared is phenomenal, right, being able to see 75% jump in mobile booking is significant. >> That's extraordinary. >> That's real ROI. >> Yeah, and there are others too. Scott, their CIO, recently wrote in a blog about how and why the CIOs are sleeping better, right. They're actually getting sleep back, and I think that's really the result of the transformation where systems like AppDynamics, systems like applications they wrote, they'll become a lot more seamless now, and being able to show, when I invest a dollar into an application, how is that yielding to line of business, real time is what they have as power now. >> The boss is happy. >> Yeah. >> Yes. >> Well, if they're sleeping well, we're all sleeping well. I know how that goes. Gentlemen, thanks for sharing this story. >> Thank you. >> Thank you, thank you for having us. >> Appreciate your time here. >> Appreciate it. >> Appreciate it. >> You bet, back with more here from AWS re:Invent. You're watching this live from Las Vegas, and we're on theCUBE. (techno music)

Published Date : Nov 29 2018

SUMMARY :

Brought to you by Amazon Web Services, Intel, A lot of energy still behind us here. Not so here, this place is still very much alive. Prathap, thank you for being with us. We don't have to ask you that. I'd like to get your ideas, we've talked about the show, It's just, you know, crazy, right? and what are your reservations still, and so we knew that we had to make a change. Has it become so much more competitive, and so that's why you'll see companies like ourselves so you begin to look for partners. We knew the journey was going to be rough, and getting you into the 21st century, if you will? and in regards to our franchisees, and I know he's quite humble to say, what you did for this transformation and the reason why we knew we had to go to the cloud was, but when you go public and what exposure there might be, so security correlation to the application data where you said we got to do something different here. the amount of internal conversations that needed to happen and you have much more work to do. from the data that's available to us? the impact of that investment to their line of business? Well, and as you said before, and we can measure that in terms of our bookings. alright, and I'm a happy camper. being able to see 75% jump in mobile booking is significant. and being able to show, I know how that goes. thank you for having us. and we're on theCUBE.

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Thomas Wyatt, AppDynamics & Barry Russell, AWS Marketplace and Service Catalog | AWS re:Invent


 

>> 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.

Published Date : Nov 30 2017

SUMMARY :

and our ecosystem of partners. This is the industry bellwether for Cloud computing now, and increase the wealth creation flowing around. And so the relationship we've had together And it's interesting, and the hottest trend right now And that is not new to you guys. but all the goodness of having that instrumentation. so the ability to scale up, scale down. We've interviewed a number of the partners of this space, I was mentioning, you know, this is the second from the context of making it easier to buy Talk about the marketplace dynamics What are some of the speed bumps you're hitting? That enabled the customer to get the best terms and price between both the buyer and the seller at all times. You can tell the truth even though and as part of that, the two key things that we're finding. and the fact that when they get there, So I saw the announcement, it was one click I don't think it was associated with the marketplace. the dependencies of their environment What are the workloads that you're seeing moving over? So the typical workloads that impact revenue, So the one, can't let you go without asking, based on the modern technologies like Lamba general manager of the place making it happen. You guys are driving a big part of their transformation. Congratulations to you guys as well. more live coverage from day 3 after this short break.

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Alice McElroy and Greg Ostrowski Final


 

(relaxing music) >> Hello everyone and welcome back to theCUBE's continuing coverage of AWS re:Invent. My name is Savannah Peterson and I am absolutely thrilled for this segment. We are joined by leaders at Cisco AppDynamics as well as Royal Caribbean. The two have been working together for over five years, leveraging full stack observability. We're going to dig in, but first of all please welcome Alice from Royal Caribbean and Greg from Cisco AppDynamics 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 really been a wild ride. To your point, we were sailing high, and then I don't think any other industry experienced what we did in COVID, that you walked in one day and then that day the whole industry shut down. So it was a big challenge for us. And then as soon as we shut down and we weathered the storm with COVID, then we had what we called our healthy return to service. So as quickly as it stopped, we had to start sailing again. So it's really been a challenge but we're happy to be back on our feet and heading in the right direction now. >> I really hope we can continue the sailing metaphors throughout the course of this interview. And you nailed that for a segment, Alice, I'm so here for it. I want to talk about how you've worked together but I want to give Greg a second to chime in here. So, Greg, you're the executive CTO at Cisco AppDynamics. How have you and the team weathered the last two and a half years? >> Well, you know, it's interesting, the pandemic really brought together an interesting conundrum, right? So on one hand, you had, you know, 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 really instrumental for them 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 blamed the brand if the application did not work the way they expected it. So they didn't really care about the complex- >> Wow. >> 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 quickly innovate. Quickly start to introduce new services, which ultimately brought together 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 the problems or the root cause of an application issue became more difficult. So that's where, you know, from a Cisco AppDynamics perspective, you know we're one of the leading observability and application performance monitoring tools. So, we help customers like Royal Caribbean to be able to zero in on root cause and ensure that their end users have that best experience. >> It's, I'm smiling as someone who was 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 in the complex layers of the kitchen. (Greg laughs) And I think that anyone who's had a poor customer experience while interacting with a brand may or may not intentionally, you know, 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 has full stack observability played a role in your team's ability to serve the customers and keep your community engaged during this very kind of wobbly time? >> Yeah, you know, we have really worked hard to improve and remove friction from our guest vacation. And we want to 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 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 AppDynamics. 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 AppDynamics 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 think that the crunch brought it on 'cause 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 want to 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, it's very hard in the cruise industry. We did take a hit but we were able to use the AppDynamics 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 more stability, more credibility, and more transparency is definitely something that we're all looking forward. 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 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 cruise industry was really, had a very unique challenge in front of them. And I really applaud the folks at Royal Caribbean for stepping up to make sure that when the pandemic eased, so to speak, 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 user experience is topnotch, the availability's there, the resiliency of their platform is there. So, by working with customers like Royal Caribbean is really one of the shining stars that we can talk about that really helped 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'm engaged with customers on a daily basis. And I see it across the map from many different industries. And, you know, a lot of folks had different challenges, but the ultimate commonality that I've seen across, you know, multiple industries is that, you know, when we're in that pandemic state, digital services were the only way that their customers were interacting with them. So, you know, when you're looking at a bank or you're looking at, you know, different types of travel agencies and organizations that, you know like Royal Caribbean as well, that really had that opportunity to focus on what's the most valuable thing to them which is user experience. It's a very, very common trend that we saw. And, you know, you see an expedited path of digital transformation happen. And really that's where we partner with, you know, customers like Royal Caribbean and many others across different industries to make sure that the business outcomes were being driven towards the proper direction as well as that, you know, the user experience. And I don't think I can emphasize user experience as being so critically important, anymore than I already have. But it's really one of the most valuable currencies most organizations have. >> One of my favorite lines is community is your first defensible asset. And you know, 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 don't have to go down that rabbit hole today. >> Especially if I can add, there's a lot of competition there. >> Of 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 the same thing with what Alice sees in the cruise industry, you know. You have an opportunity to rise to the top and I really applaud them for taking advantage of that opportunity. >> Yeah. Well, I'm here for both of you cheering each other on. Certainly, the water level rises together. >> That's right. >> Alice, what sort of challenges are you taking on currently that you're able to disclose? What sort of leaps do you think or it doesn't have to be leaps, but what kind of experience are you hoping to continue to enhance for Royal Caribbean customers? >> 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 going to be even able to watch our user interaction more from ship to shore. You know, and 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 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 going to play a role in that. >> 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 nice thought. I can't say that every data center I've ever been to is as glamorous, fun or sexy as being on a Royal Caribbean ship. However, 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 and the team and Cisco AppDynamics 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. Traditional IT departments were historically siloed pretty significantly between, you know network and infrastructure, security, app dev. So I mean, ensuring that we can get our customers 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, the 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 business context to ensure that you understand the investments being made, that you can show to your business leaders, is showing an uptake in the business outcomes 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 going to 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 a cruise. So next stop, I want to 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 going to be your next Royal Caribbean cruise? >> I have never done the Galapagos, but that may just have made it to my list. >> Fantastic. Well, I second Alice's endorsement on that. 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 observability, 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 seas soon. Thank you all for tuning in to our AWS re:Invent coverage. This is theCUBE. My name's Savannah Peterson. And we look forward to seeing you for our next segment. (relaxing music)

Published Date : Nov 30 2022

SUMMARY :

AppDynamics to the show. How are you doing, Greg? Thanks for having me on the show today. Alice, I have to start with you. that you walked in one day And you nailed that for a segment, Alice, So on one hand, you had, So finding that the that you have at Royal Caribbean, Alice. that same type of stability, you know? that the crunch brought it on 'cause we, And it's nice to see that implemented, that the experience to the customer we partner with, you know, And you know, you can Especially if I can add, in the cruise industry, you know. Certainly, the water level rises together. And I really see, you know, However, I hope that we move that you can show to It's something that you both share. is the best place to go. Is that going to be your but that may just have made it to my list. I hope that you both continue

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Larry Lancaster & Rod Bagg, Zebrium | Zebrium Root Cause as a Service


 

(upbeat music) >> Full stack observability is all the rage today. As businesses lean into digital, customer experience becomes ever more important. Why? Well, it's obvious, fickle consumers can switch brands in the blink of an eye or the click of a mouse. Technology companies have sprung into action and the observability space is getting pretty crowded in an effort to simplify the process of figuring out the root cause of application performance problems without an army of PhDs and lab coats, also known as endlessly digging through logs, for example. We see decades old software companies that have traditionally done monitoring or log analytics and or application performance management stepping up their game. These established players, you know, they typically have deep feature sets and sometimes purpose-built tools that attack one particular segment of the marketplace. And now they're pivoting through M&A and some organic development trying to fill gaps in their portfolio. And then, you got all these new entrants coming to the market, claiming end to end visibility across the so-called modern cloud and now edge native stacks. Meanwhile, cloud players are gaining traction and participating through a combination of native tooling combined with strong ecosystems to address this problem. But, you know, recent survey research from ETR confirms our thesis that no one company has it all. Here's the thing. Customers just want to figure out the root cause as quickly and as efficiently as possible. It's one thing to observe the stack end to end, but the question is who is automating the observers? And that's why we're here today. Hello, my name is Dave Vellante and welcome to this special Cube presentation where we dig into root cause analysis, and specifically, how one company, Zebrium, is using unsupervised machine learning to detect anomalies and pinpoint root causes and delivering it as an automated service. And in this session, we have two deep dives. First, we're going to dig into this exciting new field of RCaaS, Root Cause As A Service with two of the founders and technical experts behind Zebrium. And then we bring in two technical experts from Cisco, an early Zebrium customer who ran a POC with Zebrium's service, automating and identifying root cause problems within four very well established and well known Cisco product lines, including WebEx Client and UCS. I was pretty amazed at the results and I think you'll be impressed as well. So thanks for being here. Let's get started. With me right now is Larry Lancaster, who's a founder and CTO of Zebrium. And he's joined by Rod Bagg, who's the founder and vice president of engineering at the company. Gents, welcome. Thanks for coming on. >> Thanks. >> Okay. >> It's good to be here. >> It's good to be here >> All right Rod, talk to me. Talk to me about software downtime, what root cause means, all the buzzwords in your domain, MTTR and SLO. What do we need to know? >> Yeah, I mean, it's like you said. I mean, it's extremely important to our customers and to most businesses out there to drive uptime and avoid as much downtime as possible. So, you know, when you think about it, all of these businesses, most companies nowadays, either their product is software and it's running, you know, running on the web and that's how you get a point click. Or the business depends on, you know, internal systems to drive their business and to run it. When that is down, that is hugely impacting to them. So if you take a look, you know, way back, you know, 20, 30 years ago, software was simple. You know, there wasn't much to it. It was pretty monolithic and maybe it took a couple of people to maintain it and keep it running. There wasn't really anything complicated about it. It was a single tenant piece of software. Today's software is so complicated, often running, you know, maybe hundreds of services to keep that or to actually implement what that software is doing. So as you point out, you know, enter the sort of observability space and the tools that are now in use to help monitor that software and make sure when something goes wrong, they know about it But there's kind of an interesting stat around the observability space. So when you look at observability in the context or through the lens of the cost of downtime, it's really interesting. So observability tools are about a $20 billion market, okay? But the cost of downtime, even with that in place, is still hundreds of billions of dollars. So you're not taking much of a bite out of what the real problem is. You have to solve root cause and get to that fast. So it's all great to know that something went wrong but you got to know why. And it's our contention here that, you know, really, when you take a look at the observability space, you have metrics, that's a great tool. I mean, there's lots of great tools out there, you know, around metrics monitoring that's going to tell you when something went wrong. It's very rarely it's going to tell you why. Similarly for tracing, it's going to point you to where the issue is. It's going to take you through that stack and probably pinpoint where you're being, you know where it's happening or where something is running slow, potentially. So that's great. But again, the root cause of why it's happening is going to be buried in log files. And I can expand on that a little bit more but you know, when you're a software developer and you're writing your software, those log files are a wealth of information. It's just a set of breadcrumbs that are littered with facts about how the software is behaving and why it's doing what it's doing, or why it went wrong. And it's that that really gets you to the root cause very fast. And that's our contention, is that these software systems are so complex nowadays and that the root cause is lying in those logs. So how do you get there fast? You know, we would contend that you better automate that or you are just doomed for failure. And that's where we come in. >> Great. >> Getting to that root cause. >> Thank you, Rod. You know, it's interesting you talk about the $20 billion market. There's an analogy with security, right? We spend 80, $100 billion a year on securing our infrastructure, and yet we lose probably closer to a trillion dollars a year in breaches. And there's a similar analogy here. 20 billion could be 5X in downtime impacts or more. Okay, let's go to Larry. Tell us a little bit more about Zebrium. I'm interested always to ask a founder why you started the company. Rod touched on that a little bit. You guys have invented this concept of RCaaS. What does it mean? What problems does it solve, and how does it solve the problem? Let's get into it. >> Yeah. Hey, thanks, Dave. So I think when you said, you know, who's automating the observer, that that's a great way to think about it because what observability really means is it's a property of a system that means you can see into it. You can observe the internal state and that makes it easier to troubleshoot, right? But the problem is if it's too complicated, you just push the bottleneck up to your eyeball. There's only so much a person can filter through manually, right? And I love the way you put that. So that's a great way to think about it is automating the observer. Now, of course, it means that, you know, you reduce your MTTR, you meet your service level objectives, all that stuff, you improve customer experience. That's all true, but it's important to step back and realize like we have cracked a real nut here. People have been trying to figure out how to automate this part of sort of the troubleshooting experience, this human part of finding the root cause indicators for a long time. And until Zebrium came along, I would argue, no one's really done it right. So, you know, I think it's also important you know, as we step back, we can probably look forward five to 10 years and say, everyone's going to look back and say how did we do all this manually? You're going to see this sort of last mile of observability and troubleshooting is going to be automated everywhere because otherwise, you know, people are just... They're not going to be able to scale their business. So, you know, I think one more thing that's important to point out is, you know, I think Zebrium, you know, it's one thing to have the technology but we've learned we need to deliver it right where people are today. You can't just expect people to dive into a new tool. So, you know, we're looking at, you know, if you look at Zebrium, you'll put us on your dashboard and we don't care what kind of a dashboard it is. It could be, you know Datadog, New Relic, Elastic, Dynatrace, Grafana AppDynamics, ScienceLogic, we don't care. You know, they're all our friends. So we're more interested in getting to that root cause than trying to fight, you know, these incumbents and all that stuff. Yep. >> Yeah. So, interesting. Again, another analogy I think about. You know, you talked about automation. If we're to look back and say this is what... We're never going to do this again, it's like provisioning loans. Nobody provisions loans anymore, it's all automated. >> Larry: (chuckling) That's right. >> So Larry, I'll stay with you, then the skeptic in me says, this sounds amazing, but if I, you know... It might be too good to be true. Tell us how it works. >> Larry: (chuckling) Yeah. So that's interesting. So Cisco came along and they were equally skeptical. So what they did was they took a couple of months and they did a very detailed study. And they got together 192 incidents across four product lines, where they knew that the root cause was in the logs. And they knew what that root cause was because they had had their best engineers, you know work on those cases and take detailed notes of the incidents that had taken place. And so they ran that data through the Zebrium software. And what they found was that in more than 95% of those incidents, Zebrium reflected the correct root cause indicators at the correct time. Like that blew us away. When we saw that kind of evidence, Dave, I have to tell you, everyone was just jumping up and down. It was like, you know, it was like the Apollo command center, you know when they finally, you know, touchdown on the moon kind of thing. So, you know, it's really an exciting point in time to be at the company, like just seeing everything finally being proven out according to this vision. I'm going to tell you one more story which is actually one of my favorites, because we got a chance to work with Seagate Lyve Cloud. So they're, you know, a hyper modern, you know, SaaS business, they're an S3 competitor. Zoom has their files stored on Lyve Cloud, you know, to let you know who they are. So essentially, what happened was they were in alpha, their early access, and they had an outage, and it was pretty bad. I mean, it went on for longer than a day, actually, before they were completely restored. And it was, you know, fortunately for them, it was early access. So no one was expecting, you know, uptime, you know, service level objectives and so on. But they were scared, because they realized, if something like this happens in production, you know, they're screwed. So what they did was they saw Zebrium. They went and did some research, they saw Zebrium. They went in a staging environment, recreated the exact (indistinct) that they had had. And what they saw was immediately, Zebrium pops up a root cause report that tells them exactly the root cause that they took over a day to find. These are the kind of stories that let us know we're onto something transformational. >> Dave: Yeah. That's great. I mean, you guys are jumping up and down, I'm sure. We're going to hear from Cisco later. I bet you, they were jumping up and down too because they didn't have to do all that heavy lifting anymore. So Rod, Larry's just sort of implying that, or actually, you guys both talked about that your tool is agnostic. So how does one actually use the service? How do I deploy it? >> Yeah. So let me step back. So when we talk about logs right? Like, you know, all these bread crumbs being in logs and everything else? So, you know, they are a great wealth of you know, information, but people hate dealing with them. I mean, they hate having to go in and figure out what log to look at. In fact, you know, we had one of our... Or we've heard from several of our customers now prior to using Zebrium, when they, you know, have some issue, and they know there's something wrong, something on their dashboard has told them that something's wrong, maybe a metric has, you know, taken a blip or something's happened that they know there's a problem. We've heard from them that it can take like a number of hours just to get to the right set of logs, like figuring out over these hundreds of services where the logs are, to get to them, maybe searching in a log manager. Just to get into the right context, even, can take hours. So, you know, that's obviously the problem we solve but, you know, we don't want them just looking at logs. I mean, you know, we don't want to put them back in the thing they don't like doing because people don't do that. They don't like doing it. So we put it up on the dashboard. So if something is going wrong with your metrics and that's the indicator, or maybe it's something with tracing that you're sort of digging through that you know something's wrong, we will be right on that same dashboard. So we're deployed as a SaaS service. You send us your logs, you click on one of our integrations and we integrate with all these tools that Larry's talked about. And when we detect anything that is a root cause report, it will show up on your dashboard in the same timeline as those blips in your metrics. So when you see something going wrong and you know there's an issue, take a look at the portion of your dashboard that is us, and we're going to tell you why. We're going to get you to the why that went wrong. No other work could be... You can, you know, also click down and click through to us so that you land up in our portal, if you want to do some more digging around, if you need to or whatever, maybe to get some context what have you, but it's fair that if you ever need to do that, the answer should be right there on your dashboard. And that that's how we expect people to use it. We don't want them digging in logs and going through things, we want it to be right in their workflow. >> Great. Thank you, Larry. So Rod, we talked about Cisco. We're going to hear more from them in a moment in Seagate. I would think this is like a perfect solution for a SaaS provider, anybody doing AI ops. Do you have some examples of those types of firms leaning into this? >> Rod: Yeah, a couple of great ones. Well, I mean, we've got many of them, but a couple that I'll touch on. We have an actual AI ops company that was looking for, you know, sort of some complimentary technology and so on. And so they decided to just put us through our paces by having one of their own SREs sign up for our service in our SaaS environment, and send the logs from their system to us, you know, and just see how we did. So it turned out we ended up talking back to this SRE like a week after he had installed the product, you know signed up and then, you know, started sending us logs. And, you know, he was hewing and hawing, saying that he was busy, like every SRE is, and that he didn't have a chance to really do much with us yet. And, you know, we were just, you know, having this conversation on the phone, and he comes to tell us that, yeah I've been busy because we had this, you know, terrible outage, like, you know, five days ago. And we said like, "Okay did you actually look on the Zebrium dashboard?" (chuckles) And he goes, "You know what? I didn't even think to do it yet. I mean, I'd just been so busy and frazzled." So we have an integration with that company, he hadn't put that integration in, so it wasn't in his dashboard yet, but it was certainly on ours. So he went there, and he looks and he looks on the day, you know, on the time range of when he had had this incident. And right at the very top of the page on our portal was that incident with that root cause. And he was flabbergasted. It literally would've saved him hours and hours and hours. They had this issue going on for over 24 hours. And we had the answer right there in five minutes, and it was crazy. And we get that kind of stories. It's just like the Seagate one. If you use us and you have a problem, we're going to detect it. And you're going to hear from Cisco how successful we are at detecting things. I mean, it'll be there when you have a problem. In SaaS companies, you know, one of our customers is Alchera. They do cost optimizations for cloud properties, you know, for AWS optimization, Google, Google cloud, and so on. But they use our software, and they have a lot of interaction, obviously with these cloud vendors and the APIs of those cloud vendors. So, you know, in order to figure out your costing at AWS, they're using all those APIs. So it turned out, you know, they had some issue where their services were breaking. And we had that root cause report right on the screen, again within five minutes, that was pointing to an API problem with Google. And they had changed one of their APIs and Alchera was not aware of it. So their stuff was breaking because of a change downstream that we had caught. And I'll just tell you one last one because it's somewhat related to one of these cloud vendors. You know, it was a big cloud vendor who had an outage a couple of months ago. And it's interesting because, you know, a lot of our customers will set up shared Slack channels with us, where we're monitoring or seeing their incidents as well as they are. So we get a little Slack representation of the incident that we detected for them or the root cause that we detected for them, and that's in a shared community channel. So we could see this happening when that AWS outage happened. We could see our customers getting impacted by that AWS outage, and the root cause of what was going on there in AWS that was impacting our customers that was showing up in our incidents. Now we didn't obviously, you know, have the very root cause of what was going on in AWS, per se but we were getting to the root cause of why our customer's applications were failing. And that was because of issues going on at AWS. >> Very interesting. I mean, I think one of your biggest challenges is going to be getting people's attention because these SREs are so busy, their hair's on fire. >> Rod: That's it. Right. (chuckling). You know, when you say, hey, (indistinct). >> I tell you, if you get their attention, they love it. I mean, this AI ops company, I didn't even tell you the punchline there, but, you know, they had this incident that occurred that we found. And quite literally, the next week, they ended up signing up as a paid customer. So... >> Dave: that's great. And Larry, to give you the last word. I mean, you know, Rod was talking about, you know, changes in APIs and you know, there's still a lot of scripts out there. You guys, if I understand it correctly, run both as a service in the cloud and you can run on-prem, which is important because there's a lot of sensitive information in logs that people are trying not to leave. >> Larry: That's right. Absolutely. >> Dave: But close it out here. >> Yeah. I mean, that's right, you can run it on-prem. Just like we run it in our cloud, you can run it in your cloud or on your own infrastructure. Now that's all true. You know, I think the one hurdle now that we have left as a company is getting the word out and getting people to believe that this is actually possible and try it for themselves. You don't believe it, do a POC, try it yourself. And you know, people have become so jaded by the lack of, you know, real, sort of, innovation in the software industry for the last 10 years that it's hard to get people to... But guys, you got to give it a shot, I'm telling you. I'm telling you right now, it works. And you'll hear more about that from one of our customers in a minute. >> All right guys, thanks so much. Great story. Really appreciate you sharing. >> Thank you. >> Yeah. Thanks Dave. Appreciate the time. >> Okay. In a moment, we're going to hear from Cisco who is the customer in this case example and a company that has... Look, they have quite an impressive suite of observability tooling, and they've done a pretty compelling proof of concept with Zebrium using real data on some Cisco products that you've heard of, like WebEx. So stay tuned and learn about how you can really take advantage of this new technology called Root Cause As A Service. You're watching theCube, the leader in enterprise and emerging tech coverage. (upbeat music)

Published Date : Jun 16 2022

SUMMARY :

you know, they typically All right Rod, talk to me. Or the business depends on, you know, and how does it solve the problem? And I love the way you put that. You know, you talked about automation. this sounds amazing, but if I, you know... So no one was expecting, you know, uptime, I mean, you guys are jumping up and down, We're going to get you to Do you have some examples and he looks on the day, you know, is going to be getting people's attention you say, hey, (indistinct). but, you know, they had And Larry, to give you the last word. Larry: That's right. by the lack of, you know, appreciate you sharing. you can really take advantage

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Larry Lancaster & Rod Bagg


 

(bright intro music) >> Full stack observability is all the rage today. As businesses lean in to digital, customer experience becomes ever more important, why? Well, it's obvious. Fickle consumers can switch brands in the blink of an eye or the click of a mouse. Technology companies have sprung into action, and the observability space is getting pretty crowded in an effort to simplify the process of figuring out the root cause of application performance problems without an army of PhDs and lab coats, also known as endlessly digging through logs, for example. We see decades-old software companies that have traditionally done monitoring or log analytics and/or application performance management stepping up their game. These established players, you know, they typically have deep feature sets and sometimes purpose built tools that attack one particular segment of the marketplace, and now, they're pivoting through M&A and some organic development trying to fill gaps in their portfolio, and then you got all these new entrants coming to the market claiming end to end visibility across the so-called modern cloud and now edge-native stacks. Meanwhile, cloud players are gaining traction and participating through a combination of native tooling combined with strong ecosystems to address this problem, but, you know, recent survey research from ETR confirms our thesis that no one company has at all. Here's the thing. Customers just want to figure out the root cause as quickly and efficiently as possible. It's one thing to observe the stack end to end, but the question is who is automating the observers? And that's why we're here today. Hello, my name is Dave Vellante, and welcome to this special "CUBE" presentation where we dig into root cause analysis and, specifically, how one company, Zebrium, is using unsupervised machine learning to detect anomalies and pinpoint root causes and delivering it as an automated service. In this session, we have two deep dives. First, we're going to dig into this exciting new field of RCA, root cause as a service, with two of the founders and technical experts behind Zebrium, and then we bring in two technical experts from Cisco, an early Zebrium customer who ran a POC with Zebrium's service, automating and identifying root cause problems within four very well established and well-known Cisco product lines including Webex client and UCS. I was pretty amazed at the results, and I think you'll be impressed as well. So thanks for being here. Let's get started with me right now is Larry Lancaster who's a founder and CTO of Zebrium, and he's joined by Rod Bagg who's a founder and Vice-President of Engineering at the company. Gents, welcome, thanks for coming on. >> Thanks. >> (indistinct). >> To be here. >> Great to be here. >> All right, Rod, talk to me. Talk to me about software downtime, what root cause means, all the buzzwords in your domain, MTTR and SLO, what do we need to know? >> Yeah, I mean, it's like you said. I mean, it's extremely important to our customers and to most businesses out there to drive up time and avoid as much downtime as possible. So, you know, when you think about it, all of these businesses, most companies nowadays, either their product is software and it's running, you know, running on the web, and that that's how you get a point click or their business depends on it and, you know, internal systems to drive their business and to run it. Now, when that is down, that is hugely impacting to them. So if you take a look, you know, way back, you know, 20, 30 years ago, software was simple. You know, there wasn't much to it. It was pretty monolithic, and maybe it took a couple of people to maintain it and keep it running. It wasn't really anything complicated about it. It was a single tenant piece of software. Today's software is so complicated, often running, you know, maybe hundreds of services to keep that or to actually implement what that software is doing. So as you point out, you know, enter the sort of observability space and the tools that are now in use to help monitor that software and make sure when something goes wrong, they know about it, but there's kind of an interesting stat around the observability space. So when you look at observability in the context or through the lens of the cost of downtime, it's really interesting. So observability tools are about a $20 billion market, okay? But the cost of downtime, even with that in place, is still hundreds of billions of dollars. So you're not taking much of a bite out of what the real problem is. You have to solve root cause and get to that fast. So it's all great to know that something went wrong, but you got to know why, and it it's our contention here that, you know, really, when you take a look at the observability space, you have metrics. That's a great tool. I mean, there's lots of great tools out there, you know, around metrics monitoring that's going to tell you when something went wrong. It's very rarely it's going to tell you why. Similarly for tracing, it's going to point you to where the issue is. It's going to take you through that stack and probably pinpoint where you're being, you know, where it's happening or where something is running slow potentially. So that's great, but again, the root cause of why it's happening is going to be buried in log files, and I can expand on that a little bit more, but, you know, when you're a software developer, and you're writing your software, those log files are a wealth of information. It's just a set of breadcrumbs that are littered with facts about how the software is behaving and why it's doing what it's doing or why it went wrong, and it's that that really gets you to the root cause very fast, and that's, our contention is that these software systems are so complex nowadays, and that the root cause is lying in those logs. So how do you get there fast? You know, we would contend that you better automate that or you're just doomed for failure, and that's where we come in. >> Great. >> Getting to that request. >> Thank you, Rod. You know, it's interesting. You talk about the $20 billion market. There's an analogy with security, right? We spend 80, $100 billion a year on securing our infrastructure, and yet we lose, probably, closer to a trillion dollars a year in breaches, and there's a similar analogy here. 20 billion could be 5x in downtime impacts or more. Okay, let's go to Larry. Tell us a little bit more about Zebrium. I'm interested always to ask a founder why you started the company. Rod touched on that a little bit. You guys have invented this concept of RCAs. What does it mean? What problems does it solve? And how does it solve the problem? Let's get into it. >> Yeah, hey, thanks, Dave. So I think when you said, you know, who's automating the observer? That's a great way to think about it because what observability really means is it's a property of a system that means you can see into it. You can observe the internal state, and that makes it easier to troubleshoot, right? But the problem is if it's too complicated, you just push the bottleneck up to your eyeball. There's only so much a person can filter through manually, right? And I love the way you put that. So that's a great way to think about it is automating the observer. Now, of course, it means that, you know, you reduce your MTTR, you meet your service level objectives, all that stuff, you improve customer experience, that's all true, but it's important to step back and realize like we have cracked a real nut here. People have been trying to figure out how to automate this part of sort of the troubleshooting experience, this human part of finding the root cause indicators for a long time, and until Zebrium came along, I would argue no one's really done it right. So, you know, I think it's also important, you know, as we step back, we can probably look forward five to 10 years and say, "Everyone's going to look back and say, 'How did we do all this manually?'" You're going to see this sort of last mile of observability and troubleshooting is going to be automated everywhere because otherwise, you know, people are just, they're not going to be able to scale their business. So, you know, I think one more thing that's important to point out is, you know, I think Zebrium, you know, it's one thing to have the technology, but we've learned we need to deliver it right where people are today. You can't just expect people to dive into a new tool. So, you know, we're looking at, you know, if you look at Zebrium, you'll put us on your dashboard, and we don't care what kind of a dashboard it is. It could be, you know, Datadog, New Relic, Elastic, Dynatrace, Grafana, AppDynamics, ScienceLogic, we don't care. You know, they're all our friends. So we're more interested in getting to that root cause than trying to fight, you know, these incumbents and all that stuff, yeah. >> Yeah, so interesting. Again, another analogy I think about, you know, you talked about automation, where to look back, and say, "This is what- We're never going to do this again." It's like provisioning LANs. Nobody provisioned LANs anymore. It's all automated. >> That's correct. >> So, Larry, stay with you. The skeptic in me says, "This sounds amazing," but if, you know, it probably too good to be true. Tell us how it works. >> Yeah, so that's interesting. So Cisco came along and they were equally skeptical. So what they did was they took a couple of months, and they did a very detailed study, and they got together 192 incidents across four product lines where they knew that the root cause was in the logs, and they knew what that root cause was because they'd had their best engineers, you know, work on those cases and take detailed notes of the incidents that had taken place, and so they ran that data through the Zebrium software, and what they found was that in more than 95% of those incidents, Zebrium reflected the correct root cause indicators at the correct time. Like that blew us away. When we saw that kind of evidence, Dave, I have to tell you, everyone was just jumping up and down. It was like, you know, it was like the Apollo Command Center, you know, when they finally, (Dave laughs) you know, touchdown on the moon kind of thing. So, you know, it's really exciting at a point in time to be at the company, like just seeing everything finally being proven out according to this vision. I'm going to tell you one more story, which is actually one of my favorites, because we got a chance to work with Seagate Lyve Cloud. So they're, you know, a hyper modern, you know, SaaS business. They're an S3 competitor. Zoom has their files stored on Lyve Cloud to give, you know, to let you know who they are. So, essentially, what happened was they were in alpha, in their early access, and they had an outage, and it was pretty bad. I mean, it went on for longer than a day, actually, before they were completely restored, and it was, you know, fortunately, for them, it was early access. So no one was expecting, you know, uptime, you know, service level objectives and so on, but they were scared because they realized if something like this happens in production, you know, they're screwed. So what they did was they saw Zebrium, they did some research, they saw Zebrium. They went in a staging environment, recreated the exact (indistinct) that they'd had, and what they saw was, immediately, Zebrium pops up a root cause report that tells them exactly the root cause that they took over a day to find. These are the kind of stories that let us know we're onto something transformational. >> Yeah, that's great. I mean, you guys are jumping up and down. I'm sure, we're going to hear from Cisco later. I bet you, they were jumping up and down, too, 'cause they didn't have to do all that heavy lifting anymore. So Rod, Larry's just sort of implying that or, actually, you guys both talked about that your tool's agnostic. So how does one actually use the service? How do I deploy it? >> Yeah, so let me step back. So when we talk about logs, right? Like, you know, all these red crumbs being in logs and everything else. So, you know, they are a great wealth of, you know, information, but people hate dealing with them. I mean, they hate having to go in and figure out what log to look at. In fact, you know, we had one of our, or we've heard from several of our customers now prior to using Zebrium, but when they're, you know, have some issue, and they know there's something wrong, something on their dashboard has told them that something's wrong, maybe a metrics is, you know, taken a blip or something's happened that they know there's a problem, we've heard from them that it can take like a number of hours just to get to the right set of logs, like figuring out over these hundreds of services where the logs are to get to them, maybe searching in a log manager, just to get into the right context even can take hours. So, you know, that's obviously the problem we solve, but, you know, we don't want them just looking at logs. I mean, you know, we don't want to put 'em back in the thing they don't like doing 'cause people don't do what they don't like doing. So we put it up on the dashboard. So if something is going wrong with your metrics, and that's the indicator or maybe it's something with tracing that you're sort of digging through now that you know something's wrong, we will be right on that same dashboard. So we're deployed as a SaaS service. You send us your logs. You click on one of our integrations, and we integrate with all these tools that Larry's talked about, and when we detect anything that is a root cause report, it will show up on your dashboard in the same timeline as those blips in your metrics. So when you see something going wrong, and you know there's an issue, take a look at the portion of your dashboard that is us, and we're going to tell you why. We're going to get you to the why that went wrong. Not no other work could be- You can, you know, also click down and click through to us so that you land up in our portal if you want to do some more digging around if you need to or whatever, maybe to get some context, what have you, but it's fair that you ever need to do that. The answer should be right there on your dashboard, and that's how we expect people to use it. We don't want them digging in logs and going through things. We want it to be right in their workflow. >> Great, thank you, Larry. So Rod, we talked about Cisco. We're going to hear more from them in a moment and Seagate. I would think this is like a perfect solution for a SaaS provider, anybody doing AIOps, do you have some examples of those types of firms leaning into this? >> Yeah, a couple of great, well, I mean, we got many of them, but couple that I'll touch on. We have an actual AIOps company that was looking for, you know, sort of some complimentary technology and so on, and so they decided to just put us through our paces by having one of their own SREs sign up for our service in our SaaS environment and send the logs from their system to us, you know, and just see how we did. So it turned out we ended up talking back to this SRE like a week after he had installed the product, you know, signed up, and then, you know, started sending us logs, and, you know, he was hemming and hawing saying that he was busy like, you know, like every SRE is, and that he didn't have a chance to really do much with us yet, and, you know, we just, you know, having this conversation on the phone, and he comes to tell us that, "Yeah, I've been busy because we had this, you know, terrible outage like, you know, five days ago," and we said like, "Okay, did you actually look on the Zebrium dashboard?" (laughs) And he goes, "You know what? I didn't even think to do it yet. I mean, I'd just been so busy and frazzled." So we have an integration with that company. He hadn't put that integration in so it wasn't in his dashboard yet, but it was certainly on ours. So he went there and he looks on the day like, you know, on the time range of when he had this incident, and right at the very top of the page on our portal was the incident with the root cause, and he was flabbergasted. It literally would've saved him hours and hours and hours. They had this issue going on for over 24 hours, and we had the answer right there in five minutes, and it was crazy, and we get that kind of story. It's just like the Seagate one. If you use us and you have a problem, we're going to detect it, and you're going to hear from Cisco how successful we are at detecting things. I mean, it'll be there when you have a problem. In SaaS companies, you know, one of our customers is Archera. They do cost optimizations for cloud properties, you know, for AWS optimization, Google cloud, and so on, but they use our software, and they have a lot of interaction, obviously, with these cloud vendors and the APIs of those cloud vendors. So, you know, in order to figure out you're costing at AWS, they're using all those APIs. So it turned out, you know, they had some issue where their services were breaking and we had that root cause report right on the screen, again, within five minutes that was pointing to an API problem with Google, and they had changed one of their APIs, and Archera was not aware of it. So their stuff was breaking because of a change downstream that we had caught, and I'll just tell you one last one because it's somewhat related to one of these cloud vendors of, you know, big cloud vendor who had an outage couple of months ago, and it's interesting because, you know, lot of our customers will set up shared Slack channels with us where we're monitoring or seeing their incidents as well as they are. So we get a little Slack representation of the incident that we detected for them or the root cause that we've detected for them, and that's in a shared community channel. So we could see this happening when that AWS outage happened. We could see our customers getting impacted by that AWS outage and the root cause of what was going on there in AWS that was impacting our customers, that was showing up in our incidents. Now, we didn't obviously, you know, have the very root cause of what was going on in AWS per se, but we were getting to the root cause of why our customer's applications were failing, and that was because of issues going on at AWS. >> Very interesting. I mean, I think one of your biggest challenge is going to be getting people's attention because these SREs is so busy, their hair's on fire. (all laughs) You know, he's like, "Hey, chap, I'm going to show you, look at this." >> I tell you. You get their attention, they love it. I mean, this AIOps company, I didn't even tell you the punchline there, but, you know, they had this incident that occurred that we found and, quite literally, the next week, they ended up signing up as a paid customer, so. >> That's great, and Larry, give you the last word. I mean, you know, Rod was talking about, you know, changes in APIs, and, you know, there's still a lot of scripts out there. You guys, if I understand it correctly, run both as a service in the cloud and you can run on-prem, which is important because there's a lot of sensitive information in logs and people don't want to leave. >> That's right, absolutely. >> But, yeah, close it out here. >> Yeah, I mean, you can, that's right, you can run it on-prem, just like we run it in our cloud. You can run it in your cloud or on your own infrastructure. Now, that's all true. You know, I think the one hurdle now that we have left as a company is getting the word out and getting people to believe that this is actually possible and try it for themselves. You don't believe it? Do a POC, try it yourself. And, you know, people have become so jaded by the lack of, you know, real sort of innovation in the software industry for the last 10 years that it's hard to get people to... But guys, you got to give it a shot. I'm telling you. I'm telling you right now, it works, and you'll hear more about that from one of our customers in a minute. >> Alright guys, thanks so much. Great story, really appreciate you sharing. >> Thank you. >> Yeah, thanks, Dave. Appreciate the time. >> Okay, in a moment, we're going to hear from Cisco who is the customer in this case example, and a company that is... Look, they have quite an impressive suite of observability tooling, and they've done a pretty compelling proof of concept with Zebrium using real data on some Cisco products that you've heard of like Webex. So stay tuned and learn about how you can really take advantage of this new technology called root cause as a service. You're watching "theCUBE", the leader in enterprise and emerging tech coverage. (bright outro music)

Published Date : May 25 2022

SUMMARY :

and then you got all these new entrants all the buzzwords in your and that that's how you get a point click why you started the company. Now, of course, it means that, you know, about, you know, you but if, you know, it and it was, you know, I mean, you guys are jumping up and down. I mean, you know, we do you have some examples saying that he was busy like, you know, is going to be getting people's attention but, you know, they had I mean, you know, Rod was talking by the lack of, you know, appreciate you sharing. Appreciate the time. So stay tuned and learn about how you can

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Jeremy Burton, Observe, Inc. | AWS Summit SF 2022


 

(bright music) >> Hello everyone and welcome back to theCUBE's live coverage here in San Francisco, California for AWS Summit 2022. I'm John Furrier, your host of theCUBE. Two days of coverage, AWS Summit 2022 in New York city's coming up this summer, we'll be there as well. Events are back. theCUBE is back. Of course, with theCUBE virtual, CUBE hybrid, the cube.net. Check it out, a lot of content this year more than ever. A lot more cloud data, cloud native, modern applications, all happening. Got a great guest here. Jeremy Burton, CUBE alumni, CEO of Observe, Inc. in the middle of all the cloud scale, big data, observability. Jeremy, great to see you. Thanks for coming on. >> Always great to come and talk to you on theCUBE man. It's been a few years. >> Well, you got your hands. You're in the trenches with great startup, good funding, great board, great people involved in the observability space, hot area, but also you've been a senior executive. President of Dell, EMC, 11 years ago you had a vision and you actually had an event called cloud meets big data. >> Jeremy: Yeah. >> And it's here. You predicted it 11 years ago. Look around, it's cloud meets big data. >> Yeah, the cloud thing I think was probably already a thing, but the big data thing I do claim credit for sort of catching that bus early, We were on the bus early and I think it was only inevitable. Like if you could bring the economics and the compute of cloud to big data, you could find out things you could never possibly imagine. >> So you're close to a lot of companies that we've been covering deeply. Snowflake obviously are involved. The board level, the founders, the people there, cloud, Amazon, what's going on here? You're doing a startup as the CEO at the helm, chief of Observe, Inc., which is an observability, which is to me in the center of this confluence of data, engineering, large scale integrations, data as code, integrating into applications. It's a whole another world developing, like you see with Snowflake, it means Snowflake is super cloud as we call it. So a whole nother wave is here. What's this wave we're on? How would you describe the wave? >> Well, a couple of things. People are, I think, riding more software than ever before. Why? Because they've realized that if you don't take your business online and offer a service, then you become largely irrelevant. And so you you've got a whole set of new applications. I think more applications now than any point, not just ever, but the mid nineties. I always looked at as the golden age of application development. Now, back then people were building for Windows. Well now they're building for things like, AWS is now the platform. So you've got all of that going on. And then at the same time, the side effect of these applications is they generate data and lots of data and the transactions, what you bought today or something like that. But then there's what we do, which is all the telemetry data, all the exhaust fumes. And I think people really are realizing that their differentiation is not so much their application. It's their understanding of the data. Can I understand who my best customers are? What I sell today? If people came to my website and didn't buy, then why not? Where did they drop off? All of that they want to analyze. And the answers are all in the data. The question is, can you understand it? >> In our last startup showcase, we featured data as code. One of the insights that we got out of that, and I want to get your opinion on or reaction to is, is that data used to be put into a data lake and turns into a data swamp or throw into the data warehouse, and then we'll do some queries, maybe a report once in a while. And so data, once it was done, unless it was real time, even real time was not good anymore after real time. That was the old way. Now you're seeing more and more effort to say, let's go look at the data, 'cause now machine learning is getting better. Not just train once, they're iterating. This notion of iterating and then pivoting, iterating and pivoting That's a Silicon Valley story. That's like how startups were, but now you're seeing data being treated the same way. So now you have this data concept that's now part of a new way to create more value for the apps. So this whole new cycle of data being reused and repurposed, then figure it out. >> Yeah, yeah, I'm a big fan of, years ago, just an amazing guy, Andy McAfee, at the MIT labs. I spent time with and he had this line, which still sticks to me this day, which is look, he said, I'm part of a body, which believes that everything is a matter of data. Like if you have enough data, you can answer any question. And this has going back 10 years when he was saying these kind of things and certainly, research is on the forefront. But I think starting to see that mindset of the MIT research be mainstream in enterprises. They're realizing that, yeah, it is about the data. If I can better understand my data better than competitor, then I've got an advantage. And so the question is how? What technologies and what skills do I need in my organization to allow me to do that? >> So let's talk about Observe, Inc. You're the CEO. Given you've seen the waves before, you're in the front lines of observability, which again is in the center of all this action. What's going on with the company? Give a quick minute to explain Observe for the folks who don't know what you guys do. What's the company doing? What's the funding status? What's the product status? And what's the customer status? >> Yeah, so we realized, a handful of years ago, let's say five years ago. Look, the way people are building applications is different. They're way more functional. They change every day. But in some respects there are a lot more complicated. They're distributed, microservices architectures. And when something goes wrong, the old way of troubleshooting and solving problems was not going to fly because you had so much change going into production on a daily basis. It was hard to tell like where the problem was. And so we thought, okay, it's about time. Somebody looks at the exhaust fumes from this application and all the telemetry data and helps people troubleshoot and make sense of the problems that they're seeing. So that's observability. It's actually a term that goes back to the 1960s. It was, a guy called, like everything in tech, it's a reinvention of something from years gone by, but there's a guy called Rudy Coleman in 1960s, kind of term. And the term was been able to determine the state of a system by looking at its external outputs. And so we've been going on this for the best part of four years now. It took us three years just to build the product. I think what people don't appreciate these days often is the barrier to entry in a lot of these markets is quite high. You need a lot of functionality to have something that's credible with a customer. So yeah, this last year, we did our first year selling. We've got about 40 customers now. We got great investors Sutter Hill Ventures. Mike Speiser who was really the first guy in the Snowflake and the initial investor. We're fortunate enough to have Mike on our board. And part of the Observe story is closely knit with Snowflake because all of that telemetry data, we store in there. >> So I want to pivot to that. Mike Speiser, Snowflake, Jeremy Burton, theCUBE kind of same thinking. This idea of a super cloud or what Snowflake became. >> Jeremy: Yeah. >> Snowflake is massively successful on top of AWS. And now you're seeing startups and companies build on top of Snowflake. >> Jeremy: Yeah. >> So that's become an entrepreneurial story that we think that to go big in the cloud, you can have a cloud on a cloud, like as Jerry Chen in Greylock calls it, castles in the cloud where there are moats in the cloud. So you're close to it. I know you're doing some stuff with Snowflake's. So as a startup, what's your view on building on top of say a Snowflake or an AWS, because again, you got to go where the data is. You need all the data. >> Jeremy: Yeah. >> What's your take on that? >> Having enough gray hair now. Again, in tech, I think if you want to predict the future, look at the past. And 20 years ago, 25 years ago, I was at a smaller company called Oracle. And an Oracle was the database company and their ambition was to manage all of the world's transactional data. And they built on a platform or a couple of platforms. One, Windows, and the other main one was Solaris. And so at that time, the operating system was the platform. And then that was the ecosystem that you would compete on top of. And then there were companies like SAP that built applications on top of Oracle. So then wind the clock forward 25 years, gray hairs, the platform isn't the operating system anymore. The platform is AWS, Google cloud. I probably look around if I say that in. >> It's okay. But Hyperscale. >> Yeah. >> CapEx built out. >> That is the new platform. And then Snowflake comes along. Well, their aspiration is to manage all of the, not just human generated data, but machine generated data in the world of cloud. And I think they they've done an amazing job doing for the, I'd say the big data world, what Oracle did for the relational data world way back 25 years ago. And then there are folks like us come along and of course my ambition would be, look, if we can be as successful as an SAP building on top of Snowflake, as they were on top of Oracle, then we'd probably be quite happy. >> So you're building on top of Snowflake? >> We're building on top of Snowflake a hundred percent. And I've had folks say to me, well, aren't you worried about that? Isn't that a risk? It's like, well, that's a risk. >> Are you still on the board? >> Yeah, I'm still on the board. Yeah. That's a risk I'm prepared to take. I am long on Snowflake. >> It sounds, well, you're in a good spot. Stay on the board then you'll know as going on. Okay, seriously, this is a real dynamic. >> Jeremy: It is. >> It's not a one off. >> Well, and I do believe as well that the platform that you see now with AWS, if you look at the revenues of AWS, it is an order of magnitude more than Microsoft was 25 years ago with windows. And so I believe the opportunity for folks like Snowflake and folks like Observe, it's an order magnitude more than it was for the Oracle and the SAPs of the old world. >> Yeah, and I think this is something that this next generation of entrepreneurship is the go big scenario is you got to be on a platform. >> Yeah and it's quite easy. >> Or be the platform, but it's hard. There's only like how many seats are at that table left. >> Well, value migrates up over time. So when the cloud thing got going, there were probably 10, 20, 30, rack space and there's 1,000,001 infrastructure for service, platform as a service. My old employee EMC, we had Pivotal. Pivotal was a platform as a service. You don't hear so much about it these days, but initially there's a lot of players and then it consolidates. And then to extract a real business, you got to move up, you got to add value, you got to build databases, then you got to build applications. >> It's interesting. Moving from the data center to the cloud was a dream for starters 'cause they didn't have to provision the CapEx. Now the CapEx is in the cloud. Then you build on top of that, you got Snowflake. Now you got on top of that. >> The assumption is almost that compute and storage is free. I know it's not quite free. >> Yeah, it's almost free. >> But as an application vendor, you think, well, what can I do if I assume compute and storage is free, that's the mindset you've got to get into. >> And I think the platform enablement to value. So if I'm an entrepreneur, I'm going to get a serious multiple of value in what I'm paying. Most people don't even blink at their AWS bills unless they're like massively huge. Then it's a repatriation question or whatever discount question. But for most startups or any growing company, the Amazon bill should be a small factor. >> Yeah, a lot of people ask me like, look, you're building on Snowflake. You're going to be paying their money. How does that work with your business model? If you're paying them money, do you have a viable business? And it's like, well, okay. We could build a database as well in Observe, but then I've got half the development team working on something that will never be as good as Snowflake. And so we made the call early on that, no, we want to innovate above the database. Snowflake are doing a great job of innovating on the database and the same is true with something like Amazon, like Snowflake could have built their own cloud and their own platform, but they didn't. >> Yeah and what's interesting is that Dave Vellante and I have been pointing this out and he's obviously more on Snowflake. I've been looking at Databricks and the same dynamics happening. The proof is the ecosystem. >> Yeah. >> If you look at Snowflake's ecosystem right now and Databricks, it's exploding. The shows are selling out. This floor space is booked. That's the old days at VMware. The old days at AWS. >> One and for Snowflake and any platform provider, it's a beautiful thing because we build on Snowflake and we pay their money. They don't have to sell to us. And we do a lot of the support. And so the economics work out really, really well if you're a platform provider and you've got a lot of ecosystems. >> And then also you get a trajectory of economies of scale with the institutional knowledge of Snowflake, integrations, new products, you're scaling and step function with them. >> Yeah, we manage 10 petabytes of data right now. When I arrived at EMC in 2010, we had one petabyte customer. And so at Observe, we've been only selling the product for a year. We have 10 petabytes of data under management. And so being able to rely on a platform that can manage that is invaluable. >> Well, Jeremy, great conversation. Thanks for sharing your insights on the industry. We got a couple minutes left, put a plug in for Observe. What do you guys do? You got some good funding, great partners. I don't know if you can talk about your POC customers, but you got a lot of high ends folks that are working with you. You get in traction. >> Yeah >> Scales around the corner sounds like. Is that where you at? Pre-scale? >> We've got a big announcement coming up in two or three weeks. We've got new funding, which is always great. The product is really, really close. I think, as a startup, you always strive for market fit, at which point can you just start hiring salespeople and the revenue keeps going. We're getting pretty close to that right now. We've got about 40 SaaS companies that run on the platform. They're almost all AWS Kubernetes, which is our sweet spot to begin with, but we're starting to get some really interesting enterprise type customers. We're F5 networks. We're POC in right now with Capital One. We've got some interesting news around Capital One coming up. I can't share too much, but it's going to be exciting. And like I said, Sutter Hill continue to stick. >> And I think Capital One's a big Snowflake customer as well, right? >> They were early and one of the things that attracted me to Capital One was they were very, very good with Snowflake early on and they put Snowflake in a position in the bank where they thought that snowflake could be successful. And today that is one of Snowflake's biggest accounts. >> Capital One, very innovative cloud. Obviously, AWS customer and very innovative. certainly in the CISO and CIO. On another point on where you're at. So you're pre-scale meaning you're about to scale. >> Jeremy: Right. >> So you got POCs. What's that trajectory look like? And you see around the corner, what's going on? What's around the corner that you're going to hit the straight and narrow and gas it fast? >> Yeah, the key thing for us is we got to get the product right. The nice thing about having a guy like Mike Speiser on the board is he doesn't obsess about revenue at this stage. His questions at the board are always about like, is the product right? Is the product right? Have you got the product right? 'Cause we know when the product's right, we can then scale the sales team and the revenue will take care of itself. So right now all the attention is on the product. This year, the exciting thing is we're adding all the tracing visualizations. So people will be able to the kind of things that back in the day you could do with the New Relics and AppDynamics, the last generation of APM tools. You're going to be able to do that within Observe. And we've already got the logs and the metrics capability in there. So for us this year is a big one 'cause we complete the trifecta, the logs. >> What's the secret sauce of observe if you put it into a sentence, what's the secret sauce? >> I think, an amazing founding engineering team, number one. At the end of the day, you have to build an amazing product and you have to solve a problem in a different way and we've got great long term investors. And the biggest thing our investors give is, actually it's not just money, it gives us time to get the product right. Because if we get the product right, then we can get the growth. >> Got it. Final question while I got you here. You've been on the enterprise business for a long time. What's the buyer landscape out there? You got people doing POCs, Capital One scale. So we know that goes on. What's the appetite at the buyer side for startups and what are their requirements that you're seeing? Obviously, we're seeing people go in and dip into the startup pool because new ways to refactor their business, restructure. So a lot of happening in cloud. What's the criteria? How are enterprises engaging in with startups? >> Yeah, enterprises, they know they've got to spend money transforming the business. I almost feel like my old Dell or EMC self there, but what we were saying five years ago is happening. Everybody needs to figure out a way to take their business to this digital world. Everybody has to do it. So the nice thing from a startup standpoint is they know at times they need to risk or take a bet on new technology in order to help them do that. So I think you've got buyers that A, have money, B, are prepared to take risks, and it's a race against time to get their offerings in this new digital footprint. >> Final, final question. What's the state of AWS? Where do you see them going next? Obviously, they're continuing to be successful. How does cloud 3.0? Or they always say it's day one, but it's maybe more like day 10, but what's next for AWS? Where do they go from here? Obviously, they're doing well and they're getting bigger and bigger. >> Yeah, it's an amazing story. We are on AWS as well. And so I think if they keep nurturing the builders and the ecosystem, then that is their superpower. They have an early leads. And if you look at where, maybe the likes of Microsoft lost the plot in the late nineties, it was they stopped really caring about developers and the folks who are building on top of their ecosystem. In fact, they started buying up their ecosystem and competing with people in their ecosystem. And I see with AWS, they have an amazing head start. And if they did more, if they do more than that, that's what's going to keep this juggernaut rolling for many years to come. >> They got the Silicon and they got the Stack developing. Jeremy Burton inside theCUBE, great resource for commentary, but also founding with the CEO of a company called Observe, Inc. In the middle of all the action and the board of Snowflake as well. Great startup. Thanks for coming on theCUBE. >> Always a pleasure. >> Live from San Francisco's theCUBE. I'm John Furrier, your host. Stay with us. More coverage from San Francisco, California after the short break. (soft music)

Published Date : Apr 20 2022

SUMMARY :

in the middle of all the cloud scale, talk to you on theCUBE man. You're in the trenches with great startup, And it's here. and the compute of cloud to big data, as the CEO at the helm, and lots of data and the transactions, One of the insights And so the question is how? for the folks who don't And the term was been able to determine This idea of a super cloud And now you're seeing castles in the cloud where One, Windows, and the It's okay. in the world of cloud. And I've had folks say to me, Yeah, I'm still on the board. Stay on the board then and the SAPs of the old world. is the go big scenario is Or be the platform, but it's hard. And then to extract a real business, Moving from the data center to the cloud The assumption is almost that that's the mindset you've got to get into. the Amazon bill should be a small factor. on the database and the same is true and the same dynamics happening. That's the old days at VMware. And so the economics work And then also you get a the product for a year. insights on the industry. Scales around the corner sounds like. and the revenue keeps going. in the bank where they thought certainly in the CISO and CIO. What's around the corner that that back in the day you At the end of the day, you have and dip into the startup pool So the nice thing from a What's the state of AWS? and the ecosystem, then and the board of Snowflake as well. after the short break.

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Matt Provo, StormForge


 

(bright upbeat music) >> The adoption of container orchestration platforms is accelerating at a rate as fast or faster than any category in enterprise IT. Survey data from Enterprise Technology Research shows Kubernetes specifically leads the pack into both spending velocity and market share. Now like virtualization in its early days, containers bring many new performance and tuning challenges in particular insuring consistent and predictable application performance is tricky especially because containers, they're so flexible and they enable portability. Things are constantly changing. DevOps pros have to way through a sea of observability data and tuning the environment becomes a continuous exercise of trial and error. This endless cycle taxes resources and kills operational efficiency. So teams often just capitulate and simply dial up and throw unnecessary resources at the problem. StormForge is a company founded mid last decade that is attacking these issues with a combination of machine learning and data analysis. And with me to talk about a new offering that directly addresses these concerns is Matt Provo, founder and CEO of StormForge. Matt, welcome to theCUBE. Good to see you. >> Good to see you. Thanks for having me. >> Yeah, so we saw you guys at a KubeCon sort of first introduce you to our community but add a little color to my intro there if you will. >> Yeah, well, Semi stole my thunder but I'm okay with that. Absolutely agree with everything you said in the intro. You know, the problem that we have set out to solve which is tailor made for the use of real machine learning not machine learning kind of as a marketing tag is connected to how workloads on Kubernetes are really managed from a resource efficiency standpoint. And so a number of years ago, we built the core machine learning engine and have now turned that into a platform around how Kubernetes resources are managed at scale. And so organizations today as they're moving more workloads over, sort of drink the Kool-Aid of the flexibility that comes with Kubernetes and how many knobs you can turn. And developers in many ways love it. Once they start to operationalize the use of Kubernetes and move workloads from pre-production into production, they run into a pretty significant complexity wall. And this is where StormForge comes in to try to help them manage those resources more effectively in ensuring and implementing the right kind of automation that empowers developers into the process ultimately does not automate them out of it. >> So you've got news. You had launch coming to further address these problems. Tell us about that. >> Yeah, so historically, you know, like any machine learning engine, we think about data inputs and what kind of data is going to feed our system to be able to draw the appropriate insights out for the user. And so historically we've kind of been single threaded on load and performance tests in a pre-production environment. And there's been a lot of adoption of that, a lot of excitement around it and frankly amazing results. My vision has been for us to be able to close the loop, however, between data coming out of pre-production and the associated optimizations and data coming out of production environment and our ability to optimize that. A lot of our users along the way have said these results in pre-production are fantastic. How do I know they reflect reality of what my application is going to experience in a production environment? And so we're super excited to announce kind of the a second core module for our platform called Optimize Live. The data input for that is observability and telemetry data coming out of APM platforms and other data sources. >> So this is like Nirvana. So I wonder if we could talk a little bit more about the challenges that this addresses. I mean, I've been around a while and it really have observed... And I used to ask, you know, technology companies all the time. Okay, so you're telling me beforehand what the optimal configuration should be and resource allocation. What happens if something changes? >> Yeah. >> And then it's always, always a pause. >> Yeah. >> And Kubernetes is more of a rapidly changing environment than anything we've ever seen. So specifically the problem you're addressing. Maybe talk about that a little bit. >> Yeah, so we view what happens in pre-production as sort of the experimentation phase. And our machine learning is allowing the user to experiment in scenario plan. What we're doing with Optimize Live and adding the the production piece is what we kind of also call kind of our observation phase. And so you need to be able to run the appropriate checks and balances between those two environments to ensure that what you're actually deploying and monitoring from an application performance, from a cost standpoint is with your SLOs and your SLAs as well as your business objectives. And so that's the entire point of this edition is to allow our users to experience hopefully the Nirvana associated with that because it's an exciting opportunity for them and really something that no else is doing from the standpoint of closing that loop. >> So you said front machine learning not as a marketing tag. So I want you to sort of double click on that. What's different than how other companies approach this problem? >> Yeah, I mean, part of it is a bias for me and a frustration as a founder of the reason I started the company in the first place. I think machine learning or AI gets tagged to a lot of stuff. It's very buzzwordy. It looks good. I'm fortunate to have found a number of folks from the outset of the company with, you know, PhDs in Applied Mathematics and a focus on actually building real AI at the core that is connected to solving the right kind of actual business problems. And so, you know, for the first three or four years of the company's history, we really operated as a lab. And that was our focus. We then decided, we're trying to connect a fantastic team with differentiated technology to the right market timing. And when we saw all these pain points around how fast the adoption of containers and Kubernetes have taken place but the pain that the developers are running into, we actually found for ourselves that this was the perfect use case. >> So how specifically does Optimize Live work? Can you add a little detail on that? >> Yes, so when you... Many organizations today have an existing monitoring APM observability suite really in place. They've also got a metric source. So this could be something like Datadog or Prometheus. And once that data starts flowing, there's an out of the box or kind of a piece of Kubernetes that ships with it called the VPA or the Vertical Pod Autoscaler. And less than, really than 1% of Kubernetes users take advantage of the VPA mostly because it's really challenging to configure and it's not super compatible with the the tool set or, you know, the ecosystem of tools in a Kubernetes environment. And so our biggest competitor is the VPA. And what's happening in this environment or in this world for developers is they're having to make decisions on a number of different metrics or resource elements typically things like memory and CPU. And they have to decide what are the requests I'm going to allow application and what are the limits? So what are those thresholds that I'm going to be okay with so that I can, again, try to hit my business objectives and keep in line with my SLAs? And to your earlier point in the intro, it's often guesswork. You know, they either have to rely on out of the box recommendations that ship with the databases and other services that they are using or it's a super manual process to go through and try to configure and tune this. And so with Optimize Live, we're making that one click. And so we're continuously and consistently observing and watching the data that's flowing through these tools and we're serving back recommendations for the user. They can choose to let those recommendations automatically patch and deploy or they can retain some semblance of control over are the recommendations and manually deploy them into their environment themselves. And we, again, really believe that the user knows their application. They know the goals that they have and we don't. But we have a system that's smart enough to align with the business objectives and ultimately provide the relevant recommendations at that point. >> So the business objectives are an input from the application team? >> Yep. >> And then your system is smart enough to adapt and address those. >> Application over application, right? And so the thresholds in any given organization across their different ecosystem of apps or environment could be different. The business objectives could be different. And so we don't want to predefine that for people. We want to give them the opportunity to build those thresholds in and then allow the machine learning to learn and to send recommendations within those bounds. >> And we're going to hear later from a customer who's hosting a Drupal, one of the largest Drupal hosts. So it's all do it yourself across thousands of customers so it's, you know, very unpredictable. I want to make something clear though as to where you fit in the ecosystem. You're not an observability platform, you leverage observability platforms, right? So talk about that and where you fit into the ecosystem. >> Yeah, so it's a great point. We're also, you know, a series B startup and growing. We've the choice to be very intentionally focused on the problems that we've solve. And we've chosen to partner or integrate otherwise. And so we do get put into the APM category from time to time. We are really an intelligence platform. And that intelligence and insights that we're able to draw is because of the core machine learning we've built over the years. And we also don't want organizations or users to have to switch from tools and investments that they've already made. And so we were never going to catch up to to Datadog or Dynatrace or Splunk or AppDynamics or some of the other. And we're totally fine with that. They've got great market share and penetration. They do solve real problems. Instead, we felt like users would want a seamless integration into the tools they're already using. And so we view ourselves as kind of the Intel inside for that kind of a scenario. And it takes observability and APM data and insights that were somewhat reactive. They're visualized and somewhat reactive. And we add that proactive nature onto it, the insights and ultimately the appropriate level of automation. >> So when I think, Matt, about cloud native and I go back to the sort of origins of CNCF who's a, you know, handful of companies. And now you look at the participants it'll, you know, make your eyes bleed. How do you address dealing with all those companies and what is the partnership strategy? >> Yeah, it's so interesting because it's just that even that CNCF landscape has exploded. It was not too long ago where it was as small or smaller than the FinOps landscape today which by the way, the FinOps piece is also on a a neck breaking, you know, growth curve. We, I do see, although there are a lot of companies and a lot of tools, we're starting to see a significant amount of consistency or hardening of the tool chain, you know, with our customers and users. And so we've made strategic and intentional decisions on deep partnerships in some cases like OEM uses of our technology and certainly, you know, intelligent and seamless integrations into a few. So, you know, we'll be announcing a really exciting partnership with AWS and that specifically what they're doing with EKS, their Kubernetes distribution and services. We've got a deep partnership and integration with Datadog and then with Prometheus and specifically a few other cloud providers that are operating, manage Prometheus environments. >> Okay, so where do you want to take this thing? You're not taking the observability guys head on, smart move. So many of those even entering the market now. But what is the vision? >> Yeah, so we've had this debate a lot as well 'cause it's super difficult to create a category. You know, on one hand, you know, I have a lot of respect for founders and companies that do that. On the other hand from a market timing standpoint, you know we fit into AIOps, that's really where we fit. You know, we've made a bet on the future of Kubernetes and what that's going to look like. And so from a containers and Kubernetes standpoint, that's our bet. But we're an AIOps platform. You know, we'll continue getting better at the problems we solve with machine learning and we'll continue adding data inputs. So we'll go, you know, we'll go beyond the application layer which is really where we play now. We'll add, you know, kind of whole cluster optimization capabilities across the full stack. And the way we will get there is by continuing to add different data inputs that make sense across the different layers of the stack. And it's exciting. We can stay vertically oriented on the problems that we're really good at solving but we can become more applicable and compatible over time. >> So that's your next concentric circle. As the observability vendors expand their observation space, you can just play right into that. >> Yeah. >> The more data you get because your purpose built to solving these types of problems. >> Yeah, so you can imagine a world right now out of observability, we're taking things like telemetry data pretty quickly. You can imagine a world where we take traces and logs and other data inputs as that ecosystem continues to grow, it just feeds our own, you know, we are reliant on data. >> Excellent, Matt, thank you so much. >> Thanks for having me. >> Appreciate for coming on. Okay, keep it right there in a moment. We're going to hear from a customer with a highly diverse and constantly changing environment that I mentioned earlier. They went through a major replatforming with Kubernetes on AWS. You're watching theCUBE, you are leader in enterprise tech coverage. (bright upbeat music)

Published Date : Feb 23 2022

SUMMARY :

and CEO of StormForge. Good to see you. Yeah, so we saw you guys at a KubeCon that empowers developers into the process You had launch coming to and the associated optimizations And I used to ask, you know, And Kubernetes is more of And so that's the entire So I want you to sort And so, you know, for the And so our biggest competitor is the VPA. is smart enough to adapt And so the thresholds in as to where you fit in the ecosystem. We've the choice to be and I go back to the or hardening of the tool chain, you know, Okay, so where do you And the way we will get there As the observability vendors to solving these types of problems. as that ecosystem continues to grow, and constantly changing environment

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Matt Provo | ** Do not make public **


 

(bright upbeat music) >> The adoption of container orchestration platforms is accelerating at a rate as fast or faster than any category in enterprise IT. Survey data from Enterprise Technology Research shows Kubernetes specifically leads the pack in both spending velocity and market share. Now like virtualization in its early days, containers bring many new performance and tuning challenges. In particular, ensuring consistent and predictable application performance is tricky especially because containers they're so flexible and the enabled portability things are constantly changing. DevOps pros have to wade through a sea of observability data and tuning the environment becomes a continuous exercise of trial and error. This endless cycle taxes, resources, and kills operational efficiencies so teams often just capitulate and simply dial up and throw unnecessary resources at the problem. StormForge is a company founded in mid last decade that is attacking these issues with a combination of machine learning and data analysis. And with me to talk about a new offering that directly addresses these concerns, is Matt Provo, founder and CEO of StormForge. Matt, welcome to thecube. Good to see you. >> Good to see you, thanks for having me. >> Yeah. So we saw you guys at CubeCon, sort of first introduce you to our community but add a little color to my intro if you will. >> Yeah, well you semi stole my thunder but I'm okay with that. Absolutely agree with everything you said in the intro. You know, the problem that we have set out to solve which is tailor made for the use of real machine learning not machine learning kind of as a marketing tag is connected to how workloads on Kubernetes are really managed from a resource efficiency standpoint. And so a number of years ago we built the core machine learning engine and have now turned that into a platform around how Kubernetes resources are managed at scale. And so organizations today as they're moving more workloads over sort of drink the Kool-Aid of the flexibility that comes with Kubernetes and how many knobs you can turn and developers in many ways love it. Once they start to operationalize the use of Kubernetes and move workloads from pre-production into production, they run into a pretty significant complexity wall. And this is where StormForge comes in to try to help them manage those resources more effectively in ensuring and implementing the right kind of automation that empowers developers into the process ultimately does not automate them out of it. >> So you've got news, your hard launch coming in to further address these problems. Tell us about that. >> Yeah so historically, you know, like any machine learning engine, we think about data inputs and what kind of data is going to feed our system to be able to draw the appropriate insights out for the user. And so historically we are, we've kind of been single-threaded on load and performance tests in a pre-production environment. And there's been a lot of adoption of that, a lot of excitement around it and frankly, amazing results. My vision has been for us to be able to close the loop however between data coming out of pre-production and the associated optimizations and data coming out of production, a production environment, and our ability to optimize that. A lot of our users along the way have said these results in pre-production are fantastic. How do I know they reflect reality of what my application is going to experience in a production environment? And so we're super excited to announce kind of the second core module for our platform called Optimize Live. The data input for that is observability and telemetry data coming out of APM platforms and other data sources. >> So this is like Nirvana. So I wonder if we could talk a little bit more about the challenges that this addresses. I mean, I've been around a while and it really have observed and I used to ask technology companies all the time, okay, so you're telling me beforehand what the optimal configuration should be in resource allocation, what happens if something changes? And then it's always a pause. And Kubernetes is more of a rapidly changing environment than anything we've ever seen. So this is specifically the problem you're addressing. Maybe talk about that a little bit. >> Yeah so we view what happens in pre-production as sort of the experimentation phase and our machine learning is allowing the user to experiment and scenario plan. What we're doing with Optimize Live and adding the production piece is what we kind of also call kind of our observation phase. And so you need to be able to run the appropriate checks and balances between those two environments to ensure that what you're actually deploying and monitoring from an application performance, from a cost standpoint, is aligning with your SLOs and your SLAs as well as your business objectives. And so that's the entire point of this addition is to allow our users to experience hopefully the Nirvana associated with that because it's an exciting opportunity for them and really something that nobody else is doing from the standpoint of closing that loop. >> So you said upfront machine learning not as a marketing tag. So I want you to sort of double click on that. What's different than how other companies approach this problem? >> Yeah I mean, part of it is a bias for me and a frustration as a founder of the reason I started the company in the first place. I think machine learning our AI gets tagged to a lot of stuff. It's very buzzwordy, it looks good. I'm fortunate to have found a number of folks from the outset of the company with, you know, PhDs in Applied Mathematics and a focus on actually building real AI at the core that is connected to solving the right kind of actual business problems. And so, you know, for the first three or four years of the company's history, we really operated as a lab and that was our focus. We then decided we're trying to connect a fantastic team with differentiated technology to the right market timing. And when we saw all of these pain points around how fast the adoption of containers and Kubernetes have taken place but the pain that the developers are running into, we found it, we actually found for ourselves that this was the perfect use case. >> So how specifically does Optimize Live work? Can you add a little detail on that? >> Yeah so when you, many organizations today have an existing monitoring APM observability suite really in place. They've also got, they've also got a metric source, so this could be something like Datadog or Prometheus. And once that data starts flowing, there's an out of the box or kind of a piece of Kubernetes that ships with it called the VPA or the Vertical Pod Autoscaler. And less than really less than 1% of Kubernetes users take advantage of the VPA mostly because it's really challenging to configure and it's not super compatible with the tool set or the, you know, the ecosystem of tools in a Kubernetes environment. And so our biggest competitor is the VPA. And what's happening in this environment or in this world for developers is they're having to make decisions on a number of different metrics or resource elements typically things like memory and CPU. And they have to decide what are the, what are the requests I'm going to allow for this application and what are the limits? So what are those thresholds that I'm going to be okay with? So that I can again try to hit my business objectives and keep in line with my SLAs. And to your earlier point in the intro, it's often guesswork. You know, they either have to rely on out of the box recommendations that ship with the databases and other services that they are using or it's a super manual process to go through and try to configure and tune this. And so with Optimize Live, we're making that one-click. And so we're continuously and consistently observing and watching the data that's flowing through these tools and we're serving back recommendations for the user. They can choose to let those recommendations automatically patch and deploy or they can retain some semblance of control over the recommendations and manually deploy them into their environment themselves. And we again, really believe that the user knows their application, they know the goals that they have, we don't. But we have a system that's smart enough to align with the business objectives and ultimately provide the relevant recommendations at that point. >> So the business objectives are an input from the application team and then your system is smart enough to adapt and adjust those. >> Application over application, right? And so the thresholds in any given organization across their different ecosystem of apps or environment could be different. The business objectives could be different. And so we don't want to predefine that for people. We want to give them the opportunity to build those thresholds in and then allow the machine learning to learn and to send recommendations within those bounds. >> And we're going to hear later from a customer who is hosting a Drupal, one of the largest Drupal host, is it? So it's all do it yourself across thousands of customers so it's very unpredictable. I want to make something clear though, as to where you fit in the ecosystem. You're not an observability platform, you leverage observability platforms, right? So talk about that and where you fit in into the ecosystem. >> Yeah so it's a great point. We, we're also you know, a series B startup and growing. We've made the choice to be very intentionally focused on the problems that we've solve and we've chosen to partner or integrate otherwise. And so we do get put into the APM category from time to time. We're really an intelligence platform. And that intelligence and insights that we're able to draw is because we, because of the core machine learning we've built over the years. And we also don't want organizations or users to have to switch from tools and investments that they've already made. And so we were never going to catch up to Datadog or Dynatrace or Splunk or AppDynamics or some of the other, and we're totally fine with that. They've got great market share and penetration and they do solve real problems. Instead, we felt like users would want a seamless integration into the tools they're already using. And so we view ourselves as kind of the Intel inside for that kind of a scenario. And it takes observability and APM data and insights that were somewhat reactive, they're visualized and somewhat reactive and we make those, we add that proactive nature onto it, the insights and ultimately the appropriate level of automation. >> So when I think Matt about cloud native and I go back to the sort of origins of CNCF, it was a, you know, handful of companies, and now you look at the participants, you know, make your eyes bleed. How do you address dealing with all those companies and what's the partnership strategy? >> Yeah it's so interesting because it's just that even at CNCF landscape has exploded. It was not too long ago where it was as smaller than the finOps Landscape today which by the way the FinOps pieces is also on a neck breaking, you know, growth curve. We, I do see although there are a lot of companies and a lot of tools, we're starting to see a significant amount of consistency or hardening of the tool chain with our customers and users. And so we've made strategic and intentional decisions on deep partnerships in some cases like OEM users of our technology and certainly, you know, intelligent and seamless integrations into a few. So, you know, we'll be announcing a really exciting partnership with AWS and specifically what they're doing with EKS, their Kubernetes distribution and services. We've got a deep partnership and integration with Datadog and then with Prometheus and specifically cloud provider, a few other cloud providers that are operating manage Prometheus environments. >> Okay so where do you want to take this thing? If it's not, you're not taking the observability guys head on, smart move, so many of those even entering the market now, but what is the vision? >> Yeah so we've had this debate a lot as well because it's super difficult to create a category. You know, on one hand, I have a lot of respect for founders and companies that do that, on the other hand from a market timing standpoint, you know, we fit into AIOps. That's really where we fit. You know we are, we've made a bet on the future of Kubernetes and what that's going to look like. And so from a containers and Kubernetes standpoint that's our bet. But we're an AIOps platform, we'll continue getting better at what, at the problems we solve with machine learning and we'll continue adding data inputs so we'll go beyond the application layer which is really where we play now. We'll add kind of whole cluster optimization capabilities across the full stack. And the way we'll get there is by continuing to add different data inputs that make sense across the different layers of the stack and it's exciting. We can stay vertically oriented on the problems that we're really good at solving but we become more applicable and compatible over time. >> So that's your next concentric circle. As the observability vendors expand their observation space you can just play right into that. The more data you get could be because you're purpose built to solving these types of problems. >> Yeah so you can imagine a world right now out of observability, we're taking things like telemetry data pretty quickly. You can imagine a world where we take traces and logs and other data inputs as that ecosystem continues to grow, it just feeds our own, you know, we are reliant on data. So. >> Excellent. Matt, thank you so much. Thanks for hoping on. >> Yeah, appreciate it. >> Okay. Keep it right there. In a moment, We're going to hear from a customer with a highly diverse and constantly changing environment that I mentioned earlier, they went through a major re-platforming with Kubernetes on AWS. You're watching theCube, your a leader in enterprise tech coverage. (bright music)

Published Date : Jan 27 2022

SUMMARY :

and the enabled portability to my intro if you will. and how many knobs you can turn to further address these problems. and the associated optimizations about the challenges that this addresses. And so that's the entire So I want you to sort and that was our focus. And so our biggest competitor is the VPA. So the business objectives are an input And so the thresholds in as to where you fit in the ecosystem. We've made the choice to be and I go back to the and certainly, you know, And the way we'll get there As the observability vendors and other data inputs as that Matt, thank you so much. We're going to hear from a customer

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Pat Conte, Opsani | AWS Startup Showcase


 

(upbeat music) >> Hello and welcome to this CUBE conversation here presenting the "AWS Startup Showcase: "New Breakthroughs in DevOps, Data Analytics "and Cloud Management Tools" featuring Opsani for the cloud management and migration track here today, I'm your host John Furrier. Today, we're joined by Patrick Conte, Chief Commercial Officer, Opsani. Thanks for coming on. Appreciate you coming on. Future of AI operations. >> Thanks, John. Great to be here. Appreciate being with you. >> So congratulations on all your success being showcased here as part of the Startups Showcase, future of AI operations. You've got the cloud scale happening. A lot of new transitions in this quote digital transformation as cloud scales goes next generation. DevOps revolution as Emily Freeman pointed out in her keynote. What's the problem statement that you guys are focused on? Obviously, AI involves a lot of automation. I can imagine there's a data problem in there somewhere. What's the core problem that you guys are focused on? >> Yeah, it's interesting because there are a lot of companies that focus on trying to help other companies optimize what they're doing in the cloud, whether it's cost or whether it's performance or something else. We felt very strongly that AI was the way to do that. I've got a slide prepared, and maybe we can take a quick look at that, and that'll talk about the three elements or dimensions of the problem. So we think about cloud services and the challenge of delivering cloud services. You've really got three things that customers are trying to solve for. They're trying to solve for performance, they're trying to solve for the best performance, and, ultimately, scalability. I mean, applications are growing really quickly especially in this current timeframe with cloud services and whatnot. They're trying to keep costs under control because certainly, it can get way out of control in the cloud since you don't own the infrastructure, and more importantly than anything else which is why it's at the bottom sort of at the foundation of all this, is they want their applications to be a really a good experience for their customers. So our customer's customer is actually who we're trying to solve this problem for. So what we've done is we've built a platform that uses AI and machine learning to optimize, meaning tune, all of the key parameters of a cloud application. So those are things like the CPU usage, the memory usage, the number of replicas in a Kubernetes or container environment, those kinds of things. It seems like it would be simple just to grab some values and plug 'em in, but it's not. It's actually the combination of them has to be right. Otherwise, you get delays or faults or other problems with the application. >> Andrew, if you can bring that slide back up for a second. I want to just ask one quick question on the problem statement. You got expenditures, performance, customer experience kind of on the sides there. Do you see this tip a certain way depending upon use cases? I mean, is there one thing that jumps out at you, Patrick, from your customer's customer's standpoint? Obviously, customer experience is the outcome. That's the app, whatever. That's whatever we got going on there. >> Sure. >> But is there patterns 'cause you can have good performance, but then budget overruns. Or all of them could be failing. Talk about this dynamic with this triangle. >> Well, without AI, without machine learning, you can solve for one of these, only one, right? So if you want to solve for performance like you said, your costs may overrun, and you're probably not going to have control of the customer experience. If you want to solve for one of the others, you're going to have to sacrifice the other two. With machine learning though, we can actually balance that, and it isn't a perfect balance, and the question you asked is really a great one. Sometimes, you want to over-correct on something. Sometimes, scalability is more important than cost, but what we're going to do because of our machine learning capability, we're going to always make sure that you're never spending more than you should spend, so we're always going to make sure that you have the best cost for whatever the performance and reliability factors that you you want to have are. >> Yeah, I can imagine. Some people leave services on. Happened to us one time. An intern left one of the services on, and like where did that bill come from? So kind of looked back, we had to kind of fix that. There's a ton of action, but I got to ask you, what are customers looking for with you guys? I mean, as they look at Opsani, what you guys are offering, what's different than what other people might be proposing with optimization solutions? >> Sure. Well, why don't we bring up the second slide, and this'll illustrate some of the differences, and we can talk through some of this stuff as well. So really, the area that we play in is called AIOps, and that's sort of a new area, if you will, over the last few years, and really what it means is applying intelligence to your cloud operations, and those cloud operations could be development operations, or they could be production operations. And what this slide is really representing is in the upper slide, that's sort of the way customers experience their DevOps model today. Somebody says we need an application or we need a feature, the developers pull down something from get. They hack an early version of it. They run through some tests. They size it whatever way they know that it won't fail, and then they throw it over to the SREs to try to tune it before they shove it out into production, but nobody really sizes it properly. It's not optimized, and so it's not tuned either. When it goes into production, it's just the first combination of settings that work. So what happens is undoubtedly, there's some type of a problem, a fault or a delay, or you push new code, or there's a change in traffic. Something happens, and then, you've got to figure out what the heck. So what happens then is you use your tools. First thing you do is you over-provision everything. That's what everybody does, they over-provision and try to soak up the problem. But that doesn't solve it because now, your costs are going crazy. You've got to go back and find out and try as best you can to get root cause. You go back to the tests, and you're trying to find something in the test phase that might be an indicator. Eventually your developers have to hack a hot fix, and the conveyor belt sort of keeps on going. We've tested this model on every single customer that we've spoken to, and they've all said this is what they experience on a day-to-day basis. Now, if we can go back to the side, let's talk about the second part which is what we do and what makes us different. So on the bottom of this slide, you'll see it's really a shift-left model. What we do is we plug in in the production phase, and as I mentioned earlier, what we're doing is we're tuning all those cloud parameters. We're tuning the CPU, the memory, the Replicas, all those kinds of things. We're tuning them all in concert, and we're doing it at machine speed, so that's how the customer gets the best performance, the best reliability at the best cost. That's the way we're able to achieve that is because we're iterating this thing in machine speed, but there's one other place where we plug in and we help the whole concept of AIOps and DevOps, and that is we can plug in in the test phase as well. And so if you think about it, the DevOps guy can actually not have to over-provision before he throws it over to the SREs. He can actually optimize and find the right size of the application before he sends it through to the SREs, and what this does is collapses the timeframe because it means the SREs don't have to hunt for a working set of parameters. They get one from the DevOps guys when they send it over, and this is how the future of AIOps is being really affected by optimization and what we call autonomous optimization which means that it's happening without humans having to press a button on it. >> John: Andrew, bring that slide back up. I want to just ask another question. Tuning in concert thing is very interesting to me. So how does that work? Are you telegraphing information to the developer from the autonomous workload tuning engine piece? I mean, how does the developer know the right knobs or where does it get that provisioning information? I see the performance lag. I see where you're solving that problem. >> Sure. >> How does that work? >> Yeah, so actually, if we go to the next slide, I'll show you exactly how it works. Okay, so this slide represents the architecture of a typical application environment that we would find ourselves in, and inside the dotted line is the customer's application namespace. That's where the app is. And so, it's got a bunch of pods. It's got a horizontal pod. It's got something for replication, probably an HPA. And so, what we do is we install inside that namespace two small instances. One is a tuning pod which some people call a canary, and that tuning pod joins the rest of the pods, but it's not part of the application. It's actually separate, but it gets the same traffic. We also install somebody we call Servo which is basically an action engine. What Servo does is Servo takes the metrics from whatever the metric system is is collecting all those different settings and whatnot from the working application. It could be something like Prometheus. It could be an Envoy Sidecar, or more likely, it's something like AppDynamics, or we can even collect metrics off of Nginx which is at the front of the service. We can plug into anywhere where those metrics are. We can pull the metrics forward. Once we see the metrics, we send them to our backend. The Opsani SaaS service is our machine learning backend. That's where all the magic happens, and what happens then is that service sees the settings, sends a recommendation to Servo, Servo sends it to the tuning pod, and we tune until we find optimal. And so, that iteration typically takes about 20 steps. It depends on how big the application is and whatnot, how fast those steps take. It could be anywhere from seconds to minutes to 10 to 20 minutes per step, but typically within about 20 steps, we can find optimal, and then we'll come back and we'll say, "Here's optimal, and do you want to "promote this to production," and the customer says, "Yes, I want to promote it to production "because I'm saving a lot of money or because I've gotten "better performance or better reliability." Then, all he has to do is press a button, and all that stuff gets sent right to the production pods, and all of those settings get put into production, and now he's now he's actually saving the money. So that's basically how it works. >> It's kind of like when I want to go to the beach, I look at the weather.com, I check the forecast, and I decide whether I want to go or not. You're getting the data, so you're getting a good look at the information, and then putting that into a policy standpoint. I get that, makes total sense. Can I ask you, if you don't mind, expanding on the performance and reliability and the cost advantage? You mentioned cost. How is that impacting? Give us an example of some performance impact, reliability, and cost impacts. >> Well, let's talk about what those things mean because like a lot of people might have different ideas about what they think those mean. So from a cost standpoint, we're talking about cloud spend ultimately, but it's represented by the settings themselves, so I'm not talking about what deal you cut with AWS or Azure or Google. I'm talking about whatever deal you cut, we're going to save you 30, 50, 70% off of that. So it doesn't really matter what cost you negotiated. What we're talking about is right-sizing the settings for CPU and memory, Replica. Could be Java. It could be garbage collection, time ratios, or heap sizes or things like that. Those are all the kinds of things that we can tune. The thing is most of those settings have an unlimited number of values, and this is why machine learning is important because, if you think about it, even if they only had eight settings or eight values per setting, now you're talking about literally billions of combinations. So to find optimal, you've got to have machine speed to be able to do it, and you have to iterate very, very quickly to make it happen. So that's basically the thing, and that's really one of the things that makes us different from anybody else, and if you put that last slide back up, the architecture slide, for just a second, there's a couple of key words at the bottom of it that I want to want to focus on, continuous. So continuous really means that we're on all the time. We're not plug us in one time, make a change, and then walk away. We're actually always measuring and adjusting, and the reason why this is important is in the modern DevOps world, your traffic level is going to change. You're going to push new code. Things are going to happen that are going to change the basic nature of the software, and you have to be able to tune for those changes. So continuous is very important. Second thing is autonomous. This is designed to take pressure off of the SREs. It's not designed to replace them, but to take the pressure off of them having to check pager all the time and run in and make adjustments, or try to divine or find an adjustment that might be very, very difficult for them to do so. So we're doing it for them, and that scale means that we can solve this for, let's say, one big monolithic application, or we can solve it for literally hundreds of applications and thousands of microservices that make up those applications and tune them all at the same time. So the same platform can be used for all of those. You originally asked about the parameters and the settings. Did I answer the question there? >> You totally did. I mean, the tuning in concert. You mentioned early as a key point. I mean, you're basically tuning the engine. It's not so much negotiating a purchase SaaS discount. It's essentially cost overruns by the engine, either over burning or heating or whatever you want to call it. I mean, basically inefficiency. You're tuning the core engine. >> Exactly so. So the cost thing is I mentioned is due to right-sizing the settings and the number of Replicas. The performance is typically measured via latency, and the reliability is typically measured via error rates. And there's some other measures as well. We have a whole list of them that are in the application itself, but those are the kinds of things that we look for as results. When we do our tuning, we look for reducing error rates, or we look for holding error rates at zero, for example, even if we improve the performance or we improve the cost. So we're looking for the best result, the best combination result, and then a customer can decide if they want to do so to actually over-correct on something. We have the whole concept of guard rail, so if performance is the most important thing, or maybe some customers, cost is the most important thing, they can actually say, "Well, give us the best cost, "and give us the best performance and the best reliability, "but at this cost," and we can then use that as a service-level objective and tune around it. >> Yeah, it reminds me back in the old days when you had filtering white lists of black lists of addresses that can go through, say, a firewall or a device. You have billions of combinations now with machine learning. It's essentially scaling the same concept to unbelievable. These guardrails are now in place, and that's super cool and I think really relevant call-out point, Patrick, to kind of highlight that. At this kind of scale, you need machine learning, you need the AI to essentially identify quickly the patterns or combinations that are actually happening so a human doesn't have to waste their time that can be filled by basically a bot at that point. >> So John, there's just one other thing I want to mention around this, and that is one of the things that makes us different from other companies that do optimization. Basically, every other company in the optimization space creates a static recommendation, basically their recommendation engines, and what you get out of that is, let's say it's a manifest of changes, and you hand that to the SREs, and they put it into effect. Well, the fact of the matter is is that the traffic could have changed then. It could have spiked up, or it could have dropped below normal. You could have introduced a new feature or some other code change, and at that point in time, you've already instituted these changes. They may be completely out of date. That's why the continuous nature of what we do is important and different. >> It's funny, even the language that we're using here: network, garbage collection. I mean, you're talking about tuning an engine, am operating system. You're talking about stuff that's moving up the stack to the application layer, hence this new kind of eliminating of these kind of siloed waterfall, as you pointed out in your second slide, is kind of one integrated kind of operating environment. So when you have that or think about the data coming in, and you have to think about the automation just like self-correcting, error-correcting, tuning, garbage collection. These are words that we've kind of kicking around, but at the end of the day, it's an operating system. >> Well in the old days of automobiles, which I remember cause I'm I'm an old guy, if you wanted to tune your engine, you would probably rebuild your carburetor and turn some dials to get the air-oxygen-gas mix right. You'd re-gap your spark plugs. You'd probably make sure your points were right. There'd be four or five key things that you would do. You couldn't do them at the same time unless you had a magic wand. So we're the magic wand that basically, or in modern world, we're sort of that thing you plug in that tunes everything at once within that engine which is all now electronically controlled. So that's the big differences as you think about what we used to do manually, and now, can be done with automation. It can be done much, much faster without humans having to get their fingernails greasy, let's say. >> And I think the dynamic versus static is an interesting point. I want to bring up the SRE which has become a role that's becoming very prominent in the DevOps kind of plus world that's happening. You're seeing this new revolution. The role of the SRE is not just to be there to hold down and do the manual configuration. They had a scale. They're a developer, too. So I think this notion of offloading the SRE from doing manual tasks is another big, important point. Can you just react to that and share more about why the SRE role is so important and why automating that away through when you guys have is important? >> The SRE role is becoming more and more important, just as you said, and the reason is because somebody has to get that application ready for production. The DevOps guys don't do it. That's not their job. Their job is to get the code finished and send it through, and the SREs then have to make sure that that code will work, so they have to find a set of settings that will actually work in production. Once they find that set of settings, the first one they find that works, they'll push it through. It's not optimized at that point in time because they don't have time to try to find optimal, and if you think about it, the difference between a machine learning backend and an army of SREs that work 24-by-seven, we're talking about being able to do the work of many, many SREs that never get tired, that never need to go play video games, to unstress or whatever. We're working all the time. We're always measuring, adjusting. A lot of the companies we talked to do a once-a-month adjustment on their software. So they put an application out, and then they send in their SREs once a month to try to tune the application, and maybe they're using some of these other tools, or maybe they're using just their smarts, but they'll do that once a month. Well, gosh, they've pushed code probably four times during the month, and they probably had a bunch of different spikes and drops in traffic and other things that have happened. So we just want to help them spend their time on making sure that the application is ready for production. Want to make sure that all the other parts of the application are where they should be, and let us worry about tuning CPU, memory, Replica, job instances, and things like that so that they can work on making sure that application gets out and that it can scale, which is really important for them, for their companies to make money is for the apps to scale. >> Well, that's a great insight, Patrick. You mentioned you have a lot of great customers, and certainly if you have your customer base are early adopters, pioneers, and grow big companies because they have DevOps. They know that they're seeing a DevOps engineer and an SRE. Some of the other enterprises that are transforming think the DevOps engineer is the SRE person 'cause they're having to get transformed. So you guys are at the high end and getting now the new enterprises as they come on board to cloud scale. You have a huge uptake in Kubernetes, starting to see the standardization of microservices. People are getting it, so I got to ask you can you give us some examples of your customers, how they're organized, some case studies, who uses you guys, and why they love you? >> Sure. Well, let's bring up the next slide. We've got some customer examples here, and your viewers, our viewers, can probably figure out who these guys are. I can't tell them, but if they go on our website, they can sort of put two and two together, but the first one there is a major financial application SaaS provider, and in this particular case, they were having problems that they couldn't diagnose within the stack. Ultimately, they had to apply automation to it, and what we were able to do for them was give them a huge jump in reliability which was actually the biggest problem that they were having. We gave them 5,000 hours back a month in terms of the application. They were they're having pager duty alerts going off all the time. We actually gave them better performance. We gave them a 10% performance boost, and we dropped their cloud spend for that application by 72%. So in fact, it was an 80-plus % price performance or cost performance improvement that we gave them, and essentially, we helped them tune the entire stack. This was a hybrid environment, so this included VMs as well as more modern architecture. Today, I would say the overwhelming majority of our customers have moved off of the VMs and are in a containerized environment, and even more to the point, Kubernetes which we find just a very, very high percentage of our customers have moved to. So most of the work we're doing today with new customers is around that, and if we look at the second and third examples here, those are examples of that. In the second example, that's a company that develops websites. It's one of the big ones out in the marketplace that, let's say, if you were starting a new business and you wanted a website, they would develop that website for you. So their internal infrastructure is all brand new stuff. It's all Kubernetes, and what we were able to do for them is they were actually getting decent performance. We held their performance at their SLO. We achieved a 100% error-free scenario for them at runtime, and we dropped their cost by 80%. So for them, they needed us to hold-serve, if you will, on performance and reliability and get their costs under control because everything in that, that's a cloud native company. Everything there is cloud cost. So the interesting thing is it took us nine steps because nine of our iterations to actually get to optimal. So it was very, very quick, and there was no integration required. In the first case, we actually had to do a custom integration for an underlying platform that was used for CICD, but with the- >> John: Because of the hybrid, right? >> Patrick: Sorry? >> John: Because it was hybrid, right? >> Patrick: Yes, because it was hybrid, exactly. But within the second one, we just plugged right in, and we were able to tune the Kubernetes environment just as I showed in that architecture slide, and then the third one is one of the leading application performance monitoring companies on the market. They have a bunch of their own internal applications and those use a lot of cloud spend. They're actually running Kubernetes on top of VMs, but we don't have to worry about the VM layer. We just worry about the Kubernetes layer for them, and what we did for them was we gave them a 48% performance improvement in terms of latency and throughput. We dropped their error rates by 90% which is pretty substantial to say the least, and we gave them a 50% cost delta from where they had been. So this is the perfect example of actually being able to deliver on all three things which you can't always do. It has to be, sort of all applications are not created equal. This was one where we were able to actually deliver on all three of the key objectives. We were able to set them up in about 25 minutes from the time we got started, no extra integration, and needless to say, it was a big, happy moment for the developers to be able to go back to their bosses and say, "Hey, we have better performance, "better reliability. "Oh, by the way, we saved you half." >> So depending on the stack situation, you got VMs and Kubernetes on the one side, cloud-native, all Kubernetes, that's dream scenario obviously. Not many people like that. All the new stuff's going cloud-native, so that's ideal, and then the mixed ones, Kubernetes, but no VMs, right? >> Yeah, exactly. So Kubernetes with no VMs, no problem. Kubernetes on top of VMs, no problem, but we don't manage the VMs. We don't manage the underlay at all, in fact. And the other thing is we don't have to go back to the slide, but I think everybody will remember the slide that had the architecture, and on one side was our cloud instance. The only data that's going between the application and our cloud instance are the settings, so there's never any data. There's never any customer data, nothing for PCI, nothing for HIPPA, nothing for GDPR or any of those things. So no personal data, no health data. Nothing is passing back and forth. Just the settings of the containers. >> Patrick, while I got you here 'cause you're such a great, insightful guest, thank you for coming on and showcasing your company. Kubernetes real quick. How prevalent is this mainstream trend is because you're seeing such great examples of performance improvements. SLAs being met, SLOs being met. How real is Kubernetes for the mainstream enterprise as they're starting to use containers to tip their legacy and get into the cloud-native and certainly hybrid and soon to be multi-cloud environment? >> Yeah, I would not say it's dominant yet. Of container environments, I would say it's dominant now, but for all environments, it's not. I think the larger legacy companies are still going through that digital transformation, and so what we do is we catch them at that transformation point, and we can help them develop because as we remember from the AIOps slide, we can plug in at that test level and help them sort of pre-optimize as they're coming through. So we can actually help them be more efficient as they're transforming. The other side of it is the cloud-native companies. So you've got the legacy companies, brick and mortar, who are desperately trying to move to digitization. Then, you've got the ones that are born in the cloud. Most of them aren't on VMs at all. Most of them are on containers right from the get-go, but you do have some in the middle who have started to make a transition, and what they've done is they've taken their native VM environment and they've put Kubernetes on top of it so that way, they don't have to scuttle everything underneath it. >> Great. >> So I would say it's mixed at this point. >> Great business model, helping customers today, and being a bridge to the future. Real quick, what licensing models, how to buy, promotions you have for Amazon Web Services customers? How do people get involved? How do you guys charge? >> The product is licensed as a service, and the typical service is an annual. We license it by application, so let's just say you have an application, and it has 10 microservices. That would be a standard application. We'd have an annual cost for optimizing that application over the course of the year. We have a large application pack, if you will, for let's say applications of 20 services, something like that, and then we also have a platform, what we call Opsani platform, and that is for environments where the customer might have hundreds of applications and-or thousands of services, and we can plug into their deployment platform, something like a harness or Spinnaker or Jenkins or something like that, or we can plug into their their cloud Kubernetes orchestrator, and then we can actually discover the apps and optimize them. So we've got environments for both single apps and for many, many apps, and with the same platform. And yes, thanks for reminding me. We do have a promotion for for our AWS viewers. If you reference this presentation, and you look at the URL there which is opsani.com/awsstartupshowcase, can't forget that, you will, number one, get a free trial of our software. If you optimize one of your own applications, we're going to give you an Oculus set of goggles, the augmented reality goggles. And we have one other promotion for your viewers and for our joint customers here, and that is if you buy an annual license, you're going to get actually 15 months. So that's what we're putting on the table. It's actually a pretty good deal. The Oculus isn't contingent. That's a promotion. It's contingent on you actually optimizing one of your own services. So it's not a synthetic app. It's got to be one of your own apps, but that's what we've got on the table here, and I think it's a pretty good deal, and I hope your guys take us up on it. >> All right, great. Get Oculus Rift for optimizing one of your apps and 15 months for the price of 12. Patrick, thank you for coming on and sharing the future of AIOps with you guys. Great product, bridge to the future, solving a lot of problems. A lot of use cases there. Congratulations on your success. Thanks for coming on. >> Thank you so much. This has been excellent, and I really appreciate it. >> Hey, thanks for sharing. I'm John Furrier, your host with theCUBE. Thanks for watching. (upbeat music)

Published Date : Sep 22 2021

SUMMARY :

for the cloud management and Appreciate being with you. of the Startups Showcase, and that'll talk about the three elements kind of on the sides there. 'cause you can have good performance, and the question you asked An intern left one of the services on, and find the right size I mean, how does the and the customer says, and the cost advantage? and that's really one of the things I mean, the tuning in concert. So the cost thing is I mentioned is due to in the old days when you had and that is one of the things and you have to think about the automation So that's the big differences of offloading the SRE and the SREs then have to make sure and certainly if you So most of the work we're doing today "Oh, by the way, we saved you half." So depending on the stack situation, and our cloud instance are the settings, and get into the cloud-native that are born in the cloud. So I would say it's and being a bridge to the future. and the typical service is an annual. and 15 months for the price of 12. and I really appreciate it. I'm John Furrier, your host with theCUBE.

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Jyoti Bansal, Harness | CUBE Conversation


 

>>mhm >>Welcome to this cube conversation here in Palo alto California. I'm john Kerry host of the cube. We've got a great awesome conversation with the Ceo and co founder of harness a hot startup jodi Benson who is the co founder and Ceo but also the co founder of unusual ventures which is a really awesome venture capital firm, doing some great work investment but also they have great content over there for entrepreneurs and for people in the community And of course he's also the founder of big labs, his playground. If you're building out new applications also well known for being the founder of Ap dynamics of super successful billion dollar exit as a startup, Salto, Cisco now doing a lot of things and driving harness, solving big problems. So joe t mouthful intro there, you've done a lot. Congratulations on your an amazing entrepreneur career and now your next uh next next opportunities harness among other things. So congratulations. Thank you for coming. >>Thank you john and glad to be here. >>You guys are solving a big problem in software delivery. Obviously software changing the world. You're seeing open source projects increasing in order of magnitude enterprises jumping on open source in general adoption, large scale with cloud software is being delivered faster than ever before and with cloud scale and now edge this huge challenges around how software deployed, managed maintained. You got, we're talking about space to how do you do break fix in space, all these things are happening at a massive scale across the world. You are solving a big problem. So take a minute to explain what harnesses doing, why you guys exist, why you jumping in into this venture. >>Sure. Yeah. You know what harness mission is to simplify supper delivery and make it uh top notch for everyone. Like if you look at like you know the likes of google and facebook and netflix and amazon these companies are mastered the process of software delivery like and your engineers write code and the code is shipped to the end users and they can do it like multiple times a day at their scale and you know at the complexity that they have but most other business in the world they all want to be software companies but it's extremely, extremely hard for them to get there and I saw this firsthand when I was at epidemics as you know as Ceo last there we're about 12 1300 employees in the company and we had about about 3 50 or so engineers in the company For every 10 or 12 engineers, we had one person whose job was to write automation and scripting and tooling for trying to ships off you know uh you know all kind of scripting kind of stuff. We'll write scripts and chef and puppet and sensible and to deploy in aws and whatnot. And you know one day we're doing the math were like you know we have you know about overall about 30 people whose job was to do devops engineering by writing automation etc to deploy somewhere and I would do the math like you know, one engineer cost is 200 k loaded cost at six million a year that you're spending six million a year just writing deployment, scripting, you know, and even with that we were nowhere close to world class like world class is in like what you would think you could ship every day, we chip on demand, you could, you know, you could deploy software, ship software all of that right? And that was the, you know, I looked at that as a problem inside of dynamics and all they have done with customers, I would talk to like large banks, insurance companies and retailers and telcos and I would hear the same challenge like you know, we hear about devops, we go to the all these devops conferences and events and we see the same 10 companies, you know presenting how the home grew some kind of a devops system for software delivery etc. And you know, I mean that was like, you know, we just, we cannot survive with this like and as the world we need to have uh the right kind of platforms for software delivery and simplify this so that everyone could become as good as a google netflix amazon etcetera that stand of our mission at harness that can we take every business in the world, you know and in a few weeks or a few months, can we get them as sophisticated and good in terms of their dueling for software delivery as a google facebook amazon, those kind of companies would be and that's, that's what we're doing. So >>It's a great ambition and by the way it's a bold move and it's needed. I'll tell you, it's interesting. You mentioned some of those commentary about shipping code at that speed Facebook Google. They had that they had they were forced to do that and again they have all that benefit the mainstream enterprise doesn't. But if you even go back 20 years ago, 15 years ago, that's when Amazon was born. You see two and S three is celebrating their 15th birthday. Software. Yeah, hyper scale has had some good moves there. But the average business went from craft, you know, waterfall QA department go back a little bit slower. I won't say slow motion but manageable now with the speed of shipping and the speed of the scale, that's a huge issue. What kind of pressure do you see that putting on the developer, the individual, not just the system because you got the system of development and the devil and the developers themselves. >>I think the developers have have done quite well to this. I feel like, you know, if you look at the software development part of itself, you know the agile development has been happening for quite some time. So developers have learned how to ship things fast and like in a week sprint or a two week sprint or in in kind of faster cycles. They have moved off from the waterfall kind of models like many years ago now. So that's the suffering development side of things then you have the infrastructure side of things which is the like any province in infrastructure fast. Can you get hardware fast? That's the, you know, the cloud has done that well where the challenges the process, the developers are writing code fast enough these days and you have the, you know, the infrastructure itself could be prov isn't and maintained and and and change fast enough but how do you bring it all together and there is the entire process around it. That's not moving fast enough. So that's where the bottom language. So I feel the, you know, and the process is not good. The developer experience becomes really bad bad because developers are waiting for the process to go and you know, they write some code and the code is sitting on the shelf and they are waiting for things. >>Uh they get all pissed off and mad. What's the holdup? Why what's the process? And then security shifting left, wait a minute to go back and rewrite code. This is huge. I want to just get back and just nail it quickly if you don't mind honing in on the value proposition. What is the harness value proposition? What is the pitch, what are you, what are you offering? What are you solving? Can you nail in on that real quick? >>Sure. So what harness is swallowing is simplifying that software delivery by plane, so developer writes code and that code goes goes through a bunch of steps so a bunch of steps which is uh you know you build the code then you you know test the code, you know, then you do integration tests, then you you know go through your security checks, then you go through a compliance checks, then you go through more dusting, then you're deploying a staging environment, then you go one to do a bunch of things on it. Then you start deploying in production environment but in production you will deploy on like a small part of production, verify everything is working well, it's not working well, you'll roll it back, it's working well then you deploy two more things. This entire process could take like weeks for people to do and this is mostly automated, you know in kind of uh uh you know this kind of random scripts here and there etcetera. So we simplify the entire process that you could describe your process in the language, I just described like you know in a very descriptive declarative kind of way like this is the process I want to achieve and hardness will automatically create your pipelines for this. This kind of process and most of these pipelines have a lot of heavy use of intelligence and um L two, it could go from one step to another, like, so many times, like when you say, you know, deploy the guard and and and 1% of my production environment and see everything is working well and if everything is working well, go to the next 10%. But how do you figure out if everything is working well and that's where the intelligence and um El comes in like, you know, what we learn, what is a normal behavior of your application, how does a normal part of the code works like, you know, there, what's the performance behavior, what is a functional behavior? What errors it is? And if everything is good then you go to the next step so that entire cycle harness automatically, uh you know, uh managers and its automated, you know, if you get governance, you get like, you know, high degree of automation, you get a high degree of, you know, security, you get high degree of like, you know, uh uh you know, quality around him. And so it's it's think of like the, the Ci cd has a lot of developers know and know this process is is ci cd on steroids available to you, Right? So you >>sound like you're making it easier on the Ci cd pipeline process, standing it up, detecting it, prototyping it, if you will, for lack of a better description, get get used to the pipeline and then move it out, roll it out and build your own in a way >>that, is that what is that what you're doing? It's like, you know, a lot of these complex ci city pipelines, what people need, you know, it can take them like three months, six months to to put it uh you know, put it together the harness, it's like an hour, an hour, you could put it together, you know, very, very sophisticated uh Ci cd pipeline and the pipeline is, you know, automated is is, you know, it's it's intelligent around like, you know, what is the normal behavior of your of your applications? Uh It's it's just so phenomenally different than how people have done ci cd before that we simplify the process. Automate the process, you know, and make it manageable and very ready to get involved. >>It's funny you mentioned the three weeks weeks it could take to do the csd pipeline. Of course, that doesn't factor in the what happens when you roll it out, people start complaining, playing with it, breaking it, then you gotta go back and do it again. I mean, that's real and that's a real problem, I mean, can you just going to give a taste of the scar tissue that goes on there. What's some of the what are some of the what some of the pain points that you solve? >>Yeah. So, I think the that is that really becomes the core of the pain point, like, you know, people need, like high amount of dependability, easy to change things, you know, it's we call it like the lack of intelligent automation, you know, and the and this heavy amount of developer toil that the developers have to do so much work around around making all of this work like you know it has to be simplified. So that's that's where our value product comes in like you know, it's it's you know uh you can get like a visual builder and like minutes you can build out the entire process which is your job stability at city pipeline or you could also do like a declarative Yamil interface and just like you know in a few lines just right up whatever process you would want and we would review should be shipped with all kind of integrations with every cloud environment, every monitoring system, every system, every kind of testing process, every kind of security scanning so you can just drag and drop and in minutes eur, europe and running, it just creates so much velocity in this entire process. And also this manageability that people have struggled with >>morale to I mean you can imagine the morale developers go up significantly when you start seeing that the developer productivity has always been a big thing but this intelligent automation conversations huge. Some people have it, some people don't, people say they have it, what is how can you, how can the company figure out uh if someone's really got the real deal when it comes to intelligent automation because again, automation is the is key into devops. >>Yeah, I think I I almost started like you know like if you look at the generational evolution of things like the the first generation was uh you know developer writes code and then it will give you will give it to some some mighty at men who will go and deploy the code, run some commands and do things like tradition to was writing scripts that you're right, a lot of scripts that was automation but it was kind of dumb our dimension and that's how we have, you know that that's where the industry is so actually break now even most of it, the third generation is when the automation is you don't write scripts to you know uh to automate things, you tell our system what you want to achieve and it generates automation for you, right? And that's what we call intelligent automation. Where it's all declarative and all the you don't have to maintain a lot of you know scripts etcetera because they are, you know, they can't keep up with it. You know, you have to change the process all the time and if you change the process, it doesn't work, it becomes completely, you know, uh you know, it becomes very fragile to manage it. So that's that's really where intelligent automation comes in, you know, I look at like, you know, if you can have like uh like you look at like a wrestler, you know, making cars the entire assembly line is automated, but it's, but it's if you want to change something in the assembly line, even that process is automated and it's very simple. Right? So it's and that's what gives them so much uh you know, uh you know, uh let's say control and manageability around the manufacturing process. So the software delivery, uh you know, by assembly line, which is the software software by ci cd piper and really should be a more sophisticated and more intelligent as well now. And that's that's an exhibition, >>jodi. You're also pointing out something that we cover a lot on the cube and we've been writing about is how modern software practices are changing, where this team makeup or whatever its speed is key, but also getting data. Everyone who's successful with cloud and cloud scale and now you got the edge opening up and like I said, even space is going to be programmable, Everything's programmable. And the key is to get the data from the use cases right, get something deployed, look at it, get some data and then double down and make it better. That's a modern approach, not build it and then rebuild it and tear it down and rebuild it, which you're kind of leaning into this idea of let's get some delivery going, let's structure it and then feed it more so that the developers can iterate with with, with the pipeline and this is this again, can scale, can you talk about that? Can you comment on your reaction to that? >>Yeah, definitely. That's exactly how we look at it. Like, you know, you uh you want developers to kind of like say they want to do a, you know, automated process to deploy in their communities infrastructure in matter of minutes, you should be able to get started, but now it's like, you know, there's so much data that comes into it. Like, you know that you have monitoring systems systems like ab dynamics and you're like and data dog and you're logging systems your Splunk and elastic and you know, some logic, you have your, you know, different kind of testing systems here, your security scanning, so there's so much data in it. They're like, you know, terabytes and terabytes of data from it. So when you start doing your deployments, we could also come seem all of the data and see like what was the impact of those deployments or court changes in each of these monitoring, dusting, logging gonna systems and you know, what, how the data changes and then now is that based on that we can learn like, you know, what should be your ideal process and what will break in your process and that's that's the how harness platform works. That's the core of that intelligent automation networks, they're expanding it now to bring a few more of the devops use cases into it Also like the one is cloud cost management because when you, when you, you know, uh you know when we started shipping, there's a lot of people would tell us like, you know, you're you're doing a great job helping us managing the quality, which we always were concerned about like when we're deploying things so you know, security, you know, functionality etcetera. But cloud cost is a big challenge as well. You have your paying like tens and tens of millions of dollars to the cloud providers. And when developers do things in an automated way, it could increase without cost suddenly and we don't know what to do how to manage that. So that's the, you know, we we introduced a new model called cloud cost management to as part of the develops software delivery process that every time you're shipping code and we also figure out like, you know, what with impact on on your on your podcast, you know, can we automate the, you know, uh if there is there is too much impact, can we automate the, you know, the roll back around it, you know, can you get and you can you can we stop the delivery process at that point, can we help you troubleshoot and, you know, reduce the cost down? So that's, you know, that's cost becomes another another another dimension to it. Uh you know, then we recently just added uh you know, the next level that's managing feature Flags. And a lot of the time software developers are adding feature flags to like this feature would be given to this consumer and like, you know, and this feature will be given to this consumer until you test it out through uh test kind of thing and like, you know, what is the impact of, you know, uh turning a feature on versus off, you know, we're bringing that into the same ci cd pipeline. So it's kind of an integrated approach to this uh you know, our intelligently automated biplane instead of these uh small point approaches that just very hard to manage. >>I mean the level of data involved the creature flag for instance, the great is an amazing thing because that allows you to do things that used to be extremely difficult to provision. I mean just picking the color of icon, for instance, this kind of blue, I mean I was just, you hear about this, these kinds of things happening at scale and the date is pretty accurate when it comes in. So I think that's an example of the kind of speed and agility that developers want and the question I want to ask you though on that point because this opens up the whole next conversation, you guys have a modern approach and so much traction and you've recently raised big rounds of funding as you go to the market place, your experienced entrepreneur and uh and Ceo you've seen the waves before. What's the big wave that you're on now? What's the big momentum tailwind for harness? Is it the fact that you're creating value for developers or is it the system that you're integrating into with the intelligence to make things smarter and more scalable? What's the or is it all the above? Can you just share what that that story is? >>Yeah, I think it's, it's, it's really, really both of them. But you know, what are our business case when you go to people who tell them like say, if you're you know, 200 developers. uh, you know, we can give you the world's best software delivery tooling at the cost of half to one developer. Right? So like, you know, so which is like 44, 200 person organization at like 200 to 200 to $300,000 a year. They will get the best software delivery tooling better than a Google Facebook Amazon kind of companies very, very quickly. So our, our entire value prop is built on that like a developer experience gets much better. The productivity gets much better. Developers on an average are spending like 20-30% of the time on deployment, delivery-related toil, like unnecessary stuff that we deal with. So it's only 30% more efficiency gain for the developers. Their quality of life gets better that they don't need to worry about like weekends and nights to babysit your deployments and you know, things breaking and troubleshooting things all the time. Right? So that's that's a that's a big big value. But as a business you get much more velocity your innovation velocity is much higher. You know your risk on your, you know your consumers is much lower because your quality of the of of you know how your ship becomes becomes better. So our business case of like you know at the past of like 1-2 develops engineers will get you the best develops uh you know tooling in the world possible. You know it's not a hard business case for us to make, right? That's that's what we we we look at, it becomes pretty pretty obvious for you know as people try our product, you know the business case >>you don't have to really pass the I. Q. Test to figure this one out, okay everyone's happier and you have more options to scale and make more money in new opportunities not just existing business. I mean the feature flagging these new features you can build a new value and take more territory if you're a business or whatever your objective is so clear value. Can you give an example of some recent successes you've had or or traction points that you think is worth notable that people can get their arms around. >>Yeah definitely like you know we are we're helping a lot of uh you know a lot of customers you know doing uh like completely changing their uh their uh their process of software delivery, you know, 11 recent example, uh nationwide insurance, you know, nationwide insurance, you know, moving from their data center kind of approach to public cloud and to communities and to microservices, like a major cloud native re architecture and in a very ambitious aggressive project to do it, you know, in a in a in a short period of time and harness becomes a platform for them to kind of, you know, uh to remove all the bottom leg around the process, the software delivery process. You know, they obviously they still have to do the developer side of things and they have to do the cloud infrastructure side of things, which is they're doing. But the entire process of how you bring together, you know, harness becomes accelerated around it. So a lot of these kind of stories that we when we kind of create this fundamental transformation for our for our for our customers, you know, uh you know, moving to to a public cloud, you know, moving to microservices, moving to communities, you know, re architect things, but they become much faster. Cloud native higher, you know, a true software company and you know, I would say that's that's something we we we we take a they can take a lot of pride in, I think are always our biggest challenge is uh is to is to is to evangelize and and convince the market that this is possible to do with the product, because historically people have got told like, you know, the only way you can do this kind of software delivery processes and tooling is by engineering it on your own. So everyone wants us on the path of writing their own, you know, and and it's very hard for every, every company in the world to become very good in writing your own software delivery, tooling and processes and systems, etcetera. Right? So it's uh and that's it. So, you know, there is still that that education and evangelism needs to be done, that, you know, there is uh there is no point, you're trying to do it on your own, you can get a platform that can do it all for you and you can focus on the your core business of, you know, what you want to innovate on. >>And I think the Devil's movement hasn't been pioneered and you have to hand roll everything and that's the way it was. But now, as the mainstream market picks this up, you're standing on the shoulders of those pioneers, you are one of them. It's awesome to see this modern approach because it's really playing out in real time again, you've done that before, joe t so it's impressive and, you know, you've seen the movie and developed and the earlier versions pre devops. So, so as cloud native comes and start scaling it's going to be for the rest of us. So, great, great that you're providing the platform and the tools and software. I got to ask you if you don't mind because a lot of people are looking at ways for modern approaches to organizing their teams, how would you define the modern devops movement? You look at devops one point. Oh, we got here. Okay, cloud, cloud native, cloud scale, modern applications, pipe lining. Now, we're looking at a whole another level of confluence of uh of integration and speed. How would you define the modern devops movement? >>Yeah, I think that's a that's a very good question. I think that the core of modern devops, what I would call it develops to point to me is developers self service. It was like the first generation of develops was they create this kind of a devoPS team and then the developers will give all the, you know, delivery related stuff that develops team and the devops team starts to become a bottle, like everywhere now, like in the developed steam job is to build a ci pipeline and the city pipeline and the deployment scripts and you know, do like, you know, you want to do a canary deployment, they have to figure it out how to do it, they have to do, like, you know, you are uh you know, all sort of things that the that needs to be done, you create a central develops team and you give it to them and they become like, you know, uh become a big bottleneck, we look at the modern develops or the next generation and develops has to be done around focusing on the developer experience that and making it all self service for the developers. So you have, you have, let's say you are definitely in for a micro service and it's like, you know 57 engineers, you know, modeling a micro service you want like that, they can go and say this is for our micro service, you know, in a matter of minutes or hours, they can engineer the process without having to lean on a central deVOPS team and to do all the work for them and that's you know, by by maybe a modeler or in some kind of mammal interface or something. That's very easy for them, their experience is so easy that they can manage it themselves without the central deVOPS team have to write it all or cut it all and manage it all. But at the same time the center deVOPS teams, job becomes a bar and governance that can they define the guardrails, that they can define the guardrails on like, you know, you have to have this level of security before something goes into production, you have to have this level of quality before something goes into production, you have to have like, you know, uh this, your cost could not be more than this, right? So you define, so in this instance, instead of the center develops team is doing all the work themselves on writing all the stuff they define the guard rails and it becomes a very easy cell service experience of the developers should do things within those, those guard rails. This is what the modern never actually, >>that's awesome and also accelerate more business value And you're nailing it joe t thank you for coming on and great. Uh, the Ceo on the cube ceo and co founder harness harness dot IO. You guys got free trials, free downloads. You got a great, uh, by as you go model also. Um, you're an entrepreneur at heart. Uh, co founder of unusual ventures, Big Labs appdynamics. Now harness. Congratulations. Thanks for coming on. >>Hey, thank you john. >>Okay, this is a cube conversation. I'm john for here in Palo alto California with the cube. Thanks for watching.

Published Date : Sep 7 2021

SUMMARY :

Thank you for coming. why you guys exist, why you jumping in into this venture. And you know, I mean that was like, you know, we just, we cannot survive with this like and as the world we need to the individual, not just the system because you got the system of development and the process to go and you know, they write some code and the code is sitting on the shelf and they are waiting for things. I want to just get back and just nail it quickly if you don't mind honing in on the value proposition. uh you know, uh managers and its automated, you know, if you get governance, what people need, you know, it can take them like three months, six months to to put it uh you know, that doesn't factor in the what happens when you roll it out, people start complaining, So that's that's where our value product comes in like you know, it's it's you morale to I mean you can imagine the morale developers go up significantly when you start seeing that uh you know, uh you know, uh let's say control and manageability around the manufacturing Everyone who's successful with cloud and cloud scale and now you got the edge opening the roll back around it, you know, can you get and you can you can we stop the delivery process at that point, of the kind of speed and agility that developers want and the question I want to ask you though uh, you know, we can give you the world's best I mean the feature flagging these new features you can build a new value and take more territory if you're a business you know, uh you know, moving to to a public cloud, you know, moving to microservices, I got to ask you if you don't mind pipeline and the deployment scripts and you know, do like, you know, you want to do a canary deployment, You got a great, uh, by as you go model I'm john for here in Palo alto California with the cube.

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Laura Giou, IBM Matthew Angelstad, IBM & Kuberan Kandasamy, Economical Insurance | IBM Think 2021


 

>> Narrator: From around the globe, it's theCUBE. With digital coverage of IBM Think 2021. Brought to you by IBM. >> Hello, welcome back to theCUBE's coverage of IBM Think virtual 2021. I'm John Furrier, your host of theCUBE. We've got three great guests here to talk about IBM Cloud Satellite and AI operations. Laura Guio, GM of Global Cisco Alliance. Matthew Angelstad, IBM Partner, Lead Client Partner for Canada, Financial Services. And Kuberan Kandasamy, VP of Personal Insurance at Economical Insurance. Folks, thanks for coming on theCUBE, this great panel on Cloud Satellite and AI ops. Thanks for joining me. >> Thank you, John. >> Thank you. >> Thank you, John, good to see you. >> Well, first, let's start with you. There's the General Manager for the IBM-Cisco strategic partnership. Tell us more about the relationship as cloud has become hybrid and it's pretty much determined that's the standard and multicloud is right around the corner. The programmability of the infrastructure is critical. And so, obviously you can see the modern applications are doing that. Take us through the IBM-Cisco strategic partnership. >> Absolutely, so John, as you know, and we've talked in the past, it's a 25-year relationship between IBM and Cisco, long-standing. Now, if you look at Cisco in the past, they've really been known as a networking and hardware company. But with the evolution of Cisco and how they're changing, they're really switching to be more around a supporting technology and in the services and software areas. With that change coupled with Kyndryl, our spin-off of what we were previously calling NewCo, we have an opportunity now to refocus all of the work that we're doing as IBM and Cisco going forward. You couple that with the Red Hat acquisition that we did almost two years ago, we've got a three-way partnership here that's really bringing a lot of value to the marketplace. Now, when you look at that from a hybrid cloud perspective, we announced our Satellite product, which is built on top of Cisco technology with IBM in that as well. And then really taking the security elements of what Cisco does and bringing all of this into the fold around that hybrid cloud solution. So, we're super excited about this. >> Real quick while I have you, you brought up a couple of key points. I just want to get to, I know we're going to get to it later, but the operating model has shifted. You mentioned with the NewCo and these relationships, ecosystem relationships and network effect, not just like packets, but like businesses and APIs are critical. This new cloud operating model is really the center of that equation. How does that relate into all that? >> So, you know, these operating models and how we're going to market here is changing dramatically. And you take what Cisco's doing, and you know, we've got a client here with us today, Kuberan who's going to talk about what they're doing with some of this technology. But really taking that at the core of how do you bring value at the client. What are they doing to get that hybrid cloud solution put into place? And then what are all those surrounding elements around software, managing the ops and things that we need? This is where IBM and Cisco couple together, really great value. >> Kuberan, you got teed up beautifully there. So, I want to go to you and then I'll go to Matthew after. But, okay, tell us more about this IBM-Cisco dynamic. You guys are a hot growth company doing very well and continuing to grow. And sure, post-pandemic is looking good too. So, take us through why you decided to engage IBM and Cisco. >> Sure. Sure, John, thank you. You know, to appreciate how we got here and why we asked IBM and Cisco to help us, let me first start by providing some background. Our journey started back in 2016 when we launched Sonnet, an MVP. Sonnet is our fully automated, direct-to-customer digital channel, where customers can quote and buy home and auto policies online without the need to engage anyone at Economical. Then in 2018, we launched Vyne, another MVP. Vyne is our simplified self-serve and digitized broker channel, where our broker partners can quote and buy home and auto insurance policies for their customers, again, without the need to engage anyone at Economical. Both Sonnet and Vyne have won awards for innovation and both have been industry disruptors. You know, after launch, we heightened our focus on enhancing business functionality and user experiences. Given that we had started with MVPs, it made sense for us to put a lot of emphasis on enhancements initially. And, you know, we maintain the platform level monitoring capabilities at a macro level. And the way we did the enhancements where we stood up agile pods, you know, focused on very specific business mandate. This approach delivered desired results for our business, but as our excitement grew for our upcoming IPO and our business started ramping up their growth plans, we needed to increase our focus on fine-tuning key components, which included enhancing our focus on stability and predictability for our Sonnet and Vyne platforms. And we needed the ability to look deeper and get into the micro level, so that we can monitor the pulse of, you know, every component of our user's journey across both Sonnet and Vyne, and we needed help with this. And this is where we engaged IBM and Cisco to help us through this journey. >> On that vision real quick. How does the AI fit in? More on the automation side or on the app side? I mean, I can imagine with that growth in the IPO, you think in automation, I'm assuming, can you elaborate quickly? >> Absolutely. So, I mean, if you think about it, it's a lot of data that we get, like it's all digitized, so we have a lot of data in there. And this is where, you know, the ability to be able to actually mine that data and actually be taking proactive steps in terms of predicting, having predictability and all that, that's where the AI ops comes in. But that's part of our journey through this. >> Yeah, it's good. I mean, the theme here is transformation is the innovation at scale. Matthew, you lead the Financial Services division in Canada. What are you seeing as the hot topics with your clients and how are you responding? How is IBM participating? >> Yeah, absolutely. And Kuberan was touching on this from Economical's perspective. They already have two leading digital solutions in market with Sonnet on the retail customer side in Vyne with their broker network. But what we're seeing even more so in the past year so of the pandemic is a dramatic acceleration of that end-to-end digital experience. So, our clients and their customers are expecting digital native solutions that are contextually personalized, highly secure and always available or extremely resilient, right? That obviously plays into IBM's capabilities and our joint capabilities with our partner ecosystem such as Cisco AppDynamics around hybrid, multicloud and AI. >> So, if you don't mind, if you don't mind following up on that AppDynamics point. Can you tell me a little bit more about how that solution played out and how that evolved? >> Yeah, absolutely. So, first off, this was based, again, on our long-standing relationship with Cisco AppDynamics that Laura was speaking about. And then the unique to what Kuberan in Economical was seeking of stitching together the data footprint across the infrastructure architecture but leveraging data in a business context. And I think that is the unique value that AppDynamics brings to this scenario here, is a market-leading solution that does bring together those multiple data sets but contextualizes them in a business context. So, you can understand from a user perspective that end-to-end journey right from initiation in the application, all the way through the technical infrastructure. And it becomes very preventative in terms of identifying and resolving potential issues before they even occur. >> So, AppD and these IBM services work well together right there. That's your key point, right? That's. >> Absolutely, and that's, the point is bringing together the best combination of solutions and services on behalf of our customer set. And this where AppDynamics and IBM and our other partners work incredibly well together. >> Well, we'll talk about the dynamics again. This is, again, this highlights the point of the better together combination here with the Cisco relationship and the IBM evolution you mentioned. What can other clients expect? I mean, this is going to be the playbook. (laughs) I mean, you got the Cloud Satellite. Take us through what this means. What does all this mean? >> Yeah, absolutely. I'll start, and maybe even Laura can add as needed. But from an IBM perspective, absolutely. We're going to work with our partner ecosystem in the hybrid multicloud world. So, we've really evolved whether it's IBM Cloud, AWS, as some of our clients, including Economical and others. Microsoft Azure, Google. It is about bringing those together regardless of strategic decisions made on cloud platform, but understanding how the applications play together. And again, stitching together the data across those application sets to drive value out of it. This is where we're really seeing the evolution of IBM and our partner ecosystem, and the evolution of IBM services as well. >> Awesome. >> Yeah. And if you really look at what Cisco's trying to do, they've declared they're going to be in this hybrid cloud space. They bring the elements to the solution when you look at networking. We look at some of the security. And then when we start looking at how this combines with edge technology, we really start getting combinations between the IBM technology, the Cisco technology and how that completes a picture in a solution for the client. >> I love the end-to-end story. I see hybrid as distributed computer in my mind and now you've got multicloud as subsystems and all is going to have to be operated together. And the software that makes that happen. And I can see tons of head room opportunity there. Kuberan, talk about what you guys are seeing as results now. Because this is where you start to see the conversation shift to. It's not just go to the cloud anymore, it's make the cloud operational on all environments. That's really what people want to see. Can you share what you're seeing as a result and where do you go from there? >> Yeah, absolutely. You know, what's awesome about all of this is first of all, in a very short time the team which really was composed of a cross-functional and a highly collaborative group of people, they've already delivered some key pieces that are giving us line of sight into what's going on for a business solution. And, you know, the implemented scope is already detecting symptoms and allowing us to be very proactive and it is also helping us to complete root cause analysis faster. It's helping us to reduce defect linkage through our quality assurance practices. So, you know, for us, as I mentioned earlier, this is a journey like, you know, unlike traditional approaches where implementations are driven by predetermined scope. We are changing the mindset, specifically because we're using a lot of telemetry and continuous discovery in helping transform how our platform is important. You know, it has become part of our philosophy where business and technology are now working closer together. And our vision is to navigate continuously towards having a highly automated monitoring solution that leverages cognitive insights and intelligence. So, you know, to be able to have a robust self-healing capability. And this is where it kind of ties with the whole cloud capability, because now you can actually enable the self-healing capabilities and with AppDynamics bringing in the dynamic capture of issues happening and things like that. And if you kind of step back a bit and if you think of this approach, this is no different than how we envisioned and how we implemented both Sonnet and Vyne, where it was a fully digitized end-to-end solution that provides services and value for, excuse me, for our customers. Right? So, hopefully that kind of stitches the picture for you. >> That's awesome, great insight. Laura, Matthew, Kuberan, thanks for coming on theCUBE. In the last minute that we have, let's go down the line. Laura, Matthew and Kuberan, we'll start with you guys. What's the bottom line for IBM and Cisco's relationship with the Cloud Satellite and AI. What should people walk away with? What's the bumper sticker? What's the summary? >> So, as IBM invest more and more in these strategic hybrid cloud solutions industry-focused, it's really bringing an industry-focused solution to clients without us having to reinvent that every time. And as you've heard from Kuberan here, I mean, we're bringing that value to our customers. >> All right. Matthew? >> Yeah, I'd just like to add, and this is a great example here of being able to co-innovate and collaborate with our partners and with our clients, Economical in this case, to evolve these solutions. And as Kuberan has stated, this is the first step in a journey here and there's lots of exciting things to come. >> Kuberan, take us home, final word. >> Thank you. What I would say is, what we've learned from this is really standing this stuff in more like a garage style kind of a situation where you can actually get something going rapid and you get business results and you start seeing ROI very quickly. So, that's the benefit I've seen. >> Awesome, great points. IBM and Cisco better together. This ecosystem, the co-creation, the new network effects is the new dynamic in the marketplace. This is the table stakes. Thanks for coming on, thanks for sharing the insights. Thanks for coming on theCUBE, appreciate it. >> Thank you. >> Thanks a lot, John. >> Okay, IBM Think 2021. I'm John Furrier with theCUBE. Thank you for watching. (cheerful music)

Published Date : May 12 2021

SUMMARY :

Brought to you by IBM. Satellite and AI operations. and multicloud is right around the corner. and in the services and software areas. is really the center of that equation. and you know, we've got a client and then I'll go to Matthew after. and get into the micro level, that growth in the IPO, And this is where, you know, I mean, the theme here is and our joint capabilities So, if you don't mind, So, you can understand So, AppD and these IBM services and our other partners work and the IBM evolution you mentioned. and the evolution of IBM services as well. They bring the elements to the solution and where do you go from there? and if you think of this approach, In the last minute that we have, And as you've heard from Kuberan here, and this is a great example here and you start seeing ROI very quickly. This is the table stakes. Thank you for watching.

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Breaking Analysis: Tech Spend Momentum but Mixed Rotation to the ‘Norm’


 

>> From theCUBE studios in Palo Alto and Boston, Bringing you data-driven insights from theCUBE and ETR. This is "Breaking Analysis" with Dave Vellante. >> Recent survey data from ETR shows that enterprise tech spending is tracking with projected US GDP growth at six to 7% this year. Many markers continue to point the way to a strong recovery, including hiring trends and the loosening of frozen IT Project budgets. However skills shortages are blocking progress at some companies which bodes well for an increased reliance on external IT services. Moreover, while there's much talk about the rotation out of work from home plays and stocks such as video conferencing, VDI, and other remote worker tech, we see organizations still trying to figure out the ideal balance between funding headquarter investments that have been neglected and getting hybrid work right. In particular, the talent gap combined with a digital mandate, means companies face some tough decisions as to how to fund the future while serving existing customers and transforming culturally. Hello everyone, and welcome to this week's Wikibon CUBE's Insights powered by ETR. In this "Breaking Analysis", we welcome back Erik Porter Bradley of ETR who will share fresh data, perspectives and insights from the latest survey data. Erik, great to see you. Welcome. >> Thank you very much, Dave. Always good to see you and happy to be on the show again. >> Okay, we're going to share some macro data and then we're going to dig into some highlights from ETR's most recent March COVID survey and also the latest April data. So Erik, the first chart that we want to show, it shows CIO and IT buyer responses to expected IT spend for each quarter of 2021 versus 2020, and you can see here a steady quarterly improvement. Erik, what are the key takeaways, from your perspective? >> Sure, well, first of all, for everyone out there, this particular survey had a record-setting number of participation. We had a 1,500 IT decision makers participate and we had over half of the Fortune 500 and over a fifth of the Global 1000. So it was a really good survey. This is seventh iteration of the COVID Impact Survey specifically, and this is going to transition to an overlarge macro survey going forward so we can continue it. And you're 100% right, what we've been tracking here since March of last year was, how is spending being impacted because of COVID? Where is it shifting? And what we're seeing now finally is that there is a real re-acceleration in spend. I know we've been a little bit more cautious than some of the other peers out there that just early on slapped an eight or a 9% number, but what we're seeing is right now, it's at a midpoint of over six, about 6.7% and that is accelerating. So, we are still hopeful that that will continue, and really, that spending is going to be in the second half of the year. As you can see on the left part of this chart that we're looking at, it was about 1.7% versus 3% for Q1 spending year-over-year. So that is starting to accelerate through the back half. >> I think it's prudent to be cautious (indistinct) 'cause normally you'd say, okay, tech is going to grow a couple of points higher than GDP, but it's really so hard to predict this year. Okay, the next chart here that we want to show you is we asked respondents to indicate what strategies they're employing in the short term as a result of coronavirus and you can see a few things that I'll call out and then I'll ask Erik to chime in. First, there's been no meaningful change of course, no surprise in tactics like remote work and holding travel, however, we're seeing very positive trends in other areas trending downward, like hiring freezes and freezing IT deployments, a downward trend in layoffs, and we also see an increase in the acceleration of new IT deployments and in hiring. Erik, what are your key takeaways? >> Well, first of all, I think it's important to point out here that we're also capturing that people believe remote work productivity is still increasing. Now, the trajectory might be coming down a little bit, but that is really key, I think, to the backdrop of what's happening here. So people have a perception that productivity of remote work is better than hybrid work and that's from the IT decision makers themselves, but what we're seeing here is that, most importantly, these organizations are citing plans to increase hiring, and that's something that I think is really important to point out. It's showing a real following, and to your point right in the beginning of the intro, we are seeing deployments stabilize versus prior survey levels, which means early on, they had no plans to launch new tech deployments, then they said, "Nope, we're going to start." and now that stalling, and I think it's exactly right, what you said, is there's an IT skills shortage. So people want to continue to do IT deployments 'cause they have to support work from home and a hybrid back return to the office, but they just don't have the skills to do so, and I think that's really probably the most important takeaway from this chart, is that stalling and to really ask why it's stalling. >> Yeah, so we're going to get into that for sure, and I think that's a really key point, is that accelerating IT deployments, it looks like it's hit a wall in the survey, but before we get deep into the skills, let's take a look at this next chart, and we're asking people here how our return to the new normal, if you will, and back to offices is going to change spending with on-prem architectures and applications. And so the first two bars, they're Cloud-friendly, if you add them up, it's 63% of the respondents, say that either they'll stay in the Cloud for the most part, or they're going to lower their on-prem spend when they go back to the office. The next three bars are on-prem friendly. If you add those up it's 29% of the respondents say their on-prem spend is going to bounce back to pre-COVID levels or actually increase, and of course, 12% of that number, by the way, say they've never altered their on-prem spend. So Erik, no surprise, but this bodes well for Cloud, but isn't it also a positive for on-prem? We've had this dual funding premise, meaning Cloud continues to grow, but neglected data center spend also gets a boost. What's your thoughts? >> Really, it's interesting. It's people are spending on all fronts. You and I were talking in the prep, it's like we're in battle and I've got naval, I've got air, I've got land, I've got to spend on Cloud and digital transformation, but I also have to spend for on-prem. The hybrid work is here and it needs to be supported. So this is spending is going to increase. When you look at this chart, you're going to see though, that roughly 36% of all respondents say that their spending is going to remain mostly on Cloud. So that is still the clear direction, digital transformation is still happening, COVID accelerated it greatly, you and I, as journalists and researchers already know this is where the puck is going, but spend has always lagged a little bit behind 'cause it just takes some time to get there. Inversely, 27% said that their on-prem spending will decrease. So when you look at those two, I still think that the trend is the friend for Cloud spending, even though, yes, they do have to continue spending on hybrid, some of it's been neglected, there are refresh cycles coming up, so, overall it just points to more and more spending right now. It really does seem to be a very strong backdrop for IT growth. >> So I want to talk a little bit about the ETR taxonomy before we bring up the next chart. We get a lot of questions about this, and of course, when you do a massive survey like you're doing, you have to have consistency for time series, so you have to really think through what the buckets look like, if you will. So this next chart takes a look at the ETR taxonomy and it breaks it down into simple-to-understand terms. So the green is the portion of spending on a vendor's tech within a category that is accelerating, and the red is the portion that is decelerating. So Erik, what are the key messages in this data? >> Well, first of all, Dave, thank you so much for pointing that out. We used to do, just what we call a Net score. It's a proprietary formula that we use to determine the overall velocity of spending. Some people found it confusing. Our data scientists decided to break this sector, break down into what you said, which is really more of a mode analysis. In that sector, how many of the vendors are increasing versus decreasing? So again, I just appreciate you bringing that up and allowing us to explain the reasoning behind our analysis there. But what we're seeing here goes back to something you and I did last year when we did our predictions, and that was that IT services and consulting was going to have a true rebound in 2021, and that's what this is showing right here. So in this chart, you're going to see that consulting and services are really continuing their recovery, 2020 had a lot of the clients and they have the biggest sector year-over-year acceleration sector wise. The other thing to point out on this, which we'll get to again later, is that the inverse analysis is true for video conferencing. We will get to that, so I'm going to leave a little bit of ammunition behind for that one, but what we're seeing here is IT consulting services being the real favorable and video conferencing having a little bit more trouble. >> Great, okay, and then let's take a look at that services piece, and this next chart really is a drill down into that space and emphasizes, Erik, what you were just talking about. And we saw this in IBM's earnings, where still more than 60% of IBM's business comes from services and the company beat earnings, in part, due to services outperforming expectations, I think it had a somewhat easier compare and some of this pent-up demand that we've been talking about bodes well for IBM and other services companies, it's not just IBM, right, Erik? >> No, it's not, but again, I'm going to point out that you and I did point out IBM in our predictions when we did in late December, so, it is nice to see. One of the reasons we don't have a more favorable rating on IBM at the moment is because they are in the process of spinning out this large unit, and so there's a little bit of a corporate action there that keeps us off on the sideline. But I would also want to point out here, Tata, Infosys and Cognizant 'cause they're seeing year-over-year acceleration in both IT consulting and outsourced IT services. So we break those down separately and those are the three names that are seeing acceleration in both of those. So again, at the Tata, Infosys and Cognizant are all looking pretty well positioned as well. >> So we've been talking a little bit about this skills shortage, and this is what's, I think, so hard for forecasters, is that in the one hand, There's a lot of pent up demand, Scott Gottlieb said it's like Woodstock coming out of the COVID, but on the other hand, if you have a talent gap, you've got to rely on external services. So there's a learning curve, there's a ramp up, it's an external company, and so it takes time to put those together. So this data that we're going to show you next, is really important in my view and ties what we were saying at the top. It asks respondents to comment on their staffing plans. The light blue is "We're increasing staff", the gray is "No change" and the magenta or whatever, whatever color that is that sort of purplish color, anyway, that color is decreasing, and the picture is very positive across the board. Full-time staff, offshoring, contract employees, outsourced professional services, all up trending upwards, and this Erik is more evidence of the services bounce back. >> Yeah, it's certainly, yes, David, and what happened is when we caught this trend, we decided to go one level deeper and say, all right, we're seeing this, but we need to know why, and that's what we always try to do here. Data will tell you what's happening, it doesn't always tell you why, and that's one of the things that ETR really tries to dig in with through the insights, interviews panels, and also going direct with these more custom survey questions. So in this instance, I think the real takeaway is that 30% of the respondents said that their outsourced and managed services are going to increase over the next three months. That's really powerful, that's a large portion of organizations in a very short time period. So we're capturing that this acceleration is happening right now and it will be happening in real time, and I don't see it slowing down. You and I are speaking about we have to increase Cloud spend, we have to increase hybrid spend, there are refresh cycles coming up, and there's just a real skills shortage. So this is a long-term setup that bodes very well for IT services and consulting. >> You know, Erik, when I came out of college, somebody told me, "Read, read, read, read as much as you can." And then they said, "Read the Wall Street Journal every day." and so I did it, and I would read the tech magazines and back then it was all paper, and what happens is you begin to connect the dots. And so the reason I bring that up is because I've now taken a bath in the ETR data for the better part of two years and I'm beginning to be able to connect the dots. The data is not always predictive, but many, many times it is. And so this next data gets into the fun stuff where we name names. A lot of times people don't like it because they're either marketing people at organizations, say, "Well, data's wrong." because that's the first thing they do, is attack the data. But you and I know, we've made some really great calls, work from home, for sure, you're talking about the services bounce back. We certainly saw the rise of CrowdStrike, Okta, Zscaler, well before people were talking about that, same thing with video conferencing. And so, anyway, this is the fun stuff and it looks at positive versus negative sentiment on companies. So first, how does ETR derive this data and how should we interpret it, and what are some of your takeaways? >> Sure, first of all, how we derive the data, are systematic survey responses that we do on a quarterly basis, and we standardize those responses to allow for time series analysis so we can do trend analysis as well. We do find that our data, because it's talking about forward-looking spending intentions, is really more predictive because we're talking about things that might be happening six months, three months in the future, not things that a lot of other competitors and research peers are looking at things that already happened, they're looking in the past, ETR really likes to look into the future and our surveys are set up to do so. So thank you for that question, It's a enjoyable lead in, but to get to the fun stuff, like you said, what we do here is we put ratings on the datasets. I do want to put the caveat out there that our spending intentions really only captures top-line revenue. It is not indicative of profit margin or any other line items, so this is only to be viewed as what we are rating the data set itself, not the company, that's not what we're in the game of doing. So I think that's very important for the marketing and the vendors out there themselves when they take a look at this. We're just talking about what we can control, which is our data. We're going to talk about a few of the names here on this highlighted vendors list. One, we're going to go back to that you and I spoke about, I guess, about six months ago, or maybe even earlier, which was the observability space. You and I were noticing that it was getting very crowded, a lot of new entrants, there was a lot of acquisition from more of the legacy or standard players in the space, and that is continuing. So I think in a minute, we're going to move into that observability space, but what we're seeing there is that it's becoming incredibly crowded and we're possibly seeing signs of them cannibalizing each other. We're also going to move on a little bit into video conferencing, where we're capturing some spend deceleration, and then ultimately, we're going to get into a little bit of a storage refresh cycle and talk about that. But yeah, these are the highlighted vendors for April, we usually do this once a quarter and they do change based on the data, but they're not usually whipsawed around, the data doesn't move that quickly. >> Yeah, so you can see some of the big names in the left-hand side, some of the SAS companies that have momentum. Obviously, ServiceNow has been doing very, very well. We've talked a lot about Snowflake, Okta, CrowdStrike, Zscaler, all very positive, as well as several others. I guess I'd add some things. I mean, I think if thinking about the next decade, it's Cloud, which is not going to be like the same Cloud as the last decade, a lot of machine learning and deep learning and AI and the Cloud is extending to the edge and the data center. Data, obviously, very important, data is decentralized and distributed, so data architectures are changing. A lot of opportunities to connect across Clouds and actually create abstraction layers, and then something that we've been covering a lot is processor performance is actually accelerating relative to Moore's law. It's probably instead of doubling every two years, it's quadrupling every two years, and so that is a huge factor, especially as it relates to powering AI and AI inferencing at the edge. This is a whole new territory, custom Silicon is really becoming in vogue and so something that we're watching very, very closely. >> Yeah, I completely, agree on that and I do think that the next version of Cloud will be very different. Another thing to point out on that too, is you can't do anything that you're talking about without collecting the data and organizations are extremely serious about that now. It seems it doesn't matter what industry they're in, every company is a data company, and that also bodes well for the storage goal. We do believe that there is going to just be a huge increase in the need for storage, and yes, hopefully that'll become portable across multi-Cloud and hybrid as well. >> Now, as Erik said, the ETR data, it's really focused on that top-line spend. So if you look on the right side of that chart, you saw NetApp was kind of negative, was very negative, right? But it is a company that's in transformation now, they've lowered expectations and they've recently beat expectations, that's why the stock has been doing better, but at the macro, from a spending standpoint, it's still stout challenged. So you have big footprint companies like NetApp and Oracle is another one. Oracle's stock is at an all time high, but the spending relative to sort of previous cycles are relative to, like for instance, Snowflake, much, much smaller, not as high growth, but they're managing expectations, they're managing their transition, they're managing profitability. Zoom is another one, Zoom looking negative, but Zoom's got to use its market cap now to transform and increase its TAM. And then Splunk is another one we're going to talk about. Splunk is in transition, it acquired SignalFX, It just brought on this week, Teresa Carlson, who was the head of AWS Public Sector. She's the president and head of sales, so they've got a go-to-market challenge and they brought in Teresa Carlson to really solve that, but Splunk has been trending downward, we called that several quarters ago, Erik, and so I want to bring up the data on Splunk, and this is Splunk, Erik, in analytics, and it's not trending in the right direction. The green is accelerating spend, the red is in the bars is decelerating spend, the top blue line is spending velocity or Net score, and the yellow line is market share or pervasiveness in the dataset. Your thoughts. >> Yeah, first I want to go back. There's a great point, Dave, about our data versus a disconnect from an equity analysis perspective. I used to be an equity analyst, that is not what we do here. And the main word you said is expectations, right? Stocks will trade on how they do compare to the expectations that are set, whether that's buy-side expectations, sell-side expectations or management's guidance themselves. We have no business in tracking any of that, what we are talking about is the top-line acceleration or deceleration. So, that was a great point to make, and I do think it's an important one for all of our listeners out there. Now, to move to Splunk, yes, I've been capturing a lot of negative commentary on Splunk even before the data turns. So this has been a about a year-long, our analysis and review on this name and I'm dating myself here, but I know you and I are both rock and roll fans, so I'm going to point out a Led Zeppelin song and movie, and say that the song remains the same for Splunk. We are just seeing recent spending attentions are taking yet another step down, both from prior survey levels, from year ago levels. This, we're looking at in the analytics sector and spending intentions are decelerating across every single group, and we went to one of our other slide analysis on the ETR+ platform, and you do by customer sub-sample, in analytics, it's dropping in every single vertical. It doesn't matter which one. it's really not looking good, unfortunately, and you had mentioned this is an analytics and I do believe the next slide is an information security. >> Yeah, let's bring that up. >> And unfortunately it's not doing much better. So this is specifically Fortune 500 accounts and information security. There's deep pockets in the Fortune 500, but from what we're hearing in all the insights and interviews and panels that I personally moderate for ETR, people are upset, that they didn't like the strong tactics that Splunk has used on them in the past, they didn't like the ingestion model pricing, the inflexibility, and when alternatives came along, people are willing to look at the alternatives, and that's what we're seeing in both analytics and big data and also for their SIM and security. >> Yeah, so I think again, I pointed Teresa Carlson. She's got a big job, but she's very capable. She's going to meet with a lot of customers, she's a go-to-market pro, she's going to to have to listen hard, and I think you're going to see some changes there. Okay, so sorry, there's more bad news on Splunk. So (indistinct) bring this up is Net score for Splunk and Elastic accounts. This is for analytics, so there's 106 Elastic accounts in the dataset that also have Splunk and it's trending downward for Splunk, that's why it's green for Elastic. And Erik, the important call out from ETR here is how Splunk's performance in Elastic accounts compares with its performance overall. The ELK stack, which obviously Elastic is a big part of that, is causing pain for Splunk, as is Datadog, and you mentioned the pricing issue, well, is it pricing in your assessment or is it more fundamental? >> It's multi-level based on the commentary we get from our ITDMs teams that take the survey. So yes, you did a great job with this analysis. What we're looking at is the spending within shared accounts. So if I have Splunk already, how am I spending? I'm sorry if I have Elastic already, how am I spending on Splunk? And what you're seeing here is it's down to about a 12% Net score, whereas Splunk overall, has a 32% Net score among all of its customers. So what you're seeing there is there is definitely a drain that's happening where Elastic is draining spend from Splunk and usage from them. The reason we used Elastic here is because all observabilities, the whole sector seems to be decelerating. Splunk is decelerating the most, but Elastic is the only one that's actually showing resiliency, so that's why we decided to choose these two, but you pointed out, yes, it's also Datadog. Datadog is Cloud native. They're more dev ops-oriented. They tend to be viewed as having technological lead as compared to Splunk. So a really good point. Dynatrace also is expanding their abilities and Splunk has been making a lot of acquisitions to push their Cloud services, they are also changing their pricing model, right? They're trying to make things a little bit more flexible, moving off ingestion and moving towards consumption. So they are trying, and the new hires, I'm not going to bet against them because the one thing that Splunk has going for them is their market share in our survey, they're still very well entrenched. So they do have a lot of accounts, they have their foothold. So if they can find a way to make these changes, then they will be able to change themselves, but the one thing I got to say across the whole sector is competition is increasing, and it does appear based on commentary and data that they're starting to cannibalize themselves. It really seems pretty hard to get away from that, and you know there are startups in the observability space too that are going to be even more disruptive. >> I think I want to key on the pricing for a moment, and I've been pretty vocal about this. I think the old SAS pricing model where you essentially lock in for a year or two years or three years, pay up front, or maybe pay quarterly if you're lucky, that's a one-way street and I think it's a flawed model. I like what Snowflake's doing, I like what Datadog's doing, look at what Stripe is doing, look at what Twilio is doing, you mentioned it, it's consumption-based pricing, and if you've got a great product, put it out there and damn, the torpedoes, and I think that is a game changer. I look at, for instance, HPE with GreenLake, I look at Dell with Apex, they're trying to mimic that model and apply it to infrastructure, it's much harder with infrastructure 'cause you've got to deploy physical infrastructure, but that is a model that I think is going to change, and I think all of the traditional SAS pricing is going to come under disruption over the next better part of the decades, but anyway, let's move on. We've been covering the APM space pretty extensively, application performance management, and this chart lines up some of the big players here. Comparing Net score or spending momentum from the April 20th survey, the gray is, sorry, the gray is the April 20th survey, the blue is Jan 21 and the yellow is April 21, and not only are Elastic and Datadog doing well relative to Splunk, Erik, but everything is down from last year. So this space, as you point out, is undergoing a transformation. >> Yeah, the pressures are real and it's sort of that perfect storm where it's not only the data that's telling us that, but also the direct feedback we get from the community. Pretty much all the interviews I do, I've done a few panels specifically on this topic, for anyone who wants to dive a little bit deeper. We've had some experts talk about this space and there really is no denying that there is a deceleration in spend and it's happening because that spend is getting spread out among different vendors. People are using a Datadog for certain aspects, they are using Elastic where they can 'cause it's cheaper. They're using Splunk because they have to, but because it's so expensive, they're cutting some of the things that they're putting into Splunk, which is dangerous, particularly on the security side. If I have to decide what to put in and whatnot, that's not really the right way to have security hygiene. So this space is just getting crowded, there's disruptive vendors coming from the emerging space as well, and what you're seeing here is the only bit of positivity is Elastic on a survey-over-survey basis with a slight, slight uptick. Everywhere else, year-over-year and survey-over-survey, it's showing declines, it's just hard to ignore. >> And then you've got Dynatrace who, based on the interviews you do in the (indistinct), one-on-one, or one-on-five, the private interviews that I've been invited to, Dynatrace gets very high scores for their roadmap. You've got New Relic, which has been struggling financially, but they've got a really good product and a purpose-built database just for this APM space, and then of course, you've got Cisco with AppD, which is a strong business for them, and then as you mentioned, you've got startups coming in, you got ChaosSearch, which Ed Walsh is now running, leave the data in place in AWS and really interesting model, Honeycomb is getting really disruptive, Jeremy Burton's company, Observed. So this space is it's becoming jumped ball. >> Yeah, there's a great line that came out of one of them, and that was that the lines are blurring. It used to be that you knew exactly that AppDynamics, what they were doing, it was APM only, or it was logging and monitoring only, and a lot of what I'm hearing from the ITDM experts is that the lines are blurring amongst all of these names. They all have functionality that kind of crosses over each other. And the other interesting thing is it used to be application versus infrastructure monitoring, but as you know, infrastructure is becoming code more and more and more, and as infrastructure becomes code, there's really no difference between application and infrastructure monitoring. So we're seeing a convergence and a blurring of the lines in this space, which really doesn't bode well, and a great point about New Relic, their tech gets good remarks. I just don't know if their enterprise level service and sales is up to snuff right now. As one of my experts said, a CTO of a very large public online hospitality company essentially said that he would be shocked that within 18 months if all of these players are still standalone, that there needs to be some M and A or convergence in this space. >> Okay, now we're going to call out some of the data that really has jumped out to ETR in the latest survey, and some of the names that are getting the most queries from ETR clients, many of which are investor clients. So let's start by having a look at one of the most important and prominent work from home names, Zoom. Let's look at this. Erik is the ride over for Zoom? >> Ah, I've been saying it for a little bit of a time now actually. I do believe it is, and we'll get into it, but again, pointing out, great, Dave, the reason we're presenting today Splunk, Elastic and Zoom, they are the most viewed on the ETR+ platform. Trailing behind that only slightly is F5, I decided not to bring F5 to the table today 'cause we don't have a rating on the data set. So then I went one deep, one below that and it's pure. So the reason we're presenting these to you today is that these are the ones that our clients and our community are most interested in, which is hopefully going to gain interest to your viewers as well. So to get to Zoom, yeah, I call Zoom the pandemic bull market baby. This was really just one that had a meteoric ride. You look back, January in 2020, the stock was at $60 and 10 months later, it was like 580, that's in 10 months. That's cooled down a little bit into the mid-300s, and I believe that cooling down should continue, and the reason why is because we are seeing huge deceleration in our spending intentions. They're hitting all-time lows, it's really just a very ugly dataset. More importantly than the spending intentions, for the first time, we're seeing customer growth in our survey flatten. In the past, we knew that the deceleration of spend was happening, but meanwhile, their new customer growth was accelerating, so it was kind of hard to really make any call based on that. This is the first time we're seeing flattening customer growth trajectory, and that in tandem with just dominance from Microsoft in every sector they're involved in, I don't care if it's IP telephony, productivity apps or the core video conferencing, Microsoft is just dominating. So there's really just no way to ignore this anymore. The data and the commentary state that Zoom is facing some headwinds. >> Well, plus you've pointed out to me that a lot of your private conversations with buyers says that, "Hey, we're, we're using the freebie version of Zoom, and we're not paying them." And that combined with Teams, I mean, it's... I think, look, Zoom, they've got to figure out how to use their elevated market cap to transform and expand their TAM, but let's move on. Here's the data on Pure Storage and we've highlighted a number of times this company is showing elevated spending intentions. Pure announced it's earnings in May, IBM just announced storage, it was way down actually. So still, Pure, more positive, but I'll on that comment in a moment, but what does this data tell you, Erik? >> Yeah, right now we started seeing this data last survey in January, and that was the first time we really went positive on the data set itself, and it's just really continuing. So we're seeing the strongest year-over-year acceleration in the entire survey, which is a really good spot to be. Pure is also a leading position among its sector peers, and the other thing that was pretty interesting from the data set is among all storage players, Pure has the highest positive public Cloud correlation. So what we can do is we can see which respondents are accelerating their public Cloud spend and then cross-reference that with their storage spend and Pure is best positioned. So as you and I both know, digital transformation Cloud spending is increasing, you need to be aligned with that. And among all storage sector peers, Pure is best positioned in all of those, in spending intentions and adoptions and also public Cloud correlation. So yet again, to start another really strong dataset, and I have an anecdote about why this might be happening, because when I saw the data, I started asking in my interviews, what's going on here? And there was one particular person, he was a director of Cloud operations for a very large public tech company. Now, they have hybrid, but their data center is in colo, So they don't own and build their own physical building. He pointed out that during COVID, his company wanted to increase storage, but he couldn't get into his colo center due to COVID restrictions. They weren't allowed. You had 250,000 square feet, right, but you're only allowed to have six people in there. So it's pretty hard to get to your rack and get work done. He said he would buy storage, but then the colo would say, "Hey, you got to get it out of here. It's not even allowed to sit here. We don't want it in our facility." So he has all this pent up demand. In tandem with pent up demand, we have a refresh cycle. The SSD depreciation cycle is ending. SSDs are moving on and we're starting to see a new technology in that space, NVMe sorry, technology increasing in that space. So we have pent up demand and we have new technology and that's really leading to a refresh cycle, and this particular ITDM that I spoke to and many of his peers think this has a long tailwind that storage could be a good sector for some time to come. >> That's really interesting, thank you for that extra metadata. And I want to do a little deeper dive on storage. So here's a look at storage in the industry in context and some of the competitive. I mean, it's been a tough market for the reasons that we've highlighted, Cloud has been eating away that flash headroom. It used to be you'd buy storage to get more spindles and more performance and we're sort of forced to buy more, flash, gave more headroom, but it's interesting what you're saying about the depreciation cycle. So that's good news. So ETR combines, just for people's benefit here, combines primary and secondary storage into a single category. So you have companies like Pure and NetApp, which are really pure play primary storage companies, largely in the sector, along with Veeam, Cohesity and Rubrik, which are kind of secondary data or data protection. So my quick thoughts here that Pure is elevated and remains what I call the one-eyed man in the land of the blind, but that's positive tailwinds there, so that's good news. Rubrik is very elevated but down, it's big competitor, Cohesity is way off its highs, and I have to say to me, Veeam is like the Steady Eddy consistent player here. They just really continue to do well in the data protection business, and the highs are steady, the lows are steady. Dell is also notable, they've been struggling in storage. Their ISG business, which comprises servers and storage, it's been softer in COVID, and during even this new product rollout, so it's notable with this new mid range they have in particular, the uptick in Dell, this survey, because Dell is so large, a small uptick can be very good for Dell. HPE has a big announcement next month in storage, so that might improve based on a product cycle. Of course, the Nimble brand continues to do well, IBM, as I said, just announced a very soft quarter, down double digits again, and they're in a product cycle shift. And NetApp, it looks bad in the ETR data from a spending momentum standpoint, but their management team is transforming the company into a Cloud play, which Erik is why it was interesting that Pure has the greatest momentum in Cloud accounts, so that is sort of striking to me. I would have thought it would be NetApp, so that's something that we want to pay attention to, but I do like a lot of what NetApp is doing, and other than Pure, they're the only big kind of pure play in primary storage. So long-winded, intro there, Erik, but anything you'd add? >> No, actually I appreciate it as long-winded. I'm going to be honest with you, storage is not my best sector as far as a researcher and analyst goes, but I actually think that a lot of what you said is spot on. We do capture a lot of large organizations spend, we don't capture much mid and small, so I think when you're talking about these large, large players like NetApp not looking so good, all I would state is that we are capturing really big organization spending attention, so these are names that should be doing better to be quite honest, in those accounts, and at least according to our data, we're not seeing it in. It's longterm depression, as you can see, NetApp now has a negative spending velocity in this analysis. So, I can go dig around a little bit more, but right now the names that I'm hearing are Pure, Cohesity. I'm hearing a little bit about Hitachi trying to reinvent themselves in the space, but I'll take a wait-and-see approach on that one, but pure Cohesity are the ones I'm hearing a lot from our community. >> So storage is transforming to Cloud as a service. You've seen things like Apex in GreenLake from Dell and HPE and container storage. A little, so not really a lot of people paying attention to it, but Pure bought a company called Portworx which really specializes in container storage, and there's many startups there, they're trying to really change the way. David Flynn, has a startup in that space, he's the guy who started Fusion-io. So a lot of transformations happening here. Okay, I know it's been a long segment, we have to summarize, and let me go through a summary and then I'll give you the last word, Erik. So tech spending appears to be tracking US GDP at 6 to 7%. This talent shortage could be a blocker to accelerating IT deployments, so that's kind of good news actually for services companies. Digital transformation, it remains a priority, and that bodes, well, not only for services, but automation. UiPath went public this week, we profiled that extensively, that went public last Wednesday. Organizations that sit at the top face some tough decisions on how to allocate resources. They're running the business, growing the business, transforming the business, and we're seeing a bifurcation of spending and some residual effects on vendors, and that remains a theme that we're watching. Erik, your final thoughts. >> Yeah, I'm going to go back quickly to just the overall macro spending, 'cause there's one thing I think is interesting to point out and we're seeing a real acceleration among mid and small. So it seems like early on in the COVID recovery or COVID spending, it was the deep pockets that moved first, right? Fortune 500 knew they had to support remote work, they started spending first. Around that in the Fortune 500, we're only seeing about 5% spend, but when you get into mid and small organizations, that's creeping up to eight, nine. So I just think it's important to point out that they're playing catch up right now. I also would point out that this is heavily skewed to North America spending. We're seeing laggards in EMEA, they just don't seem to be spending as much. They're in a very different place in their recovery, and I do think that it's important to point that out. Lastly, I also want to mention, I know you do such a great job on following a lot of the disruptive vendors that you just pointed out, with Pure doing container storage, we also have another bi-annual survey that we do called Emerging Technology, and that's for the private names. That's going to be launching in May, for everyone out there who's interested in not only the disruptive vendors, but also private equity players. Keep an eye out for that. We do that twice a year and that's growing in its respondents as well. And then lastly, one comment, because you mentioned the UiPath IPO, it was really hard for us to sit on the sidelines and not put some sort of rating on their dataset, but ultimately, the data was muted, unfortunately, and when you're seeing this kind of hype into an IPO like we saw with Snowflake, the data was resoundingly strong. We had no choice, but to listen to what the data said for Snowflake, despite the hype. We didn't see that for UiPath and we wanted to, and I'm not making a large call there, but I do think it's interesting to juxtapose the two, that when snowflake was heading to its IPO, the data was resoundingly positive, and for UiPath, we just didn't see that. >> Thank you for that, and Erik, thanks for coming on today. It's really a pleasure to have you, and so really appreciate the collaboration and look forward to doing more of these. >> Yeah, we enjoy the partnership greatly, Dave. We're very happy to have you on the ETR family and looking forward to doing a lot, lot more with you in the future. >> Ditto. Okay, that's it for today. Remember, these episodes are all available as podcasts wherever you listen. All you have to do is search "Breaking Analysis" podcast, and please subscribe to the series. Check out ETR website it's etr.plus. We also publish a full report every week on wikibon.com and siliconangle.com. You can email me, david.vellante@siliconangle.com, you can DM me on Twitter @dvellante or comment on our LinkedIn posts. I could see you in Clubhouse. This is Dave Vellante for Erik Porter Bradley for the CUBE Insights powered by ETR. Have a great week, stay safe, be well and we'll see you next time. (bright music)

Published Date : Apr 23 2021

SUMMARY :

This is "Breaking Analysis" out the ideal balance Always good to see you and and also the latest April data. and really, that spending is going to be that we want to show you and that's from the IT that number, by the way, So that is still the clear direction, and the red is the portion is that the inverse analysis and the company beat earnings, One of the reasons we don't is that in the one hand, is that 30% of the respondents said a bath in the ETR data and the vendors out there themselves and the Cloud is extending and that also bodes well and the yellow line is and say that the song hearing in all the insights in the dataset that also have Splunk but the one thing I got to and the yellow is April 21, and it's sort of that perfect storm and then as you mentioned, and a blurring of the lines and some of the names that and the reason why is Here's the data on Pure and the other thing that and some of the competitive. is that we are capturing Organizations that sit at the and that's for the private names. and so really appreciate the collaboration and looking forward to doing and please subscribe to the series.

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IBM19 Laura Giou, Matthew Angelstad and Kuberan Kandasamy VTT


 

>>from around the globe. It's the >>cube >>With digital coverage of IBM think 2021 >>brought to you by IBM. Welcome back to the cubes coverage of IBM Think Virtual 2021. I'm john for your host of the cube. Got three great guests here talking about IBM cloud satellite and AI operations, Lori G O G M of Global SisQo Alliance, Matthew, Engelstad, IBM partner. Lead client partner for Canada financial services and cooper on Kent Asami VP of personal insurance. That economical insurance folks. Thanks for coming on the cube. This great panel on cloud satellite and Ai Ops. Thanks for joining me. >>Thank you. Thank you. Thank you john. Good to see you. >>Well, first let's start with you. There's a general manager for the IBM Cisco Strategic Partnership. Tell us more about the relationship as cloud has become hybrid. It's pretty much determined that's the standard and multi clouds right around the corner. The program ability of the infrastructure is critical and so obviously you can see the modern applications are doing that take us through the IBM Cisco strategic partnership. >>Mhm. Absolutely. So john as you know, and we've talked in the past, it's a 25 year relationship between IBM and Cisco longstanding. Now if you look at Cisco in the past, they've really been known as a networking and hardware company, but with the evolution of Cisco and how they're changing, they're really switching to be more around supporting technology and in the services and software areas. With that change coupled with Kendrell, our spin off of what we were previously calling Newco, we have an opportunity now to refocus all of the work that we're doing as IBM and Cisco going forward. You couple that with the red hat acquisition that we did almost two years ago, we've got a three way partnership here that's really bringing a lot of value to the marketplace. Now, when you look at that from a hybrid cloud perspective, we announced our satellite product which is built on top of Cisco technology with IBM in that as well. And then really taking the security elements of what Cisco does and bringing all this into the fold around that hybrid cloud solution. So we're super excited about this >>real quick. Why have you brought up a couple key points? I just want to get too. I know we're gonna get to it later, but the operating model has shifted, you mentioned with the new co and these relationships, ecosystem relationships and network effect, not just like packets, but like businesses and mps are critical. This new cloud operating model is really a center of of that. That that equation, how does that relate into all that? >>So, the, you know, these operating models and how we're going to market here is changing dramatically and you take what Cisco is doing and you know, we've got a client here with us Today programme who's going to talk about what they're doing with some of this technology. But really taking that at the core of how do you bring value at the client, what are they doing to get that hybrid cloud solution put into place And then what are all those surrounding elements around software managing the apps and things that we need? This is where IBM and Cisco coupled together. Really bring value >>cooper. You got teed up beautifully there so I want to go to you then go to Matthew after but okay, tell us more about this IBM. Cisco dynamic. You guys are hot growth company um doing very well and continuing to grow and sure, post pandemic. It's looking good too. So take us through why you decided to engage IBM and Cisco? >>Sure, sure john thank you. Um you know, to appreciate how we got here and why? We asked IBM and Cisco to help us. Let me first start by providing some background. Our journey started back in 2016 when we launched Sonnet and M. V. P. Uh Sonnet is a fully automated director customer digital channel where customers can quote and buy home and all of his online without the need to engage anyone at economical. Then in 2018, we launched by another m. v. p. Wine is our simplified self serve and digitized broker channel where broker partners can quote and buy home and auto insurance policies for their customers again, without the need to engage anyone at economical. Both uh some wine have won awards for innovation and both have been industry disruptors. You know, after launch we heightened our focus on enhancing business functionality and user experiences, given that we had started with MVPs, it made sense for us to put a lot of emphasis on enhancements initially. And you know, we maintained platform level monitoring capabilities at a macro macro level. We we and and the way we did the enhancement where we stood up agile pods, you know, focused on very specific business mandate. This approach delivered design results for our business. But as our excitement grew for our upcoming I. P. O. And our business started ramping up their growth plans. We needed to increase our focus on fine tuning key components which included enhancing our focus on stability and predictability for our sonnet and wine platforms. And we needed the ability to look deeper and get into the micro level so that we can monitor the pulse of uh you know, every component of our users journey uh across both solid and wine. And we need to help with this. And this is where we engage idea Francisco to help us through this journey >>on that vision real quick. How does the A. I. Fit in more on the automation side or on the upside? I mean I can imagine what that growth in the I. P. O. You're thinking automation I'm assuming. Can you elaborate quickly? >>Absolutely. So I mean if you think about it, it's a lot of data that we get like it's all digitized so we have a lot of data in there and this is where you know the ability to be able to actually mined that data and actually be taking proactive steps in terms of predicting having predictability and all that. That's where the Ai Ops comes in but that's part of our journey through this. >>Yeah that's good. I mean the theme here is transformation is the innovation at scale. Matthew, you lead the financial services division in Canada. What are you seeing as the hot topics uh with your clients and how are you responding? House IBM participating? >>Yeah, absolutely. And cooper and was touching on on this from economical perspective, they already have two leading digital solutions in market with Sonnet on the retail customer side in vine with their broker network. But what we're seeing even more so in the past year or so of the pandemic is a dramatic acceleration of that and then digital experience. So our clients and their customers are expecting digital native solutions that are contextually personalized, highly secure and always available or extremely resilient. Right? That obviously plays into IBM's capabilities and our joint capabilities with our partner ecosystem such as Cisco appdynamics around high hybrid, multi cloud and AI. >>So, if you don't mind if I don't mind following up on that app dynamics point, um can you tell me a little bit more about how that solution played out and how that involved? >>Yeah, absolutely. So first off this was based again on our longstanding relationship with Cisco appdynamics that laura was speaking about and then unique to what cooper and and economical was seeking. Of stitching together the data footprint across the infrastructure architecture. But leveraging data in a business context. And I think that is the unique value that app dynamics brings to this scenario here is a market leading solution that does bring together those multiple datasets, but contextual ISeS them in a business context. So you can understand from a user perspective that end to end journey right from initiation in the application all the way through the technical infrastructure and it becomes very preventative uh in terms of identifying and resolving potential issues before they even occur. >>So empty and this IBM services worked well together right there. That's your key point, right? That's >>absolutely. And that's the point is bringing to bear the best combination of, of solutions and services on behalf of our customers set. And this is where appdynamics and IBM uh, and our other partners work incredibly well together. >>We'll talk about the dynamics. Again, this is again, this highlights the point of the better together combination here with the Cisco relationship and the IBM evolution you mentioned, um what can other clients expect? I mean, this is gonna be the playbook. I mean you got the cloud satellite take us through what this means. What does all this mean? >>Yeah, absolutely. I'll start and maybe even laura can can add as as needed, but from an IBM perspective, absolutely. We're gonna work with our partner ecosystem um in the hybrid, multi cloud world. So uh we've really evolved whether it's IBM cloud aws as some of our clients, including economical and others Microsoft, Azure, um google. Uh It is about bringing those together regardless of strategic decisions made on cloud platform, but understanding how the applications play together and again, stitching together the data across those applications sets to drive value out of it. Uh This is where we're really seeing the evolution of IBM in our partner ecosystem and the evolution of IBM services as well. Awesome. >>Yeah. And if you really look at what Cisco is trying to do, um they've declared they're going to be in this hybrid cloud space. They bring elements to the solution. When you look at networking we look at some of the security and then when we start looking at how this combines with edge technology, we really start getting combinations between the IBM technology, the Cisco technology and how that completes a picture in a solution for a client. >>I love the end to end story, actually hybrids, distributed computer in my mind and now you've got multi club, it's just subsystems and all gonna have to be operated together and the software all makes that happen. I could see tons of headroom opportunity there cooper and talk about what you guys are seeing as results now because this is where you start to see uh the conversation shift too. It's not just go to the cloud anymore, it's make the cloud operational on all environments. That's really people want to see, can you share what you're seeing as a result? And where do you go from there? >>Yeah, absolutely. Um you know what's awesome about all of this is first of all, in a very short time, the team which really was composed of a cross functional and the highly collaborative group of people, uh they've already delivered some key pieces that are giving us line aside into what's going on for our business solution and you know, the implemented uh scope is already detecting symptoms and allowing us to be very proactive and it is also helping us to complete root cause analysis faster, helping us reduce defect linkage through a quality assurance practices. So, you know, for us, as I mentioned earlier, this is a journey like, you know, unlike traditional approaches where um implementations are driven by predetermined scope, we are changing the mindset specifically because we're using a lot of telemetry and continuous discovery in helping transform how our platform is important. You know, it has become part of our philosophy where business and technology are now working closer together and our vision is to navigate yeah continuously towards having a highly automated monitoring solution that leverages cognitive insights and intelligence. So you know to be able to have a robust self healing capability and this is where it kind of ties with the whole cloud capability because now you can actually enable the self self healing capabilities and with afghan um is bringing in the uh uh dynamic capture of issues happening and things like that. And if you kind of step back a bit and if you think of this approach, this is no different than how we envisioned and how we implemented both Summit and Wine where it was a fully digitized end to end solution that provides services and value for excuse me for our customers. Right? So hopefully that changes the picture. >>That's awesome. Great insight, Laura Matthew Gordon? Thanks for coming on the cube in the last minute that we have, let's go down the line laura Matthew cooper on. We'll start with you guys. What's the bottom line for IBM and Cisco relationship with the cloud satellite and a I guess what should people walk away with? What's the bumper sticker? What's the summary? >>So as IBM invest more and more in these strategic cloud hybrid cloud solutions industry focused, it's really bringing an industry focused solution to clients without us having to reinvent that every time. And as you heard from from Kobrin here, I mean we're bringing that value to our customers. >>All right Matthew, >>yeah, I just like to add and this is a great example here of being able to co innovate and collaborate with our partners and with our clients, economical in this case to evolve these solutions And as cooper and had stated, uh, this is the first step in a journey here and there's lots of exciting things to come, >>come on, take us home. Final word. >>Thank you. What I would say is what we've learned from. This is really uh, standing this up more like a garage style kind of situation where you can actually get something going rapid and you get business results and you start seeing RY very quickly. So that's the benefit. I've >>seen some great points. IBM and Cisco better together this ecosystem. The co creation, the new network effects is the new dynamic in the marketplace. This is the table stakes. Thanks for coming on. Thanks for sharing the insight. Thanks for coming. Thank you. Appreciate it. >>Thank you. Thanks a lot john >>Okay. IBM think 2021. I'm John for with the Cube. Thank you for watching. >>Mm

Published Date : Apr 15 2021

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It's the brought to you by IBM. Thank you john. ability of the infrastructure is critical and so obviously you can see the modern applications are doing that So john as you know, and we've talked in the past, Why have you brought up a couple key points? that at the core of how do you bring value at the client, what are they doing to get that hybrid cloud So take us through why you decided to engage IBM we did the enhancement where we stood up agile pods, you know, focused on very specific business Can you elaborate quickly? it's all digitized so we have a lot of data in there and this is where you know the What are you seeing as the hot topics uh with your clients even more so in the past year or so of the pandemic is a dramatic acceleration So you can understand from a user perspective that So empty and this IBM services worked well together right there. And that's the point is bringing to bear the best combination of, here with the Cisco relationship and the IBM evolution you mentioned, seeing the evolution of IBM in our partner ecosystem and the evolution of IBM services When you look at networking now because this is where you start to see uh the conversation shift too. of ties with the whole cloud capability because now you can actually enable Thanks for coming on the cube in the last minute that we have, And as you heard from come on, take us home. where you can actually get something going rapid and you get business results and you This is the table stakes. Thank you. Thank you for watching.

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Breaking Analysis: 2H 2020 Tech Spending: Headwinds into 2021


 

>> From theCube Studios in Palo Alto in Boston, bringing you data driven insights from theCube and ETR, this is breaking analysis with Dave Vellante. >> As we reported in our last episode tech spending overall continues to be significantly muted relative to 2019. Now, our forecast continues to project a 4 to 5% decline in 2020 spending, and a tepid 2% increase in 2021. This is based on the latest data from ETR surveys of CIOs and other it buyers. Nonetheless, there continues to be some sectors and vendor bright spots in what is generally an overall challenging market. Hello everyone, and welcome to this week's Wikibon Cube Insights powered by ETR. My name is Dave Vellante, and in this breaking analysis, we welcome back Erik Bradley from ETR to provide added color from my solo flight from last time. Erik always a pleasure to see you, thanks so much for coming back in theCube. >> I always enjoy it. Happy Friday Dave, We're almost through. >> Happy Friday. They just blend together. Guys, if you would bring up the first slide, I just want to summarize the situation. This is from ETR's latest findings, I just extracted some. And I want to go down very quickly, Erik, and then get your take. As I said, technology buyers expect the downturn for 2020, but this quarter, coming into fourth quarter, minus 3.2% was ETR's forecast, that's year to year spending decline and a 2% uptick in 2021. Now, Erik this is slightly, what I call it slightly less bad, relative to last quarter. So sequentially it's less bad. >> Yeah, there's a couple of things to break down there. So first to begin with, beginning of the year, when we launched not only our spending attention surveys, we did a simultaneous COVID impact survey, and that's where we caught originally a 5% decline was expected. So although negative 3.2 was probably the worst quarter over quarter lapse we've seen, as a matter of fact it is the lowest drop we've had theory, going into 2021, the IT people that we've actually surveyed are actually expecting a 2% increase. So there is a reason for optimism, but if we're looking at the current data set, there is no doubt the picture remains a little bit bleak. We can go into different sectors and vendors where they are impacted, but I think maybe if you're willing, I think it might be worth just sort of breaking down the demographics of the survey a little bit and how we got to that 3.2% survey over survey decline. >> Yeah, and we have a chart on that. But before we get that, I just wanted to lay out some of the other key points of your analysis. The other one, which is we talked about this in the last episode, we call it a slow thawing. Hiring an IT project freezes are thawing, with fewer companies expecting layoffs. So that gives us some bright spots, but there are definitely a widening bifurcation between vendors gaining share and those who are donating share. And then, you know, again, relative to last quarter survey we're seeing government and education and fortune 100, you guys are showing the deepest cuts from the last survey. Where's IT Telco, retail and retail consumer are showing a little bit more stability. And then of course you talked about the work from home which we've covered doubling from pre pandemic. Pretty interesting findings from your COVID survey. >> Yeah, it's a fantastic, and this is the fourth iteration of this survey that we've done now. So we've been able to track it very quickly, launched it in the field when we realized the true impact of what was happening in early March. This is our fourth version, and we've been able to track it overall. Yes, without a doubt government, education are being the biggest impact, the biggest declines without a doubt. Now, clearly the caveat to that is if there's any sort of government policy maybe those could actually help a little bit, but for right now, those are getting hit the most. Retail consumer is fairing much, much better, and the IT companies, as generally, we're seeing in the market as well, they can, you know, are still spending money and still moving. But the reason for optimism actually comes from multiple metrics. And I will say, we have caught a bottom on all of the negative metrics at this point. Now, who knows what will happen the next time we do it, right? The world is always fluid. But based on this, this is our fourth iteration of this survey, whether it be IT projects being frozen, whether it be layoffs, whether it be just overall expected budget increase, everything looks like it is already bottomed and there is some optimism going into 2021. Of course, the January survey that we launched will be able to corroborate that hopefully, and we'll have much more granularity into those findings at that time. >> Great. Okay, now let's get into the demographics that you referenced for. This next slide shows those. The record number of respondents Erik, congratulations on that. And so take us through the makeup of the survey respondents guys, if you bring up this next slide. >> Yeah. So for the October 20, what we're really doing here is we're asking the it decision makers to update the survey responses they gave us in July. We're basically saying, okay, you thought you were going to spend this in the back half, what did you actually do? And in this particular survey we had 1,438 qualified IT decision makers get involved. That's 60% of the fortune 100 is represented, almost a quarter of the global 1000, and we had about 35% of the fortune 500. The industry breakdown is all across the board, whether it's financials/insurance, IT/Telco, we have industrials/manufacturing, we have energy/utilities, we have government. So it's really a great cross section. Now, geographically, that tends to be about 80% North America. We are heavily concentrated in that area, but we also have a 12% EMEA, 5% APAC and remainder is Latin AmErika. If there were any visibility concerns at all would probably be in China. It's just not that easy to get qualified IT decision makers from China to respond to us. But that's an area we are working on going forward, but overall a huge survey response, certainly meaningful end, and we're very happy with the data that we collected this time. >> Okay, thank you for that. Now, I want to go into the next graphic here, and I want to look at how net score has changed over time. And I want to remind people that, so this slide basically goes back to 2016, and shows some ebbs and flows and then some real strength coming in, 'cause you see 17 and 18, and you may forget going into Q4'19 and into 2020, the ETR data was telling us, hey, things are going to slow down a little bit. It's hard to remember that. And so, and the thinking back then was okay, last couple of years, people have spent a lot on digital transformation, and would a lot of experimentation, they were hanging on to their legacy stuff, and with all that technical debt and they were experimenting with a lot of the new technologies. And what we saw coming into Q4 2019 was people beginning to unplug some of that and making bets basically, unplugging some of the legacy stuff. Oh, and by the way, maybe saying hey, the new stuff that we tried didn't work, we're going to do less experimentation. So we saw a somewhat depressed next score, and you can see that in here coming into 2020, and then of course COVID hit and you can see the bottom fell out. But wow what a drop, I mean, that says it all, a lot different than what we're seeing in the stock market. >> Yeah, first of all, just a great recap on what we caught last year. Really well done. So at that time there was concurrent spending. There was a lot of proof of concepts being done. People weren't exactly sure how to transition off, how fast they were going to get into the cloud, how fast they could make that digital transformation. And they were kicking the tires on everything, and there was a ton of spend. It was the golden era of IT spending at the time. But we did catch that some of that was coming down. So what we will see now is obviously that spending was going to cool off either way, but now with the global pandemic impact hitting what we've caught, of course, is the biggest survey over survey decline. 3.2% was matched at one other point in our survey's history, but that was at very elevated spendings, so that drop was not as meaningful. When we're seeing from a more baseline that drop right now is extremely seasonal, and extremely meaningful, my apologies. Now, I do want to make a quick caveat that usually the October survey catches some seasonality, because a lot of people have expected spend in the back half that doesn't always materialize. But make no mistake, this is way beyond our normal seasonality. This trough is a real metric. >> Yeah, and when I talk to buyers and I talk to even salespeople, for if you want the truth, you'll talk to salespeople, if you can get the truth out of them, which you usually can. Sales and engineering, that's really if we want to know what's happening in companies, but they will tell you that their visibility, same with the buyers, they're saying, look, I think I'm going to spend and I think I'm going to get approval on it, but the normal buying signals, you kind of have to take with a grain of salt because it's, the buyers don't know the sellers don't really know. I mean, they think they've got reasonable visibility but things change so fast as we know. So you have to be really, really careful. All right, let's drill in to some of the sectors, and that's really the next two slides, guys, if you bring up the first of the next two. So this shows the change from July to October. So the last survey to this survey, 2020, and the green bars of July, yellow bars are October. And you can see right away, jumps out at you, container orchestration and ML and AI, and we've got some other data on this jump right off the charts. They're still elevated levels, so that's a real positive. You can see AI actually, maybe waning a bit, and I think that's probably, Erik, is a lot of it is just, you don't even see it, it's just embedded. But take us through this first chart and then we'll dig into some of these sectors. What are you seeing? >> Yeah, certainly. So from a sector breakdown point of view, that lesson, none of them were spared, let's be honest, right? There's a slow down in spending. But containers and containerization were by far the most stable. So clearly this is a priority. People are recognizing that they need to go that route. Nobody wants to be tied to any particular cloud provider. So container and containers are moving the best, they are looking about as stable as they can be. When we drill down a little bit further in there, we're seeing Kubernetes of course, Microsoft and AWS really supporting in that sector. Now, when you talk about the ones that had the biggest survey over survey declines, we are looking at ML/AI, but like you said, still elevated spend. So even though there was a big survey over survey decline, the overall spending intentions are healthy. Nobody is getting away from it. Also to corroborate that in the COVID impact study, we asked people, given the current situation where their priorities are, and unfortunately in that area ML/AI and the RPA we're actually not positioned as well. So it actually corroborates the COVID impact survey, corroborates what we're seeing here in our larger intentions. Now, when you look at ML/AI, Microsoft is still very well suited in that area. Virtualization was another big area that dropped, which was interesting because I think the immediate COVID impact and the work from home, we saw a little spike there. I think we definitely saw companies like Citrix, right? F5 and Nutanix and AWS workspaces. They all had a really good impact, positive, when we first hit, but virtualization is dropping quite a bit there. And again, no surprise, Microsoft is well positioned as well. And then lastly, enterprise content management also had a big, big drop-off, and there you're looking at Adobe Box, Open Text, those are the type of companies that seem to be having the biggest survey over survey decline and ECM. >> Yeah. And I just want to make a comment on this first of the two slides. Is you see security, it's okay, there's a little bit of decline, but there's the story of the haves and the have nots. If you're an end point security, you're in cloud security, you're in identity access management, there's some real tailwinds for you right now. You're seeing that with Octa, CrowdStrike and Zscaler, SailPoint, you know, had a really good quarter. So that's the story of kind of the, a mixed bag. If you go to the next slide, guys, what jumps out here on the second sector breakdown, and Erik you alluded to this as RPA, very elevated, although down, somewhat still, again, very elevated and cloud computing. I mean, that's all everybody wants to talk about. This is a large market that continues to grow very, very fast. >> Yeah. It's a A2 cloud, right? I mean, even the cloud, we're kind of shocked and we saw that too. But, you know, again, it's still a healthy survey at 4Cloud. Spending is still there, but what we are seeing is a pretty big survey over-serving decline that is probably, if you had to translate that, it's going to show slower growth. Still double digit growth, but slower than we expected. And interestingly in the cloud, again, Microsoft is very steady, GCP steady. We saw AWS soften a little bit, and that's something that I think we need to keep an eye on there, we are seeing some softening trends. IBM and Oracle, unfortunately, no matter how hard they push, it doesn't really seem to be making a dent, at least with our it decision makers that respond to the survey. But one thing that was interesting was VMware on AWS actually looked much, much better than VMware alone. So on the cloud side, those are pretty interesting takeaways. >> Yeah, we talked about that a couple of episodes back as the, well, couple of things to pick up on your comments. You mentioned IBM and Oracle, they're just so large, they're growing businesses are not growing fast enough and they're not large enough to offset the decline and their declining businesses. Yet they're huge, they have, they throw off a lot of cash and so maybe their stock's not going through the roof, but they're pretty stable companies from that regard. I wonder, maybe AWS is starting to hit some of those, the law of large numbers. I mean, it's still growing very, very rapidly for a 45 plus billion dollar organization, still growing well into the double digits, so it just gets harder. And then, but the other thing I wanted to pick up on is you mentioned VMware cloud on AWS, we're seeing those hybrid solutions really start to pick up the multi-cloud solutions, which I was a real skeptic a couple of years ago 'cause it wasn't really real, now becoming real. And I think when you talk to, you know this well from your Ven discussions, people are looking at options for cloud. They want multiple clouds, the right horse for the right course, they want to reduce their risk, they want to ensure exit strategies and some clouds are just better at some things than others. >> Yeah, completely agree. And as you know, I do interview a lot of these IT decision makers that we survey to get a little more granularity and to dig into the details, and you and I just, great example. We did a session on Data Warehousing as a Service, we're at Snowflake. And the main reason that people love them is 'cause they have cloud portability. They can move across multiple clouds. Nobody wants to be tied to one cloud provider, they need to be agnostic. And if you look at, you know, something like Microsoft, right? Their Software Suite is fantastic. So most people are going to be aligned for them. They provide great active directory, the enterprise applications are absolutely incredible. But if you're looking to do straight ML/AI or straight data warehousing, maybe AWS Redshift, maybe Google Big Query might be a better fit for you. There's no reason to be tied into one. So what we're seeing more and more is those vendors that offer cloud portability or hybrid availability to do some on-prem for security, some cloud, they're really taking a step up in our recent surveys. Another comment you made Dave, if I can just backtrack to it is, you kind of mentioned how some of the vendors are taking more and more share. We are continuing to see this theme of a widening bifurcation, where although the overall spend that pie is shrinking, the leading vendors are taking much bigger slices from that pie. And that is continuing across the entire year. >> Yeah, definitely a time of disruption. So thank you for bringing that up. Okay, the next graphic I want to show you is actually a motion graphic, and what we're showing here is one of our favorite views. On the vertical axis you've got net score, remember, net score, essentially ETR, every quarter like clockwork asks customers are you spending more you're spending less, it's more granular than that, but essentially they subtract the red from the green and that leaves you with net score. So the higher the net score the better on the vertical axis, on the on the horizontal is axis is market share, its presence, its pervasiveness in the dataset. So you want to be up into the right, of course, like all these charts and XY's. And what we're showing here is, we go back to October, 2018. Remember this is the October survey and you can see the movement and what's happening. And a couple of points here really is one is container orchestration and container platforms, cloud, RPA, ML, they all stand out. And now we, you can see the the context of their "market share" as well, and you see that bunching, you see some of the Legacy stuff, the more mature markets like storage and PC tablets and laptops. They don't have a huge next or outsourcing, not a big net score, but they're there and they're kind of bunched up, down in the middle. But you can also see how they've slowly got depressed over time, even the elevated ones. Nobody in the recent survey is over a 60% net net score. I think you guys said that the overall net score was the lowest in history. So this is just a good way to visualize the various sectors and how spending, momentum and share is shifting. >> Yeah, that's a very good point, and you are right. The overall survey net score is actually 25.3% and it is the lowest ever we've captured. So that actually is translating into what we expect to be single digit declines in overall growth in IT budgets, which again is in line with what we've been saying. We caught early on about negative 5 1/2, that is improved now it's in this quarter to about negative 3 1/2, but if you look at the mid point here, we're very clearly in mid single digit declines, and the entire area is being impacted. Now, there are certainly some areas that are more important than others, there's no doubt about it. But yeah, outsourcing is one you mentioned, absolutely getting decimated. Nobody really has the money right now to be doing IT outsourcing, that's just not a priority. The priority is remote connectivity, remote security, how do I get identity access and governance to make sure that my employees are doing what they're supposed to be doing, even though they're not on my network anymore. All of those things are continuing. And as you saw on the COVID-19 Impact Survey, they're not going away. You had mentioned on a solo session you did, I think a week ago, where you have cited our data saying that permanent workforce is going to double from where it was in pre-pandemic levels. So that means a lot of the people that slapped a bandaid on their networking to get their employees to work from home, that bandaid solution is not going to work. They need to find one that's permanent now. So the areas of spend, although it is declining, there are very clear delineations of where that spend is going. >> Yeah, I want to just pick up on something you said about the work from home doubling, 'cause I've shared that data with some folks and had some discussions. We're talking about people that work from home, not come in a couple of times a week, this is the work from home component. And so I think the hybrid is going to increase as well, but the hardcore work from home, I think it was mid-teens, 16% or something doubling in the post pandemic was the expectation. And again, I just wanted to sort of clarify that I think your data there is quite good. How about some of the vendors? I think, now that's Snowflakes public, you guys may be doing some forecasts there. Let's start there. >> Sure, yeah. So it's fun to talk about the high level, right? And talk about the sector breakdown and where we're seeing things, but at the end of the day, people just love to talk about the individual vendors. So there's a few things that were interesting, yeah. We were able to finally come out with a real viewpoint on Snowflake now that they're out in public, and we kind of launched with a positive to neutral viewpoint. I don't think there's going to be anything here that shocks you. We're absolutely outstanding expansion rates. All the commentary we get from our CIOs are just incredible, the market share gains are about as high as you're going to see in the survey, they are extremely well positioned to continue executing, and this is not in the data set, but we also know that that management team is fantastic. I would think that they had set themselves up coming out as a public company not to completely disappoint. And everything in our data set shows absolutely no reason why they would disappoint. >> Well, and so you may be wondering folks, like, well, wait a minute, with all that great news, I mean, how could they be positive to neutral. Maybe it maybe neutral, the reason is because they have a 66, roughly $66 billion valuation. And what ETR is doing is they're taking that into consideration as well relative to, so they're looking at the street forecast, the consensus forecast and saying, okay, how does the data line up to that? And so a lot of people are asking the question, can Snowflake live up to its valuation. I don't think there's any lack of total available market here. I mean, it's very, very large, the data market, it's enormous. And as, just a plug for an event that we're doing on November 17th, it starts, we're doing a global event, and we're going to be looking at this issue very closely, interviewing customers and partners and executives and, you know, you can judge for yourself if you think the vision, they're putting out this vision of a data cloud. You see this, if this vision, you think is going to have a big enough term that they can grow into, and as Erik said, great management team, will they be able to execute? Decide for yourself, but very exciting IPO obviously that we've tracked quite closely. Elastic is another one that you guys have followed quite closely. I know you've got some data there that you want to share as well. >> Yeah, I certainly do. The APM spaces is really interesting. One last quick point on Snowflake. We don't have regression forecasts on them, because they haven't been out public long enough for us to be able to do that sort of back-testing. So without that data science behind us, we will never really go with a full positive. So to your point that saying positive to neutral is not negative or neutral stance whatsoever, it's just without that regression support behind our data, that's what we just tend to do. Because at the end of the day, we're a data science company, so.. >> Yeah. You need some some history there to really make those calls. But yeah, let's talk about Elastic. >> Yeah, sure, you got it. So recently I hosted a panel on the APM and monitoring space. It was incredibly enlightening. It's a very crowded space that our CIOs told us is right for disruption. And it ended up being a little bit of an avalanche in our data, because it wasn't just Elastic, but it was also Splunk and Dynatrace that we ended up putting ratings on. Now, Elastic as we know is an open source model, a freemium to pay type of model. And we normally try to stay away from open source models, 'cause it's kind of hard to predict how that converts to revenue, but the data was so strong that again, we came out with a positive to neutral rating on Elastic. It was based on just elevated spend levels across, there was almost no negativity, we weren't seeing any decrease or replacement indications, really solid positioning in the fortune 500 accounts, which I was a bit surprised about. And the other thing here is that Elastic tends to be really expanding in the information security. This is no longer just about monitoring and logging, they are becoming a very relevant infosec play and they are breathing down the necks of Splunk. They can do the same thing and they can do it much cheaper. The caveat being, you need to have the IT and the human skillset to run Elastic. So it really comes down to, are you sophisticated enough with the human capital management to run it? But everything we saw here just incredibly improved competitive positioning, they actually had the number one net score in all of information security in any vendor that had over 50 citations. It was just too hard to ignore, we had to come out with a positive neutral. >> That's super interesting Erik, and of course, yeah, we covered that space recently. Everybody wants a piece of Splunk and have for a number of years, but, you know, you see in Datadog come after it, then you see some startups getting into the space. Jeremy Burton launched his company, Observe, Honeycomb is in that, they kind of coined the term observability. Kakao Search is another one. Ed Wall's joined that company, and so you see a lot of folks really going after that space, why not? I mean, it's such a successful company. The pickup of SignalFX filling some holes, we talked about that on the Ven, and it's a very interesting space, and one I think has some somewhat depressed levels from a net score standpoint but as some of your Ven observers said, this market is here to stay and it becoming much more important as part of digital transformation, as part of a dashboard of digital transformation. >> Yeah. Coining that term observability really just hit it on the nail on the head. When we just talked about monitoring an application, that's not what it's about anymore, right? You need to have observability in multi hybrid cloud environments, whether it's your infrastructure or people actually writing code for your application. And so that single pane of glass, end-to-end is the holy grail of monitoring, and that's what these guys are pushing for. The New Relics, the Datadog's, the Elastics, they're getting there more quickly than Splunk and Dynatrace or AppDynamics from Cisco are. That's what the people are telling us, the ones I speak to, the CIOs that use it in the field. They're getting there more quickly and they're doing it more cheaply. Now, this is not to say Splunk is not a great company, we know it is. And also Splunk has more API integration into any ecosystem you want. They're not getting pulled or ripped out anytime soon, we're not saying that. But when we look at our data, we had no choice but to come out with a neutral to negative. They are deteriorating and their spending intentions, their customer growth is completely stalling, we're not seeing any more increased perversion in our dataset or among customers. There just wasn't really anything we could really do. Looking at the data set and that's what we do, we had no choice. There's a lot of skepticism heading into the back half of this year and next year, there's so much competition coming after them, and some of these people are just giving it away for free. It's pretty hard to compete with free. >> Yeah, free is very powerful. All right, speaking of skepticism, Rackspace had their IPO, what do you see in there? >> Oh man, I'm not really sure how to start there. But listen, I don't want to beat a company while it's down, but their net scores are actually negative. I think at the negative 20% range, if I could possibly recall that. But listen, Rackspace, when they were private, let's give them some credit, right? They decided to go out and buy a bunch of different managed service providers, they tried to align themselves with AWS, with Oracle. So they've got this whole bundle thing right now that isn't just straight cloud computing anymore. We'll see if that plays out. But clearly we saw that the IPO was not a very special IPO. In this environment the valuations in the technology stocks being very elevated, having a negative IPO was very telling. But sticking straight to the data, basically we're seeing negativity across several years, it's the worst position vendor in cloud computing that we even cover. We just had to take a look at it right now, and just be honest and say according to the data, this is a very negative data set, there just isn't much we can do about it. Wish them the best, I hope their MSP revenue starts kicking in, and hopefully it'll change. But for right now the snapshot of our data was quite dire. >> Okay, Erik, Well, thanks so much. So let's update folks, so the ETR is exiting, it's quiet, period, which I love, because that means I can have the data and share with you. So we'll be updating our cloud scenarios, security, automation, our infrastructure, and many other segments as well. Certainly the data piece, we've been tracking snowflake very closely. And of course, Erik, you guys are already gearing up for your January survey. So, you know... >> It never ends Dave. And I've... >> Well, I got a really... I've got a sizzle panel that I'm doing next week as well, where we got four sizzles talking about security threats and priorities for 2021. So as soon as I wrap that, you'll be the first one I get my summary to. >> Oh, those are great. I mean, there's such deep dives with practitioners, and it's just an open discussion. So Erik Bradley, thanks so much for coming back in theCube. >> Have a great weekend Dave. >> Yeah, you too. And thank you for watching everybody this episode of Cube Insights powered by ETR. Go to etr.plus, that's where all the survey action is. I publish every week on wikibon.com and siliconangle.com. All these episodes are available on podcast. Wherever you watch, you can DM me, I'm @DVelllante. I post on LinkedIn, you can comment there or email me @david.vellanteat, @siliconangle.com. This is Dave Vellante for Erik Bradley. Thanks for watching everybody, we'll see you next time. (upbeat music)

Published Date : Oct 16 2020

SUMMARY :

bringing you data driven This is based on the latest data I always enjoy it. expect the downturn for 2020, beginning of the year, Yeah, and we have a chart on that. Now, clearly the caveat to that is if of the survey respondents guys, So for the October 20, what and the thinking back then was okay, is the biggest survey over survey decline. So the last survey to this survey, 2020, and the work from home, and Erik you alluded to this as RPA, So on the cloud side, And I think when you talk to, and to dig into the details, and that leaves you with net score. and it is the lowest ever we've captured. in the post pandemic was the expectation. All the commentary we get Well, and so you Because at the end of the day, to really make those calls. and the human skillset getting into the space. is the holy grail of monitoring, what do you see in there? But for right now the snapshot of our data so the ETR is exiting, And I've... and priorities for 2021. and it's just an open discussion. And thank you for watching everybody

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Breaking Analysis: APM - From Tribal Knowledge to Digital Dashboard


 

>> From theCUBE Studios in Palo Alto in Boston, bringing you data-driven insights from theCUBE and ETR, this is Breaking Analysis with Dave Vellante. >> Application performance management AKA APM, you know it's been around since the days of the mainframe. Now, as systems' architectures became more complex, the technology evolved to accommodate client-server, web-tier architectures, mobile and now of course, cloud-based systems. A spate of vendors have emerged to solve the sticky problems associated with ensuring consistent and predictable user experiences. The market has grown, I mean it's decent size, it's about $5 billion globally. It's growing at a consistent 10% CAGR. It's got a variety of established companies and new entrants that are attacking this space. Hi everyone, welcome to this week's Wikibon Cube Insights powered by ETR. My name is Dave Vellante and today, we welcome back ETR's Erik Bradley, who was the chief engagement strategist at Aptiviti which is the holding company of our data partner, ETR. Erik, my friend, great to see you. Thanks so much for coming on and spending some time with us. >> Oh, always enjoy it Dave. Great to see you too and I'm just glad I got some fresh material for ya. >> As always, you have fresh data. Now, Erik just recently hosted an ETR VENN session and on this particular topic, APM. Now VENNs are an open round table, they're exclusively available to ETR's clients and what we do is we sometimes come in theCUBE and we summarize those sessions in our Breaking Analysis. Now Erik, yo let's start with a summary slide here, guys, if you could bring that up, we just want to make a couple of points and... So as I said Erik, I mean this started back, you know in the System/390 days. Now, distributed systems and cloud of course create a lot more complexity, you got data that's really fragmented. You got user data, you got application data, you have infrastructure data and it gets complicated and you've got guys in lab coats having to come in and diagnose these stuff, lot of tribal knowledge. What are you seeing in the space? >> Well yeah, you know to start back, you know it's funny when the panel I hosted, one of the guys even brought up Tivoli, how long ago that was right? Then of course you get, you know you have the solar winds and you had people like that trying to just kind of monitor your network. You know what we've heard a lot about now is infrastructure has really become code-based. So when that happens, you really start wondering to yourself the lines are blurring between infrastructure and application because at the end of the day, what you're really monitoring is code. So it has gotten incredibly complex, you have OnPrem, you have hybrid, you have multi-cloud approach so it has gotten extremely complex and there's also now a third wave of next-gen vendors getting involved in the mix as well. As you're aware, New Relic and Datadog, obviously, Splunk has been in logging and monitoring for a long time. You also had some of the traditional players throw their hat in the ring through acquisition, that you know AppDynamics gobbled up by Cisco and obviously Splunk trying to continue to reinvent themselves a little bit by SignalFx. So it is a very crowded, complex space, it is a complicated problem but it's also a problem that needs to be solved. You know, we were looking at, you said in your intro about, it's only about a $5 billion market right now but there's been a lot of data out there from industry analysts saying that that's going to grow quite handsomely over the next five years and it could get up to 13, 14, 15 billion. And when I asked my panel about that, I had one gentleman say without a doubt, they see the next 10 years that spending in this space will continue. And when you pry and ask why, they simply state that digital transformation is not going to stop, it's marching forward, whether anyone likes it or not and as it does, monitoring is going to be critical, it's only going to increase and increase and increase. So right now, to your point, it's a small market but it's a growing market and there's a lot of entrance in there and their whole goal is to reduce this complexity that you're talking about. >> Now, one of the things we heard from the panel, guys if you bring up that same slide again, you know the third point on that slide was what's closely tied to digital transformation. You heard a number of individuals say, "Look, your digital business is critical, it's all about monitoring your applications and your data and your infrastructure. And we heard a lot that they wanted a, a single pane of glass and you made a number of points about the market. What are your thoughts on both the digital transformation, maybe the COVID acceleration of that mandate and that notion of a single pane of glass, is that aspirational or is it, in your view, something that is actually technically feasible? >> Not only is it technically feasible, it has to happen. It's going to be demanded by the large enterprise, they can't continue to monitor hundreds and hundreds of applications. They need something that not only can give them observability through their entire stack, but they need to be able to view it in one way, there's enough fatigue in monitoring and logging. And actually it goes even further than one pane of glass, they're demanding that these systems can now actually employ machine learning algorithms to be proactive. It's not enough to just say, "Okay, I observed this," you have to let me know that this may happen in the future and what to do about it. So not only is it feasible, it's something that is being demanded by the end-user market and the players that survive are the ones that already have that in their roadmap. >> Now, as we always like to do in these sessions, we're going to bring up some ETR data and we like to position the companies. So what we do is, we're going to bring up some of the pure players, pure-play companies and you can see them on this slide. But Erik, and when we talk about companies in this space, they are well over a dozen. It's just again for reference, you know it's Cisco with AppD, you mentioned that before Dynatrace is one of the leaders, New Relic has been around for awhile and is doing well, Splunk, Datadog. Now of course, and we're not showing them here, AWS, Microsoft and Google cause they just sort of, they pollute the chart. But so I want to start with the guys that are on this view and maybe talk about a few. Elastic came up a lot, certainly AppD came up a little, Dynatrace was obviously mentioned, especially in large organizations. Lot of conversations about New Relic. So let's go through them. Where do you want to start here? >> Yeah there's a lot to go through and we did spend the majority of the panel talking about the individual players, the differences between them and also what we thought their longer term prospects were but yeah, we'll go through each one. I think maybe to start with, let's go back in time a little bit, right? Cisco is a wonderful acquirer, they do a great job at M&A. A lot of companies will acquire something and let it die on the vine. Cisco has proven recently that they are reinventing themselves as a full platform play, whether that be through, you know, kind of, their networking reach or whether it be through the security. And AppDynamics is one of those that actually kind of gives you a little bit of both with being able to monitor. It is a great play for people that are already involved with Cisco. Now, I don't think you're going to see too many people that are non-Cisco customers run out and buy it. There you're going to see some of them, maybe the pure plays or one of my guests called the third wave of vendors. And that third wave is really about a Datadog and a New Relic. Let's talk about Datadog first. >> Yeah let's bring that back up guys, if you would. Now let me just, sorry to interrupt you Erik (indistinct) The vertical axis here is net score, that's the ETR's primary metric, and that's an indication of spending velocity, the higher, the better. And on the horizontal axis is market share. Now we're showing the July data, the October data is in the field, you know once ETR releases that to its clients, then we'll share that with you. But the first thing that jumps out at me is other than Elastic Erik, I mean, I'm not blown away by the spending momentum in this space but let's talk about that and then some of your thoughts on the specific vendors. >> Yeah, you know I'll go back because you asked a little bit about the digital transformation, I don't think I answered it fully. So to your comment about maybe not being impressed with the spend, I think this is one where the spend is going to come, kind of as a laggard because you're not going to rush out and go buy the software to monitor until you've built out the, what needs to be monitored. So as we're seeing this increase in the digital transformation, and I think you and I had a conversation in the past, but when COVID first hit and I did a series of panels, we had one person say that this virus is going to increase digital transformation by five to 10 years. Now that was an amazing statement. Basically, if you were on the fence, if you didn't, if you weren't already heading down to digital transformation, you needed to play catch up quickly. So now that you are doing that right, now that you're moving from OnPrem to a multicloud or a hybrid cloud environment, you have to get observability, you have to get monitoring into it. So now these players start to play catch up and this is where you're going to see the proof of concepts and you're going to see people trying to decide which direction they're going to take their company. Now back to the actual vendors. I believe that there is some differentiation, right? So we'll just take, for instance, Splunk. Splunk is obviously probably the biggest boy on the block when it comes to just straight up logging and monitoring. They've leveraged that big boy position to really, you know, add some costs, kind of intimidate their customers they've been compared in the past of the type of things that Oracle used to do from their cost perspective. And that's opened up some new competition, Datadog is one of those. According to my panel, Datadog is viewed more for logging and monitoring than it is truly full end-to-end observability throughout your entire network and application system. So that is one of the areas that's there. Now, to stay on those two names for a quick second, Splunk obviously has some holes in what they're trying to offer, they went out and tried to buy SignalFx to fill one of those holes. Now according to my panel again, did a great job filling that hole, problem is if you have a boat with three holes, you can't put your fingers everywhere. So they think, hey listen, Splunk scrape, they're going to keep the company they have and I know that we can talk a little bit more about valuations and the equity side later, but I think it's very clear that their sales and revenue are trending flat to down, whereas some of these other names still have great acceleration in their sales. So Splunk and Datadog both are really facing pressure from Elastic or generally just open-source. >> I was struck by the panel and how much emphasis they, how much complaining they did about Splunk pricing. Generally, I feel like hey, if your price is too high is the biggest objection, that's actually not a bad thing for a company but the way they kept hitting on it and said, "Hey, we're actively looking for alternatives" and Datadog was one of those and given the momentum that Datadog has, I don't think that that's necessarily a positive. But you know Splunk has a lot of loyal customers but you know to your point if you go back to the slide, Elastic came up very, very strong and they are head and shoulders from a spending momentum above the rest of the crowd here. >> Right. And you know, so you're right. If the only problem with a vendor or a technology is cost, usually you live with it because that means it's giving you what you need. So okay, it's expensive but it's also the best in breed and that's where Splunk has been for a very long time. And I think they're resting on their laurels knowing that. Enter Elastic and you say to these guys, the panel, I asked them, well okay, you can make Elastic work but is it truly a viable alternative from a technology standpoint? And the answer to that was not only is it viable, it's half the price. So if you can bring something in that can do the job the same and it's half the cost, it's really difficult not to at least try. And I had one of the other gentlemen who was a Datadog customer said, "Listen, we love Datadog, we were a huge customer and then I started getting enormous bills and I just switched over to open-source, I switched to Elastic, I switched to Kibana, I switched to Kafka and I can do this search myself. Now the difference is not every enterprise has the human skillset to do so and I'm not saying Splunk's going to turn around to disappear tomorrow, not even close. Because there is a difference in spending that money with the vendor or spending that money developing the human skillset to use open-source. But the bigger backdrop here is there are more alternatives than there used to be, there's more competition and the space is getting very crowded. >> Yeah, comment on open-source. I mean open-source is free like a puppy. But the thing about that, and we had one of the panelists was a very senior consultant, exclusively work with very large companies, he told a story about one of the companies years ago, he came in to solve a problem. The problem was they had 70% availability and then they had no visibility on their infrastructure and there's really no great, no good monitor, they get them up to whatever, five nines or two, three nines or wherever they got them to, but dramatic improvement. And so, but he said, "Look it, I work with companies with billions of dollars, $3 billion IT budgets so they don't rely on open-source for this stuff, they're happy to spend." But there's a huge market, particularly in the mid size where we heard that New Relic plays in a big way, it might be more receptive to open-source. >> Couple of great points there Dave, honestly. I'm going to jump over to the use case that was given by that person who was in a healthcare role. And essentially the part I didn't write into my summary was that his CEO was two days away from shutting down the entire business because he was so frustrated that he had no observability and Dynatrace was the one that was able to step in and fix that. And this gentleman did say that the majority of the companies that he does work with which are all in the Fortune 100, Dynatrace has a stranglehold in that spot. So that's really interesting to note. Now on the flip side, when pushed a little bit more later in the panel, he said, "Dynatrace is sort of resting on its laurels from a product roadmap standpoint and that's going to open up the possibility of a New Relic getting in," a transition to New Relic as you mentioned on their small to medium sized business. They recently launched a new pricing strategy which is basically a free version to get you involved to kind of get their hooks into you and see if you can work it out. And basically what they're trying to do there I think is, you know, make up for their lack of marketing. As you saw the panel that we spoke about said, "New Relic's technology is fantastic." They have the ability to provide a single pane of glass which is the Holy Grail in this space and they have the ability to provide machine learning and proactive type of ability which again are the two things that all of the end-users are asking for. The problem is that most people might not be aware of it because New Relic doesn't have as flashy a marketing department, they don't have the dollars as much as the others to go out there and compete with the Splunk and Dynatrace and Cisco. But from a roadmap perspective, it was almost unanimous that our panel agreed, New Relic is by far, one of the leaders from a functionality standpoint. >> Yeah, if you guys bring that slide up one more time, the X Y. I mean, I look at where New Relic is and I'm like wow, I'm surprised. I mean this company, I mean they were the hot company for awhile and I think still have the capability. You're talking about the technology. NRDB, New Relic database is like, it kicks ass. In fact, you know Erik, somebody brought up in the panel that they thought that snowflake could compete in this market because essentially Snowflake's positioning is this data cloud. But you know, here's New Relic, they have a purpose-built database specifically for monitoring an APM so you would think that with that technology, they could really make some moves. And then I just want to bring in two other companies to the mix here. Honeycomb who I think even their founder and former CEO now CTO, she coined the term I believe, observability. And there's another company that is run by Jeremy Burton, company's called Observe, okay (indistinct) and it's funded by the Silicon Valley Mafia. So that's going to be an interesting one to watch, they're coming out, well they're out of stealth but they're doing a launch on October 7th. So I think those are two companies that could disrupt this space and I would expect to see, as you said, it's a latent momentum in net score from a dataset standpoint because people are trying to plug the holes cause of COVID, you know security, work from home, that pivot and now it's really on to digital transformation and that's where APM really comes in. >> It really does and again, it comes back to that comment someone made a long time ago that everything's becoming code as software eats the world and everything becomes code, you need the ability to kind of monitor that code, enter Honeycomb. And as you know, we have two different studies at ETR, one of them is for emerging technology. Honeycomb is in our emerging technology study that's more of a private series B to series E round stage whereas our main study is for companies that are pre IPO or already public. But Honeycomb is a little bit different in my opinion, that they're focused very much so on the developers or the software engineers. They're a very microservices oriented type of product whereas some of the other ones may have started as an infrastructure monitoring and then kind of work their way backward into application. But Honeycomb certainly needs to be observed and it's funny when you talk about that, the one thing I think is, "Oh great, more players." The crowded space gets even more crowded. And I think well you know, kind of foreshadowing something you and I will be speaking about in a little bit but there's a lot of players in this space and there's a lot of other possible interest in there. You mentioned Snowflake. It actually wasn't brought up from our panelists, it was a question that came from one of my clients that said, "Hey, I'm curious, can snowflake play in this space?" And the panel thought about it for a second and said, "There's absolutely no reason why they can't, they most certainly can." And we all know the cash they have so I mean the easiest way to play in that would maybe be to buy some of the technology, integrate it in and yeah, they have that portability. And if I can real quickly, they've just, one of the things that came out that was so important about this, we haven't spoken about the vendors is, is the public cloud. The public cloud offers this. They offer monitoring, they'll give it to you for free. If I'm going to run Kubernetes at Google, I'm going to get the monitoring for free which is super nice, right? But if I have an enterprise that has multicloud or hybrid cloud, and I'm working outside of that public cloud silo, it doesn't work. This is the exact conversation you and I had about Snowflake. AWS Redshift's fantastic but it doesn't work outside of AWS. So if every one of our enterprises continues on the digital transformation, they need portability. They have to be able to go across any architecture structure and that's why these independent providers are really starting to gain steam when you would think they could never compete with the public cloud. >> Yeah man, that's a great point. And we've talked about this in the context of Snowflake that who are you going to trust with your multi-cloud strategy? Are you going to trust AWS? Are you going to trust Google? Yeah, okay, they got Anthos but we kind of know why they're taking that posture. Microsoft, look, I'm probably going to partner with somebody who can, who's maybe I have a relationship with them with my OnPrem and that is really sort of agnostic to the various clouds so I'm glad you brought that up. And you know the point you're making about Honeycomb is a good one and I'll add that, again, it gets more complex with microservices and containers, that's spinning them up, spinning them down. Sometimes these, first of all, these microservices, sometimes aren't that micro and second of all, you're sometimes talking about hundreds of thousands of containers so it's a really increasingly complex environment. All right. What I want to do is-- >> You didn't even touch on serverless, we'll do that some other day. >> Oh, yeah, I mean absolutely. A hundred percent, right. So, now let's take a look at some of the valuations, guys if you bring that up for me. So I put this little chart together and it's always instructive. Now I like to, simple guy Erik so I like to... So you see, the company, I take a trailing 12-month revenue and then the market cap as of 9/25. And then just a simple revenue multiple, just to get a sense, it's not a hardcore valuation model but it's interesting and there usually is a correlation to the growth rate, I just pulled that off the latest quarterly growth rate. I mean, look at Datadog. I mean that's like Snowflake pre IPO valuations. I mean you're really, right around there with smaller revenue, smaller growth rate, Snowflakes up in the whatever 120% range but well eye-popping. You know the same valuation as Splunk, I mean that's just amazing. What do you make of this data? >> Well, you know I was an equity analyst for almost 15 years on the Wall Street side. So the, my first caveat is a trailing revenue to the multiple is not always the same because people are looking at what the forward expected revenue will be but I actually do see the correlation here. And when you brought this up, my eyes popped open. I do not understand why Datadog has a 27 billion market cap on a trailing 350 million in revenue. I just don't know if their forward looking growth really warrants that and at the same time, then you look at a Splunk, right? I mean they have two and a half billion in revenue but their growth rate's down and truthfully, when I see a -5% growth rate, I don't know why you weren't at 12% sales either. I would argue that there's quite a few names on here that could be in for a reckoning, ETR actually as far back as a year ago caught this in our data and said, "Hey, there's some inflection points here and I think investors need to pay attention to them." And since we came out with the July report, a lot of these names we're talking about, despite insane valuations in the equity markets are flat to down. And, you know I do think that, hey if they stay stagnant and their technology is right but it's a crowded space, I think we're really leading to the point where as one of my panelists said, this industry is ripe for consolidation. These players are not all going to be here in 12 months, it's that simple. >> Yeah and by the way, thank you for mentioning that as a former equity analyst, you were right (indistinct) 12 months, it's kind of the rear-view mirror. But I'll tell you, two reasons why I do that. One is, I put the growth rate in there so you can pick your own growth rate and your own forward revenue. The other is it's really easy for me to get TTM off a Yahoo as opposed to >> Right exactly. >> And so truth be told. But, guys bring that back up one more time cause I want to make a point about New Relic. I mean I think they are potentially right for an M&A because they got great technology. Now remember Elliot Management is in there and when Elliot's is in there, stuff's going to happen. They're going to start cleaning house, they're going to really create changes, they don't just get in in a big way and sit back and watch, they are extremely active. And the New Relic, leader in this space, great technology, great heritage. So either they got to clean up and get that valuation back up maybe as you pointed out, little bit better marketing posture, et cetera or they get taken out. >> Yeah and let's think about the two things that coincide, right? You have one of the world's best activist funds get involved in Elliot Management. And as you said, they don't get involved to just sort of watch or observe as we're talking about here today, they are very active in trying to get some sort of a, you know, corporate action done. And at the same time, all of a sudden New Relic comes out with a new pricing model. They're trying to create a moat around the small to medium business, right? They're trying to grow their footprint. Now the great thing about getting involved in small to medium businesses, it starts off for free but you grow with them. So I don't think those two are a coincidence, let me just put it that way. I think that they're coming in, they're trying to entrench themselves in a new market and set themselves up for future growth and I truly believe that based on the product roadmap and the feedback we were getting from the end-users in my panel, New Relic has the ability to look across all architecture, it has the ability to provide a single pane of glass and it has the ability to incorporate machine learning for proactive response. Their roadmap is fantastic, they have an active manager inside as an investor, I don't think they're going to be around for much, much longer. And obviously that you look around and you wonder who the acquirers will be and it might be one of the major cloud players. >> Yeah that would be interesting. I mean it gives them a play in a multicloud world and either they're going to just use that for their own advantage or they will actually see that as an opportunity, we'll be itching to watch. Alright, anything we didn't cover that you want to touch on or give us your final thoughts, please Erik. >> You know I would also just sort of mention a little bit about Splunk. This is a company that has a tremendous amount of revenue, a tremendous installed customer base but many, many times we've seen it before and Oracle is the greatest example. They kind of forget about their customers and they don't treat them properly. And I can't tell you how many people I have mentioned to me said, "Hey when this all went down in the viral pandemic and I went to Splunk and I asked for a little bit of pricing flexibility, I asked for this, I asked for that and they just wouldn't give it to me." And I wrote an article once called (indistinct) never forget similar to an elephant. And when they come out the other side, they're going to find a way to replace them. And today I also wrote an article that it was our 200th interview and I entitled it, The Splunk Funk. And basically it's about all the alternatives that are now out there, not just open source, but other vendors, even the vulnerability management players like a Rapid7, like a Tenable are getting into this space now. Fortinet, which one guy called "Fortaeverything" is a company that's really expanding. So I would just really kind of caution some of those vendors out there that don't rest on your laurels, don't take your customers for granted because sooner or later, they're going to be in a position to bite the back. >> Well I'll say this about Splunk, I've been following the company since the early part of last decade and I've done a lot of Cube interviews at their shows. They do have a passionate, passionate customer base, they got the experts that run around with that crazy hat and I've seen Splunk killers emerge for the last decade and so... But I think your point is right. I mean they've, the SignalFx acquisition was something that, it was a hole to fill and it gets them into a subscription-based model, they're going through that transition now. But I think they have some real gravity with their customer base. So, all right, let me summarize. For years, the application monitoring and management, it's really relied on alerts, logs, traces and even what I call tribal knowledge. In that world of pre-distributed systems, that was fine, like I said a trace can tell you what was going on. But things have begotten much more complicated architecturally with cloud and mobile and they're really changing fast now. Erik mentioned serverless, we talked about containers. So, today it's much harder to understand the customer experience because it's difficult to get a full picture of the data. And what I mean by that is that the user data, the application data, the infrastructure data, they're all fragmented and the Holy Grail solution really takes all this disparate data, it ingests it, it transforms it. Connects the dots if you will, across clouds, Onprem and then it shapes it, brings in machine intelligence, really creating an organic systems view that can proactively tell you that there's a problem coming. And finally, nearly absolute Nirvana is doing this in a way that non-technical people are going to be able to understand the true user experience. You know in theory, this is going to allow organizations to remediate in 110th the time with much, much lower costs and that's going to be critical in this world of digital transformation. So thank you Erik, really appreciate you coming on today. >> Always enjoy it Dave, it's always great talking to you and hopefully we'll do it again soon. >> All right, I can't wait. And thank you everybody for watching this episode of theCUBE Insights powered by ETR. Remember these episodes, they're all available on podcasts. We publish weekly on wikibon.com and siliconangle.com so you got to check that out. And don't forget, go to etr.plus for all the survey action. Would appreciate if you kindly comment on my LinkedIn post or tweet me @dvellante or email at david.vellante@siliconangle.com This is Dave Vellante. Thanks so much to Erik Bradley, be well and we'll see you next time. (bouncy music)

Published Date : Sep 25 2020

SUMMARY :

bringing you data-driven the technology evolved to Great to see you too and on this particular topic, APM. and you had people like that trying and that notion of a single pane of glass, and the players that survive are the ones Dynatrace is one of the leaders, and let it die on the vine. that to its clients, and go buy the software to monitor and given the momentum that Datadog has, And the answer to that for this stuff, they're happy to spend." They have the ability to and it's funded by the give it to you for free. and that is really sort of You didn't even touch on serverless, I just pulled that off the I don't know why you Yeah and by the way, So either they got to clean up and it has the ability to and either they're going to just use that and Oracle is the greatest example. and that's going to be critical always great talking to you and we'll see you next time.

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Jeremy Burton, Observe Inc. | CUBE Conversation, April 2020


 

>> Narrator: From theCUBE studios in Palo Alto and Boston, connecting with thought leaders all around the world, this is theCUBE conversation. >> Everybody, welcome to this CUBE conversation. I'm John Furrier, host of theCUBE here in Palo Alto, California in our studios where we have a quarantine crew and we're doing remote interviews with thought leaders in the industry and people who have been around the block, beat it through three industry cycles but also can share their perspectives on the COVID-19 situation that we're in, the challenges and the opportunities. And I have with me, Jeremy Burton, a good friend of theCUBE. Have been a CUBE alumni now for 10 years, now the CEO of Observe, it's a stealth startup. I got a little taste of it, it's a Cloud thing. It's going to be part of this whole new guard. Jeremy, great to see you. You're sheltering in place, we're sheltering in the studio. Thanks for joining me. >> No, thanks for the offer. I mean, it's funny these days I welcome chance to actually speak to somebody and particularly, somebody that's not at Observe. So this is a rare treat in the last three weeks. >> Telling the wife and kids, "Hey, I'm going to go talk to theCUBE guy." So you know, I'm going to have some fun for a while. Look, I want to just have a candid fun conversation 'cause I think one of the things that's interesting to me in one, things that we're spending a lot of time doing media on is getting the word out about some of the things that are going on. People do have anxiety, they're sheltering in place for the folks that've been in the tech industry, working at home and being virtual has been part of the thing. It's not a big thing but from some of the people it's like a first time thing. And also it's also highlighting a disruption that kind of is off the books if you will, the classic continuous operations and disaster recovery was also confined to power outages or hurricanes or all those things that we people are protected against. But this is just a surge of the herd of the people going home. It's causing an at scale problem and showing these challenges, but there's also opportunities. What's your take on this? How do you see this evolving? What's your view of the current situation and some of the comments? >> Yeah, I think for most of us we're in a little bit unchartered territory. I don't really know a whole lot about medicine or the details of the virus or how pandemics happen. But we obviously have to, we deal with the consequences of it. And so I think right now although, I think it's a fairly bad situation for a lot of people, just having been through a couple of recessions where we all went through 9/11. The world does turn around and you come out the other side. And so the key thing is you start like a very much as a cliche, but you've got to live in the moment, "What can I do right now? "What can I affect right now? "How can I make sure that what I'm working on "is a value for when we come out the other side "and when more curveballs come along?" I think you've got a reason about that with the best information you have at the time. So I almost feel like you very much, you've got to just live solid like day to day, week to week, listen to the data and adapt based on that. But it's certainly starting to reinvent how work is done. I think we've all worked from home at some point. We've all worked using our equipment at home. But the prospect of working that way for months on end and it maybe been the new way of working, is a whole new ballgame. So I'm a big believer that this will fundamentally change the way we work. I don't think we're going to go 100% back to the way that we were, and there's going to be quite a lot of readjustments, and I think in that world, there's going to be some new companies come along that are big winners. And by definition, there's going to be some big losers as well. >> Well, people who know theCUBE know that I'm a big fan of you as an executive. I've seen the vision, you have also great technical shops and product shops, but also a good operational view. You've always been a fan of digital. And I think if you look at video conferencing, for instance, WebEx as a Cisco thing, great bulletproof of the enterprise, but Zoom has come across the scene. I've never seen so many Zoom parties. I did one with my family that they actually liked it. They were having fun. We had cocktails raising the wineglasses up. So people are Zooming their CUBE in, we're doing interviews. So video now is not just a corporate thing. You're seeing the engagement of digital taking on a new life and this is a whole new roles and responsibilities that we might reimagine how people do their business because with the events being canceled that are going on, whether they're concerts or just industry or tech events or any event, that physical space is gone, now it's going to digital. So how do you replicate the business value or personal value from physical face to face to digital? It's a whole new venue, there's new roles. It's complicated, it's a complex system. What's your thought on that? >> It is though, but what I have been pleasantly surprised by, I'd love it going in the office. I love the engagement with people and hanging out in the office. And so I was not really a big fan of remote working and virtually working, but I have to say, not only now where we virtually work in and we do the Zoom meetings and that's all well and good. It's a big cultural thing with at Observe to do a game night. And so we thought, "Well, why can't we do a virtual game night "and lending some trade secrets here? "But our favorite game was Secret Hitler." >> Yeah, that's a great game. One of my family's favorite. >> Turns out there's an online Secret Hitler. And you know what? The first time we played it, one of the nice thing is we've got less than 20 people in the company. So you got 12 or 14 people online. It's actually manageable. But I have to say, I'm almost embarrassed to say, it was almost as good sitting there with a drink playing virtual Secret Hitler as it was sitting around the desk. And so now I'm thinking when we go back to work, maybe we don't need to leave our desks and go have a drink together. We can just sit there on Zoom and play the secret Hitler online. Then you start looking around, "Well, what are the games can I play online?" Not like for one or two players or five players and I'm not talking about playing kind of Halo or something like that, but good collaborative games for tens of people to play at once. There's not as many as you think. So I feel like the social aspect of it, I mean, online gaming I think is huge. But even the video conferencing software, you would have thought that we would be done WebEx by now, right? I mean Skype and WebEx, we've had those for years, right? And so how does Zoom, which does guess what, video conferencing come along and start to clear up. And Zoom is not perfect by the way, but this is almost the crisis that they needed to make a fabulous business. I do believe as we start to come out the other side, I think there's going to be much, much investment in the VC world, on improving that remote work experience Because as much as me and you can talk to a video session, we can't collaborate and work together. The tools for doing that, I think still are relatively poor. >> I think you're onto something. Zoom by the way, had 10 million active dailies in December. This month was 200 million rocket ship. They got 90,000 universities. They essentially made some good moves. I think that's going to be good, but you bring up a good point about these new kinds of opportunities that are going to come out the other side, which is, think about Secret Hitler. For the folks who don't know, is a great game that you play with people, in your family or in friend group like Cards Against Me. And if you know that game, it's a similar thing concept, but you have different games. It's really fun, you should get it. Check it out online. But think about that online gaming or just what engagement means socially. I mean the old web days or just like a couple of months ago was individual engagement, "Did you like my tweet? "Did you like my Facebook post?" You're getting at something that's little bit more of a social organizational construct of group engagement, intimacy. >> Right, and the thing is we would do game night once a month and we'd get videos in and get the teamed together. Once a month was good when everybody had their own life to deal with. Now people are craving like, "Hey can we do this like every week?" And I wouldn't be surprised if the frequency increases from that, but I think that just almost speaks to human beings and that we crave social interaction. And even though most of the people at Observe are engineers and by definition should not enjoy as much social interaction, they do. They love it, right? And to me, that gaming and social direction, that's part of work. And so you have to have a virtual environment that can reproduce that. >> I mean, it's very interesting to see some of the entrepreneurial exercises or pitches that come out of this because I think it's going to be a Renaissance, it's not Renaissance 'cause it's going to come back. It's always been there. But the new kind of entrepreneurial products coming out are going to address these things. And the question I want to ask you, 'cause you've been on the big company, you've done extremely well in your career, than you get back down to your roots to doing startup, you're launching, you haven't yet launched. So you got hit right here, you're working at home sheltering in place. I was talking to a couple of VC buddies, venture capitalists, and they're saying, "I'm reading books and I'm doing research "but I really can't meet people." So their work has changed. How do you see the investment community reacting to this? Certainly valuations might come down. Obviously, their limited partners are being hit with the stock market. You're seeing a disruption. What do you see going on in the VC world around this cold hard time? >> I mean certainly all VCs are not created equal. So I think there's going to be different perspectives based on the background of the DNA of the VC involved. I think certainly at Observe, I feel very fortunate that we've got a sort of Hill Ventures. So these guys were the investors behind Snowflake and behind Pure Storage and many other good companies but they're very longterm investors and their advice to me has been, "Well look, "some of the most innovative times if you like, "have been during and after a major crisis. "And so if you make short term decisions "to get you through those crisis, "they're all terrible but they don't last forever "and there will be another side. "And so make good business decisions "and good investment decisions through this "because there will be winners "that emerge on the other side." And that's really what I try and get the team focused on is, "Guys for now, we're sort of hunkered down "and it feels bad, "but we're probably more privileged than most. "And we have an opportunity maybe on the other side, "to take advantage, we don't have a revenue stream, "we don't have existing customers. "We can sort of take this Greenfield business "that we've got and you go on the offensive "when things returned to assemblance of normal." So The Hill had been fantastic. And I would hope that most VCs retain that perspective, which is if it was a good company three weeks ago, it's probably still a good company today. And the best way to create value is to sort of empower I think the CEOs and executive teams to make the right sort of longer term decisions. Try and capitalize when you come out the other side because there will be losers as well. And I think the wrong decisions now can put you on the losing end of that equation in three, four, five months time. >> Yeah, that's a good point. If you are a good company just a few months ago or even weeks ago or a year ago, you're still a good company. That's really going to be a tell sign to what happens in some of these companies. If I got to ask you a more focused question on this whole, which side of the street are you on? Are you riding the wave or are you going to get taken away and washed away with it? Because there are bets and well, I want to get into Observe in a minute, but you mentioned Snowflake there in the Cloud wave. Obviously, that's pretty bullish. We're still bullish on that. Obviously, it's going to be game changer. But is there a tell sign for the kind of bets that those good management teams need to make now? Because I agree with you, when the Dot-com bubble burst in 2000 and really 2004 kicked back up again. 2008, we saw that post and a lot of great companies were created. So what's your advice on which side of history do you need to be on here? I'll say Cloud is one. What is your view on that? >> Yeah, I mean we felt for many years, it's not just since I went to the startup, but I am a huge believer in this transition to digital businesses. Frictionless interactions, automation, yes, obviously people are required to run a business, but if you could run a business remotely, or the businesses automated in a way such that it doesn't require hands-on operation, then that's a beautiful thing. And my belief is that, this terrible situation will force people to really think seriously about what the digital business looks like. If you don't have one, then that you may not be able to be in business in a year, two, three years down the line, right? There'll be some carryover, but I think the smart businesses are going to be able to function in an environment such as this. >> Yeah, I think that's great. >> That's going to be playing on everybody's minds. Now more than ever, I think that the digital business is a necessity. >> Yeah, I was just talking to a colleague and we were just talking about how all of the events got canceled and you've had the history running some of those best events ever in the industry at EMC. And we participated in those and you know your staff when it comes to events, there's economic value in these physical events as a venue, Science Convention Center in Moscone here in San Francisco. I mean there's a lot of things that go on, a lot of decision-making that's been standardized over the years and there's an economic value that comes out of those events. Now that's gone, and then these little digital teams, some companies have like five people, two people, sometimes maybe if you're lucky you have 10 or more or a department. And then you've got demand generation. All these guys are being told now, "You have to make up for the shortfall "in not just leads but value." And this just has been a big burden for some of my friends out there who are like, "Wait a minute, you want to take that and move it over here?" It's been kind of a challenge. What is your view on this? Because a lot of people are trying to figure this particular problem out on how to make digital work today and have some extensibility and get success. What's your take? >> Well, I'm still a huge believer I mean, whereas sort of like we just saw digital marketing content is still very much King, right? If you can produce a compelling piece of content online, TV quality with a depth of knowledge that you're going to attract an audience, now can you then make that experience interactive? Can you engage the audience in a deeper way? Yeah, you're probably not going to have something which lasts for a full day or for three days online, but I think it's really going to force the creativity on the content side to another level, right? It can't just be talking heads and PowerPoint pictures. So that rethinking from first principles, what an online conference or an online experience actually looks like in a way that it engages the people who are watching. To me, those folks are going to go do very, very well. And the economics, I know how much it costs to put on a conference for 10 or 15,000 people. And by the way, I know how much it costs to put on a virtual event for 10 or 15,000 people. And the economics are astounding in that difference. Now if you're physically somewhere, you can feel things that you can't feel online. Come on though, this is a problem that requires some innovation to solve, right? We've talked about virtual reality and augmented reality, but it's still pretty clunky and relegated to sort of niche use cases and bad games. But at some point, that technology has to reach the point where it can be useful and engage in a new. You can approximate to that physical experience. But I think that is going to be critical but many businesses even beyond sort of marketing and virtual events and that kind of thing, many businesses are just going to have to reinvent how they engage and interact with their customers and the automation of their operations and how do you get by when you don't have as many people physically in an office or operating machines? Everybody's going to have to think through that. >> Yeah, I think that's great insight and that's going to be a great clip that I'll share and I think that's going to be inspirational for the folks trying to solve that problem. The things that we're focused in on, as you know, and this is something that we're doing a lot of work on, is the engagement with groups and you mentioned The Secret Hitler as the game, they're going to see some new clever things go on. And I think the group dynamic and having people in whether it's virtual and physical spaces exchanging credible things, ideas or jokes or whatever is going to be a new kind of dynamic. >> Yeah. >> Because that's going to have to fill the void. >> Yeah, I mean I've got a small company so we can play these individual games, but just think about some of these board type games where I want to have three teams and I want to divide the company up into three. The logistics of actually figuring that out is ridiculous and it shouldn't be that way, right? And so these are basics of human social interactions. We want to play a game together, we want to divide up into teams. But that sounds like a relatively trivial thing, but try and find the number of games available that allow you to easily do that and each team interaction independently of the others, it's almost impossible. >> It's going to be fun to watch and I think and I hope we're going to learn. Well, thanks for the device. Let's get back to your startup. Let's get a plug in for that, I want to get the plug in. I've seen you in stealth so you can't really go into great detail, but you have been talking to customers. You are obviously related, that's related to Snowflake, but you were going to do some things with Snowflake. You're in the Cloud. Can you just take a minute to give a plug for what you guys are doing for the people who want to know what you guys are leaning towards in terms of the value proposition? >> Yeah well, when I look back in my career, one of the times I enjoyed the most was the time at Oracle and working with data. And I've been fortunate enough for the last four and a half years or so to be on the board of Snowflake. Couple of ex Oracle guys, Benoit and Thierry founded the company and they've reinvented the database. And I felt like I've sat for 20 years looking for the second coming of the database and we all were sort of had fake thinking it was Hadoop. And turns out it wasn't. But I think Snowflake and the separation of storage and compute that allows them to sort of scale and have a usage-based pricing model, I just think is absolutely revolutionary and I think it's going to be one of the great companies of the new era. And so when I was there when I looked at Observe, really the thesis was that using a platform like Snowflake, you could potentially reason about unstructured log data. It's all like Splunk. You could reason about time series data, a little bit like Datadog or tracing data like AppDynamics or in fact any data, you could reason about it together. And today, if you look at the world, it's like if you want to do something with logs, you go get one product. If you want to do something with relational data, you get another, if you want to do time series data, you get another, you want to do tracing, you get an APM tool. And nobody has the big picture, right? Everybody's got their own little piece of data and their own perspective on where the issue might be in your company. But nobody really knows and it's usually put together in the brain of, of the smartest guy in the room. And so I thought it was quite simple. At Snowflake, you've got this commercial database that can do instruction data and time series data and relational data. And what if we could collect all data within an organization together, structure it, relate it, and then imagine what you could find out about your infrastructure, your applications, your business? >> Sort of unification? Does it have like unification kind of concept for users or IT? >> Yeah, I think the emerging category would be observability but it really is a collapsing of log analytics, metrics monitoring and tracing into this new category of observability. We don't necessarily just view that though as sort of data coming out of Kubernetes clusters or out of AWS or wherever. We actually could ingest security data. We could ingest data from people surfing using your app or surfing your website. We could take logs coming out of machines on a factory floor. So the way we built the product, it can be literally any kind of data. And we try and structure it and relate it and make sense of it and then make it very easy for people to navigate through it and determine issues and problems. So yeah, we're pretty excited about it. And like I said, we could not have built this even a couple of years ago because I don't think Snowflake would have been there. And in fact, that was one of the big risks when we started the company. Can we build it on Snowflake? And so here we are two years later and we think we can. Well, we're sure we can do it. >> Yeah, they've had a good run too. I mean, look at the growth of Snowflake. >> Yeah, it's crazy. I've never seen anything like it and in the last 20 years and B2B, I've never seen anything like it. So just like I felt in the mid 90s when I was at Oracle, people were making decisions to go with Oracle and then saying, "Hey, help me get all of my other data in that, "my mainframe data, my this, my that." I think Snowflake are going to go through the same sort of growth phase and hopefully with Observe, we can be like, "Hey, if you want to put "your unstructured data or time series data, "we can help you do that very easily." >> Well, this is exactly the current wave that you want to be on the right side of because like you said, just a year or so ago or a couple of years ago, it wasn't available. This is kind of the new capabilities. >> Yeah, I feel like there's going to be a lot of businesses, grow ridiculously. You talked about the Zoom numbers. These are ridiculous growth numbers and there are going to be companies come out the other side that take advantage of the new environment. And as they're growing, as they're scaling, as they build these new microservice-based applications, they're going to run into issues and we hope at least that it's products with our kind of architecture, that's going to be able to help these fast-growing businesses. So yeah, as I said, we're somewhat fortunate in that we don't have a product yet, but certainly on the other side of this, we think there's going to be plenty of opportunity to help a few folks. >> We know you got to do a launch and we're looking forward to hearing more and getting the briefing, and looking forward to hearing more about it when you go public. And yeah, thanks for coming on and taking the time today. I know you got your daughter's birthday party there and you're going to have some celebration. Thank you for sharing the insights on your vision of digital. I thought that was very compelling and great to see you and stay safe. >> Great to see you. Yeah, my 18-year-old, it's got a birthday party and she like always would worry, "What if no one shows up?" Well, today she knows no one's going to show up. >> Except for her family, yeah. >> It's going to be down in the family, yeah. So thanks for that and you guys stay safe and been great the last 10 years knowing theCUBE been that long but hopefully, here is the next 10 years after this current situation is over. >> Yeah, looking forward to it, it's going to be a lot of fun rye and get the content out there. And again, thanks for coming on during this important time and sharing your insights and also just making some entertainment here. We're getting some conversations so people can fill the void and play some games and have some fun. Jeremy, thanks. Great to see you. Jeremy Burton, senior executive in the industry. I've known him for years, been a CUBE alumni since theCUBE was formed. Now the CEO of Observe, sharing his insights on the industry but more importantly, how to be successful, how to come out the other side. Don't be too optimistic. Be focused on today and get through it. That's his advice. Of course, we're theCUBE bringing you all the data as we can now with remote interviews during this time. Thanks for watching, I'm John furrier. (soft music)

Published Date : Apr 3 2020

SUMMARY :

connecting with thought leaders all around the world, It's going to be part of this whole new guard. No, thanks for the offer. that kind of is off the books if you will, And so the key thing is you start like a very much And I think if you look at video conferencing, and hanging out in the office. Yeah, that's a great game. I think there's going to be much, much investment I think that's going to be good, And so you have to have a virtual environment because I think it's going to be a Renaissance, "some of the most innovative times if you like, If I got to ask you a more focused question on this whole, but I think the smart businesses are going to be able That's going to be playing And we participated in those and you know your staff But I think that is going to be critical and I think that's going to be inspirational and each team interaction independently of the others, It's going to be fun to watch and I think it's going to be one of the great companies So the way we built the product, I mean, look at the growth of Snowflake. I think Snowflake are going to go through the same This is kind of the new capabilities. and there are going to be companies come out the other side and great to see you Great to see you. So thanks for that and you guys stay safe on the industry but more importantly, how to be successful,

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Jeremy Burton, Observe Inc. | CUBE Conversation, April 2020


 

>> Narrator: From theCUBE studios in Palo Alto and Boston, connecting with thought leaders all around the world, this is theCUBE conversation. >> Everybody, welcome to this CUBE conversation. I'm John Furrier, host of theCUBE here in Palo Alto, California in our studios where we have a quarantine crew and we're doing remote interviews with thought leaders in the industry and people who have been around the block, beat it through three industry cycles but also can share their perspectives on the COVID-19 situation that we're in, the challenges and the opportunities. And I have with me, Jeremy Burton, a good friend of theCUBE. Have been a CUBE alumni now for 10 years, now the CEO of Observe, it's a stealth startup. I got a little taste of it, it's a Cloud thing. It's going to be part of this whole new guard. Jeremy, great to see you. You're sheltering in place, we're sheltering in the studio. Thanks for joining me. >> No, thanks for the offer. I mean, it's funny these days I welcome chance to actually speak to somebody and particularly, somebody that's not at Observe. So this is a rare treat in the last three weeks. >> Telling the wife and kids, "Hey, I'm going to go talk to theCUBE guy." So you know, I'm going to have some fun for a while. Look, I want to just have a candid fun conversation 'cause I think one of the things that's interesting to me in one, things that we're spending a lot of time doing media on is getting the word out about some of the things that are going on. People do have anxiety, they're sheltering in place for the folks that've been in the tech industry, working at home and being virtual has been part of the thing. It's not a big thing but from some of the people it's like a first time thing. And also it's also highlighting a disruption that kind of is off the books if you will, the classic continuous operations and disaster recovery was also confined to power outages or hurricanes or all those things that we people are protected against. But this is just a surge of the herd of the people going home. It's causing an at scale problem and showing these challenges, but there's also opportunities. What's your take on this? How do you see this evolving? What's your view of the current situation and some of the comments? >> Yeah, I think for most of us we're in a little bit unchartered territory. I don't really know a whole lot about medicine or the details of the virus or how pandemics happen. But we obviously have to, we deal with the consequences of it. And so I think right now although, I think it's a fairly bad situation for a lot of people, just having been through a couple of recessions where we all went through 9/11. The world does turn around and you come out the other side. And so the key thing is you start like a very much as a cliche, but you've got to live in the moment, "What can I do right now? "What can I affect right now? "How can I make sure that what I'm working on "is a value for when we come out the other side "and when more curveballs come along?" I think you've got a reason about that with the best information you have at the time. So I almost feel like you very much, you've got to just live solid like day to day, week to week, listen to the data and adapt based on that. But it's certainly starting to reinvent how work is done. I think we've all worked from home at some point. We've all worked using our equipment at home. But the prospect of working that way for months on end and it maybe been the new way of working, is a whole new ballgame. So I'm a big believer that this will fundamentally change the way we work. I don't think we're going to go 100% back to the way that we were, and there's going to be quite a lot of readjustments, and I think in that world, there's going to be some new companies come along that are big winners. And by definition, there's going to be some big losers as well. >> Well, people who know theCUBE know that I'm a big fan of you as an executive. I've seen the vision, you have also great technical shops and product shops, but also a good operational view. You've always been a fan of digital. And I think if you look at video conferencing, for instance, WebEx as a Cisco thing, great bulletproof of the enterprise, but Zoom has come across the scene. I've never seen so many Zoom parties. I did one with my family that they actually liked it. They were having fun. We had cocktails raising the wineglasses up. So people are Zooming their CUBE in, we're doing interviews. So video now is not just a corporate thing. You're seeing the engagement of digital taking on a new life and this is a whole new roles and responsibilities that we might reimagine how people do their business because with the events being canceled that are going on, whether they're concerts or just industry or tech events or any event, that physical space is gone, now it's going to digital. So how do you replicate the business value or personal value from physical face to face to digital? It's a whole new venue, there's new roles. It's complicated, it's a complex system. What's your thought on that? >> It is though, but what I have been pleasantly surprised by, I'd love it going in the office. I love the engagement with people and hanging out in the office. And so I was not really a big fan of remote working and virtually working, but I have to say, not only now where we virtually work in and we do the Zoom meetings and that's all well and good. It's a big cultural thing with at Observe to do a game night. And so we thought, "Well, why can't we do a virtual game night "and lending some trade secrets here? "But our favorite game was Secret Hitler." >> Yeah, that's a great game. One of my family's favorite. >> Turns out there's an online Secret Hitler. And you know what? The first time we played it, one of the nice thing is we've got less than 20 people in the company. So you got 12 or 14 people online. It's actually manageable. But I have to say, I'm almost embarrassed to say, it was almost as good sitting there with a drink playing virtual Secret Hitler as it was sitting around the desk. And so now I'm thinking when we go back to work, maybe we don't need to leave our desks and go have a drink together. We can just sit there on Zoom and play the secret Hitler online. Then you start looking around, "Well, what are the games can I play online?" Not like for one or two players or five players and I'm not talking about playing kind of Halo or something like that, but good collaborative games for tens of people to play at once. There's not as many as you think. So I feel like the social aspect of it, I mean, online gaming I think is huge. But even the video conferencing software, you would have thought that we would be done WebEx by now, right? I mean Skype and WebEx, we've had those for years, right? And so how does Zoom, which does guess what, video conferencing come along and start to clear up. And Zoom is not perfect by the way, but this is almost the crisis that they needed to make a fabulous business. I do believe as we start to come out the other side, I think there's going to be much, much investment in the VC world, on improving that remote work experience Because as much as me and you can talk to a video session, we can't collaborate and work together. The tools for doing that, I think still are relatively poor. >> I think you're onto something. Zoom by the way, had 10 million active dailies in December. This month was 200 million rocket ship. They got 90,000 universities. They essentially made some good moves. I think that's going to be good, but you bring up a good point about these new kinds of opportunities that are going to come out the other side, which is, think about Secret Hitler. For the folks who don't know, is a great game that you play with people, in your family or in friend group like Cards Against Me. And if you know that game, it's a similar thing concept, but you have different games. It's really fun, you should get it. Check it out online. But think about that online gaming or just what engagement means socially. I mean the old web days or just like a couple of months ago was individual engagement, "Did you like my tweet? "Did you like my Facebook post?" You're getting at something that's little bit more of a social organizational construct of group engagement, intimacy. >> Right, and the thing is we would do game night once a month and we'd get videos in and get the teamed together. Once a month was good when everybody had their own life to deal with. Now people are craving like, "Hey can we do this like every week?" And I wouldn't be surprised if the frequency increases from that, but I think that just almost speaks to human beings and that we crave social interaction. And even though most of the people at Observe are engineers and by definition should not enjoy as much social interaction, they do. They love it, right? And to me, that gaming and social direction, that's part of work. And so you have to have a virtual environment that can reproduce that. >> I mean, it's very interesting to see some of the entrepreneurial exercises or pitches that come out of this because I think it's going to be a Renaissance, it's not Renaissance 'cause it's going to come back. It's always been there. But the new kind of entrepreneurial products coming out are going to address these things. And the question I want to ask you, 'cause you've been on the big company, you've done extremely well in your career, than you get back down to your roots to doing startup, you're launching, you haven't yet launched. So you got hit right here, you're working at home sheltering in place. I was talking to a couple of VC buddies, venture capitalists, and they're saying, "I'm reading books and I'm doing research "but I really can't meet people." So their work has changed. How do you see the investment community reacting to this? Certainly valuations might come down. Obviously, their limited partners are being hit with the stock market. You're seeing a disruption. What do you see going on in the VC world around this cold hard time? >> I mean certainly all VCs are not created equal. So I think there's going to be different perspectives based on the background of the DNA of the VC involved. I think certainly at Observe, I feel very fortunate that we've got a sort of Hill Ventures. So these guys were the investors behind Snowflake and behind Pure Storage and many other good companies but they're very longterm investors and their advice to me has been, "Well look, "some of the most innovative times if you like, "have been during and after a major crisis. "And so if you make short term decisions "to get you through those crisis, "they're all terrible but they don't last forever "and there will be another side. "And so make good business decisions "and good investment decisions through this "because there will be winners "that emerge on the other side." And that's really what I try and get the team focused on is, "Guys for now, we're sort of hunkered down "and it feels bad, "but we're probably more privileged than most. "And we have an opportunity maybe on the other side, "to take advantage, we don't have a revenue stream, "we don't have existing customers. "We can sort of take this Greenfield business "that we've got and you go on the offensive "when things returned to assemblance of normal." So The Hill had been fantastic. And I would hope that most VCs retain that perspective, which is if it was a good company three weeks ago, it's probably still a good company today. And the best way to create value is to sort of empower I think the CEOs and executive teams to make the right sort of longer term decisions. Try and capitalize when you come out the other side because there will be losers as well. And I think the wrong decisions now can put you on the losing end of that equation in three, four, five months time. >> Yeah, that's a good point. If you are a good company just a few months ago or even weeks ago or a year ago, you're still a good company. That's really going to be a tell sign to what happens in some of these companies. If I got to ask you a more focused question on this whole, which side of the street are you on? Are you riding the wave or are you going to get taken away and washed away with it? Because there are bets and well, I want to get into Observe in a minute, but you mentioned Snowflake there in the Cloud wave. Obviously, that's pretty bullish. We're still bullish on that. Obviously, it's going to be game changer. But is there a tell sign for the kind of bets that those good management teams need to make now? Because I agree with you, when the Dot-com bubble burst in 2000 and really 2004 kicked back up again. 2008, we saw that post and a lot of great companies were created. So what's your advice on which side of history do you need to be on here? I'll say Cloud is one. What is your view on that? >> Yeah, I mean we felt for many years, it's not just since I went to the startup, but I am a huge believer in this transition to digital businesses. Frictionless interactions, automation, yes, obviously people are required to run a business, but if you could run a business remotely, or the businesses automated in a way such that it doesn't require hands-on operation, then that's a beautiful thing. And my belief is that, this terrible situation will force people to really think seriously about what the digital business looks like. If you don't have one, then that you may not be able to be in business in a year, two, three years down the line, right? There'll be some carryover, but I think the smart businesses are going to be able to function in an environment such as this. >> Yeah, I think that's great. >> That's going to be playing on everybody's minds. Now more than ever, I think that the digital business is a necessity. >> Yeah, I was just talking to a colleague and we were just talking about how all of the events got canceled and you've had the history running some of those best events ever in the industry at EMC. And we participated in those and you know your staff when it comes to events, there's economic value in these physical events as a venue, Science Convention Center in Moscone here in San Francisco. I mean there's a lot of things that go on, a lot of decision-making that's been standardized over the years and there's an economic value that comes out of those events. Now that's gone, and then these little digital teams, some companies have like five people, two people, sometimes maybe if you're lucky you have 10 or more or a department. And then you've got demand generation. All these guys are being told now, "You have to make up for the shortfall "in not just leads but value." And this just has been a big burden for some of my friends out there who are like, "Wait a minute, you want to take that and move it over here?" It's been kind of a challenge. What is your view on this? Because a lot of people are trying to figure this particular problem out on how to make digital work today and have some extensibility and get success. What's your take? >> Well, I'm still a huge believer I mean, whereas sort of like we just saw digital marketing content is still very much King, right? If you can produce a compelling piece of content online, TV quality with a depth of knowledge that you're going to attract an audience, now can you then make that experience interactive? Can you engage the audience in a deeper way? Yeah, you're probably not going to have something which lasts for a full day or for three days online, but I think it's really going to force the creativity on the content side to another level, right? It can't just be talking heads and PowerPoint pictures. So that rethinking from first principles, what an online conference or an online experience actually looks like in a way that it engages the people who are watching. To me, those folks are going to go do very, very well. And the economics, I know how much it costs to put on a conference for 10 or 15,000 people. And by the way, I know how much it costs to put on a virtual event for 10 or 15,000 people. And the economics are astounding in that difference. Now if you're physically somewhere, you can feel things that you can't feel online. Come on though, this is a problem that requires some innovation to solve, right? We've talked about virtual reality and augmented reality, but it's still pretty clunky and relegated to sort of niche use cases and bad games. But at some point, that technology has to reach the point where it can be useful and engage in a new. You can approximate to that physical experience. But I think that is going to be critical but many businesses even beyond sort of marketing and virtual events and that kind of thing, many businesses are just going to have to reinvent how they engage and interact with their customers and the automation of their operations and how do you get by when you don't have as many people physically in an office or operating machines? Everybody's going to have to think through that. >> Yeah, I think that's great insight and that's going to be a great clip that I'll share and I think that's going to be inspirational for the folks trying to solve that problem. The things that we're focused in on, as you know, and this is something that we're doing a lot of work on, is the engagement with groups and you mentioned The Secret Hitler as the game, they're going to see some new clever things go on. And I think the group dynamic and having people in whether it's virtual and physical spaces exchanging credible things, ideas or jokes or whatever is going to be a new kind of dynamic. >> Yeah. >> Because that's going to have to fill the void. >> Yeah, I mean I've got a small company so we can play these individual games, but just think about some of these board type games where I want to have three teams and I want to divide the company up into three. The logistics of actually figuring that out is ridiculous and it shouldn't be that way, right? And so these are basics of human social interactions. We want to play a game together, we want to divide up into teams. But that sounds like a relatively trivial thing, but try and find the number of games available that allow you to easily do that and each team interaction independently of the others, it's almost impossible. >> It's going to be fun to watch and I think and I hope we're going to learn. Well, thanks for the device. Let's get back to your startup. Let's get a plug in for that, I want to get the plug in. I've seen you in stealth so you can't really go into great detail, but you have been talking to customers. You are obviously related, that's related to Snowflake, but you were going to do some things with Snowflake. You're in the Cloud. Can you just take a minute to give a plug for what you guys are doing for the people who want to know what you guys are leaning towards in terms of the value proposition? >> Yeah well, when I look back in my career, one of the times I enjoyed the most was the time at Oracle and working with data. And I've been fortunate enough for the last four and a half years or so to be on the board of Snowflake. Couple of ex Oracle guys, Benoit and Thierry founded the company and they've reinvented the database. And I felt like I've sat for 20 years looking for the second coming of the database and we all were sort of had fake thinking it was Hadoop. And turns out it wasn't. But I think Snowflake and the separation of storage and compute that allows them to sort of scale and have a usage-based pricing model, I just think is absolutely revolutionary and I think it's going to be one of the great companies of the new era. And so when I was there when I looked at Observe, really the thesis was that using a platform like Snowflake, you could potentially reason about unstructured log data. It's all like Splunk. You could reason about time series data, a little bit like Datadog or tracing data like AppDynamics or in fact any data, you could reason about it together. And today, if you look at the world, it's like if you want to do something with logs, you go get one product. If you want to do something with relational data, you get another, if you want to do time series data, you get another, you want to do tracing, you get an APM tool. And nobody has the big picture, right? Everybody's got their own little piece of data and their own perspective on where the issue might be in your company. But nobody really knows and it's usually put together in the brain of, of the smartest guy in the room. And so I thought it was quite simple. At Snowflake, you've got this commercial database that can do instruction data and time series data and relational data. And what if we could collect all data within an organization together, structure it, relate it, and then imagine what you could find out about your infrastructure, your applications, your business? >> Sort of unification? Does it have like unification kind of concept for users or IT? >> Yeah, I think the emerging category would be observability but it really is a collapsing of log analytics, metrics monitoring and tracing into this new category of observability. We don't necessarily just view that though as sort of data coming out of Kubernetes clusters or out of AWS or wherever. We actually could ingest security data. We could ingest data from people surfing using your app or surfing your website. We could take logs coming out of machines on a factory floor. So the way we built the product, it can be literally any kind of data. And we try and structure it and relate it and make sense of it and then make it very easy for people to navigate through it and determine issues and problems. So yeah, we're pretty excited about it. And like I said, we could not have built this even a couple of years ago because I don't think Snowflake would have been there. And in fact, that was one of the big risks when we started the company. Can we build it on Snowflake? And so here we are two years later and we think we can. Well, we're sure we can do it. >> Yeah, they've had a good run too. I mean, look at the growth of Snowflake. >> Yeah, it's crazy. I've never seen anything like it and in the last 20 years and B2B, I've never seen anything like it. So just like I felt in the mid 90s when I was at Oracle, people were making decisions to go with Oracle and then saying, "Hey, help me get all of my other data in that, "my mainframe data, my this, my that." I think Snowflake are going to go through the same sort of growth phase and hopefully with Observe, we can be like, "Hey, if you want to put "your unstructured data or time series data, "we can help you do that very easily." >> Well, this is exactly the current wave that you want to be on the right side of because like you said, just a year or so ago or a couple of years ago, it wasn't available. This is kind of the new capabilities. >> Yeah, I feel like there's going to be a lot of businesses, grow ridiculously. You talked about the Zoom numbers. These are ridiculous growth numbers and there are going to be companies come out the other side that take advantage of the new environment. And as they're growing, as they're scaling, as they build these new microservice-based applications, they're going to run into issues and we hope at least that it's products with our kind of architecture, that's going to be able to help these fast-growing businesses. So yeah, as I said, we're somewhat fortunate in that we don't have a product yet, but certainly on the other side of this, we think there's going to be plenty of opportunity to help a few folks. >> We know you got to do a launch and we're looking forward to hearing more and getting the briefing, and looking forward to hearing more about it when you go public. And yeah, thanks for coming on and taking the time today. I know you got your daughter's birthday party there and you're going to have some celebration. Thank you for sharing the insights on your vision of digital. I thought that was very compelling and great to see you and stay safe. >> Great to see you. Yeah, my 18-year-old, it's got a birthday party and she like always would worry, "What if no one shows up?" Well, today she knows no one's going to show up. >> Except for her family, yeah. >> It's going to be down in the family, yeah. So thanks for that and you guys stay safe and been great the last 10 years knowing theCUBE been that long but hopefully, here is the next 10 years after this current situation is over. >> Yeah, looking forward to it, it's going to be a lot of fun rye and get the content out there. And again, thanks for coming on during this important time and sharing your insights and also just making some entertainment here. We're getting some conversations so people can fill the void and play some games and have some fun. Jeremy, thanks. Great to see you. Jeremy Burton, senior executive in the industry. I've known him for years, been a CUBE alumni since theCUBE was formed. Now the CEO of Observe, sharing his insights on the industry but more importantly, how to be successful, how to come out the other side. Don't be too optimistic. Be focused on today and get through it. That's his advice. Of course, we're theCUBE bringing you all the data as we can now with remote interviews during this time. Thanks for watching, I'm John furrier. (soft music)

Published Date : Apr 2 2020

SUMMARY :

connecting with thought leaders all around the world, It's going to be part of this whole new guard. No, thanks for the offer. that kind of is off the books if you will, And so the key thing is you start like a very much And I think if you look at video conferencing, and hanging out in the office. Yeah, that's a great game. I think there's going to be much, much investment I think that's going to be good, And so you have to have a virtual environment because I think it's going to be a Renaissance, "some of the most innovative times if you like, If I got to ask you a more focused question on this whole, but I think the smart businesses are going to be able That's going to be playing And we participated in those and you know your staff But I think that is going to be critical and I think that's going to be inspirational and each team interaction independently of the others, It's going to be fun to watch and I think it's going to be one of the great companies So the way we built the product, I mean, look at the growth of Snowflake. I think Snowflake are going to go through the same This is kind of the new capabilities. and there are going to be companies come out the other side and great to see you Great to see you. So thanks for that and you guys stay safe on the industry but more importantly, how to be successful,

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Fabio Gori & Eugene Kim, Cisco | Cisco Live EU Barcelona 2020


 

>>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.

Published Date : Jan 30 2020

SUMMARY :

Cisco Live 2020 right to you by Cisco and its ecosystem Great to see you Barcelona guys. And that's incredibly important because at the end, what really really of the highlights to me was the opening keynote. driving the announcement, if you want from the application experience side of the House, is because with Appdynamics, So that's part of the news. of data between the two now, you are in a position to immediately understand whether you have an application problem. modernize the platform often HD I is, you know, an option for that. from inter site, from the physical infrastructure to the hyper converge layer to all the way to the container 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. And as I mentioned, the inter site management is really providing that simplicity Fabio This is the previous announcements you've made with the public clouds. into the business need or harnessing innovation from wherever it comes from, you know the different clouds capability And once you nail that operations on hybrid, that's where multi cloud comes in. But most of the customers who are speaking with really want to expand their governance and 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 Yeah, as I mentioned, it's really the platform for our customers to modernize So it's the operational side of the hole in under the covers hobby on the application side where and faster because in the end you can only win in the marketplace, right? And he's like, No, it's not a feature, it's everywhere. the entire stock, from the software all the way to the infrastructure level that you can solve the problems. 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, The 1st 1 is the cloud is one of the critical domains Not a lot of the gear and stuff that Cisco had AP eyes. Go ahead and provide that action so the action could be, you know, scaling out the VM apps you have another 2 3000 applications just coming into into the and or the pressure of the network to be better than programmable is the rise of video and data. as you know, it's an I t. So the inflection points. And I think you guys are right on where you guys are going. but also the fact that there is increasing number off software capabilities and so fundamental. That's really what's differentiating you from your competitors, right? Well, you guys have got a good That's a good angle on this cloud. all of these layers again, to fundamentally give you this operational capability to get faster and What's the vibe with sales team? And absolutely, from the inter site work optimizer and the app Dynamics Thanks for sharing the insights. Fourth day of

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Cisco Live Barcelona 2020 | Thursday January 30, 2020


 

[Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Music] [Music] [Music] you [Music] [Applause] [Music] live from Barcelona Spain it's the cube covering Cisco live 2020 rot to you by Cisco and its ecosystem partners come back this is the cubes coverage of Cisco live 2020 here in Barcelona doing about three and a half days of wall-to-wall coverage here I'm Stu minim and my co-host for this segment is Dave Volante John furs also here scouring the floor and really happy to welcome to the program to first-time guests I believe so Ron Daris is the product manager of product marketing for cloud computing with Cisco and sitting to his left is Matt Ferguson who's director of product development also with the Cisco cloud group Dave and I are from Boston Matt is also from the Boston area yes and Costas is coming over from London so thanks so much for joining us thanks IBPS all right so obviously cloud computing something we've been talking about many years we've really found fascinating the relationship Cisco's had with its customers as well as through the partner ecosystem had many good discussions about some of the announcements this week maybe start a little bit you know Cisco's software journey and you know positioning in this cloud space right now yes oh so it's a it's a really interesting dynamic when we start transitioning to multi cloud and we actually deal with cloud and compute coming together and we've had whether you're looking at the infrastructure ops organization or whether you're looking at the apps operations or whether you're looking at you know your dev environment your security operations each organization has to deal with their angle at which they view you know multi cloud or they view how they actually operate within those the cloud computing context and so whether you're on the infrastructure side you're looking at compute you're looking at storage you're looking at resources if you're an app operator you're looking at performance you're looking at visibility assurance if you are in the security operations you're looking at maybe governance you're looking at policy and then when you're a developer you really sort of thinking about CI CD you're talking about agility and there's very few organizations like Cisco that actually is looking at from a product perspective all those various angles of multi-cloud yeah definitely a lot of piece of cost us maybe up level it for us a little bit there's there's so many pieces you know we talked for so long you know you don't talk to any company that doesn't have a cloud strategy doesn't mean that it's not going to change over time and it means every company's got at home positioning but talk about the relationship cisco has with its customer and really the advisory position that you want to have with them it's actually a very relevant question to what to what Matt is talking about because we talk a lot about multi cloud as a trend and hybrid clouds and this kind of relationship between the traditional view of looking at computing data centers and then expanding to different clouds you know public cloud providers have now amazing platform capabilities and if you think about it the the it goes back to what Matt said about IT ops and the development kind of efforts why is this happening really you know there's there's the study that we did with with an analyst and there was an amazing a shocking stat around how within the next three years organizations will have to support 50% more applications than they do now and we have been trying to test this stat our events that made customer meetings etc that is a lot of a lot of change for organizations so if you think about why are they use why do they need to basically what go and expand to those clouds is because they want to service IT Ops teams want ER servers with capabilities their developers faster right and this is where you have within the IT ops kind of theme organization you have the security kind of frame the compute frame the networking where you know Cisco has a traditional footprint how do you blend all this how do you bring all this together in a linear way to support individual unique application modernization efforts I think that's what are we hearing from customers in terms of the feedback and this is what influences our strategy to converts the different business units and engineering engineering efforts right couple years ago I have to admit I was kind of a multi cloud skeptic I always said I thought it was more of a symptom than actually a strategy a symptom of you know shadow IT and different workloads and so forth but now I'm kind of buying in because I think IT in particular has been brought in to clean up the crime scene I often say so I think it is becoming a strategy so if you could help us understand what you're hearing from customers in terms of their strategy toward the multi cloud and how Cisco that was mapping into that yeah so so when we talk to customers it comes back to the angle at which they're approaching the problem in like you said the shadow IT has been probably around for longer than anybody won't cares to admit because the people want to move faster organizations want to get their product out to market sooner and and so what what really is we're having conversations now about you know how do I get the visibility how do I get you know the policies and the governance so that I can actually understand either how much I'm spending in the cloud or whether I'm getting the actual performance that I'm looking for that I need the connectivity so I get the bandwidth and so these are the kinds of conversations that we have with customers is is is going I realize that this is going on now I actually have to now put some you know governance and controls around that is their products is their solutions is their you know they're looking to Cisco to help them through this journey because it is a journey because as much as we talk about cloud and you know companies that were born in the cloud cloud native there is a tremendous number of IT organizations that are just starting that journey that are just entering into this phase where they have to solve these problems yeah I agree and it's just starting the journey with a deliberate strategy as opposed to okay we got this this thing but if you think about the competitive landscape its kind of interesting and I want to try to understand where Cisco fits because again you you initially had companies that didn't know in a public cloud sort of pushing multi cloud and you'd say oh well okay so they have to do that but now you see anthos come out with Google you see Microsoft leaning in we think eventually AWS is going to lean in and then you say I'm kind of interested in working with someone whose cloud agnostic not trying to force now now Cisco a few years ago you didn't really think about Cisco as a player now so this goes right in the middle I have said often that Cisco's in a great position John Fourier as well to connect businesses and from a source of networking strength making a strong argument that we have the most cost-effective most secure highest performance network to connect clouds that seems to be a pretty fundamental strength of yours and does that essentially summarize your strategy and and how does that map into the actions that you're taking in terms of products and services that you're bringing to market I would say that I can I can I can take that ya know it's a chewy question for hours yeah so I I was thinking about a satellite in you mentioned this before and you're like okay that's you know the world is turning around completely because we we seem to talk about satellite e is something bad happening and now suddenly we completely forgot about it like let let free free up the developers gonna let them do whatever they want and basically that is what I think is happening out there in the market so all the solutions you mentioned in the go to market approaches and the architectures that the public cloud providers at least are offering out there certainly the big three have differences have their strengths and I think those strengths are closer to the developer environment basically you know if you're looking into something like a IML there's one provider that you go with if you're looking for a mobile development framework you're gonna go somewhere else if you're looking for a dr you're gonna go somewhere else maybe not a big cloud but your service provider that you've been dealing with all these all these times and you know that they have their accreditation that you're looking for so where does Cisco come in you know we're not a public cloud provider we offer products as a service from our data centers and our partners data centers but at the - at the way that the industry sees a cloud provider a public cloud like AWS a sure Google Oracle IBM etc we're not that we don't do that our mission is to enable organizations with software hardware products SAS products to be able to facilitate their connectivity security visibility observability and in doing business and in leveraging the best benefits from those clouds so we we kind of we kind of moved to a point where we flip around the question and the first question is who is your cloud provider what how many tell us the clouds you work with and we can give you the modular pieces you can put we can put together for you so there's so that you can make the best out of your plan it's been being able to do that across clouds we're in an environment that is consistent with policies that are consistent that represent the edicts of your organization no matter where your data lives that's sort of the the vision in the way this is translated into products into Cisco's product you naturally think about Cisco as the connectivity provider networking that's that's really sort of our you know go to in what we're also when we have a significant computing portfolio as well so connectivity is not only the connectivity of the actual wire between geographies point A to point B in the natural routing and switching world there's connectivity between applications between cute and so this week you know the announcements were significant in that space when you talk about the compute and the cloud coming together on a single platform that gives you not only the ability to look at your applications from a experience journey map so you can actually know where the problems might occur in the application domain you can actually then go that next level down into the infrastructure level and you can say okay maybe I'm running out of some sort of resource whether it's compute resource whether it's memory whether it's on your private cloud that you have enabled on Prem or whether it's in the public cloud that you have that application residing and then why candidly you have the actual hardware itself so inter-site it has an ability to control that entire stack so you can have that visibility all the way down to the hardware layer I'm glad you brought up some of the applications wonderful we can you know stay there for a moment and talk about some of the changing patterns for customers a lot of talk in the industry about cloud native often it gets conflated with you know microservices containerization and lots of the individual pieces there but you know one of our favorite things that been talked about this week is the software that really sits at the application layer and how that connects down through some of the infrastructure pieces so help us understand what you're hearing from customers and and where how you're helping them through this transition to constants as you were saying absolutely there's going to be lots of new applications more applications and they still have the the old stuff that they need to continue to manage because we know an IT nothing ever goes away that's that's definitely true I was I was thinking you know there's there's a vacuum at the moment and and there's things that Cisco is doing from from technology leadership perspective to fill that gap between the application what do you see when it comes to monitoring making sure your services are observable and how does that fit within the infrastructure stack you know everything upwards network the network layer base again that is changing dramatically some of the things that Matt touched upon with regards to you know being able to connect the the networking the security in the infrastructure the computer infrastructure that the developers basically are deploying on top so there's a lot of there's a lot of things on containerization there's a lot of in fact it's you know one part of the of the self-injure side of the stack that you mentioned and one of the big announcements you know that there's a lot of discussion in the industry around ok how does that abstract further the conversation on networking for example because that now what we're seeing is that you have huge monoliths enterprise applications that are being carved down into micro services ok they you know there's a big misunderstanding around what is cloud native is it related to containers different kind of things right but containers are naturally the infrastructure de facto currency for developers to deploy because of many many benefits but then what happens you know between the kubernetes layer which seems to be the standard and the application who's gonna be managing services talking to each other that are multiplying you know things like service mesh network service mess how is the network evolving to be able to create this immutable infrastructure for developers to deploy applications so there's so many things happening at the same time where cisco has actually a lot of taking a lot of the front seat this is where it gets really interesting you know it's sort of hard to squint through because you mentioned kubernetes is the de facto standard but it's a de-facto standard that's open everybody's playing with but historically this industry has been defined by you know a leader who comes out with a de facto standard kubernetes not a company right it's an open standard and so but there's so many other components than containers and so history would suggest that there's going to be another de facto standard or multiple standards that emerge and your point earlier is you you got to have the full stack you can't just do networking you can't just do certain few so you guys are attacking that whole pie so how do you think this thing will evolve I mean you guys are obviously intend to put out as Casta as wide a net as possible capture not only your existing install base but attractive attract others and you're going aggressively at it as are as are others how do you see it shaking out deep do you see you know four or five pockets do you see you know one leader emerging I mean customers would love all you guys to get together come up with standards that's not going to happen so we're it's jump ball right now well yeah and you think about you know to your point regarding kubernetes is not a company right it is it is a community driven I mean it was open source by a large company but it's but it's community driven now and that's the pace at which open source is sort of evolving there is so much coming at IT organizations from a new paradigm a new software something that's you know the new the shiny object that sort of everybody sort of has to jump on to and sort of say that is the way we're going to function so IT organizations have to struggle with this influx of just every coming at them and every angle and I think what's starting to happen is the management and the you know that stack who controls that or who is helping IT organizations to manage it for them so really what we're trying to say is there's elements that you have to put together that have to function and kubernetes is just one example docker the operating system that associated with it that runs all that stuff then you have the application that goes rides IDEs on top of it so now what we have to have is things like what we just announced this week HX ap the application platform for HX so you have the compute cluster but then you have the on top of that that's managed by an organization that's looking at the security that's looking at the the actual making opinions about what should go in the stock and managing that for you so you don't have to deal with that because you can just focus on the application development yeah I mean Cisco's in a strong position to do there's no question about it and to me it comes down to execution if you guys execute and deliver on the the products and services that you say you know your nouns for instance this week and previously and you continue on a roadmap you're gonna get a fair share of this marketplace I think there's no question so last topic before we let you go is love your viewpoint on customers what's separating kind of leaders from you know the followers in this space you know there's so much data out there you know I'm a big fan of the state of DevOps report yeah focus you know separate you know some but not the not here's the technology or the piece but the organizational and you know dynamics that you should do so it sounds like Matt you you like that that report also love them what are you hearing from customers how do you help guide them towards becoming leaders in the cloud space yeah the state of DevOps report was fascinating and I mean they've been doing that for what a number of years yeah exactly and really what it's sort of highlighting is two main factors that I think that are in this revolution or this this this paradigm shift or journey we're going through there's the technology side for sure and so that's getting more complex you have micro services you have application explosion you have a lot of things that are occurring just in technology that you're trying to keep up but then it's really about the human aspect that human elements the people about it and that's really I think what separates you know the the elites that are really sort of you know just charging forward in the head because they've been able to sort of break down the silos because really what you're talking about in cloud native DevOps is how you take the journey of that experience of the service from end to end from the development all the way to production and how do you actually sort of not have organizations that look at their domain their data set their operations and then have to translate that or have to sort of you know have another conversation with another organization that it doesn't look at that that has no experience of that so that is what we're talking about that end-to-end view is that in addition to all the things we've been talking about I think Security's a linchpin here now you guys are executing on security you got a big portfolio and you've seen a lot of M&A and a lot of companies now trying to get in and it's gonna be interesting to see how that plays out but that's going to be a key because organizations are going to start there from a strategy standpoint and then build out yeah absolutely if you follow the DevOps methodology its security gets baked in along the way so that you're not having to sit on after do anything Custis give you the final word I was just as follow-up with regard what what Mark was saying there's so many there's what's happening out there is this just democracy around standards which is driven by communities and we will love that in fact cisco is involved in many open-source community projects but you asked about customers and and just right before you were asking about you know who's gonna be the winner there's so many use cases there's so much depth in terms of you know what customers want to do with on top of kubernetes you know take AI ml for example something that we have we have some some offering the services around there's the customer that wants to do AML there their containers that their infrastructure will be so much different to someone else's doing something just hosting yeah and there's always gonna be a SAS provider that is niche servicing some oil and gas company you know which means that the company of that industry will go and follow that instead of just going to a public law provider that is more organized if there's a does that make sense yeah yeah this there's relationships that exist the archer is gonna get blown away that add value today and they're not gonna just throw them out so exactly right well thank you so much for helping us understand the updates where your customers are driving super exciting space look forward to keeping an eye on it thank you thank you so much all right there's still lots more coming here from Cisco live 20/20 in Barcelona people are standing watching all the developer events lots of going on the floor and we still have more so thank you for watching the cute [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] you [Music] live from Barcelona Spain it's the cube covering Cisco live 2020 rot to you by Cisco and its ecosystem partners welcome back over 17,000 in attendance here for Cisco live 2020 in Barcelona ops to Minh and my co-host is Dave Volante and to help us to dig into of course one of the most important topic of the day of course that security we're thrilled to have back a distinguished engineer Francisco one of our cube alumni TK Kia Nene TK thanks so much for joining us ideal man good good all right so TK it's 2020 it's a new decade we know the bad actors are still out there they're there the the question always is you know it used to be you know how do you keep ahead of them then I've here Dave say many times well you know it's not you know when it's it's not if it's when you know you probably already have been okay you know compromised before so it gives latest so you know what you're seeing out there what you're talking to customers about in this important space yeah it's uh it's kind of an innovation spiral you know we we innovate we make it harder for them and then they innovate they make it harder for us right and round and round we go that's been going on for for many years I think I think the most significant changes that have happened recently have to deal with not essentially their objectives but how they go about their objectives and Defenders topologies have changed greatly instead of just your standard enterprise you now have you know hybrid multi cloud and all these new technologies so while while all that innovation happens you know they get a little clever and they find weaknesses and round and round we go so we talked a lot about the sort of changing profile of the the threat actors going from hacktivists took criminals now is a huge business and nation-states even what's that profile look like today and how has that changed over the last decade or so you know that's pretty much stayed the same bad guys are bad guys at some point in time you know just how how they go about their business their techniques they're having to like I said innovate around you know we make it harder for them they you know on Monday we're safe on Tuesday we're not you know and then on Wednesday it switches again so so it talked about kind of this multi-cloud environment when we talk to customers it's like well I want the developer to be able to build their application and not really have to think too much underneath it that that has to have some unique challenges we know security we knew long ago well I just go to the cloud it doesn't mean they take care of it some things are there some things they're gonna remind you now you need to make sure you set certain things otherwise you could be there but how do we make sure that Security's baked in everywhere and is up as a practice that everybody's doing well I mean again some of the practices hold true no matter what the environment I think the big thing was cognitive is in back in the day when when you looked at an old legacy data center you were part sort of administrator in your part detective and most people don't even know what's running on there that's not true in cloud native environments some some llamó file some some declaration it's it's just exactly what productions should look like right and then the machines instantiate production so you're doing things that machine scale forces the human scale people to be explicit and and for me I mean that's that's a breath of fresh air because once you're explicit then you take the mystery out of what you're protecting how about in terms of how you detect threats right phishing for credentials has become a huge deal but not just you know kicking down the door or smashing a window using your your own credentials to get inside of your network so how is that affected the way in which you detect yeah it's it's a big deal you know a lot of a lot of great technology has a dual use and what I mean by that is network cryptology you know that that whole crypto on the network has made us safer for us to compute over insecure networks and unfortunately it works just as well for the bad guys so you know all of their malicious activity is now private to so it you know for us we just have to invent new ways of detecting direct inspection for instance I think it's a thing of the past I mean we just can't depend on it anymore we have to have tools of inference and not only that but it's it's gave rise in a lot of innovation on behavioral science and as you say you know it's it's not that the attacker is breaking into your network anymore they're logging in ok what do you do then right Alice Alice's account it's not gonna set off the triggers so you have to say you know when did Alice start to behave differently you know she's working in accounting why is she playing around with the source code repository that's that's a different thing right yes automation is such a big trend you know how do we make sure that automation doesn't leave us more vulnerable that's rarity because we need to be able automate we've gone beyond human scale for most of these configurations that's exactly right and and how do how do we I always say just with security automation in particular just because you can automate something doesn't mean you should and you really have to go back and have practices you know you could argue that that this thing is just a you know machine scale automation you could do math on a legal pad or you can use a computer to do it right what so apply that to production if you mechanized something like order entry or whatever you're you're you're automating part of your business use threat modeling you use the standard threaten modeling like you would your code the network is code now right and the storage is code and everything is code so you know just automate your testing do your threat modeling do all that stuff please do not automate for your attacker matrix is here I want to go back to the Alice problem because you're talking about before you have to use inference so Alice's is in the network and you're observing her moves every day and then okay something anomalous occurs maybe she's doing something that normally she wouldn't do so you've got to have her profile in her actions sort of observed documented stored the data has got to be there and at the same time you want to make sure it's always that balance of putting handcuffs on people you know versus allowing them to do their job and be productive at the same time as well you don't want to let the bad guys know that you know that alice is doing something that she didn't be doing is actually not Alice so all that complexity how are you dealing with it and what's the data model look like doing it machines help let's say that machines can help us you know you and I we have only so many sense organs and the cognitive brain can only store so many so much state machines really help us extend that and so you know looking at not three dimensions of change but 7000 dimensions have changed right something in the machine is going to say there's an outlier here that's interesting and you can get another machine to say that's that's interesting maybe I should focus on that and you build these analytical pipelines so that at the end of it you know they may argue with each other all the way to the end but at the end you have a very high fidelity indicator that might be at the protocol level it might be at the behavioral level it might be seven days back or thirty days back all these temporal and spatial dimensions it's really cheap to do it with a machine yeah and if we could stay on that for a second so it try to understand I know that's a high-level example but is it best practice to have the Machine take action or is it is it an augmentation and I know it depends on the use case but but how is that sort of playing out again you have to do all of this safely okay a lot of things that machines do don't return back to human scale stuff that returns back to human scale that humans understand that is as useful so for instance if machines you know find out all these types of in assertions even in medical you know right now if if you've got so much telemetry going into the medical field see the machine tells you you have three weeks to live I mean you better explain what the heck you know how you came about that assertion it's the same with security you know if I'm gonna say look we're gonna quarantine your machine or we're gonna readjust machine it's not I'm not like picking movies for you or the next song you might listen to this is high stakes and so when you do things like that your analytics needs to have what is called entailment you have to explain what it is how you got to that assertion that's become incredibly important in how we measure our effectiveness in in doing analytics that's interesting because because you're using a lot of machine intelligence to do this and in a lot of AI is blackbox you're saying you cannot endure that blackbox problem in security yeah that black boxes is is very dangerous you know I you know personally I feel that you know things that should be open sourced this type of technology it's so advanced that the developer needs to understand that the tester needs to understand that certainly the customer needs to understand it you need to publish papers and be very very transparent with this domain because if it is in fact you know black box and it's given the authority to automate something like you know shut down the power or do things like that that's when things really start to get dangerous so good TK what wondered you know give us the latest on stealthWatch there you know Cisco's positioning when it when it comes to everything we've been talking about here you know stealthWatch again is it's been in market for quite some time it's actually been in market since 2001 and when I when I look back and see how much has changed you know how we've had to keep up with the market and again it's not just the algorithms rewrite for detection it's the environments have changed right but when did when did multi-cloud happen so so operating again cusp it's not that stealthWatch wants to go their customers are going there and they want the stealthWatch function across their digital business and so you know we've had to make advancements on the changing topology we've had to make advancements because of things like dark data you know the the network's opaque now right we have to have a lot of inference so we've just you know kept up and stayed ahead of it you know we've been spending a lot of time talking to developer communities and there's a lot of open-source tooling out there that that's helping enable developers specifically in security space you were talking about open-source earlier how does what you've been doing the self watch intersect with that yeah that's always interesting too because there's been sort of a shift in let's call them the cool kids right the cool kids they want everything is code right so it's not about what's on glass or you know a single pane of glass anymore it's it's what stealth watches code right what's your router as code look at dev net right yeah yeah I mean definite is basically Cisco as code and it's beautiful because that is infrastructure as code I mean that is the future and so all the products not just stealthWatch have beautiful api's and that's that's really exciting I've been saying for a while now it's do you I think you agree is that that is a big differentiator for Cisco I think you you're one of the few if not the only large established player and the enterprise that has figured out that sort of infrastructure is code play others have tried and are sort of getting there but you know start/stop you use a term that really cool is like living off the land you know bear bear grylls like the guy who lives down so bad so and and and threat actors are doing that now they're using your own installed software and tooling to hack you and and steal from you how were you dealing with that problem yeah it's a tough one and like I said you know much respect the the adversary is talented and they're patient they're well funded okay that's that's where it starts and so you know why why bring why bring an interpreter to a host when there's already one there right why right all this complicated software distribution when I can just use yours and so that's that's where the the play the game starts and and the most advanced threats aren't leaving footprints because the footprints are already there you know they'll get on a machine and behaviorally they'll check the cache to see what's hot and what's hot in the cache means that behaviorally it's a path they can go they're not cutting a new trail most of the time right so living off the land is not only the tools that they're using the automation your automation they're using against you but it's also behavioral and so that that makes it you know it makes it harder it's it impossible no can we make it harder for them yes so yeah no I'm having fun and I've been doing this for over twenty five years every week it's something new well it's a hard problem you're attacking and you know Robert Herjavec who came on the cube sort of opened my eyes and you think about what are we securing we're securing everything I mean a critical infrastructure were essentially exerted securing the entire global economy and he said something that really struck me it's an 86 trillion dollar economy we spend point zero one four percent on securing that economy and it's nothing now of course he's an entrepreneur and he's pimping for his is his business but it's true we are barely scratching the surface of this problem yeah I'm and it's changing I mean it's changing it could it be better yes it is changing his board awareness you know twenty years ago then right me to a dinner party they you know what does your husband do I'd say you know cyber security or something they'd roll their eyes and change the subject now they asked me the same question so oh you know my computer's running really slow right these are not this is everyone I'm worried about a life hack yeah how do I protect myself or what about these coming off the bank I mean that's those guys a dinner table cover every party so now now you know I just make something up I don't do cybersecurity I just you know a tort or a jipner's you've been to this business forever I can't remember have I ever asked you the superhero question what is that your favorite superhero that's a tough one there's all the security guys I know they like it's always dreamed about saving the world [Laughter] you're my superhero man I love what you do I think you've a great asset for Cisco and Cisco's customers really thanks TK give us a final word if people want to you know find out more about about what Cisco's doing read more of what you're working on but what's some of the best resource I have to go do you know just drop by the web pages I mean everything's published out that like I said even even for the super nerdy you know we published all our our laurs security analytics papers I think we're over 50 papers published in the last 12 years TK thank you so much always a pleasure to catch alright yeah and a travels thank you so much for de Villante I'm Stu Mittleman John furrier is also in the house we will be back with lots more coverage here from Cisco live 20/20 in Barcelona thanks for watching the keys [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] live from Barcelona Spain it's the cube covering Cisco live 2020s brought to you by Cisco and its ecosystem partners hello and welcome back to the cubes live coverage it's our fourth day of four days of coverage here in Barcelona Spain for Cisco live 2020 I'm John Faria my co-host to many men to great guests here in the dev net studio where the cube is sitting all week long been packed with action mindy Whaley senior director developer experiences but dev net and partner a senior director welcome back to this cube good to see you guys glad to be here so we've had a lot of history with you guys what from day one yes watching def net from an idea of hey we should develop earthing you also have definite create yes separate more developer focused definite is Cisco's developer environment we've been here from the beginning what a progression congratulations on the success thank you thank you so much it's great to be here in Barcelona with everybody here you know learning in the workshops and we just love these times to connect with our community at Cisco live and it definitely ate what you mentioned which is coming up in March so it's right around the corner def net zone which we're in it's been really robust spins it's been the top of the show every year and it gets bigger and the sessions are packed because people are learning developers new developers as well as Cisco engineers who were certified coming in getting new skills as the modern cloud hybrid environments are new skills is a technology shift yeah exactly and what we have in the definite zone are different ways that the engineers and developers can engage with that technology shift so we have demos around IOT and security and showing how you know to prevent threats from attacking the Industrial routers and things like that we have coding workshops from you know beginning intro to Python intro to get all the way up through advanced like kubernetes topics and things like that so people can really dive in with what they're looking for and this year we're really excited because we have the new definite certifications with those exams coming out right around the corner in February so a lot of people are here saying I'm ready to skill up for those exams I'm starting to dive into this topic well Susie we was on she's the chief of deaf net among other things and she said there's gonna be a definite 500 the first 500 certifications of deaf net are gonna be kind of like the Hall of Fame or you know the inaugural or founder certifications so can you explain what this it means it's not a definite certification badge it's a series of write different sir can you deeper in then yeah just like we have our you know existing network certifications which are so respected and loved around the world people get CCIE tattoos and things just like there's an associate and professional and expert level on the networking truck there's now a definite associate a definite professional and coming soon definite expert and then there's also specialist badges which help you add specific skills like data center automation IOT WebEx so it's a whole new set of certifications that are more focused on the software so there are about 80 80 % software skills 20 percent knowledge of networking and then how you really connect up and down the stock so these are new certifications not replacing anything all the same stuff they're new they're part of the same program they have the same rigor the same kind of tests they actually have ways to enter weave with the existing networking certifications because we want people to do both skill paths right to build this new IT team of the future and so it's a completely new set of exams the exams are gonna be available to take February 24th and you can start signing up now so with the definite 500 you know that's gonna be a special recognition for the first 500 people who get dead note certifications it'll be a lifetime achievement they'll always be in the definite 500 right and I've had people coming up and telling me you know I'm signed up for the first day I'm taking my exams on the first day I'm trying to get into them you and I only always want to be on the lift so I think we might be on them and what's really great is with the certifications we've heard from people in the zone that they've been coming and taking classes and learning these skills but they didn't have a specific way to map that to their career path to get rewarded at work you know to have that sort of progression and so with the certifications they really will have that and it's also really important for our partners and par is doing a lot of work with certifications and partners yeah definitely that would love to hear a little bit we've interviewed on the cube over the years some of the definite partners from a technology standpoint of course the the channels ecosystem hugely important to Cisco's business gives the update as to you know definite partnering as well as what will these certifications mean to both the technology and go to market partners yeah the wonderful thing about this is it really demonstrates Cisco's embracement of software and making sure that we're providing that common language for software developers and networkers to bring the two together and what we've found is that our partners are at different levels of maturity along that progression of program ability and this new definite specialization which is anchored in the individuals that are now certified at that partner allow them to demonstrate from a go-to-market standpoint from a recognition standpoint that as a practice they have these skills and look at the end of the day it's all about delivering what our customers need and our customers are asking us for significant help in automation digital transformation they're trying to drive new business outcomes and this this will provide that recognition on on who to partner with in the market it's so important I remember when Cisco helped a lot of the partner ecosystem build data center practices went from the silos and now embracing you've got the hardware the software we're talking multi cloud it's the practice that is needed today going forward to help customers with where they're going it really is and and another benefit that we're finding and talking to our partners is we're packaging this up and rolling it out is not only will it help them from a recognition standpoint from a practice standpoint and from a competitive differentiation standpoint but it'll also help them attract challenge I mean it's no secret there is a talent shortage right now if you talk to any CEO that's top of mind and how these partners are able to attract these new skills and attract smart people smart people like working on smart things right and so this has really been a big traction point for them as well it's also giving ways to really specifically train for new job roles so some of the ways that you can combine the new definite certifications with the network engineering certifications we've looked at it and said you know there's there's a role of Network automation developer that's a new role everyone we ask in one of our sessions who needs that person on their team so many customers partners raise their hands like we want the network Automation developer on our team and you can combine you know your CCNP Enterprise with a definite certification and build up the skills to be that Network automation developer certainly has been great buzz I got to get your guys thoughts because certainly it's for careers and you guys are betting on the the people and the people are betting on Cisco mm-hmm yes this is what's going on submit surety of Devin it almost it's like a pinch me moment for you guys because you continue to grow I got to ask you what are some of the cool things that you're showing here as you mature you still have the start here session which is intro to Python and other things pretty elementary and then there's more advanced things what are some of the new things that's going on yeah that you could share so some of the new things we've got going on and one of my favorites is the IOT insecurity demonstration there's a an industrial robot arm that's picking and placing things and you can see how it's connected to the network and then something goes wrong with that robot alarm and then you can actually show how you can use the software and security tools to see was there code trying to access you know something that that robot was it was using it's getting in the way of it working so you could detect threats and move forward on that we also have a whole automation journey that starts from modeling your network to testing to how you would deploy automation to a deep dive on telemetry and then ends with multi domain automation so really helping engineers like look at that whole progression that's been that's been really popular Park talked about the specialization which ones are more popular or entry-level which ones are people coming into getting certified first network engineering automation first or what's the yeah so we're so the program is going to roll out with three different levels one is a specialized level the second is an advanced level and then we'll look to that third level again they're anchored in the in the individual certs and so as we look for that entry level it's really all about automation right I mean some things you take for granted but you still need these new skills to be able to automate and scale and have repeatable scalable benefits from that this the second tier will be more cross-domain and that's where we're really thinking that an additional skill set is needed to deliver dashboard experience compliance experiences and then that next level again we'll anchor towards the expert level that's coming out but one thing I want to point out is in addition to just having the certified people on staff they also have to demonstrate that they have a practice around it so it's not just enough to say I've passed an exam as we work with them to roll out the practice and they earn the badge they're demonstrating that they have the full methodology in place so that it really there's a lot behind it that means we can't be in the 500 list then even if a 500 list I don't know that the cube would end up being specialized its advertising no seriously all fun it's all fun it's Cisco live in Europe is there a difference between European and USD seeing any differences in geographic talent you know in the first couple years we did it I think there was a bigger difference it felt like there were different topics that were very popular in the US slightly different in Europe last year and this year I feel like they have converged it's it's the same focus on DevOps automation security as a huge focus in both places and it also feels like the the interest and level of the people attending has also converged it's really similar congratulations been fun to watch the rise and success of Devon it continues to be strong how see in the hub here and the definite zone behind us pact sessions yes what's the biggest surprise for you guys in terms of things that you didn't expect or some of the success what's what's jumped out yeah I think you know one of the points that I want to make sure we also cover and it has been an added benefit we're hoping it would happen we just didn't realize it would happen this soon we're attracting new companies new partners so the specialization won't just be available for our traditional bars this is also available for our non resale and we are finding different companies accessing definite resources and learning these skills so that's been a really great benefit of Deb net overall definitely my favorite surprises are when I show up at the community events and I hear from someone I met last year what the what they went back and did and the change that they drove and they come in their company and I think we're seeing those across the board of people who start a grassroots movement take back some new ideas really create change and then they come back and we get to hear about that from them those are my favorite surprises and I tell you we've known for years how important the developer is but I think the timing on this has been perfect because it is no longer just oh the developer has some tools that they like in the corner the developer connected to the business and driving things forward exactly so perfect timing congratulations on this certification their thing that's been great is that our at Cisco itself we now have API is across the whole portfolio and up and down the stock so that's been a wonderful thing to see come together because it opens up possibilities for all these developers so Cisco's API first company we are building it guys everywhere we can and and that the community is is taking them and finding creative things to build it's been fun to watch you guys change Cisco but also impact customers has been great to watch far many thanks for coming up yeah games live coverage here in Barcelona for Cisco live 20/20 I'm John Ford Dave Dave Alon face to many men we right back with more after this short break [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Music] you live from Barcelona Spain it's the cube covering Cisco live 2020 brought to you by Cisco and its ecosystem partners hello and welcome back to the cubes live coverage here at Cisco live 20/20 and partial into Spain I'm John first evening men cube coverage we've got a lot of stuff going on with Cisco multi-cloud and cloud technologies of clarification of Cisco's happening in real time is happening right now cloud is here here to stay we got two great guests to unpack what's going on in cloud native and networking and applications as the modern infrastructure and software evolves we got eugene kim global product marketing and compute storage at cisco global part of marketing manager and fabio corey senior director cloud solutions marketing guys great comeback great thanks for coming back appreciate it thanks very much great to see a lot of guys so probably we've had multiple conversations and usually even out from the sales force given kind of the that the discussion and the motivation cloud is big it's here it's here to stay it's changing Cisco API first we hear and 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 it's because this time it's all about the application experience I mean the last two years we've been announcing some really exciting stuff in the cloud space right think about all the announcements with the AWS the Google's the Azure so the world but this time it really boils down to making sure that is incredibly hyper distributed world well there is an application explosion ultimately we will help for the right operations tools 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 is gonna work and of course you're going to 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 under the hood the routers and the gear no it was about the applications this is the story we're seeing it's kind of a quiet unveiling it's not yet 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 without dynamics we already have a very very powerful application performance measurement tool which it's evolving extremely rapidly first of all after Amex can correlate not just the application performance to some technology kpi's but to true actual business KPIs so AB dynamics can give you for instance the real-time visibility of 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 dynamics experience journey Maps what are those it's actually the ability of focusing not so much on front-ends and backends and databases performances but really focusing on what the user is seeing in front of his or her screen and so what really matters is capturing the journey that a given user of your application is is being and understanding whether the experience is the one that you want to deliver oh you have like a sudden drop of somewhere and you know why that is important because in the end we've been talking about is it a problem of the application performance user performance well it could be a badly designed page how do you know and so this is a very precious information is that were giving to application developers not just to the IT ops guys that is incredibly precious to get this in so you just brought up that journey so that's part of the news so just break down real quick one minute yeah what the news is yeah so we have three components the first one as you as you correctly pointed out is really introduction the application journey Maps right the experience journey Maps that's very very important the second is we are actually integrating after am it's with the inter-site action inter-site optimization manager the workload team is a workload promisor and so because there is a change of data between the two now you are in a position to immediately understand whether you have an application problem we have a workload problem or infrastructure problem which is ultimate what you really need to do as quickly as you can and thirdly we have introduced a new version of our hyper flex platform which is hyper-converged flat G flat for Cisco with a fully containerized version we tax free if you want as well there is a great platform for containerized application of parameter so you teen when 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 patterns I've seen most successful is first you modernize the platform often HCI is you know and often for that it really simplifies the environment you know reduces the silos and 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 are you hearing how is your solution set solving this issue yeah exactly I mean as we've been talking to our customers love them are going through different application modernisations 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 talked to us about a lot of it has to be able to it's got to be very simple very turnkey and a fully integrated ready to turn on the other one is something that's very agile right very DevOps friendly and the third being a very economic container cloud on Prem as far we mentioned high flex application platform takes our hyper-converged system and builds 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 the one of the best great aspects of is that's all managed from inside from the physical infrastructure to the hyper-converged layer to all the way to the container management so it's very exciting to have that full stack management and insight as well yeah it's great to you know John and I have been following this kubernetes wave you know since the early early days Fabio mentioned integrations with the Amazons and Google's the world because you know a few years ago you talked to customers and they're like oh well I'm just gonna build my own urbanity right back nobody ever said that is easy now just delivering at his service seems to be the way most people wanted so if I'm doing it on Amazon or Google they've got their manage service that I could do that or that they're through partners they're working with so explain what you're doing to make it simpler in the data center environment because I'm tram absolutely is a piece of that hybrid equation the customers need yes so essentially from the customer experience perspective as I mentioned it's very fairly turnkey right from the hyper flicks application platform we're taking our hyper grew software we're integrating a application virtualization layer on top of it Linux KVM based and then on top of that we're integrating the kubernetes stack on top as well and so in essence right it's a fully curated kubernetes stack right it has all the different elements from the networking from the storage elements and and providing that in a very turnkey way and as I mentioned the inner site management is really providing that simplicity that customers need for that management ok Fabio this the previous announcement you've made with the public clouds yeah this just ties into those hybrid environments that's exactly you know a few years ago people like oh is there gonna 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 towards that direction so a lot of customers want to have a very simple implementation at the same time they want of course a multi cloud approach and I really care about you know marking the difference between you know multi-cloud hybrid cloud there's been a lot of confusion but if you think about it multi cloud is really rooted into the business need of harnessing innovation from whatever it comes from you know the different clouds PV different things and you know what they do today tomorrow it could even change so people want option maladie 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 to fundamentally simplify the operations of these pretty complex kind of hybrid environments I want you to nail that operations on ibrid that's where multi cloud comes in absolutely just a connection point absolutely you're not a shitty mice no isn't a shit so in order to fulfill your business like your I know business needs you then you have a hybrid problem and you want to really kind of have a consistent production rate environment between fins on Prem that you own and control versus things that you use and you want to control better now of course there are different school of 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 clock 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 and where's it's the application problem isn't a 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 saw what did some of the pain points that customers had what problems does the AP solve yeah as I mentioned it's really the platform for our customers to modernize their 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 you know bringing any third party hypervisor licenses as well as support cost so that's fully integrated there you have your integrated hyper-converged storage capability you have the cloud-based management and that's really developing you providing that developer DevOps simplicity from the data Julie that they're looking for internally as well as for their product production environments and then the other aspect is its simplicity to be able to manage all this right in the entire lifecycle management as well so it's the operational side of the whole yeah uncovers Papio on the application side where the problem is because this is where I'm a little bit skeptical you know normally rightfully so but I can see in a problem where it's like whose fault is it gasification is problem or the network I mean it runs into more serious workloads the banking app that's having trouble how do you know where it what the problem is and how do you solve that problem what 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 our app dynamics VP GM Danny winoker said you know it has this terminology beast DevOps which you know may sound like an interesting acrobatics but it's absolutely true the business has to be part of this operational kind of innovation because as you said you know developer edges you know drops their containers and their code to the IET ops team but you don't really know whether the problem a certain point is gonna be in the code or in how 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 inside and take action and every layer of the stack I mean instrumentation absolutely there are players that only do it in their software overlay domain the problem is very often these kind of players assume that underneath links are fine and very often they're not so in the end this visibility inside inaction is the loop that everybody is going after these days to really get to the next if you want 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 regardless of your IT ops if you're faster than your competitor well still still was questioning the GM of AppDynamics running observability and he's like no it's not to feature it's everywhere so he his comment was yeah but serve abilities don't really talk about it because it's big din do 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 stack from the software all the way to the infrastructure level that you can solve the problem otherwise the finger-pointing quote-unquote will continue and you will not be able to gain the speed that you need okay so the question on my mind I want to get both of you guys can weigh in on this is that you look at Cisco as a company you got a lot going on I mean a guy's huge customer base core routers - no applications there's a lot going on a lot of a lot of complexity you got IOT security Ramirez talked about that you got the WebEx rooms got totally popular it's kind of got a lot of glam to it having the WebEx kind of you know I guess what virtual presence was yeah 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 IOT edge without having some sort of cloud operational things so there's stuff you're talking about is not just a division it's kind of gonna 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 clarification well I would say it's it's a couple of dimension the first one is the cloud is one of the critical domains of this multi domain architecture that of course is the cornerstone of Cisco's technology strategy right if you think about it it's all about connecting users to applications wherever they are and not just the user the applications themselves like if you look at the latest stats from IDC 58% of workloads is heading to the public cloud and to the edge it's like the data center is literally exploding in many different directions so you have this highly distributed kind of fabric guess what sits in between all these applications and microservices 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 silver 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 IP flex ap is actually managed by inter site which is a SAS kind of component this journey started a long time ago with Cisco Meraki and then of course we have SAS properties like WebEx everything else is kind of absolutely migrants reporter we've been reporting eugen that from years ago we saw the movement where api's are starting to come in when you go back five years ago not a lot of the gear and stuff at Cisco had api's now you got api's building into all the new products that's right you see the software shift with you know you know intent-based networking to AppDynamics it's interesting it's you're seeing kind of this agile mindset this is some of you and I talk about all the time but agile now is the new model is it ready for customers I mean the normal Enterprise is still got the infrastructure and application it's separated okay how do I bring it together what are you guys seeing the customer base what's going on with with not that not the early adopters heavy-duty hardcore pioneers out there but you know the 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 that ensuring that application experience and you can only ensure that application experience right by having your application teams and your structure teams work together and that's what's exciting you mentioned the API is and what we've done there with AppDynamics integrating with inter-site workload optimizer as Fabio mentioned it's all about visibility inside action and what app dynamics is provides providing that business and end-user application performance experience visibility inner sites giving you know visibility on the underlining workload and the resources whether it's on Prem in your you know drive data center environment or in 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 inner side local optimizer is then also optimizing the resources to proactively ensure that application experience so before you know if we talk about someone at a checkout and they're about to have abandonment because the functions 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 is 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 insert' aeneas lee whether it be manual intervention or even automatically there's or a ops capability go ahead and provide that action so the action could be you know scaling out the VMS it's on-prem or looking at a new different type of ec2 template in the cloud that's what's very exciting about this it's really the application experience is now driving and optimizing 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 you have 5 to 7,000 apps you have another to 3,000 applications just coming into into the the frame and then 50% of the existing ones that are gonna be refactor lifted and shifted or replace or retired by SAS application it's just like it's tsunami that's that's coming on you and oh by the way because of again the micro service is kind of affect the number of dependencies between all these applications is growing incredibly rapidly like last year we were eight average interdependencies for applications now we are 20 so imaging imaging what happens as as you are literally flooded with the way the scanner really you have to ensure that your application infrastructure fundamentally will get tied up as quickly as you can still and I have been toilet for at least five years now if not longer the networking has been the key kind of last changeover - clarification and I would agree with you guys I think I've asked the 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 a mobile app can change business but now if you look at the pressure the network's bringing the pressure on the network or the pressure for the network to be better than programmable is the rise of video and data I mean so you got mobile check now you've got video I mean more people doing video now than ever before videos of consumer oil as streaming you got data these two things absolutely forced yeah the customers to deal with it but what really tipped the the balance John is is actually the SAS effect is the cloud effect because as you know it's in IT sort of inflection points nothing is linear right so once you reach a certain critical mass of cloud apps and we're absolutely there already all of a sudden you're 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 as close to the users as possible and that implies a radical change 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 now you have this Asif ocation or cloud that's changes the business models so new entrants can come in and existing players can get better so I think that whole business model conversation yeah never was discussed at Cisco live before yeah in depth as well hey run your business connect your hubs campus move packets around that was applications in business model yeah but also the fact that there is increasing number of software capabilities and so fundamental you want to simplify the life of your customers through subscription models that help the customer by now using what they really need right at any given point in time all the way to having enterprise agreements I also think that's about delivering these application experiences for your business small different type experience that's really what's differentiating you from your different competitors right and so I think that's a different type of shift as well well you guys are good got some good angle on this cloud I love it I got to ask you the question what can we expect next from Cisco more progression along clarification 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 centered around helping customers really gluon this mix set of data centers and clouds to make it work as one write as much as possible and so what we really deliver is networking security and application of performance management and we're integrating there's more and more on the two sides of the equation right the the designer side and the powerful outside and more more integrating 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 you set up before we came on camera that you were talking to the sales teams what are they what's their vibe with the sales team they get excited by this what's that oh yeah feedback oh yeah absolutely from the inner side were claw optimizer and they have dynamics that's very exciting for them especially the conversations they're having with their customers really from that application experience and proactively insuring it and on the hyper flex application platform side this is extremely 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 their applications on hyper flex you guys are riding some pretty big waves here at Cisco I get a cloud way to get the IOT Security wave it's pretty exciting pretty big stuff thanks for coming in thanks for sharing the insights Fabio I appreciate it thank you for having us your coverage here in Barcelona I'm John Force dude Minutemen be back with more coverage fourth day of four days of cube coverage we right back after this short break [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] why Trump Barcelona Spain it's the cube covering Cisco live 2020 rot to you by Cisco and its ecosystem partners welcome back to Barcelona everybody we're here at Cisco live and you're watching the cube the leader in live tech coverage we got to the events and extract the signal from the noise this is day one really we started a zero yesterday Eric Hertzog is here he's the CMO and vice president of storage channels probably been on the cube more than [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Music] [Music] live from Barcelona Spain it's the cube covering Cisco live 2020 rot to you by Cisco and its ecosystem partners welcome back everyone's two cubes live coverage day four of four days of wall-to-wall action here in Barcelona Spain Francisco live 2020 I'm John Ferrier with mykos Dave Volante with a very special guest here to wrap up Cisco live the president of Europe Middle East Africa and Russia Francisco Wendy Mars cube alumni great to see you thanks for coming on to kind of put a bookend to the show here thanks for joining us right there it's absolutely great to be here thank you so what a transformation as Cisco's business model of continues to evolve we've been saying brick by brick we still think is a big move coming I think there's more action I can sense the walls talking to us like let's just go live in the US and more technical announcements in the next 24 months you can see you can see where it's going it's cloud its apps yeah its policy based program ability it's really a whole nother business model shift for you and your customers the technology shift and the business model shift so I want to get your perspective of this year opening key no you let it off talking about the philosophy of the business model but also the first presenter was not a networking guy it was an application person yeah app dynamics yep this is a shift what's going on with Cisco what's happening what's the story well you know if you look for all of the work that we're doing is but is really driven by what we see from requirements from our customers the change that's happening in the market and it is all around you know if you think digital transformation is the driver organizations now are incredibly interested in how do they capture that opportunity how do they use technology to help them but you know if you look at it really there's the three items that are so important it's the business model evolution it's actually the business operations for for organisations plus their people there are people in the communities within that those three things working together and if you look at it with you know it's so exciting with application dynamics there because if you look for us within Cisco that linkage of the application layer through into the infrastructure into the network and bringing that linkage together is the most powerful thing because that's the insight and the value our customers are looking for you know we've been talking about the in the innovation sandwich you know you got you know date in the middle and you got technology and applications underneath that's kind of what's going on here but you I'm glad you brought up the year the part about business model business operations and people in communities because during your keno you had a slide that laid out three kind of pillars yes people in communities business model and business operations there was no 800 series in there there was no product discussions this is fundamentally the big shift that business models are changing I tweeted provocatively the killer app and digital the business model because you think about it the applications are the business and what's running under the covers is the technology but it's all shifting and changing so every single vertical every single business is impacted by this it's not like a certain secular thing in the industry this is a real change can you describe how those three things are operating with that constitute think if you look from you know so thinking through those three areas if you look at the actual business model itself our business models as organizations are fundamentally changing and they're changing towards as consumers we are all much more specific about what we want we have incredible choice in the market we are more informed than ever before but also we are interested in the values of the organizations that were getting the capability from as well as the products and the services that naturally we're looking to gain so if you look in that business model itself this is about you know organizations making sure they stay ahead from a competitive standpoint about the innovation of portfolio that they're able to bring but also that they have a strong strong focus around the experience that their customer gains from an application a touch standpoint that all comes through those different channels which is at the end of the day the application then if you look as to how do you deliver that capability through the systems the tools and the processes as we all evolve our businesses you have to change the dynamic within your organization to cope with that and then of course in driving any transformation the critical success factor is your people and your culture you need your teams with you the way teams operate now is incredibly different it's no longer command and control its agile capability coming together you need that to deliver on any transformation never never mind let it be smooth you know in the execution there so it's all three together what I like about that model and I have to say we this is you know ten years to do in the cube you you see that marketing in the vendor community often leads what actually happens not surprising as we entered the last decade it was a lot of talk about cloud well it kind of was a good predictor we heard a lot about digital transformations a lot of people roll their eyes and think it's a buzzword but we really are I feel like an exiting this cloud era into the digital era it feels real and there are companies that you know get it and are leaning in there are others that maybe you're complacent I'm wondering what you're seeing in in Europe just in terms of everybody talks digital yeah be CEO wants to get it right but there is complacency there when it's a services say well I'm doing pretty well not on my watch others say hey we want to be the disruptors and not get disrupted what are you seeing in the region in terms of that sentiment I would say across the region you know there will always be verticals and industries that are slightly more advanced than others but I would say that then the bulk of conversations that I'm engaged in independence of the industry or the country in which we're having that conversation in there is a acceptance of transfer digital transformation is here it is affecting my business i if I don't disrupt I myself will be disrupted and be challenged help me so I you know I'm not disputing the end state I need guidance and support to drive the transition and a risk mythic mitigated manner and they're looking for help in that and there's actually pressure in the boardroom now around a what are we doing within within organizations within that enterprise the service right of the public said to any type of style of company there's that pressure point in the boardroom of come on we need to move it speed now the other thing about your model is technology plays a role in contribute it's not the be-all end-all but plays a role in each of those the business model of business operations and developing and nurturing communities can you add more specifics what role do you see technology in terms of advancing those three spheres so I think you know if you look at it technology is fundamental to all of those spheres in regard to the innovation the differentiation technology can bring then the key challenges one of being able to reply us in a manner where you can really see differentiation of value within the business so in then the customers organization otherwise it's just technology for the sake of technology so we see very much a movement now to this conversation of talk about the use case the use cases the way by which that innovation can be used to deliver the value to the organization and also different ways by which a company will work look at the collaboration capability that we announced earlier this week of helping to bring to life that agility look at the app D discussion of helping to link the layer of the application into the infrastructure the network's to get to root cause identification quickly and to understand where you may have a problem before you thought it actually arises and causes downtime many many ways I think the agility message has always been a technical conversation a gel methodology technology software development no problem check that's ten years ago but business agility mmm it's moving from a buzzword to reality exactly that's what you're kind of getting in here and teams how teams operate how they work you know and being able to be quick efficient stand up stand down and operate in that way you know we were kind of thinking out loud on the cube and just riffing with Fabio gory on your team on Cisco's team about clarification with Eugene Kim around just just kind of real-time what was interesting is we're like okay it's been 13 years since the iPhone and so 13 years of mobile in your territory in Europe Middle East Africa mobilities been around before the iPhone so with in more advanced data privacy much more advanced in your region so you got you out you have a region that's pretty much I think the tell signs for what's going on in North America and around the world and so you think about that you say okay how is value created how the economics changing this is really the conversation about the business model is okay if the value activities are shifting and be more agile and the economics are changing with sass if someone's not on this bandwagon it's not an in-state discussion where it's done deal yeah it's but I think also there were some other conversation which which are very prevalent here is in in the region so around trust around privacy law understanding compliance you look at data where data resides portability of that data GDP are came from Europe you know and as ban is pushed out and those conversations will continue as we go over time and if I also look at you know the dialogue that you saw so you know within World Economic Forum around sustainability that is becoming a key discussion now within government here in Spain you know from a climate standpoint and many other areas as well Dave and I've been riffing around this whole where the innovation is coming from it's coming from Europe region not so much the u.s. I mean us discuss some crazy innovations but look at blockchain us is like don't touch it pretty progressive outside United States little bit dangerous to but that's where innovation is coming from and this is really the key that we're focused on I want to get your thoughts on how do you see it going next level the next level next-gen business model what's your what's your vision so I think there'll be lots of things if we look at things like with the introduction of artificial intelligence robotics capability 5g of course you know on the horizon we have Mobile World Congress here in Barcelona in a few weeks time and if you talked about with the iPhone the smartphone of course when 4G was introduced no one knew what the use case would that would be it was the smartphone which wasn't around at that time so with 5g in the capability there that will bring again yet more change to the business model for different organizations and the capability and what we can bring to market when we think about AI privacy data ownership becomes more important some of the things you were talking about before it's interesting what you're saying John and when the the GDP are set the standard and and you see in the u.s. there are stovepipes for that standard California is going to do one every state is going to have a different center that's going to slow things down that's going to slow down progress do you see sort of an extension of a GDP are like framework of being adopted across the region and that potentially you know accelerating some of these you know sticky issues and public policy issues that can actually move the market forward I think I think the will because I think there'll be more and more you know if you look at there's this terminology of data is the new oil what do you do with data how do you actually get value from that data and make intelligent business decisions around that so you know that's critical but yet if you look for all of ours we are extremely passionate about you know where is our data used again back to trust and privacy you need compliance you need regulation you know I think this is just the beginning of how we will see that evolve you know when do I get your thoughts does Dave and I have been riffing for 10 years around the death of storage long live storage and but data needs to be stored somewhere networking is the same kind of conversation just doesn't go away in fact there's more pressure now forget the smartphone that was 13 years ago before that mobility data and video now super important driver that's putting more pressure on you guys and so hey we're networking so it's kind of like Moore's law it's like more networking more networking so video and data are now big your thoughts on video and data video but if you look at the Internet of the future you know what so if you look for all of us now we are also demanding as individuals around capability and access to that and inter vetted the future the next phase we want even more so there'll be more and more - you know requirement for speed availability that reliability of service the way by which we engage and we communicate there's some fundamentals there so continuing to to grow which is which is so so exciting for us so you talk about digital transformation that's obviously in the mind of c-level executives I got to believe security is up there as a topic what other what's the conversation like in the corner office when you go visit your customers so I think that there's a huge excitement around the opportunity realizing the value of the of the opportunity you know if you look at top of mind conversations are around security around making sure that you can make tank maintain that fantastic customer experience because if you don't the custom will go elsewhere how do you do that how do you enrich at all times and also looking at markets adjacencies you know as you go in and you talk at senior levels within within organizations independent of the industry in which they're in there are a huge amount of commonalities that we see across those of consistent problems by which organizations are trying to solve and actually one of the big questions is what's the pace of change that I should operate at and when is it too fast and when is what am I too slow and trying to balance that is exciting but also a challenge for companies so you feel like sentiment is still strong even though we're 10 years into this this bull market you know you got Briggs it you get you know China tensions with the US u.s. elections but but generally you see Tennessee sentiment still pretty strong and demand so I would say that the the excitement around technology the opportunity that is there around technology in its broadest sense is greater than ever before and I think it's on all of us to be able to help organizations to understand how they can consume I see value from us but it's you know it's fantastic science it tastes trying to get some economic indicators but really the real thing I'm trying to get you is Minh set of the CEO the corner office right now is it is it we're gonna we're gonna grow short-term by cutting or do we do are we gonna be aggressive and go after this incremental opportunity and it's probably both you're seeing a lot of automation yeah and I think if you look fundamentally for organizations it's it's that the three things helped me to make money how me to save money keep me out of trouble you know so those are the pivots they all operate with and you know depending on where an organization is in its journey whether a start-up there you know in in the in the mid or the more mature and some of the different dynamics and the markets in which they operate in as well there's all different variables you know so it's it's it's mix Wendy thanks so much for spending the time to come on the cube really appreciate great keynote folks watching if you haven't seen the keynote opening sections that's a good section the business model I think it's really right on I think that's going to be a conversation it's going to continue thanks for sharing that before we look before we leave I want to just ask you a question around what you what's going on for you here at Barcelona as the show winds down you had all your activities take us in the day of the life of what you do customer meetings what were some of those conversations take us inside inside what what goes on for you here well I'd say it's been an amazing it's been an amazing few days so it's a combination of customer conversations around some of the themes we just talked about conversations with partners and there's investor companies that we invest in a Cisco that I've been spending some time with and also you know spending time with the teams as well the DEF net zone you know is amazing we have this afternoon the closing session where we've got a fantastic external guest who's coming in it's going to be really exciting as well and then of course the party tonight and we'll be announcing the next location which I'm not gonna reveal now later on today we kind of figured it out already because that's our job and there's the break news but we're not gonna break it for you you can have that hey thank you so much for coming on really appreciate Wendy Martin expecting the Europe Middle East Africa and Russia for Cisco she's got our hand on the pulse and the future is the business model that's what's going on fundamental radical change across the board in all areas this the cue bringing you all the action here in Barcelona thanks for watching [Music] [Music] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music]

Published Date : Jan 30 2020

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