well you're watching the cube and I knew that you knew that I'm John Walls we're here in Las Vegas it's re invent 22. Big Show AWS putting it on the Big Show here late in 2022 that's going really well we're at the executive Summit right now sponsored by Accenture and we're going to talk about that relationship between Accenture and AWS um kind of where it is now and where it's going you know even bigger things down the road to help us do that two guests Andy Tay who's a senior managing director and the Accenture AWS business group lead at Accenture Andy thanks for being with us thanks for having me and Sarah whose last name was one of my all-time favorites all good because it is it's all good right okay it's all good Sarah all good worldwide leader of accenture's AWS business group for AWS and thank you both again for being here so let's talk about the relationship just in general high level here 30 000 feet a lot of great things have been happening we know a lot of great things are happening but how's this all you think evolved how did how has this come about that you two are just inextricably linked almost here in the cloud space Sarah why don't you jump on that yeah I'd love to um I think one of the the strongest factors that causes that Synergy for us is we both work backwards from our customer outcomes and so just by consistently doing that taking those customer signals um really obsessing over our customers success we know what we're marching towards and so then we kind of extract those themes and really work together to think about okay when we look at this holistically how do we go bigger better faster together and accomplish and solve those customer problems yeah Andy yeah John let me just maybe add and you know to amplify you know what Sarah just touched on um we both have common to our culture this notion of working from the client's perspective first so really delivering to the clients values or um you know in aws's parlance it's you know customer and so that's at the core and when we keep that at the core everything else becomes really easy where we invest what we build key clients we focus on what our team structure is et cetera Etc that's really easy so that sort of core core pillar number one in terms of our sort of you know success factors the second thing that I think really helps us is our sort of scale geographically you know certainly from an Accenture standpoint as you know John we're north of 800 000 people globally um couple that with aws's strength we really do have you know a field depth and breadth across the board that allows us to sort of see and feel what's happening in the market and allows us really to see around the corners as we like to think and say um and and that helps us be intentional on what we do um and then the third thing is really us we might know what we do but we sort of need to then play to our strengths and as you know we're two very different companies one focus on the technology side the other you know focus on the technology Services although we'll touch on you know some of the changes we're looking at as we go forward but that sort of playing to strength is key as well for us as a third pillar of success and so keeping those three things at the core really helps us move you know day to day and year by year and that's what you see in this continued partnership so what are you hearing from your customers these days we've talked a lot already today and it's kind of the buzzword you know modernization right everybody's talking about this transformation I don't care if you're in Mainframe or where you are everybody wants a modernized right now um you know what are you hearing from customers in that regard and I'm sure everybody's in a different state different yeah frame of mind you know some are embracing some are dragging uh what what's your take on the state of play right now well and I think it's like especially in these macroeconomic moments that we're in um time to value is critical for our customers um and then we have the talent shortage but even with those our customers still need us to solve for sustainability and still focus on inclusion diversity and equity and so we can't lower the bar in anything that we've already been doing we need to just keep doing more and building with them and so I think um for us really getting to the to the meat of what our customers need modernization is a big one but we're still seeing just so many of our customers look at basic transformation right how how do I dip in how do I start to move my environment move my people and get ready for what I need to do next for my business and so that that is a challenge and like we said with with the markets as volatile as they are right now I think a lot of customers are just trying to work with us to figure out how to do that in the most optimized and efficient way I just want to kind of rub people on the head and say it's going to be all right I mean it's so volatile as you pointed out Sarah right yeah I mean the market up and down and we're worried about a recession and companies and their plans they want to be Forward Thinking yeah but they've got to you know keep their powder dry too in some respects and get ready for that rainy day you know John it's funny um because you would think you know you've got the one hand you know rub that you know it's gonna be all right and and then on the other end you'll you know maybe clients should sort of hold temper and you know sort of just pause but I think clients get it they see it they feel it they understand the need to invest and I think you know there's a recent study back in 2008 those clients you know Sarah and I were reading the other day those clients who didn't invest ahead of those you know major if you remember those macroeconomic downturn times they came out really on the bad side um and so clients now are realizing that in these times these are the moments to invest and so they get it but they're faced with a couple of challenges one is time Sarah touched on you just don't have time and the second is Talent so we're working in a very intentional way on what we can do to help them there and and as you'll hear later on from Chris Wegman and Eric Farr um we're launching our velocity platform which really helps to compress that type and and get them faster you know time to Value we're also being very intentional on talent and how we help their talent so you know rotate so that we're not just taking the technology Journey but we're also having the people journey and then the third thing Sarah and I really focus on with our teams is figuring out new ways new sources of value for our clients and that's not just cost that's value the broader set and so we find that in moments like this it's actually an opportunity for us to really bring the best of AWS and Accenture to our clients well you hit value and I always find this one kind of tough because there is a big difference between cost and value my cost is X right whatever I write on my chat that's my cost so but but how do you help clients identify that value so that because it's you know it can be a little nebulous right can it not I mean it's uh but you have to validate you got to quantify at the end of the day because that's what the CEO wants to see it's what the CIO wants to see yeah you've got to identify values so how many how do you do that yeah yeah I mean we we have many different ways right velocity which Andy kind of touched on I think is is really um it's our foundational approach to help customers really kind of enter into their Cloud journey and focus on those key factors for Success right so we've got ISB Solutions built in there We've Got Talent and change built in we've got kind of what we're calling the fabric right that foundational technology layer and giving our customers all of that in a way that they can consume in a way that they can control and you know different modules essentially that they can leverage to move it's going to be tangible right they're going to be able to see I've now got access to all these things that I need I can move as I need to move and I'm not constantly you know looking around figuring out how to lock it all together we've given them that picture and that road map on how to really leverage this because we we need to be able to point to tangible outcomes and so that's critical yeah proof's got to be in the pudding and and you know to Sarah's point I think sort of we're entering into this sort of new dare I say new chapter of cloud and then you know sort of the first chapter was sort of those outcomes were around cost you know I've moved you into the cloud you can shut down your data center but now we've sort of got other sources of value now Beyond costs there's news new sources of revenue how do I become a platform company on top of the AWS cloud and then you know eke out new Revenue sources for myself how do I drive new experiences for my customers yeah um how do I maybe tap into the sustainability angle of things and how do I get greater Innovation from my talent how do I operate better in a Sarah said how do I become more Nimble more agile and more responsive to Market demands and so all those areas all those Dynamics all those outcomes are sources of value that were sort of really laser focused on and just ensuring that as a partnership we we help our clients on that Journey so what do you do about talent I mean you brought it up a couple of times UTP has um in terms of of training retaining recruiting all those key elements right now it's an ultra competitive environment right now yeah and there might be a little bit of a talent Gap in terms of what we're producing right so um you know how do you I guess make the most out of that and and make sure you keep the good people around yeah Talent is an interesting one John um and we were just touching on this uh before we got here um you know sort of from an Accenture standpoint um we're obviously focused on growing our AWS Talent um we've now got I think it's north of 27 000 people in Accenture with AWS certifications north of 34 000 certificates you know which is absolutely fantastic a small City it's just I mean it is very intentional in building that um as AWS rolls out new Services Adam touched on a whole bunch of them today we're at the core of that and ramping and building our talent so that we can drive and get our clients quicker to their value and then the second area of focus is what do we do to help our clients Talent how do we train them how do we enable them how do we you know get them to be more agile and you know being able to sort of operate in what we call that digital core operate in the cloud how do we do that and so we're focused um in in capabilities in fact our Accenture head of talent and people and change Christie Smith John is is here this week just for that and we're exploring ways in which we can get tighter and even more Innovative Around Talent and so I ultimately that that bleeds over to where the partnership goes right because if you can enhance that side of it then then everybody wins on that in terms of what you think you know where this is going yeah yeah it's already you know pretty good setup uh things are working pretty well but as the industry changes so rapidly and and you have to meet those needs how do you see the partnership evolving as well to meet those needs down the road we we have a very fortunate position in that our CEOs are both very engaged in this partnership and they push us think bigger go faster figure it out let's ride and there are definite pros and cons and some days I'm flying this close to the Sun but um it isn't a it's an absolute privilege to work with them the way that we get to and so we're always looking I mean Auntie said it earlier this is the relationship that helps us look around corners we've raised the bar and so we're constantly pushing each other pushing our teams just innovating together thinking it all through on where are we going and like I said reading those tea leaves reading those themes from our customers like hey we've just had five customers with the same similar feeling problem that we're trying to solve or we ran into the same issue in the field and how do we put that together and solve for it because we know it's not just five right we know they're more out there and so um I think you know it's it's leadership principles for us right at Amazon that guiding think big um you know insist on high standards that that'll always be core and Central to who we are and then you know fortunately Accenture has a really similar ethos yeah quick take on that Andy yeah I think as we look out you know I think um we're going to we've already seen but we're going to see this continued blurring of Industries um of um you know sort of clients moving into other Industries and yeah sort of this sort of agitation Market agitation um and so I think disruption you know disruption and and we're being you know focused on what do we need to be to do in order to help our clients on those Journeys and and to continue to you know get them you know faster Solutions is an area that we you know we are um really looking at and these are solutions that are either industry Solutions you'll hear a couple of them this week um you know we've got our insurance solution that we're we've developed as an intelligent underwriting capability leveraging AWS AIML to sort of be intelligent and cognitive um you know we've got other Solutions around the around Industries energy and Life Sciences but then also intelligent applications that might be touching you know areas I think earlier today Adam talked about AWS supply chain and that's an area that we are focused on and and proud to be a part of that and we're working very very closely with with Amazon on that uh to help you know our clients move ahead so I think we're going to see this continued blurring and we're going to obviously you know keep addressing that and just keep iterating well it looks like a relationship of trust and expertise right and it's worked out extremely well and uh if this is any indication where the interview went uh even better things are ahead for the partnership so thank you thank you for chiming in I appreciate your perspectives yeah thank you it's been great we continue our coverage here on thecube we're at re invent 22 we're in Las Vegas and you're watching thecube the leader in technical coverage foreign

>> Live from San Diego, California It's the queue covering Sisqo live US 2019 Tio by Cisco and its ecosystem. Barker's >> Welcome Back Here in the San Diego Convention Center. I'm student in my co host, David Dante, and you're watching the Cube, the leader in worldwide Tech coverage, and its Sisqo Live 2019 happening. Welcome back to the program. One of our Cuba, Lem's Russ Curie, who is the vice president Enterprise strategy at Net Scout. It's great to see you. Thanks for joining you guys. Thanks for having me. Alright, we always say, we got a bunch of Massachusetts guys that had to fly all the way across the country to talk to each other really well. So a couple hours for the beast hip, all everybody excited. But a lot of excitement here in the definite zone specifically and Sisqo live overall, 28,000 intended you've been to a lot of customer meetings, gives a little insight. What's been your take away from the show so >> far? I think that there's a lot of energy towards the multi cloud called Deployments in general Security. The whole introduction of Umbrella has got a lot of conversation started. It's amazing the amount of cos you see out there talking about just visibility in general, and that's being one of them as well. So it's been a lot of fun. >> Good show this year, Russ. I've been looking for this conversation. We heard from Chuck Robbins in the keynote. He said The network sees a lot of things, and Cisco says they're going to give customers that visibility. Of course, that ties in a lot, too. What Net scouted love, you know, give us. You know, your thoughts on Multi Cloud. How Cisco doing in the space? And how does Net Scout fit into that whole picture? >> Well, I think that one of things as Chuck talks about that, it's the cloud is the one thing, or the network is the one thing that's common for all. Coming along the devices right? I have. If I go into a different cloud, I have one set a performance metrics I might be able to gather about. You look at what device or an operating system. It's all different. But all the communications on the network T C P I. P is common. That really provides that thread that you're able to provide that level of visibility. So it really becomes one of those things that the network is a unique place to gain perspective on both the performance in the security that we're delivering to our customers. So can >> you just summarize the problem that Net Scout solves for our audience? Sure, I think that primarily it's one of these situations where I've been my own prime environment. It was pretty easy. I had access to everything. I could see what was going on. Quite readily. I started introduced visual ization and now traffic start to move much more East West and became a problem for folks. I think can Cisco recently said 85% of the traffic there seeing on the network is East West traffic, right? And then we moved to the cloud, and it's even more obvious gay that I can't see anything in new ways of network traffic. There typically live in clover and desert starting to address that, but really being able to gain that level of visibility so you can understand exactly what's happening just gaining that perspective. So let's explain it. >> I'm going to stay with the East West north seven metaphor. Why is it easier to get visibility in a column? >> Then? It is a row, I think, because in a column is everything exploding north and self. So you've got everything right there, and usually you have a place where you can look into it. But when you're flat, it starts to become really different you're looking at. But advice is talking to know the devices that don't necessarily have to traverse any part of the network it. Khun, stay within. Ah, hi provides, for example, so providing solutions lawyer game visibility into that environment is really important and the protocols that we use their change a bit so traditional tools don't necessarily fit well. So what's the general solution to >> solving that problem? And then I want to understand the Net Scouts secret sauce. But let's stop. Let's start of high level. How does the industry solved that problem? So the industry >> has been trying to solve that problem mostly by looking at the goodwill of third parties, looking at things like net blower, log events and aggregating that normalizing it. You've had solution sets that looked at network traffic, but it becomes very difficult for a lot of folks to make use of that network traffic, and what we've done is really provide the ability to look into that network. Traffic and gain gather from really anywhere it's deployed whether it's public loud, private cloud, our solution said, That's our secret sauce. Our solution. Second go anyway. >> So so add some color to that in terms of your able to inspect deeper through what just magic software you got. You got a pro you send in so >> well. Actually, we have a device. It's called a SNG, and in the virtual world we use something that we call be stream. In the physical world, we have some that we call in Finnish Stream N. G. And that leverage is a technology that we've developed, called Sai, which is adaptive service intelligence and well, also do is watch all that traffic and build meta data in real time so we can surface key indicators of performance and security events. Get that information up into a collection mechanism that doesn't have to normalize that data. It just looks at it as is way. Build it into a service Contact services context laws uses to see across a multi cloud environment in a single pane of glass. Okay, so one of >> the biggest challenges for customers is that they're changing these environment. It's what happens. Their applications, you know, applications used to be rather self contained. Even the bm They might have moved some, but now we're talking about, you know, micro services, architecture, multi cloud environment. There's there's a lot going on there, you know? What's the impact on that for your world, >> Right? That's been exactly it. Weigh three tier application was kind of pretty straight forward, even though at the point we started introducing, we thought that was a really tough stuff. Now what we're doing, as you say, it's doing micro services architectures, and I might take my presentation layer and put out in the cloud and the public cloud in particular. So I'm closer to the UN user and delivering better high performance capabilities to them lower lately, Auntie and the like and I take my application server and I split that up all over the place, and I might put some in public. Claude. I might put some in private club. I maintain some of it in the legacy. So all that interconnection, all that independency is really, really hard to get your hands around and that complexity. We looked at the street study that said 94% of the 600 respondents said that the the networks are as complex or more complex than they have been two years ago. >> Yeah, that's not surprising, unfortunately to hear that, but you know, when we talk to customers out there, it used to be, you know, the network is something You set it up. You turned all your knobs and then don't breathe on this thing because I've got a just where I want today. It can't be like that. You know, I I we know that it's very dynamic has changed. The message from Cisco has been We need to simplify things and, you know, obviously everybody wants that. But how do you make sure you ensure that application, performance and security, without having the poor admit, have to constantly, you know, be getting tickets in dealing with things >> I think are Solution really provides a common framework for visibility, and that's really what I think is really important. When you're starting to infer based upon different data sets, it becomes very difficult to put your finger on the problem and identified. That's really a problem. And it's trying to blend the organization. Let's sit this concept of the versatile list and trying to make sure that people are more capable in addressing problems in kind of a multi dimensional role that they have now in particular network and security. The organizations, they're trying to come together, God, they rely on different data sense, and that's where it kind of falls apart. If you have a common day to say, you're going to have a better perspective, Okay, >> I was just a front from that application standpoint. How much of this is just giving notification to invisibility? Intuit vs, you know? Is it giving recommendations or even taking actions along those lines? >> Yeah, I think it has. It has to give you recommendations and has to give you pinpoints. You really? You've got to be able to say there here's a problem. This is what you need to do to fix it right? I think what often when I'm talking to folks, I say it's about getting the right information to the right person at the right time to do the right thing If you're able to do that, you're going to be much more effective. Yes. OK, so you've got this early warning system, essentially, hopefully not a tulip. But that's what practitioners want. Tell me something. Tell me. Give me a a gap and tell me the action to take before something goes wrong. Ideally. And so you could do that. You could give them visibility on it, Kind of pinpoint it. And do you see the day, Russ, where you can use machine intelligence toe as Stuart suggesting start to maybe suggest remedial action or even take remedial action? Oh, absolutely. I mean, there are some things that you can really do and do quite well. Walking for security events, for example, is the primary one. We've always had the ideas in place in the early days, a lot of folks who are cautious because they wanted to have a negative impact on the business. But when we take a look at ex filtration and blocking outbound connections, if you know the bad actors and you know the bad addresses, you can stop that before it gets out of your network. So people aren't gonna have that X illustration of your information. >> All right. So, Russ, you've been meeting with a bunch of customers here at the show, What's top of mind for them And if some of the conversation I've been having this week, you know, security, you know, has been climbing that that list for many years now. But in your world, what are some of the top issues? >> Yeah, security, definitely. There's no question. I think it's one of those environments where you can almost never have enough. There is always hungry more and more and better and more accurate solutions. I I think I saw something recently. There was a top 125 security solutions that's like top 120 times really way. Doyle The Town 25 Exactly. And I think I D. C's taxonomy has 73 sub categories to the security. So security is, you know, more than a $500 word. You know, it might be a $5,000 word. It's crazy and same with club, right, because it's not like, you know, in fact, I was talking to someone recently, and it's with the club village Go. It's not a club village. A more This is everything we're doing is the cloud. So it's change in mindset. So it's It's interesting as a cloud universe. So what's next for Net Scout, you know, give us a little road map? What Khun observers expect coming from you guys more significant, pushing the security in particular. One of things we see is that our data set really has the ability to be leverage for both security and performance work. Load sport floats were integrating the products that we bought with the Harbour acquisition we bought over networks. And they have a highly curated threat intelligence feed that we're going to bring in and add to our infinite streams and have the ability to detect problems deep inside the network. You know, it's one of these things the bad actors kind of live off the land. They get in there and they know their way around slowly and methodically and drought dribble information. No. Well, the only way to catch that is like continually monitoring the network. So having that perspective so continuing to grow that out and provide again more of that, eh? I aml approach to understanding and be more predictive when we see things and be able to surf. It's that type of information. Security already used to be activists. And now it's become, you know, high crime even. Yeah, even, you know, nation states, right. And the job of ah of a security technology company is to raise the cost, lower the value right to the hacker, right to the infiltrator so that they go somewhere else. All right. Hey, make it really expensive for them. So either get through. But we ve what's like you get through, make it really hard for them to take stuff out. And that's really what you're doing. >> It was like you made sure to lock the front door now because it stopped them. But, you know, maybe I'll go somewhere else, right? It's a little bit >> different. Preventing you wanna minimize your risk, right? So if you're able to minimize the risk from performance and security problems, it's really all about understanding what you've got, what your assets are protecting them. And then when that someone's trying to look at them stopping it from happening, >> OK, last question I have for you, Russ, is being in this Cisco ecosystem out there. We're watching Cisco go through a transformation become more and more software company now, four years into the Chuckle Robin's era. So you know, how's that going in? What's it mean to partner Francisco today? >> It's going really well, and I think that we adopted a lot of way or adopted a lot of what the Sisko has done as well and really transform Nets go from what was primarily a hardware first company into a software first company. You know, it's kind of I was in a conference once and we were talking about software eating the world, right and but ultimately, its hardware. That's doing the chewing right. So I think it's one of those balancing acts. You know, it's Cisco's still of selling a ton of hardware, but it's a software solution sets so they deploy on their hardware. That makes it happen. And it's similar for us. You know, we're building out software solutions that really address the issues that people have building all these complex environments. All right, >> Russ Curie, congratulations on all the progress there and look forward to keeping up with how Netscape's moving forward in this multi cloud world. Thank you. All right, we'll be back with lots more coverage here from Cisco Live, San Diego for David Dante Obst Amendment. Lisa Martin's also here. Thanks, as always, for watching the Cube.

>> live from London, England. It's the queue covering a ws summat. London twenty nineteen, Brought to you by Amazon Web services, >> come to the A. W s summit in London's Excel Center. I'm Susanna Street, and David Aunty is my co host today on the Cube. This means so much to talk about here at the summit today to do with machine learning and a I. And I'm really pleased to say that we have to really key people here to discuss this. We've got time. Tom Summerfield, who is head off commerce, a foot asylum on also Richard Potter, who is the CEO of Peak. Now you guys have really formed a partnership. Haven't you put asylum? Is a leisure wear really? Retailer started in bricks and mortar stores. Really moved online on Peak is a pioneer for artificial intelligence. System's really well to get together. What What sparked? Really your demands. Ready for their services, Tom. >> Yeah, well, so way knew that we needed to be doing something with data on A and we didn't really know exactly what it would be Way were interested in personalization, but then also in a bigger picture, like a wider digital transformation piece for the business where well established bricks, a martyr business, but then a fast growing online business. And we're interested to know how way could harness the momentum of the stores to help the digital side of the business and also vice versa. On we thought data would be the key, and we ended up having a conversation with the guys at Peak, and that's exactly what we've been able to do. Actually, on the back of that deliver, we're delivering a hyper personal experience for our consumers Now. >> I was one of the statue that I notice when looking into what you be doing, a twenty percent increase in email revenue. So that's quite remarkable, Really. So Richard, tell us, you know how you're able to do this? What kind of services that you lean on? T make those kind of result. >> It's a combination of a lot of things, really. You know, you obviously need people who know what they're doing from a returning a business perspective. Married with technical experts, data science algorithms, data. Um, I think specifically how we've done it is a pig's built, a fairly unique A I system that becomes almost like the central brain within our customers. Businesses on off that algorithms help automate certain business processes and deliver tangible uplifts in business performance like the twenty eight percent uplifting sales here, Um, in order to do it. So it's quite a long journey, I suppose. The outlook we took when we started collaborating was was that if we could deliver that hyper personalized shopping experience, we were always going to be ableto show customers the right product at the right time. And if we were doing that that we would lead Toa High brand engagement, higher loyalty higher on higher lifetime values of customers. And that's and that's what's shown to be the case in silent example. >> Yeah, definitely that echo that. You know that the high profits hypothesis wass If you can show the right custom of the right product at the right time, then their purchase frequency average order Volumetrics all start to move positively and ultimately than affecting their long term engagement with our brand, which increases revenue on also delivers a more, you know, a frictionless consumer experience, hopefully for the customer, >> because I suppose your experience is the same. So many companies out there they're sitting on this huge pile of data, yet they don't know how to best optimize that data. When did you first realize, Richard that there was this kind of gap in the market for Pete to grow? >> Yeah, I think data and analytics have come on a bit of a journey away from common sense reporting tio more advanced analytics. But when you get a I and machine learning what you're talking about, his algorithms being our self learning make predictions about things that actually fundamentally changes the way businesses can operate on DH. And in this case, a great example is you know, we're sending hyper personalized marketing communications, Teo, every single for silent customer. They don't realize necessarily that they are tailored to them, but they just become more relevant. But it doesn't require a digital marketing to create every single one of those campaigns or emails and even trigger the sending of those materials. Brain takes care of that. It can automate it. And what the marketer needs to do is it's faded, engaging content and set up digital campaigns. And then and then and then you're left with this capability where eyes saying you might be a market for this product. Let's let's send you something that might appeal to you on DH that just gives that gives a marketing team scale. And then, as we move into other use cases like in the supply chain for film and delivery of product the same thing the team's just get huge scale out of letting algorithms do those things for them. Andi, I suppose the realization for us that there was that gap in the market was just that you can see the out performance of certain cos you can see that Amazon attributes five percent of their sales to their machine learning recommendation systems. I think Netflix says eighty five percent of all content is consumed >> because it's Al Burns. Andi. Companies >> like that can harness machine learning to such a great degree. How does how did howto other businesses do it? Who can't access that talent pool of Silicon Valley or along the global? You know, the global talent leaders in tech and that's that's where we had the insight that his peak way could create a company that gave our custom is that that technology and that capability Teo deliver that same kind results that the Amazon and Netflix >> so before the Internet brand's had all the power you could price however you wanted if you overprice, nobody even even knew. And the Internet was sort of like the revenge of the consumer. Aye, aye, And data now gives the brands the ability to learn more about its customers. But you have to be somewhat careful, don't you? Because their privacy concerns obviously DPR etcetera. So you have to have a value proposition for the customer, as you were saying, which they made are you know that machine is providing these offers, but they get value out of it. So how do you guys think about that in terms of experience for the customer? And how do you draw that balance? >> I think from my angle, that Richard touch on a couple of bits there to do it scale first and foremost across the entire alarm on Thai network of consumers is killer element to it. But to deliver that personal experience, I think consumers nowadays are so they're more expectant of this. Really. We would have considered it innovation a couple of years ago, but now actually it's expected, I think, from the consumer. So it's actually in the name ofthe You have to move forward to stand still. So but way think where we're right at the front of this at the moment. And we're really looking now how we optimize the journey for the consumer so that actually we know if we're from some transactional data that we have in a little bit of over behavioral data that, you know, we're really conscious of the whole GDP, our peace and stuff, and that's really, really relevant and super important. Andi, I'm pleased to say that you know, we have that. We know that by a peek, it's completely on lock down from that perspective as >> well. Where did the data's where the data source of comfort. You mentioned some transaction data. Where is the other day to come from using show social data and behavioral data? Where does that come? >> So those elements of social data, some of it is a little bit black box. You can't always access it, and that's a GDP, our peace there, and rightly so. Actually, in some cases we have a loyalty scheme which allows us to understand our Kashima's better in our bricks and mortar retail, which is really cool that we've got some of that transactional data on a customer level from the stars. We know that some people in our sector maybe don't have that, so that so that allows us to complete sort of single customer view, which then we can aggregate in peaks brain, then transaction data on the website in the app and bits off browsing, you know, just within our own network. You know where customs potentially being and reacted with somethin. A piece of content. Janet within the website, that's that's how we build that view. >> Do you think this is the way that more bricks and more two stores Khun survive? Because so many are closing in high streets up down the UK and in other countries because simply they're not really delivering what the customer wants? >> Yeah, I think so. We rich now. Both feel quite strongly now that wear so onto this now a little bit. It's a really As as our relationship for the two businesses has evolved, it's become clearer and clearer that actually we've armed with this. You know this data, our fingertips, we can actually breathe fresh life into the stores, and it's in the eye of proper true Omnichannel retailing way. Don't mind where the cost consumer spends the money. We just need to be always on in a connected environment so that A Z said before pushing the right product at the right time. And when they're when they're in market, we turn up the mark the message a little bit. But then understanding when they're not in market and maybe to back off him and maybe we warn them what with a little bit of a different type of message then and actually we're trapped with one challenge ourselves to send but less better marketing communications to our consumers. But absolutely that store piece is now, so we tail back. Our store opening strategy is a business to focus more on the digital side of things, but now it's possible that way might open some more stores now, but it will be with a more reform strategy of wet, wet where, why we need to do that? >> Isn't this ironic? The brick and mortar marketplaces getting disrupted by online retailers, obviously Amazons, that big whale in the marketplace, and your answer to that is to use Amazons, cloud services and artificial intelligence to pave the way for your future. Yeah, I mean, that's astounding when you think about >> me. Yeah, this sort of unified commerce approach, Tio, you know, there's a place in the world for shops. It's like it's not Romance isn't completely dead and going shopping. It turns out, you know so on. Actually, yeah, we're using honesty in the eight of us, but we'LL hire our friends at Peak. Yeah, it's it's some irony there. I think it's really cool. >> And that decision that you made obviously wasn't made made lightly. But you saw the advantages of working with the clouds outweighing the potential trade offs of competition. >> Yeah, I mean, that's not that was never really, really no, I'm certainly not know. I think this is something that is happening, that data, and on harnessing it in a safe, responsible, effective way, I believe, is the future of all commerce. So >> that as far as security is concerned because, of course, we have had data breaches your customers, credit card details, access. How do you ensure that it's as secure as possible in the way that you you you choose the services I think >> that come that just comes down to best practice infrastructure on the way we look at it, a peak is there's no bear tools in the world to do that, then the same technologies that Amazon themselves use. It's to do with how you configure those services until ls to make it secure, you know, And if you have an unsecure open database on a public network, of course that's not secure. But you could have the same thing in your own infrastructure, and it wouldn't be secure. So I think the way we look at it is exactly the same thing on actually, being in the Amazon prime for us gives us a greater comfort, particularly in terms of co location of date centers and like making sure that our application fails over into different locations. It gives us infrastructure we couldn't afford otherwise, and then on top of that, we get all these extra pieces of technology that can make us even more secure than we could do. Otherwise we'd have to wait, have to employ an army of infrastructure engineers, and we don't have to do that because we run on Yes. >> Okay, so we were able to eliminate all that heavy lifting. That same goes. You've got this corpus of data. I'm interested in how long it took to get through. A POC trained the models how much data science was involved. How much of a heavy lift was that? Yeah, well, I think for >> us we better be pretty rapid. Actually, we started working together in January last year, so we're only just sort of year into that. >> And in that faith in that entire >> sofa length of of our relationship, we've gone from high for personalizing digital campaigns to recommendation systems on a website to now optimizing customer acquisition on social media and then finally into the supply chain and optimizing demand and so on it. And I think there's >> a lot of reasons >> why we've been able to do it quickly. But that's fundamental to the technologies that the peak is built. There's two. There's two sides to it. Our technologies cut out a lot of the friction so way didn't run a proof of concept. We were able to just pick it up, run with it and deliver value. And that's to do with I think, the product that peak is built. But then you obviously need a a customer who's who's going on a transformation journey and is hungry to make that make that stick in London on. Then when the two come together, >> I think that it's an interesting point that, though, because while suite for asylum, we always I always say it's that we're not. We're not massive, but we're not tiny, but it's the sort place you Khun turn upon a Monday and say, I've had an idea about something and we're not doing it by Friday. That's That's a nice, agile culture. It can create some drama as well. Possibly. I think it's really straightforward to get straight into it. And I think this is where some of the bigger, um, sleepier high street retailers that Amar, fixed in a in a brick from our world, needs to not be too afraid to come out and start embracing it, because I think some of them are trying now. I think it might be a little bit late for some now, but it's just it's just it just wasn't that hard really to get going >> and you've seen the business results, can you share any measurements? or quantification. We've >> got a really a really good one that we're just talking about at the moment. Actually, Way were able to use segmentation tools within within the peak brain Teo to use them on Social than Teo. Create lookalike audiences. So Facebook Custom tools, Right? We'LL help you create audiences that it thinks you're the right buyer. It's complex algorithms itself, but we almost took a leap ahead of their algorithms by fire, our algorithms uploading our own segments to create a more sophisticated lookalike audience. We produced a row US results or return on that spend. People are not familiar with that of eight thousand four hundred percent, which Wei would normally be happy as a business, we've sort of seven, eight hundred percent. If you're running that that we've say on AdWords campaign or something like that, that's quite efficient campaign. So it's at zero. We were a bit like it felt like it's a mistake that, you >> know that is >> not the right, >> Yeah, but not so that's super cool. And that's really that's really opened our eyes to the potential of punishing that the, you know, our sort of piquet I brain to then bring it onto Social on. Do more outward. Advertise on there. >> So moving the goal post meant that your teeth are really high school. Thank you. Thank you very much for telling us all about that time someone feels on which floor. Sir. Thank you for joining me and David Auntie here at the eight of US Summit in London. Merchant to come on the King.

>> live from London, England. Q. Covering A Ws summat. London twenty nineteen Brought to you by Amazon Web services >> to the A. W s Summit in London's Excel Center home. Susanna Street and David is my co host today on the Cube. They mean so much to talk about here at the summit today to do with machine learning an A I and I'm really pleased to say that we have to really key people here to discuss this. But we've got some Tom Summerfield who is head off commerce, a foot asylum on also Richard Potter, who is the CEO of Peak. Now, you guys have really formed a partnership, haven't you? Foots asylum is a leisure wear really. Retailer started in bricks and mortar stores. Really moved online on Peak has been a pioneer for artificial intelligence systems really well to get together. What what comes? Sparked Really your demands ready for their services, Tom? >> Yeah, well, so way knew that we needed to be doing something with data on A and we didn't really know exactly what it would be way were interested in personalization, but then also in a bigger picture, like a wider digital transformation piece for the business where well established bricks, a martyr business but a fast grow in online business. And we're interested to know how we could harness the momentum of the stores to help the digital side of the business and also vice versa. On we thought data would be the key, and we ended up having a conversation with the guys at Peak, and that's exactly what we've been able to do. Actually, on the back of that deliver, we're delivering a hyper personal experience for our consumers Now. >> I was one of the statue that I notice when looking into what you be doing, a twenty percent increase in email revenue. So that's quite remarkable, really. So Richard, tell us you how you're able to do this. What kind of services that you lean on? T make those kind of result. >> It's a combination of a lot of things, really. You know, you obviously need people who know what they're doing from a returning a business perspective. Married with technical experts, data science algorithms, data, I think specifically how we've done is picks built a fairly unique A I system that becomes almost like the central brain within our customers businesses on off that algorithms help automate certain business processes and deliver tangible uplifts in business performance like the twenty eight percent up lift in sales here, Um, in order to do it. So it's quite a long journey, I suppose. The outlook we took when we started collaborating was was that if we could deliver that hyper personalized shopping experience, we were always going to be ableto show customers the right product at the right time. And if we were doing that that we would lead Tio Hi brand engagement, higher loyalty, higher on higher lifetime values of customers. And that's and that's what's shown to be the case in a silent example. >> Yeah, definitely that echo that. You know that the hypothesis hypothesis, wass. If you can show the right custom of the right product at the right time, then their purchase frequency average order Volumetrics all starts move positively and ultimately than affecting their long term engagement with our brand, which increases revenue on also delivers a more, you know, a frictionless consumer experience, hopefully for the customer, >> because I suppose your experience is the same. So many companies out there they're sitting on this huge pile of data, yet they don't know how to best optimize that data. When did you first realize, Richard that there was this kind of gap in the market for Pete to grow? >> Yeah. I think data and analytics have come on a bit of a journey away from common sense reporting Thio more advanced analytics. But when you get a I and machine learning what you're talking about, his algorithms being our self learning make predictions about things, and that actually fundamentally changes the way businesses can operate on DH. And in this case, a great example is you know, we're sending hyper personalized marketing communications, Teo every single foot silent customer. Um, they don't realize necessarily that they are tailored to them, but they just become more relevant. But it doesn't require a digital marketed to create every single one of those campaign or emails and even triggered the sending of those materials. The brain takes care of that. It can automate it. And what the marketer needs to do is feed it engaging content and set up digital campaigns. And then and then and then you're left with this capability where eyes saying you might be a market for this product. Let's let's send you something that might appeal to you on DH that just gives that gives a marketing team scale. And then, as we move into other use cases like in the supply chain for film and delivery of product the same thing that teams just get huge scale out of letting algorithms do those things for them. Andi, I suppose the realization for us that there was that gap in the market was just that you can see the out performance of certain cos you can see that Amazon attributes thirty five percent of their sales to their machine learning recommendation systems. I think Netflix says eighty five percent of all content is consumed >> in prison. It's Al Burns. Andi. Companies >> like that can harness machine learning to such a great degree. How does how do you know howto other businesses do it? Who can't access that talent pool of Silicon Valley or along the global? You know, the global talent leaders in tech and that's that's what we have. The insight that is Peak Way could create a company that gave our system is the that technology and that capability Teo deliver that same kind results that the Amazon and Netflix >> So before the Internet Yeah. Brand's had all the power you could price however you wanted if you overprice, nobody even even knew. And the Internet was sort of like the revenge of the consumer. Aye, aye. And data. How gives the brands the ability to learn more about its customers. But you have to be somewhat careful, don't you? Because your privacy concerns, obviously. Gpr etcetera. So you have to have a value proposition for the customer, as you were saying, which they may not even know that machine is providing these offers. Yeah, but they get value out of it. So how do you guys think about that in terms of experience for the customer? And how do you draw that balance? >> I think from my angle that Richard touch on a couple of bits there to do it scale first and foremost across the entire all on on Thai network of consumers is killer element to it. But to deliver that personal experience, I think consumers nowadays are so they're more expectant of this. Really? We would have considered it innovation a couple of years ago, but now Actually, it's expected, I think, from the consumer. So it's actually in the name ofthe You have to move forward to stand still. So but way Think we're We're right at the front of this at the moment. And we're really looking now how we optimize the journey for the consumer so that actually we know if we're from Simpson transactional data that we have in a little bit of over behavioral data that, you know, we're really conscious of the whole GDP, our peace and stuff, and that's really, really relevant and super important. Andi, I'm pleased to say that you know, we have that backed by a peek. It's completely on lock down from that perspective as >> well. Where do the data's where the data source of comfort. You mentioned some transaction data. Where is the other data come from? Using show social data and behavioral data? Where does that come >> with these elements of social data? Some of it is a little bit black box, so you can always access it. And that's the GPR piece there. And rightly so. Actually, in some cases we have a loyalty scheme which allows us to understand our Kashima's better in our bricks and mortar retail, which is really cool that we've got some of that transactional data on a customer level from the store's way know that some people in our sector maybe don't have that, so that so that allows us to complete sort of single customer view, which then we can aggregate in peaks brain, then transaction data on the website in the app and bits off browsing, you know, just within our own network. But you know where customers potentially being and reactive of somethin, a piece of content on journeys within the website, That's that's how we build that view. >> Do you think this is the way that more bricks and more two stores Khun survive? Because so many are closing in high streets up down that you can in other countries, because simply they're not really delivering what the customer wants? >> Yeah, I think so. Rich Now, both feel quite strongly now that wear something to this now a little bit. It's a really As as our relationship for the two businesses has evolved, it's become clearer and clearer that actually we've armed with this. You know this data, our fingertips, we can actually breathe fresh life into the stores, and it's in the eye of proper true omnichannel retailing way. Don't mind where the cost consumer spends the money. We just need to be always on in a connected environment. So that way said before pushing the right product at the right time. And when that when they're in market, we turn up the mark the message a little bit. But then understanding when they're not in market and maybe to back off him and maybe we warn them what with a little bit of a different type of message then and actually we're trapped would want to challenge ourselves to send but less better marketing communications to our consumers. But absolutely that store piece is now, so we tail back. Our store opening strategy is a business to focus more on the digital side of things, but now it's possible that way might open some more stores now, but it will be with a more reform strategy of wet, wet where, why we need to do that? >> Isn't this ironic? The brick and mortar marketplaces getting disrupted by online retailers, obviously Amazons, that big whale in the marketplace and your answer to that is to use Amazon's cloud services and artificial intelligence to pave the way for your future. Yeah, I mean, that's astounding when you think about >> coming. >> Yeah, sort of unified commerce approach, Tio. You know, there's a place in the world for shops. It's like it's not Romance isn't completely dead and going shopping Friends out, you know so on. Actually, yeah, we're using honest in the eight of us, but we'LL hire our friends at Peak. Yeah, it's it's some irony there. I think it's really cool. >> And that decision that you made obviously made made lightly. But you saw the advantages of working with the clouds outweighing the potential trade offs of competition. >> Yeah, I mean, that's not that was never really, really no, I'm certainly not know. I think this is something that is happening, that data, and on harnessing it in a in a safe, responsible, effective way, I believe, is the future of all commerce. So >> that as far as security is concerned because, of course, we have had data breaches. Yeah, customers, credit card details, access. How do you ensure that it's as secure as possible in the way that you you you choose the services. I think >> that come that just comes down to best practice infrastructure on the way we look at it, a peak is there's no bear tools in the world to do that, then the same technologies that Amazon themselves use. It's to do with how you configure those services until ls to make it secure. You know, if you have an unsecure open database on a public network, of course that's not secure. But you could have the same thing in your own infrastructure, and it wouldn't be secure. So I think the way we look at it is exactly the same thing on actually, being in the Amazon plan for us gives us a greater comfort, particularly in terms of co location of data centres, like making sure that our application fails over into different locations. It gives us infrastructure we couldn't afford otherwise, and then on top of that, we get all these extra pieces of technology that can make us even more secure than we could do. Otherwise we'd have to wait, have to employ an army of infrastructure engineers, and we don't have to do that because we run on Yes, >> okay, so we were able to eliminate all that heavy lifting. Same goes. You've got this corpus of data. I'm interested in how long it took to get through. A POC trained the models how much data science was involved. How much of a heavy lift was that? Yeah, well, I think for us >> we better be pretty rapid. Actually, we start working together in January last year, so we're only just sort of year into that. >> And in that faith in that entire >> sofa length of of our relationship, we've gone from high for personalizing digital campaigns to recommendation systems on a website to now optimizing customer acquisition on social media and then finally into the supply chain and optimizing demand. And so on and on. I think there's a lot of reasons why we've been able to do it quickly, but that's fundamental to the technologies that that peak is built. There's two. There's two sides to it. Our technologies cut out a lot of the friction so way didn't run a proof of concept. We were able to just pick it up, run with it and deliver value. And that's to do with I think, the product that peak is built. But then you obviously need a a customer who's who's going on a transformation journey and is hungry to make that make that stick in London on. Then when the two come together, >> I think that it's an interesting point that, though, because while suite for asylum, we always I always say it's that we're not. We're not massive, but we're not tiny, but it's the sort place you Khun turn upon a Monday and say, I've had an idea about something and we're not doing it by Friday. That's That's a nice, agile culture. It can create some drama as well. Possibly. I think it's really straightforward to get straight into it. And I think this is where some of the bigger, um, sleepier high street retailers that Amar fixed in a in a brick Samara world need to not be too afraid to come out and start embracing it. Because I think some of them are trying now. I think it might be a little bit late for some now, but it's it was just it was just wasn't that hard really to get going here >> and you've seen the business results. Can you share any measurements or quantification. We've >> got a really a really good one that we're just talking about at the moment. Actually, Way were able to use segmentation tools within within the peak brain, too to use them on social than Teo. Create lookalike audiences. So Facebook custom tools, right? We'LL help you create audiences that it thinks will be wrapped pirates complex algorithms itself. But we almost took a leap ahead of their algorithms by fire, our algorithms uploading our own segments to create a more sophisticated lookalike audience. We produced a row US results or return on that spend People are not familiar with that of eight thousand four hundred percent which we we would normally be happy as a business. We've sort of seven, eight hundred percent. If you're running that that we've say on AdWords campaign or something like that, that's quite efficient campaign. So it's at zero. We were a bit like it felt like it's a mistake that, you >> know, that is >> not the right Yeah, but not so that's super cool. And that's really that's really opened our eyes to the potential of punishing that the, you know, our sort of piquet I brain to then bring it onto Social on. Do more outward. Advertise on there. >> So moving the goal post meant that your teeth have really high school. Thank you. Thank you very much for telling us all about that time someone feels on Richard for so thank you for joining me and David Auntie here at the age of Lou s summit in London. Merchant to come on the King.

>> live from London, England. It's the queue covering a ws summat. London twenty nineteen Brought to you by Amazon Web services. >> Thiss really is huge, >> isn't it? David >> London is my co star today on the Cube. We're going to be extracting the signal from the noise and there is a lot of noise. Just trying to register. Here was an event in itself, and one guy in the queue with me earlier said, You know, this is like an army of young technologist backing one particular platform, and we've had the main keynote speeches already in the conference hall. There are breakout sessions going on as well as we speak. And in those keynote speeches, it really wants the focus again on Hey I and machine learning and a huge array of services that eight of us now provide. Because, of course, every tech company, every company is a tech company these days. Where do you work in transportation or defense or retail? Let's talk >> about Dave a little bit about a ws and the exponential growth that it's seen over the past two years because it just keeps on getting bigger and you could see testament really out there just so many people here. >> You know, Susannah, when a WS announced its first service in two thousand six, very quietly announced E C, too, which is a computer service. Nobody really paid much attention. But a devious has permanently changed the landscape of the of the technology business. And we're here in London twelve thousand people at a one day summit. I mean, that's his large as many or or larger than most U. S based three day conferences. >> And there are many thousands more watching the life streaming as well, >> right? And when you talk to the people here, they're a division. First of them has builders, and it was interesting to hear some of the key knows this morning talking about some of the innovations that occurred in the UK he obviously UK, very prideful country. The first lights in electric lights work the Savoy Theatre, the Colossus, you know, Code breaker and many, many others. Home computing originated in the UK It so a diverse are connecting that invention and that what they call reinvention. Eight of us talks about his differentiation. The number of regions that it has around the world believe they said twenty one regions, sixty for availability zones, which are little, many regions inside of the regions. In case there's a problem, you can fail over fourteen database services. You know what's happening is all the traditional tea, which is eighty percent of the market place, trying to sort of hang on to their legacy install basis. So they're trying to substantially mimic eight of us. The problem is, eight of us moves faster, has more services, and it's just growing at such a phenomenal rate. >> And it's really kind of bottom up. A CZ. Well, it's so got that head start. So it's learning from its current customers and those it's had in the past, really to find out what new services they want that has his wealth of data ofthe gods to build on it, doesn't it? So every it seems every month it's it's another step ahead. >> Well, the data is critical. Amazon. Is it a dogfight? I always say, for your data with Google and Microsoft and Oracle, they all want your data. Why? Because data is the most valuable resource today, right? People talk about data is the new oil. We think data is more valuable than oil. You could put oil in your car. You can put in your house, but you can't put it in. Both data is reusable in a way that we've never seen a natural resource before. So it's extremely powerful applying machine intelligence to data. So Amazon knows if it can get your data into the cloud and do so cost effectively and deliver services that make you happy and delight you that they have a perpetual business model that's really unbeatable. The company now is at a thirty billion dollars run rate, growing at a constant currency rate of forty two percent per year. No people will say, Well, well, Microsoft is going faster. Microsoft is growing at seventy two percent here, but it's a much, much smaller base we're talking about single digit, a few billion versus thirty billion. So Amazon each year is growing at a nine to ten billion dollars incremental rate. Even more importantly, the operating income is phenomenal. I mean, a WS is only twelve percent of Amazon's revenue, but it accounts for fifty percent of its operating income. Hey, Ws is operating income is is in the high twenties, twenty eight twenty nine percent higher than Cisco, higher than AMC when it when he had seen was a public company. And those air very profitable companies the only companies that are more profitable on a percentage basis that that Amazon a pure place, software companies like an oracle. So Amazon, who's an infrastructure company, is as profitable almost as a software company. It's astounding, >> really interesting to see some of the partners that were invited on. It's about the keynote speeches. For example, Saint spreads so real traditional retailer at a prompter state that they'd be in the business for one hundred fifty years and some would say in many ways a competitive toe. Amazon at marketplace because they sell a vast array of goods and services to the customers. But they talked about how they're using around eighty eight WS services. It's always like a kind of a pic, a mix sweet shop. Or, as you would say, a candy store isn't and I think that's that's some of the benefits that some customers view for A W. S. Some would say, actually, I would prefer all of my product be in one place or the car that access and services in one place. And so is this pick a mix idea that I think really is taking off, isn't it? >> I'm glad you brought up the state's very example because, essentially, in a way, they are in adjacent competitors Teo, eight, of us. And yet they've chosen to put their data. And there's in leverage Amazon services. It's like Netflix. Everybody uses Netflix as the example. I mean, they compete vigorously with with Amazon Prime Video, and yet they choose to run in the age of U. S code. Now this is one of the areas where you heard at the Google Cloud next show a lot of talk about retail companies, you know, considering using Google, because, of course, they're concerned about Amazon eating their lunch. And so it's a hard decision for retail companies to make. Sainsbury obviously has said OK, we can compete. We have a unique advantage with Amazon retail, you know, but it's something worth watching for sure, because, you know, Walmart obviously doesn't wantto run in the eight of us Cloud because it's it's fearful. Ah, at the same time, Amazon would tell you, Auntie Jessie offenses look. There's a brick wall between eight of us and the retail side. We don't share data, so it's just a matter of that. Trade off is the risk of running in a ws er and potentially running at a competitors sight worth the extra value that you get out of the services. And that's what the market has to decide, >> yet certainly does interesting as well. We had the Department of Justice on the UK Department of Justice because they're has beans real concerned about security, about putting all your eggs in one basket effectively put a your data into a club no operated by you. And it does, though seem is, though little by little, some of those security fears are being laid up. Play >> well, there was this. The seminal moment in a WS. His history was in two thousand thirteen, when it won the CIA CIA contract who was more security conscious than the CIA. And they beat Big Blue IBM for that contract way back in two thousand thirteen, and the analysis that came out of that because IBM contested that contract. What came out of that was information that suggested that eight of us said the far superior solution forced IBM to go spend two billion dollars on a company called Software to actually get into the public Cloud does. It couldn't really compete with its own sets of services, and since that, Amazon has only accelerated its lead. IBM, of course, has a public cloud, and it's competitive in its own right. But the point is that the CIA determined that security the cloud was better than it could do on Prem. Now you're seeing the big battle for the Jet I contract Joint Enterprise Defensive Initiative. It's the biggest story in DC Amazon is the front runner. It's down the Amazon and Microsoft. Not surprisingly, Oracle has contested that because the government uses these sources from multiple suppliers and there's contesting it, saying, Hey, that's not fair to use one cloud. When a vendor contests Abid, a lot of information comes out. The General Accountability Office and the D. O. D determined that a single cloud was more secure, more reliable, more cost effective and less complex to run. So this is big debate around multi cloud versus single cloud. And again, Amazon continues to lead in the marketplace and in many many instances, is winning >> on DH. There were a few comments made in certainly one of the key notes today, trying to kind of blow the competition out of the water again knows whether a few specific references, in fact, to Oracle and Microsoft >> were right. And so they called the database freedom they had hashtag database freedom again. As they say, Microsoft, IBM, Oracle, Amazon, they're in a fight for your data. That's why Oracle has launched fourteen database services. Now it's not trivial. So Sainsbury and the Ministry of Justice both talked about moving Oracle databases into the eight of us Cloud. It's not trivial. It's much easier for data warehouse and stateless applications for online transaction processing. Things like banking much, much more difficult to migrate into the clouds. So it's interesting. Sainsbury talked about racquets stands for a really application close. There's a very high end, complicated Oracle database that they migrated to Aurora. The Ministry of Justice talked about moving Oracle in tow. RGS, this is a battle I tweeted today earlier, Susana, you pick up the Wall Street Journal is a quarter page ad on the front page. Cut your Amazon bill in half now, of course, what? Oracle doesn't tell you is that they date to X the price when you're running on or on Amazon versus Oracle. So they're playing pricing games. Having said that organism very good database, the best database in the industry, the most reliable. So for mission critical applications, Oracle continues to be the leader. However, Oracle, strong arms people, they'LL, they'LL raise prices, they'LL get you in a headlock and do audits. And that's what Amazon was referring today about Microsoft and Oracle will do out. It's so they position. They tried a D position Oracle as an evil company. The Oracle, of course, so way add value. We have the best database, and they're trying to add value for the customers. Build their own cloud. So it's quite a battle that's going on, and you see the instance. Creation of that battle manifest itself in the general contract. >> Absolutely interesting is well, what we heard from really both states bruise on the Ministry of Justice, really talking about the end users and how they're so different. So for public sector organizations, this isn't about making more money making profit. It's about the experience for the user. But in fact, that came up from Sainsbury's as well, making sure that the right products are with the right part of the store. And that's how a I could help them do that and efficient, usable data they currently have. >> I think every enterprise really wants to have a consumer app like experience, and very few do. I mean, we all know used these enterprise APS from large, you know, brands, and they're often times not that great. So what, you're seeing a closing of the Gap? People see what's happening with Facebook and Instagram and Whatsapp and so forth and say we should be able to have apse that run that simply and so you're seeing that gap clothes. I don't see how you could do that without some kind of public cloud infrastructure because of the massive scale that's required. It's so companies like Saintsbury are moving in that direction. Mobile has been critical for the last decade, and so that's what the consumer wants. That's what the cloud can provide. >> Is that what every consumer wants? Because increasingly, we're hearing a lot more concerned about privacy, that people not wanting to give all of her data across to private companies and do you think this could be dist sticking point ready going forward and could actually hold back the growth all they ws and its competitors >> a great point because you have a problem. Wonder problems. You have this app creep. I can tell you have dozens and dozens and dozens of app on my phone. I don't know if I trust them with the data. So having said that, one way to simplify that is to eliminate the need to do heavy lifting and patching of your infrastructure. Let us take care of that and build value up the stack by focusing re shifting your resource is on on value added services. Could it be a problem? I think no question. When Snowden came out in the U. S. People in Europe for sure. As you know, we're concerned about putting their data in the cloud that seems to have attenuated. I don't hear much about that anymore, you know. But if the NSA can come in and demand access to my data, well, that could be problematic. That's why I ws is putting so much or one reason why they're putting so much emphasis on setting up regions. It not just eight of us, Amazon and Google and Microsoft as well for many reasons. Privacy. GPR compliance on of course, Leighton. See the laws of physics? >> Absolutely. Okay, Dave Melody, thank you very much for being with me here at the age of us. That summit here >> in London at the XL Center there is still so much going on here. Lots of breakout sessions, many more kind of individual keynotes taking place with the various different subsections. Although the A W s business and also its partners. So we will be keeping across all of those on the Cube. Thanks for watching.

>> live from the Mandalay Bay Convention Center in Las Vegas. It's the King covering via World 2016 brought to you by IBM Wear and its ecosystem sponsors. Now here's your host stew minimum. Welcome back to the Cube here at VM World 2016. Happy to welcome back to the PO program. Christos Caramel analysts. Who's the fellow in CTO of the V A more storage and availability business unit. Thank you for joining us again. >> About to be buck >> Storage is a big focus here. Big announcements around. Not only the sand, but everything happened in the storage room. Tell us what you've been working on the last year. >> Yeah, quite a few things. As you know, Miss Olsen has become practically mainstream product now, especially since we saved the very same 6.2 back in March 2016 with a number of new enterprise grade features for space efficiency. New availability. Fisher's with the razor calls right 56 The product is really taking off. Taking off, especially in old flask configurations, is becoming the predominant model that our customers are using. So ultimately, of course, customers buy a new product like this on and hyper converts product because of the operational efficiencies and brings to their data centers. The way I present this is you have the personal efficiency off public clouds into your private data center now. But this is for me is thus the stepping stone for even a longer term term, bolder vision will have around the stores, the data management. So, the last several months now, I have been working on a new range of projects. Main theme. There is moving up the stock from stores and the physical infrastructure implications. It has two data management on starting with data protection on overall and managing the life cycle of your data for protection, for disaster recovery, for archival, so that you can have tools to be able to effectively and efficiently discover your data. Mine your data. Use them by new applications, including cloud native applications and a dent even know that this may sound a little controversial coming from Vienna, where sitio even moving your data to public clouds and allow application mobility freely between private public clouds. >> Yeah, it's really interesting and wonder if you can packed out a little bit for us, Veum, where, of course, really dominant, the Enterprise Data Center. We're trying to understand where Veum, where fits into the public cloud on how you cut both support the existing ecosystem and move forward. So, you know, it's interesting off >> course. There are silences. There are many open questions. I do not claim that we have the answers to everything. Everything. But you do see that we put a lot of emphasis on that because it is obvious that the I T world is evolving. Our own customers are gradually slowly, but certainly there start incorporating public clouds into the bigger I T organizations that have. So our goal is to start delivering value to our customers based on clouds, starting with what they have today into the data centers. Let me give you a specific example in the case of Virtual San, who have some really cool tools for Mona's in your infrastructure in a holistic way, computer networking and now stores a SZ part of that you have ah solutions and tools that allow the customer to monitor constantly there covered infrastructure, the configuration of that. The class is the network servers controller's down to individual devices, and we provide a lot of data to the customers, not only for the health but also for the performance off the off the infrastructure data to the customer can today used to perform root cause analysis of potential issues to decide how to optimize there. Infrastructure in the world clothes. But that is actually pretty no sophisticated house. You cannot expect a lot 500 thousands 1000 customers. Of'em were to be ableto do this kind of sophisticate analysis. So what we're working on right now is a set off analytics tools that do all this data Kranz ink and analysis a root cause analysis on DDE evaluation of the infrastructure on because of the customer instead of providing data now we're providing answers and suggestions now way want to be able to deliver those analytics in a very rapid cadence. So what we do is we develop all those things in via Morse. Cloud will collect data from the customer side through telemetry, the emir's phone home product, and we get off the data up in our club. We crunch the data on because of the customer, and we use really sophisticated methods that will be evolving over time and eventually will be delivering feedback and suggestions at a kind level to the customer that can be actionable. For example, weekend point out that certain firm were the 1st 1 off certain controllers, and the infrastructure is falling behind. I may have problems or point out to a certain SS thes uh, a problem getting close to the end off life. For more sophisticated thing. Starts us reconfigure your application with a different policy for data distribution to achieve better performers. The interesting thing is that going to be, you're going to be combining data from must multiple sites, multiple customers to be able to do this holistic analytics and say, You know what? Based on trance, I see. Another customer says. It says You also do that. Now they're really coursing out of this is that the customer does not have to go and use yet another portal on a public cloud to take advantage of that. But they in fact, we send all that feedback through the this fear you. I own premise to the customers, so really cool. So you have the best of both wars. There are big development off analytics using actually behind the senses a really complex cloud native application with the existing tools that the customers are usedto in on premise. So this is just one example >> crystals. Could you give us a little bit of insight as the guiding light for your development process? Do you use that kind of core customers that you're pulling in and working in? Is it a mandate from above that says, you know, Hey, we need to build a more robust and move up the stack. You know, what are some of the pieces that lead to the development that you >> know? This is a very interesting point. I must start by stating that vehement has always bean admitting they're driven company. Um, and look for products were, you know, ideas that were, you know, Martin by engineers, while others thought that was not your not even visible, of course, Mutualization in several stages. But features like the Muslim or stores of emotion Oreo even, you know, ideas kind of ritual, son, right. Claiming that I could do very effectively rate six in software was something that was not really, you know, appreciated in the industrial area stages. So a lot of the innovation is a grassroots innovation. We have our engineers exposed directly to customers customer problems off course. They also understand what is happening in the industry. The trends, whether that is encounter as its case these days with a new generation off first or its cover that is emerging, or where that that is a trend. Samoan customers, for example, using public clouds in certain ways where that is for doing testing dead or archiving their data way. Observe those things and then through a grassroots. Therefore, all this get amalgamated into some concrete ideas. I'm not saying that all those ideas result into products, but we definitely have a very open mind in letting engineers experiment and prove sometimes common sense to be wrong. So this is the process thesis. How Virtual Son started were a couple of us went to our CEO back then for marriage and suggested we do this drastic thing that is called no softer stores on that you can run the soft store of stock in software on the same servers that we visualize, and we're under V. M. So this is really how the process has always been working and this is still the case and we're very proud of this culture. This is one way we're actually tracking opens enduring talent in the competent. >> Yeah, I was loved digging into some of the innovation processes. Had a good chat with Steve Harris, former CEO of GM, where if I remember right? One of the thing processes user called flings, whereas you can actually get visibility from the outside it to some of those kind of trials and things that are going on that aren't yet fully supported yet. >> Absolutely. And that is still the case. Probably the best known fling these days is the HTML five days they you I for your sex, which is used extensively, both internally in the humor where it actually started as a tool for that purpose, but now wild by the community. And that Flynn gave us a lot off insides and how to evolve our mainstream user interface for for this fear, proper notes, Astoria sex. So this is exactly this alternative process that leads us to test the water and feel much more confident when we make bigger and investments in in Ireland, >> right architecturally via Moore has been around for quite a while now. I had a good talk with such a Pagani Who? I m f s earlier today and we were talking about, you know, new applications and new architectures when vms foot fest was built. You know, nobody's thinking about containers. You know, they weren't thinking about applications like duper some of these more cloud native applications. How do you take into consideration where things were going? How did these fit into, you know, kind of traditional VM wear V sphere. You know what things need to change? How do you look at kind of the code basis? >> Right. So first of all of'em affairs, I must say it's probably the most mature and most widely adopted class. The file system in the industry for over 10 years now has been used to visualize enterprise grade store, its stores, alien networks, and it was going to have a role for many years to come. But on the other hand, we all are technologists, and we understand that the product is designed with certain assumptions and constraints, and the EM affairs was designed back in the meat to thousands toe address the requirements for ritual izing lungs, and you know the traditional volumes that you'd be consuming from a disgrace. Now the world is changing, right. We have a whole new generation off solid state devices for stores. Servers on softer on commodity servers with Commodity stores Devices is becoming as your own reports that have been indicating the predominant no mortal of delivering stores in there in the enterprise that the sender and off course in even public clouds with copper scale storage. So what? The requirements there? Some things are changing. You need the store. Its plot from that can really take out the violence of the very low latency is off those devices. I was at Intel Developer for form a couple of weeks ago, and their intel announced for first time performance numbers for the new generation off Envy Me devices obtained that include the three D Chris Point technology under the covers. Latents is at around 10 microseconds, right and Iost per second scruples that are in the several kinds of thousands, if not millions so completely young game changer. And that is not the only company that is coming up with this technology. So you need to invest now in new technologies that can take the can harness the capabilities of this new devices, lightweights protocols like Envy me. In fact, I see envy me as the protocol is not just a protocol to accident device, but I can see a future for that off. Replacing Scott Z into the software start soon, and this is committing specific days. But soon will be sipping a vision off this fear that comes with ritual and via me in the guest visual ization of envy Me. So you can see here where we're heading and envy me, becoming a predominant protocol for the transport and for brutalizing stores. >> Interesting. And we've got a long history of things that start on. The guests Usually then takes a lot of engineering work to get them down to the hyper visor themselves. So, you know, without having to give away too much, is that we see that kind of progression sometime in the future. For some of these new memory, architectures >> certainly certainly are the sex store stock, and this is the stuff that is used by Veum infest by ritual son. It has been designed again for another era off stores. Now we are regarding a lot of these things there, and I cannot disclose too much detail, obviously, but I can tell that it's going to be a very different software stock. Much leaner, much more optimized for local, very fast devices and ultimately envying me is going to be a key technology in this new store stock. >> All right, so just last follow up on that topic. I think about kind of a new memory architectures. What's going on? As of September 7th, Del will acquire TMC. There's the relationship between A. M, C and V M wear. So could we expect some of these new memory technologies impacting things to be something that you'll work even closer with a deli emcee? And >> that is definitely case irrespective off the deal between the emcee and Dell, which, as you said, it's going to be closing. It seems pretty soon. From what I read in the newspapers, >> Michael confirmed, it's finally official. Some of the pathetic ALS. >> Yes, we're moving ahead with this new technologists, and we're working closely with all the partners micro intel and many of the other car vendors that are introducing such technologies to incorporate them into our systems into our software, for example, I see great opportunities for this very fast Cayenne dude owns but still quite expensive technologies to be used, for example, to store meta data. Things like duplication. Costabile is those kind off meta data that have an impact through because of my own verification to the performance that is perceived by the application by moving meta data like that into those tears are going to make a great difference in terms of performance consistent, late and see predictability of the day for the application. Now, thanks to the relations with del Auntie em. See, I can hope that some of these technologies will find their way into several platforms sooner than later. So all of us and our customers would benefit from that. >> All right? What? Christos really appreciate getting the update from you. Lots happening on the storage world. We're kind of talking about. One of my things coming into this this'll week was, if we can really simplify storage, we might actually have a storage. This world doesn't mean it reduces the value of storage or the importance of it, but gonna help the users to be able to move beyond that, we'll be back with lots more coverage here from the emerald 2016. You're watching the Cube. Glad to be here. Whatever. Apply from the Mandalay Bay Convention Center in Las Vegas. It's the King covering via World 2016 brought to you by IBM Wear and its ecosystem sponsors. Now here's your host stew minimum. Welcome back to the Cube here at VM World 2016. Happy to welcome back to the PO program. Christos Caramel analysts. Who's the fellow in CTO of the V A more storage and availability business unit. Thank you for joining us again. >> Glad to be back.

in Cambridge Massachusetts it's the cube covering the MIT chief data officer and information quality symposium now here are your hosts Stu miniman and George Gilbert you're watching the cube SiliconANGLE media's flagship program we go out to lots of technology shows and symposiums like this one here help extract the signal from the noise I'm Stu miniman droid joined by George Gilbert from the Wikibon research team and really thrilled to have on the program the keynote speaker from this MIT event Tom Davenport whose pressure at babson author of some books including a new one that just came out and thank you so much for joining us my pleasure great to be here all right so uh you know so many things your morning keynote that I know George and I want to dig into I guess I'll start with you talk about the you know for eras of you called it data today used to be formation from the information sorry but you said you started with when it was three eras of analytics and now you've came to information so I'm just curious we you know we get caught up sometimes on semantics but is there a reason why you switch from you know analytics to information now well I'm not sure it's a permanent switch I just did it for this occasion but you know I I think that it's important for even people who aren't who don't have as their job doing something with analytics to realize that analytics or how we turn data into information so kind of on a whim I change it from four errors of analytics 24 hours of information to kind of broaden it out in a sense and make people realize that the whole world is changing it's not just about analytics ya know I it resonated with me because you know in the tech industry so much we get caught up on the latest tool George will be talking about how Hadoop is moving to spark and you know right if we step back and look from a longitudinal view you know data is something's been around for a long time but as as you said from Peter Drucker's quote when we endow that with relevance and purpose you know that that's when we get information so yeah and that's why I got interested in analytics a year ago or so it was because we weren't thinking enough about how we endowed data with relevance and purpose turning it into knowledge and knowledge management was one of those ways and I did that for a long time but the people who were doing stuff with analytics weren't really thinking about any of the human mechanisms for adding value to to data so that moved me in analytics direction okay so so Tommy you've been at this event before you know you you've taught in written and you know written books about this about this whole space so willing I'm old no no its you got a great perspective okay so bring us what's exciting you these days what are some of our big challenges and big opportunities that we're facing as kind of kind of humanity and in an industry yeah well I think for me the most exciting thing is they're all these areas where there's just too much data and too much analysis for humans to to do it anymore you know when I first started working with analytics the idea was some human analysts would have a hypothesis about how to do that about what's going on in the data and you'd gather some data and test that hypothesis and so on it could take weeks if not months and now you know we need me to make decisions in milliseconds on way too much data for a human to absorb even in areas like health care we have 400 different types of cancer hundreds of genes that might be related to cancer hundreds of drugs to administer you know we have these decisions have to be made by technology now and so very interesting to think about what's the remaining human role how do we make sure those decisions are good how do we review them and understand them all sorts of fascinating new issues I think along those lines come you know in at a primitive level in the Big Data realm the tools are kind of still emerging and we want to keep track of every time someone's touched it or transformed it but when you talk about something as serious as cancer and let's say we're modeling how we decide to or how we get to a diagnosis do we need a similar mechanism so that it's not either/or either the doctor or you know some sort of machine machine learning model or cognitive model some waited for the model to say here's how I arrived at that conclusion and then for the doctor to say you know to the patient here's my thinking along those lines yeah I mean I think one can like or just like Watson it was being used for a lot of these I mean Watson's being used for a lot of these oncology oriented projects and the good thing about Watson in that context is it does kind of presume a human asking a question in the first place and then a human deciding whether to take the answer the answers in most cases still have confidence intervals you know confidence levels associated with them so and in health care it's great that we have this electronic medical record where the physicians decision of their clinicians decision about how to treat that patient is recorded in a lot of other areas of business we don't really have that kind of system of record to say you know what what decision did we make and why do we make it and so on so in a way I think health care despite being very backward in a lot of areas is kind of better off than then a lot of areas of business the other thing I often say about healthcare is if they're treating you badly and you die at least there will be a meeting about it in a healthcare institution in business you know we screw up a decision we push it under the rug nobody ever nobody ever considered it what about 30 years ago I think it was with Porter's second book you know and the concept of the value chain and sort of remaking the the understanding of strategy and you're talking about the you know the AP AP I economy and and the data flows within that can you help tie your concept you know the data flows the data value chain and the api's that connect them with the porters value chain across companies well it's an interesting idea I think you know companies are just starting to realize that we are in this API economy you don't have to do it all yourself the smart ones have without kind of modeling it in any systematic way like the porter value chain have said you know we we need to have other people linking to our information through api's google is fairly smart i think in saying will even allow that for free for a while and if it looks like there's money to be made in what start charging for access to those api so you know building the access and then thinking about the the revenue from it is one of the new principles of this approach but i haven't seen its i think would be a great idea for paper to say how do we translate the sort of value chain ideas a michael porter which were i don't know 30 years ago into something for the api oriented world that we live in today which you think would you think that might be appropriate for the sort of platform economics model of thinking that's emerging that's an interesting question i mean the platform people are quite interested in inner organizational connections i don't hear them as talking as much about you know the new rules of the api economy it's more about how to two sided and multi-sided platforms work and so on Michael Porter was a sort of industrial economist a lot of those platform people are economists so from that sense it's the same kind of overall thinking but lots of opportunity there to exploit I think so tell me what want to bring it back to kind of the chief data officer when one of the main themes of the symposium here I really like you talked about kind of there needs to be a balance of offense and defense because so much at least in the last couple of years we've been covering this you know governance and seems to be kind of a central piece of it but it's such an exciting subject it's exciting subject but you know you you put that purely in defense on and you know we get excited the companies that are you know building new products you know either you know saving or making more money with with data Kenny can you talk a little bit about kind of as you see how this chief data officer needs to be how that fits into your kind of four arrows yeah yeah well I don't know if I mentioned it in my talk but I went back and confirmed my suspicions that the sama Phi odd was the world's first chief data officer at Yahoo and I looked at what Osama did at Yahoo and it was very much data product and offense or unity established yahoo research labs you know not everything worked out well at Yahoo in retrospect but I think they were going in the direction of what interesting data products can can we create and so I think we saw a lot of kind of what I call to point o companies in the in the big data area in Silicon Valley sing it's not just about internal decisions from data it's what can we provide to customers in terms of data not just access but things that really provide value that means data plus analytics so you know linkedin they attribute about half of their membership to the people you may know data product and everybody else as a people you may know now well we these companies haven't been that systematic about how you build them and how do you know which one to actually take the market and so on but I think now more and more companies even big industrial companies are realizing that this is a distinct possibility and we oughta we ought to look externally with our data for opportunities as much as supporting internal and I guess for you talk to you know companies like Yahoo some of the big web companies the whole you know Big Data meme has been about allowing you know tools and processes to get to a broader you know piece of the economy you know the counterbalance that a little bit you know large public clouds and services you know how much can you know a broad spectrum of companies out there you know get the skill set and really take advantage of these tools versus you know or is it going to be something that I'm going to still going to need to go to some outside chores for some of this well you know I think it's all being democratized fairly rapidly and I read yesterday the first time the quote nobody ever got fired for choosing amazon web services that's a lot cheaper than the previous company in that role which was IBM where you had to build up all these internal capabilities so I think the human side is being democratized they're over a hundred company over 100 universities in the US alone that have analytics oriented degree programs so i think there's plenty of opportunity for existing companies to do this it's just a matter of awareness on the part of the management team I think that's what's lacking in most cases they're not watching your shows i guess and i along the lines of the you know going back 30 years we had a preference actually a precedent where the pc software sort of just exploded onto the scene and it was i want control over my information not just spreadsheets you know creating my documents but then at the same time aighty did not have those guardrails to you know help help people from falling off you know their bikes and getting injured what are the what tools and technologies do we have for both audiences today so that we don't repeat that mistake ya know it's a very interesting question and I think you know spreadsheets were great you know the ultimate democratization tool but depending on which study you believe 22 eighty percent of them had errors in them and there was some pretty bad decisions that were made sometimes with them so we now have the tools so that we could tell people you know that spreadsheet is not going to calculate the right value or you should not be using a pie chart for that visual display I think vendors need to start building in those guardrails as you put it to say here's how you use this product effectively in addition to just accomplishing your basic task but you wouldn't see those guardrails extending all the way back because of data that's being provisioned for the users well I think ultimately if we got to the point of having better control over our data to saying you should not be using that data element it's not you know the right one for representing you know customer address or something along those lines we're not there yet and the vast majority of companies I've seen a few that have kind of experimented with data watermarks or something to say yes this is the one that you're allowed to to use has been certified as the right one for that purpose but we need to do a lot more in that regard yeah all right so Tommy you've got a new book that came out earlier this year only humans need apply winners and losers in the age of smart machines so ask you the same question we asked eric donaldson and Auntie McAfee when they wrote the second Machine Age you know are we all out of job soon well I think big day and I have become a little more optimistic as we look in some depth at at the data I mean one there are a lot of jobs evolving working with these technologies and you know it's just somebody was telling me the other day that is that I was doing a radio interview from my book and the guy was hung who said you know I've made a big transition into podcasting he said but the vast majority of people in radio have not been able to make that transition so if you're willing to kind of go with the flow learn about new technologies how they work I think there are plenty of opportunities the other thing to think about is that these transitions tend to be rather slow I mean we had about in the United States in 1980 about half a million bank tellers since then we've had ATMs online banking etc give so many bank tellers we have in 2016 about half a million it's rather shocking i think i don't know exactly what they're all doing but we're pretty slow in making these transitions so i think those of us sitting here today or even watching her probably okay we'll see some job loss on the margins but anybody who's willing to keep up with new technologies and add value to the smart machines that come into the workplace i think is likely to be okay okay do you have any advice for people that either are looking at becoming you know chief data officers well yeah as I as you said balanced offense and defense defense is a very tricky area to inhabit as a CDO because you if you succeed and you prevent you know breaches and privacy problems and security issues and so on nobody gives you necessarily any credit for it or even knows that it's helps of your work that you were successful and if you fail it's obviously very visible and bad for your career too so I think you need to supplement defense with offense activities are analytics adding valued information digitization data products etc and then I think it's very important that you make nice with all the other data oriented c-level executives you know you may not want to report to the CIO or if you have a cheap analytics officer or chief information security officer chief digitization officer chief digital officer you gotta present a united front to your organization and figure out what's the division of labor who's going to do what in too many of these organizations some of these people aren't even talking to each other and it's crazy really and very confusing to the to the rest of the organization about who's doing what yeah do you see the CDO role but you know five years from now being a standalone you know peace in the organization and you know any guidance on where that should sit is structurally compared to say the CIO yeah I don't you know I I've said that ideally you'd have a CIO or somebody who all of these things reported to who could kind of represent all these different interests of the rest of the organization that doesn't mean that a CDO shouldn't engage with the rest of the business I think CIO should be very engaged with the rest of the business but i think this uncontrolled proliferation has not been a good thing it does mean that information and data are really important to organization so we need multiple people to address it but they need to be coordinated somehow in a smart CEO would say you guys get your act together and figure out sort of who does what tell me a structure I think multiple different things can work you can have it inside of IT outside of IT but you can at least be collaborating okay last question I've got is you talked about these errors and you know that they're not you know not one dies in the next one comes and you talked about you know we know how slow you know people especially are to change so what happened to the company that are still sitting in the 10 or 20 era as we see more 30 and 40 companies come yeah well it's not a good place to be in general and I think what we've seen is this in many industries the sophisticated companies with regard to IT are the ones that get more and more market share the the late adopters end up ultimately going out of business I mean you think about in retail who's still around Walmart was the most aggressive company in terms of Technology Walmart is the world's largest company in moving packages around the world FedEx was initially very aggressive with IT UPS said we better get busy and they did it to not too much left of anybody else sending packages around the world so I think in every industry ultimately the ones that embrace these ideas tend to be the ones who who prosper all right well Tom Davenport really appreciate this morning's keynote and sharing with our audience everything that's happening in the space will be back with lots more coverage here from the MIT CDO IQ symposium you're watching the q hi this is christopher

>> live from Las Vegas, Nevada. It's the Cube covering E M C. World 2015. Brought to you by E. M. C Brocade and D. C. >> You're watching E m C World Live here on the Q. Looking Angles Flagship program. We go out to the event they start the season noise. I'm John Kerry of my coast Dude. Minutemen. Our next guest is a cube. Alumni have been on a cute many times before and back again. 2011 John Thompson is the CEO of Virtual Instruments and also the chairman of a company called Microsoft. Um, welcome back to the cubes. Nice to be about Great to see you in the A M World week didn't interview on Virtual Instruments with CEO, and we were really riffing on this whole idea of data instrumentation. And we it was really free Internet of things. So give us the update. What's going on with virtue Instruments here? I see Microsoft has a conference going on ignite. Even though you're chairman. The board. You're also the CEO of Virgin Instruments and you're gonna do some business here. What's going on? What business are you doing? Well, this is an important conference for virtual instruments. DMC is one of our strongest go to market partners, and candidly, many of their customers are virtual instruments customers. And so it's an opportunity for me to be here to spend time with our partners and our customers in one venue. Our business is doing quite well. We just had a very, very strong March quarter, which is always a little bit of a down quarter for most tech companies. But we were up 27 28% year over year for the calendar. Q. One so we feel pretty good about that. This is the most important quarter of the year, though, which is always the case in Texas. So we're hoping that we can knock the ball out of the park again this quarter. We launched our virtual wisdom for platform in the spring of last year, and it is gaining tremendous traction, certainly in the U. S. And around the globe. It is all about health utilization in performance of the infrastructure, and we've defined a model where you can look at an application inside that infrastructure, monitor its performance and its availability, and that idea is so critical in a world where everything will someday live in the cloud and will you will want to assure a level of performance and, quite frankly, a level of responsiveness to customers as they come on says it's a reset to share the folks out. This is not a new concept for you guys. We talked about this years ago. It's not like you woke up one boys. Hey, things is trendy. This data center in fermentation takes us quickly back. Where did it come from? Was an itch to scratch. What original product as you have and how does that morph into today's crazy, data driven world, where dash boring riel time is actually competitive advantage and now table stakes? Well, if you were to go back to the genesis of virtual instruments, we started as a small technology investment inside a larger company called Venice are that was trying to solve the inevitable performance problem in the fibre channel world. And as the market crashed in 7 4008 the team at Venice or had to decide, how are we gonna clean up our portfolio? And the result waas. They sold off the assets? Were we, in fact, created virtual instruments. So a small group of investors, led by Jim Davidson from Silver Lake and Michael Marks from Riverwood, helped to fund the original investment and virtual instruments. We've been at it now for about seven years. We have clearly evolved the product quite a bit since then, and we've captured a number of very, very strong venture capital investment so long away as we made the choice. That said, we need the shift from being a fiber channel company to be in an infrastructure performance management company because the inevitable movement to the cloud will drive an opportunity for us. Yeah, and you're a senior executive private equity. I mean, this is pretty much a big bet. There's a lot of money involved with private equity. So it wasn't like you're, like, throw in the Silicon Valley startup together. It was really like, Okay, there's big money behind it. Well, you guys, did you see it turning out this way? What? What was learning that have been magnified from that trajectory? Well, I think in the early days we thought the path was a little different than what we've actually followed. We thought the path waas that the fibre channel World was so big and it needed better visibility. This would in fact give the world better visibility in the fibre channel space. What we have observed, however, is that the entire infrastructure has become Maur and more opaque, and therefore you need to not just drive visibility in the storage layer, but across the entire converge staff. And so the platform that we have evolved is all about supporting this converged platform not just fibre Channel, but filed a storage not just VM where, but all virtualized server environments. And we believe that's, ah, multibillion dollar market. And that's why we were able to attract both private equity initially and venture capital later as we built out of product. It's interesting. You see some of these ideas come a come around full circle. I'm curious. Just in industry trend. Your your opinion on Veritas, you know, being spun out. It's it's It's both sad for me personally, but I think it speaks to how difficult the cultural integration might have been between the two companies. While I really had a vision back in the old four or five days of security and backup coming together, I think It was a really, really difficult thing to make happen in the context of what has evolved at Samantha, so the fact that they've chosen to spend it out, it's perhaps a little disappointing for me personally, but not a surprise. So what is your vision of security today? My understanding, You advise, even sit on the board of ah Lumia company. We've way we've talked to the company really, what's happening in security. So if you think about how security has evolved once upon a time, it was about protecting the device candidly and a cloud based world. It's going to be more about protecting the workloads as they move around. And that's one of the elements of what a lumia does, in fact, provide. Furthermore, I have believed for a very, very long time that as time goes on, security will have to get closer and closer to that which is deemed to be most critical. In other words, you can't protect all of the data. You can't protect all of the instances that air on the Web, but you can identify those that are most critical and therefore need a level of protection beyond what the standard would be. And so my belief is that companies like a Loom EO and others that will evolve will get closer to the workload, and we'll get closer to the data that's most critical. And so data classification and things of that nature will become much, much more important than they have. You're an investor in aluminum. You on the board are okay, so you're on the board of director and investor. We covered their launch. Great company. The cracking is low slides, as as Alan Cohen would say, they phenomenal funding round gone from stealth two years and now the big $100,000,000 really funding round massive guerrilla marketing. Still going on at the air say, was kind of clever. The perimeter lists cloud is a factor. And what tech enabled? Do you see the key thing? Alan Cohen described it as 1000 foot shoulds soldiers protecting assets because there's no more perimeter that no front door any more. What is the technology driver for that? Well, the whole idea behind the loom Eo, is to have a what I would call a portable policy enforcement engine that can move as the workload moves around the cloud. So policy management, security policy management has been a very, very difficult task for most large enterprises. So if I can define security policies for every server of where workloads can go to and from on that server and make sure that nothing violates that policy, hence I enforce it routinely. Oh, I can change. The dynamic of House security gets delivered in a cloud based world because no workload is gonna run in any single place on a cloud world. That workload is gonna move to where there is capacity to handle. I gotta ask you because we have a lot of people out there that follow tech business test tech athletes that you are. But also, you're a senior executive who has a lot of experience, and we could be presenting to Harvard Business School, Stanford Business School. I want to get your kind of business mind out to the audience. And that is, is that as an executive who's seen the big, big companies, the big battleships, the big aircraft carriers, from the IBM days to the M in a world of the nineties and the transformation of the Internet now in a complete shift, an inflection point with things like a Loom, Eo and Cloud and and Virtual instruments and the new Microsoft and the Silicon Angles and the crowd shots out there, What do you advise managers out there to operate from a management perspective. I mean, there's a classic business school numbers quarter on the challenges of going public, managing enormous dynamic technology change. So every theater is kind of exploding the technology theater, the business theater, the social theater as an executive. How would you advise someone as a CEO are rising growing startup how they should stitch themselves together? If you can draw in from previous experiences? Or is there a pattern recognition you can share? Well, it's It's never simply about the numbers, while the numbers air always important and the numbers will always be the underpinning of evaluation or whatever. In reality, it's about having a team that is able to rally around a leader with vision that says, Here's how we're gonna change the world. Here's how we're going to make an impact as this industry goes through, the natural inflection points that it always does. And if you look at what has occurred in this industry about every 8 to 10 years, something significant changes. And so a company that may have missed an opportunity six or eight years ago has another shot at it six or eight years later because of the inflection points that we go through. So it's important for the leader of a company toe. Believe that I can change the world based upon the industry that I'm a part of and have a compelling point of view about what changing the world means for that company and that team. And if you could get the team together around that idea, what about cloud and big data and mobile thes dynamics that you would? If someone just wants a roadmap for navigation or what decked me to go after, What would you say? What do you say? You know, get it all in the cloud or go poke at a duel are indeed new, agile management. Things were happening like, Well, I think it starts with what are the court confidence is that you have as a team or company, so you can't say g I'm gonna go and do cloud and oh, by the way, I have no confidence in the management infrastructure for large enterprises or I'm gonna go do mobile and I really have no experience in the mobile space whatsoever. So core competencies matter and leveraging the core strengths of the company matters now. Oftentimes, what companies will do its supplement their core strengths through M, and we'll go out and acquire something and bolted on the hard part of M and A, which is what we were referencing early around. Veritas is Can you integrate it? Can you really make it work after you bought it? Buying it is the easy part. Generating it and making it work is the really, really tough part. And arguably we didn't do is good a job as I would have liked with Samantha. And so basically you're saying is if you as an executive, you want to look at the winds of change for hand, get the sails up, if you will, to confuse the metaphor and get into that slipstream so you can actually drive and you can't. Being an amateur, you gotta actually have some competency. You have a leverage point. Look, one of the great things about this industry is it doesn't take some brilliant business leader to create a new idea. I mean, no one ever would have viewed Zucker Bird as a business leader or some of the young, really, really powerful CEO built phenomenal, phenomenal companies in this industry. But they had an idea, and they were able to create a team around that idea and go change the world. And that's what's so powerful about this industry that I've had the pleasure to be a part of for 40 some years. Yes. Speaking about CEOs that changed the industry, John Chambers announced that he's stepping aside from the CEO role this morning. So you know when you look back, you know John was one of the four horsemen of the Internet era and 20 years there. Chuck Robbins is coming in. He's been there since C. I think 97. What do you think of that move? And you know what's happening with Cisco in leadership for the big companies? Well, John's a really, really good friend, and I admire him for all of what he's done and Cisco and I wish him well as he makes this transition. Interestingly enough, the transition is to executive chairman, with the new CEO stepping in so What that says is that John plans that have a little more involvement, perhaps in what goes on in the company. Then I do it. Microsoft. My title is not executive chairman of Microsoft. Thank goodness I wouldn't want it to. But it also speaks to the fact that John spend the CEO. It just goes since 1995 like that. So he has an enormous amount of knowledge and insight about the company industry, its customers, partners, culture, all of those culture. And so all of those things will be valuable and important to the new CEO. And I think him stepping into that role is trying to leverage that. Cenedella came in and made his voice heard really instantly. And Microsoft has been a great company to watch, you know, since Auntie's came on board, you know, just Cisco need to make some bold moves or are they pretty stable where they are is kind of the dominant? That's a better question for John and CEO. I think what is clear is that all all companies, at some point after find a way to redefine and Sasha's role at Microsoft. He has redefined Microsoft as a cloud first mobile first, and that's all about recognizing. Were acts are gonna run on what devices and what kind of service is. And that redefinition, I think, is important for any industry leader, regardless of how long you just brought us to the tagline of this show, M C World is redefined. So any comments, How's the emcee doing it? Redefining themselves, I think the emcees a terrific company. Joe's a longtime friend of mine. I mean, I know Joe forever on. It's been amazing to see how it's gone from being a storage company to this federation of companies that have capabilities that are so broad and so diverse. I hope they don't get pushed to do something that isn't in the best interest of customers, but maybe enamored by some investors. The angel of the activist pressure. Yeah, that's always and that that's unfortunate, but I think they have a nice balance now. They have a huge installed base and this competitive pressure so they gotta push that. But I have to. I have to ask, is that? You know, I was getting some tweets earlier about Microsoft, and I know you, you know, you're only chairman of the board executive chairman. But you were involved in a very historic where you were on the executive search committee for the CEO replacement for Steve Balmer, of which they chose sake. Nutella Cube alumni We interviewed at the XL Partners Innovation Summit in Stanford that that's about culture. That's about transitions, about inflection points. And Sister used to mention Cisco. Not similar situation. But Microsoft is the legend company. I think the computer industry like an apple. Microsoft was their big part of the computer revolution. Big seismic changing. You were right there. Just share some color on what that whole experience like for you personally. And if you can share any insights to the audience, I know it's a sense might be sensitive topic. But what's that like? And, you know, the outcomes. Looking good. As he says, he's doing great. What? What can you share? Well, I think it would be fair to say that it was a more consuming process than I ever thought it would be. I went from being a new board member of Microsoft in the spring of 2012 to be in the lead independent director in the fall of 2012 to leading the search starting in the summer of 2013. I mean, I never could have imagine my involvement there changing that dramatically, Nor would I have imagined that searching for a CEO of a company would consume 80% of my time when I was also running a company. So for a period of about six months, it's like athlete right there. I had two full time jobs where I was on the phone all day, every day, trying to get something done for the eye and on the phone all day, every day, trying to get something done for Microsoft as well. It was, I would also have to say and incredibly incredibly exhilarating experience. I talked to some phenomenal leaders from around the world way had hard, long look anywhere we wanted at any CEO or candidate that we wanted, and we settled on someone who was a Tech athlete. We believe that the company was at a really, really important inflection point where over the course of the next 12 to 24 months, we're gonna have to make some really, really important technology decisions that would set the course from Microsoft for many, many years to come. And so, while there was much speculation in the press about this person or that person, and what a great business leader, that person waas What we, as a board concluded, was that what our company needed at that moment in time was a true technology visionary who could drive the strategy of the company because it had assets. I mean, they had a whole search thing that they quote missed on paper. But they had, like you said, they could come back at it again with being the subtle art of assets. Here, Cloud was built out. Everything was kind of like in place for that tech athlete on. And I think soccer has done an amazing job. I'm quite proud of them. I'm happy toe say I have some small part in that, but I'm or happy for the way he has executed in the job. I mean, he steps into the job with a level of humility but confidence that is so important for the CEO of a company of that size, and to maintain that cultural DNA because you have one of most competitive companies on the planet. A question to the point where they had to be almost broken up by the DOJ from the Bill Gates kind of DNA and bomber to continued, be competitive, live in this new era. Really tough challenge. Well, he's he's a bright guy. He, as I said, has great humility and has the respect of the team. And it's been interesting to see the internal shift behavior and attitude with a guy who I jokingly say he has two ears and one mouth and he uses them proportionately. And that's a very important lesson for someone trying to transform a company. You must listen more than you talk, and I think he does a great job. We try to do that. The Cuban we talk all day long way do interviews, but I gotta ask you back to virtual instruments. Okay, gets a good business going on with the emcee Goto partner about the anywhere in the federation of a partner with you as well, say, Is it all Federation? It's mostly through E M. C. And while the em wears of small V I customer, we don't do much with them on the go to market side on the go to market side. We rely more heavily, if you will. On AMC, that partnership has evolved. I mean, from the early days it was viewed as G. We're not sure who you are and what you do and whether or not you're competitive with us today, we have very, very common go to market processes around the globe. I'd love to see them stronger. I just left to cheese office in San GI Joe. We could doom. Or but when it's when it's all said and gone, this is one of the strongest go to market partners we have that's also shared the folks out there what they might not know about insurance, that you could share their hearing this now for the first time and working on the radar future of your business, your division product, extensive bility. Future of Internet of everything. Future Internet of things, whatever you want to put on a big data and the data center now, and the migration of cloud is all here. So at our core, we believe that every large enterprise will inevitably have some, if not all, of their work in the class. So the question is, how do you help them manage that inevitable migration to the cloud by de risking the migration and ensuring appropriate infrastructure performance management. Once you arrive there, we focus on the largest enterprises in the world. So unlike many tech startups, that will start with a midsize or small company and work their way up well, the largest banks in the universe, the largest insurance companies in the universe, the largest of every sector in the universe is a customer of the eye or will be someday. And that notion of solving very, very complex problems is something that our team has great pride in our ability to do that I want to get philosophical with you. You can for second kind of sit back and, you know, have a glass of wine and kind of talk to the younger generation out there with all your history on experience. How great of an opportunity for the young entrepreneurs and CEOs out there right now. Given the the confluence of the shift and inflection points, can you compare this to an error? We on the Cubes say It's like the PC revolution bundled in with the clients, terrorists and the Internet. All kind of at once do you agree? And would you say it? Guys, you have an amazing opportunity. Well, I think example of just how crazy it is. I I was driving to the airport this morning, and what I thought would be our long drive took two hours. Because there's so many people on the road in the Valley going to work. There's just so much going on in Silicon Valley right now. It is amazing. And for anyone who has a really, really great idea, the thing that's equally amazing is there's lots of capital out there to support those ideas. And so I would encourage any young entrepreneur who has a thought socialize your thought, Get it out so people can learn about it and then go get money to support and back that though. There's lots of money out there for good ideas. Lots of money. \ewelry officially taking the time coming out. Your busy schedule. CEO Virtual Instruments, chairman of Microsoft Here inside the Cube tech athletes is a big deal. You are one of the great great. Always have a conversation with you, sharing your thanks so much. Just the Cuban. Be right back with more insights and the signal from the noise at this short break