Amar Narayan & Lianne Anderton | AWS Executive Summit 2022
(bright upbeat music) >> Well, hello everybody. John Walls is here on "the CUBE". Great to have you with us as we continue our series here at the AWS Executive Summit sponsored by Accenture. And today we're talking about public service and not just a little slice of public service but probably the largest public sector offering in the UK and for with us or with us. Now to talk about that is Lianne Anderton, who is in with the Intelligent Automation Garage Delivery Lead at the UK Department of Work and Pension. Lianne, good to see you today. Thanks for joining us here on "the CUBE". >> Hi, thanks for having me. >> And also with this us is Amar Narayan, who is a Manager Director at Accenture the AWS Business Group for the Lead in Health and Public Sector, also UK and Ireland. And Amar, I think, you and Lianne, are in the same location, Newcastle, I believe in the UK, is that right? >> Yeah, absolutely. Yep, yeah, we're, here in the northeast of UK. >> Well, thank you for being with us. I appreciate the time. Lianne, let's talk about what you do, the Department of Work and Pension, the famous DWP in England. You have influence or certainly touchpoints with a huge amount of the British population. In what respects, what are you doing for the working class in England and what does technology have to do with all that? >> Sure, so for the Department for Work and Pensions I think the pensions bit is fairly self explanatory so anybody who is over state pension age within the UK. for the work part of that we also deal with people of working age. So, these are people who are either in employment and need additional help through various benefits we offer in the UK. Those people who are out of work. And we also deal with health related benefits as well. And we are currently serving over 20 million claimants every year at this moment in time. So, we're aware of a huge part of the UK government. >> All right, so say that number again. How many? >> 20 million claimants every year. >> Million with an M, right? >> Yeah. >> So, and that's individuals. And so how many transactions, if you will, how many do you think you process in a month? How, much traffic basically, are you seeing? >> An extraordinary amount? I'm not even, I don't think I even know that number. (Lianne laughing) >> Mind blowing, right? So, it's- >> A huge, huge amount. >> Mind blowing. >> Yeah, so, basically the we kind of keep the country going. So, you know, if the department for Work and Pensions kind of didn't exist anymore then actually it would cause an infinite number of problems in society. We, kind of help and support the people who need that. And, yeah, so we play a really vital role in kind of you know, social care and kind of public service. >> So, what was your journey to Accenture then? What, eventually led you to them? What problem were you having and how have you collaborated to solve that? >> So, in terms of how we work with Accenture. So, we had in around 2017 DWP was looking at a projected number of transactions growing by about 210 million which was, you know, an extraordinary amount. And, you know, I think as we've kind of covered everything that we do is on a massive scale. So, we as DWP as an organization we had absolutely no idea how we were going to be able to handle such a massive increase in the transactions. And actually, you know, after kind of various kind of paths and ideas of how we were going to do that, automation, was actually the answer. But the problem that we have with that is that we have, like many governments around the world, we have really older legacy systems. So, each of these benefits that we deal with are on legacy systems. So, whatever we were going to develop had to, you know, connect to all of these, it had to ingest and then process all of these pieces of data some of which, you know, given the fact that a lot of these systems have a lot of manual input you have data issues there that you have to solve and whatever we did, you know, as we've talked about in terms of volumes has to scale instantly as well. So, it has to be able to scale up and down to meet demand and, you know, and that down scaling is also equally as important. So yeah, you've got to be able to scale up to meet the volumes but also you've got to be able to downscale when when it's not needed. But we had nothing that was like that kind of helped us to meet that demand. So, we built our own automation platform, The Intelligent Automation Garage and we did that with Accenture. >> So Amar, I'd like you to chime in here then. So, you're looking at this client who has this massive footprint and obviously vital services, right? So, that's paramount that you have to keep that in mind and the legacy systems that Lianne was just talking about. So, now you're trying to get 'em in the next gen but also respecting that they have a serious investment already in a lot of technology. How do you approach that kind of problem solving, those dynamics and how in this case did you get them to automation as the solution? >> Sure, so I think I think one of the interesting things, yeah as Lianne has sort of described it, right? It's effectively like, you know the department has to have be running all of the time, right? They can't, you know, they can't effectively stop and then do a bunch of IT transformation, you know it's effectively like, you know, changing the wheels of a jumbo jet whilst it's taking off, right? And you've got to do all of that all in one go. But what I think we really, really liked about the situation that we were in and the client relationship we had was that we knew we had to it wasn't just a technology play, we couldn't just go, "All right, let's just put some new technology in." What we also needed to do was really sort of create a culture, an innovation culture, and go, "Well how do we think about the problems that we currently have and how do we think about solving them differently and in collaboration, right?" So, not just the, "Let's just outsource a bunch of technology for to, you know, to Accenture and build a bunch of stuff." So, we very carefully thought about, well actually, the unique situation that they're in the demands that the citizens have on the services that the department provide. And as Lianne mentioned, that technology didn't exist. So, we fundamentally looked at this in a different way. So, we worked really closely with the department. We said, Look, actually what we ultimately need is the equivalent of a virtual workforce. Something where if you already, you know all of a sudden had a hundred thousand pension claims that needed to be processed in a week that you could click your fingers and, you know in a physical world you'd have another building all of your kits, a whole bunch of trained staff that would be able to process that work. And if in the following week you didn't need that you no longer needed that building that stuff or the machinery. And we wanted to replicate that in the virtual world. So, we started designing a platform we utilized and focused on using AWS because it had the scalability. And we thought about, how were we going to connect something as new as AWS to all of these legacy systems. How are we going to make that work in the modern world? How are we going to integrate it? How we going to make sure it's secure? And frankly, we're really honest with the client we said, "Look, this hasn't been done before. Like, nowhere in Accenture has done it. No one's done it in the industry. We've got some smart people, I think we can do it." And, we've prototyped and we've built and we were able to prove that we can do that. And that in itself just created an environment of solving tricky problems and being innovative but most importantly not doing sort of proof of concepts that didn't go anywhere but building something that actually scaled. And I think that was really the real the start of what was has been the Garage. >> So, And Lianne, you mentioned this and you just referred to it Amar, about The Garage, right? The Intelligent Automation Garage. What exactly is it? I mean, we talked about it, what the needs are all this and that, but Lianne, I'll let you jump in first and Amar, certainly compliment her remarks, but what is the IAG, what's the... >> So, you know, I think exactly what kind of Amar, has said from a from a kind of a development point of view I think it started off, you know, really, really small. And the idea is that this is DWP, intelligent automation center of excellence. So, you know, it's aims are that, you know, it makes sure that it scopes out kind of the problems that DWP are are facing properly. So, we really understand what the crux of the problem is. In large organizations It's very easy, I think to think you understand what the problem is where actually, you know, it is really about kind of delving into what that is. And actually we have a dedicated design team that really kind of get under the bonnet of what these issues really are. It then kind of architects what the solutions need to look like using as Amar said, all the exciting new technology that we kind of have available to us. That kind of sensible solution as to what that should look like. We then build that sensible solution and we then, you know as part of that, we make sure that it scales to demand. So, something that might start out with, I dunno, you know a few hundred claimants or kind of cases going through it can quite often, you know, once that's that's been successful scale really, really quickly because as you know, we have 20 million claimants that come through us every year. So, these types of things can grow and expand but also a really key function of what we do is that we have a fully supported in-house service as well. So, all of those automations that we build are then maintained and you know, so any changes that kind of needed to be need to be made to them, we have all that and we have that control and we have our kind of arms wrapped around all of those. But also what that allows us to do is it allows us to be very kind of self-sufficient in making sure that we are as sufficient, sorry, as efficient as possible. And what I mean by that is looking at, you know as new technologies come around and they can allow us to do things more effectively. So, it allows us to kind of almost do that that kind of continuous improvement ourselves. So, that's a huge part of what we do as well. And you know, I think from a size point of view I said this started off really small as in the idea was this was a kind of center of excellence but actually as automation, I think as Amar alluded to is kind of really started to embed in DWP culture what we've started to kind of see is the a massive expansion in the types of of work that people want us to do and the volume of work that we are doing. So, I think we're currently running at around around a hundred people at the moment and I think, you know we started off with a scrum, a couple of scrum teams under Amar, so yeah, it's really grown. But you know, I think this is here to stay within DWP. >> Yeah, well when we talk about automation, you know virtual and robotics and all this I like to kind of keep the human element in mind here too. And Amar, maybe you can touch on that in certain terms of the human factors in this equation. 'Cause people think about, you know, robots it means different things to different people. In your mind, how does automation intersect with the human element here and in terms of the kinds of things Lianne wants to do down the road, you know, is a road for people basically? >> Oh yeah, absolutely. I think fundamentally what the department does is support people and therefore the solutions that we designed and built had to factor that in mind right? We were trying to best support and provide the best service we possibly can. And not only do we need to support the citizens that it supports. The department itself is a big organization, right? We're up to, we're talking between sort of 70 and 80,000 employees. So, how do we embed automation but also make the lives of the, of the DWP agents better as well? And that's what we thought about. So we said, "Well look, we think we can design solutions that do both." So, a lot of our automations go through a design process and we work closely with our operations team and we go, well actually, you know in processing and benefit, there are some aspects of that processing that benefit that are copy and paste, right? It doesn't require much thought around it, but it just requires capturing data and there's elements of that solution or that process that requires actual thought and understanding and really empathy around going, "Well how do I best support this citizen?" And what we tended to do is we took all of the things that were sort of laborious and took a lot of time and would slow down the overall process and we automated those and then we really focused on making sure that the elements that required the human, the human input was made as user friendly and centric as we possibly could. So, if there's a really complex case that needs to be processed, we were able to present the information in a really digestible and understandable way for the agents so that they could make a informed and sensible decision based around a citizen. And what that enabled us to do is essentially meet the demands of the volumes and the peaks that came in but also maintain the quality and if not improve, you know the accuracy of the claims processing that we had. >> So, how do you know, and maybe Lianne, you can address this. How do you know that it's successful on both sides of that equation? And, 'cause Amar raised a very good point. You have 70 to 80,000 employees that you're trying to make their work life much more efficient, much simpler and hopefully make them better at their jobs at the end of the day. But you're also taking care of 20 million clients on the, your side too. So, how do you, what's your measurement for success and what kind of like raw feedback do you get that says, "Okay, this has worked for both of our client bases, both our citizens and our employees?" >> Yeah, so we can look at this both from a a quantitative and a qualitative point of view as well. So, I think from a let take the kind figures first. So we are really hot on making sure that whatever automations we put in place we are there to measure how that automation is working what it's kind of doing and the impact that it's having from an operational point of view. So I think, you know, I think the proof of the fact that the Intelligent Automation Garage is working is that, you know, in the, in its lifetime, we've processed over 20 million items and cases so far. We have 65 scaled and transitioned automations and we've saved over 2 million operational hours. I was going to say that again that's 2 million operational hours. And what that allows us to do as an organization those 2 million hours have allowed us to rather than people as Amar, said, cutting and pasting and doing work that that is essentially very time consuming and repetitive. That 2 million hours we've been able to use on actual decision making. So, the stuff that you need as sentient human being to make judgment calls on and you know and kind of make those decisions that's what it's allowed us as an organization to do. And then I think from a quality point of view I think the feedback that we have from our operational teams is, you know is equally as as great. So, we have that kind of feedback from, you know all the way up from to the director level about, you know how it's kind of like I said that freeing up that time but actually making the operational, you know they don't have an easy job and it's making that an awful lot easier on a day to day basis. It has a real day to day impact. But also, you know, there are other things that kind of the knock on effects in terms of accuracy. So for example, robot will do is exactly as it's told it doesn't make any mistakes, it doesn't have sick days, you know, it does what it says on the tin and actually that kind of impact. So, it's not necessarily, you know, counting your numbers it's the fact that then doesn't generate a call from a customer that kind of says, "Well you, I think you've got this wrong." So, it's all that kind of, these kind of ripple effects that go out. I think is how we measure the fact that A, the garage is working and b, it's delivering the value that we needed to deliver. >> Robots, probably ask better questions too so yeah... (Lianne laughing) So, real quick, just real quick before you head out. So, the big challenge next, eureka, this works, right? Amar, you put together this fantastic system it's in great practice at the DWP, now what do we do? So, it's just in 30 seconds, Amar, maybe if you can look at, be the headlights down the road here for DWP and say, "This is where I think we can jump to next." >> Yeah, so I think, what we've been able to prove as I say is that is scaled innovation and having the return and the value that it creates is here to stay, right? So, I think the next things for us are a continuous expand the stuff that we're doing. Keeping hold of that culture, right? That culture of constantly solving difficult problems and being able to innovate and scale them. So, we are now doing a lot more automations across the department, you know, across different benefits across the digital agenda. I think we're also now becoming almost a bit of the fabric of enabling some of the digital transformation that big organizations look at, right? So moving to a world where you can have a venture driven architectures and being able to sort of scale that. I also think the natural sort of expansion of the team and the type of work that we're going to do is probably also going to expand into sort of the analytics side of it and understanding and seeing how we can take the data from the cases that we're processing to overall have a smoother journey across for our citizens. But it's looking, you know, the future's looking bright. I think we've got a number of different backlogs of items to work on. >> Well, you've got a great story to tell and thank you for sharing it with us here on "the CUBE", talking about DWP, the Department of Work and Pensions in the UK and the great work that Accenture's doing to make 20 million lives plus, a lot simpler for our friends in England. You've been watching ""the CUBE"" the AWS Executive Summit sponsored by Accenture. (bright upbeat music)
SUMMARY :
in the UK and for with us or with us. And Amar, I think, you and in the northeast of UK. Lianne, let's talk about what you do, And we also deal with health All right, so say that number again. And so how many transactions, if you will, I even know that number. So, you know, if the department But the problem that we have with that and the legacy systems that that in the virtual world. and you just referred to it So, all of those automations that we build of the kinds of things Lianne and we go, well actually, you know So, how do you know, and maybe Lianne, So, the stuff that you need So, the big challenge next, the department, you know, story to tell and thank you
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Amar & Lianne, Accenture
(bright upbeat music) >> Well, hello everybody. John Walls is here on "the CUBE". Great to have you with us as we continue our series here at the AWS Executive Summit sponsored by Accenture. And today we're talking about public service and not just a little slice of public service but probably the largest public sector offering in the UK and for with us or with us. Now to talk about that is Lianne Anderton, who is in with the Intelligent Automation Garage Delivery Lead at the UK Department of Work and Pension. Lianne, good to see you today. Thanks for joining us here on "the CUBE". >> Hi, thanks for having me. >> And also with this us is Amar Narayan, who is a Manager Director at Accenture the AWS Business Group for the Lead in Health and Public Sector, also UK and Ireland. And Amar, I think, you and Lianne, are in the same location, Newcastle, I believe in the UK, is that right? >> Yeah, absolutely. Yep, yeah, we're, here in the northeast of UK. >> Well, thank you for being with us. I appreciate the time. Lianne, let's talk about what you do, the Department of Work and Pension, the famous DWP in England. You have influence or certainly touchpoints with a huge amount of the British population. In what respects, what are you doing for the working class in England and what does technology have to do with all that? >> Sure, so for the Department for Work and Pensions I think the pensions bit is fairly self explanatory so anybody who is over state pension age within the UK. for the work part of that we also deal with people of working age. So, these are people who are either in employment and need additional help through various benefits we offer in the UK. Those people who are out of work. And we also deal with health related benefits as well. And we are currently serving over 20 million claimants every year at this moment in time. So, we're aware of a huge part of the UK government. >> All right, so say that number again. How many? >> 20 million claimants every year. >> Million with an M, right? >> Yeah. >> So, and that's individuals. And so how many transactions, if you will, how many do you think you process in a month? How, much traffic basically, are you seeing? >> An extraordinary amount? I'm not even, I don't think I even know that number. (Lianne laughing) >> Mind blowing, right? So, it's- >> A huge, huge amount. >> Mind blowing. >> Yeah, so, basically the we kind of keep the country going. So, you know, if the department for Work and Pensions kind of didn't exist anymore then actually it would cause an infinite number of problems in society. We, kind of help and support the people who need that. And, yeah, so we play a really vital role in kind of you know, social care and kind of public service. >> So, what was your journey to Accenture then? What, eventually led you to them? What problem were you having and how have you collaborated to solve that? >> So, in terms of how we work with Accenture. So, we had in around 2017 DWP was looking at a projected number of transactions growing by about 210 million which was, you know, an extraordinary amount. And, you know, I think as we've kind of covered everything that we do is on a massive scale. So, we as DWP as an organization we had absolutely no idea how we were going to be able to handle such a massive increase in the transactions. And actually, you know, after kind of various kind of paths and ideas of how we were going to do that, automation, was actually the answer. But the problem that we have with that is that we have, like many governments around the world, we have really older legacy systems. So, each of these benefits that we deal with are on legacy systems. So, whatever we were going to develop had to, you know, connect to all of these, it had to ingest and then process all of these pieces of data some of which, you know, given the fact that a lot of these systems have a lot of manual input you have data issues there that you have to solve and whatever we did, you know, as we've talked about in terms of volumes has to scale instantly as well. So, it has to be able to scale up and down to meet demand and, you know, and that down scaling is also equally as important. So yeah, you've got to be able to scale up to meet the volumes but also you've got to be able to downscale when when it's not needed. But we had nothing that was like that kind of helped us to meet that demand. So, we built our own automation platform, The Intelligent Automation Garage and we did that with Accenture. >> So Amar, I'd like you to chime in here then. So, you're looking at this client who has this massive footprint and obviously vital services, right? So, that's paramount that you have to keep that in mind and the legacy systems that Lianne was just talking about. So, now you're trying to get 'em in the next gen but also respecting that they have a serious investment already in a lot of technology. How do you approach that kind of problem solving, those dynamics and how in this case did you get them to automation as the solution? >> Sure, so I think I think one of the interesting things, yeah as Lianne has sort of described it, right? It's effectively like, you know the department has to have be running all of the time, right? They can't, you know, they can't effectively stop and then do a bunch of IT transformation, you know it's effectively like, you know, changing the wheels of a jumbo jet whilst it's taking off, right? And you've got to do all of that all in one go. But what I think we really, really liked about the situation that we were in and the client relationship we had was that we knew we had to it wasn't just a technology play, we couldn't just go, "All right, let's just put some new technology in." What we also needed to do was really sort of create a culture, an innovation culture, and go, "Well how do we think about the problems that we currently have and how do we think about solving them differently and in collaboration, right?" So, not just the, "Let's just outsource a bunch of technology for to, you know, to Accenture and build a bunch of stuff." So, we very carefully thought about, well actually, the unique situation that they're in the demands that the citizens have on the services that the department provide. And as Lianne mentioned, that technology didn't exist. So, we fundamentally looked at this in a different way. So, we worked really closely with the department. We said, Look, actually what we ultimately need is the equivalent of a virtual workforce. Something where if you already, you know all of a sudden had a hundred thousand pension claims that needed to be processed in a week that you could click your fingers and, you know in a physical world you'd have another building all of your kits, a whole bunch of trained staff that would be able to process that work. And if in the following week you didn't need that you no longer needed that building that stuff or the machinery. And we wanted to replicate that in the virtual world. So, we started designing a platform we utilized and focused on using AWS because it had the scalability. And we thought about, how were we going to connect something as new as AWS to all of these legacy systems. How are we going to make that work in the modern world? How are we going to integrate it? How we going to make sure it's secure? And frankly, we're really honest with the client we said, "Look, this hasn't been done before. Like, nowhere in Accenture has done it. No one's done it in the industry. We've got some smart people, I think we can do it." And, we've prototyped and we've built and we were able to prove that we can do that. And that in itself just created an environment of solving tricky problems and being innovative but most importantly not doing sort of proof of concepts that didn't go anywhere but building something that actually scaled. And I think that was really the real the start of what was has been the Garage. >> So, And Lianne, you mentioned this and you just referred to it Amar, about The Garage, right? The Intelligent Automation Garage. What exactly is it? I mean, we talked about it, what the needs are all this and that, but Lianne, I'll let you jump in first and Amar, certainly compliment her remarks, but what is the IAG, what's the... >> So, you know, I think exactly what kind of Amar, has said from a from a kind of a development point of view I think it started off, you know, really, really small. And the idea is that this is DWP, intelligent automation center of excellence. So, you know, it's aims are that, you know, it makes sure that it scopes out kind of the problems that DWP are are facing properly. So, we really understand what the crux of the problem is. In large organizations It's very easy, I think to think you understand what the problem is where actually, you know, it is really about kind of delving into what that is. And actually we have a dedicated design team that really kind of get under the bonnet of what these issues really are. It then kind of architects what the solutions need to look like using as Amar said, all the exciting new technology that we kind of have available to us. That kind of sensible solution as to what that should look like. We then build that sensible solution and we then, you know as part of that, we make sure that it scales to demand. So, something that might start out with, I dunno, you know a few hundred claimants or kind of cases going through it can quite often, you know, once that's that's been successful scale really, really quickly because as you know, we have 20 million claimants that come through us every year. So, these types of things can grow and expand but also a really key function of what we do is that we have a fully supported in-house service as well. So, all of those automations that we build are then maintained and you know, so any changes that kind of needed to be need to be made to them, we have all that and we have that control and we have our kind of arms wrapped around all of those. But also what that allows us to do is it allows us to be very kind of self-sufficient in making sure that we are as sufficient, sorry, as efficient as possible. And what I mean by that is looking at, you know as new technologies come around and they can allow us to do things more effectively. So, it allows us to kind of almost do that that kind of continuous improvement ourselves. So, that's a huge part of what we do as well. And you know, I think from a size point of view I said this started off really small as in the idea was this was a kind of center of excellence but actually as automation, I think as Amar alluded to is kind of really started to embed in DWP culture what we've started to kind of see is the a massive expansion in the types of of work that people want us to do and the volume of work that we are doing. So, I think we're currently running at around around a hundred people at the moment and I think, you know we started off with a scrum, a couple of scrum teams under Amar, so yeah, it's really grown. But you know, I think this is here to stay within DWP. >> Yeah, well when we talk about automation, you know virtual and robotics and all this I like to kind of keep the human element in mind here too. And Amar, maybe you can touch on that in certain terms of the human factors in this equation. 'Cause people think about, you know, robots it means different things to different people. In your mind, how does automation intersect with the human element here and in terms of the kinds of things Lianne wants to do down the road, you know, is a road for people basically? >> Oh yeah, absolutely. I think fundamentally what the department does is support people and therefore the solutions that we designed and built had to factor that in mind right? We were trying to best support and provide the best service we possibly can. And not only do we need to support the citizens that it supports. The department itself is a big organization, right? We're up to, we're talking between sort of 70 and 80,000 employees. So, how do we embed automation but also make the lives of the, of the DWP agents better as well? And that's what we thought about. So we said, "Well look, we think we can design solutions that do both." So, a lot of our automations go through a design process and we work closely with our operations team and we go, well actually, you know in processing and benefit, there are some aspects of that processing that benefit that are copy and paste, right? It doesn't require much thought around it, but it just requires capturing data and there's elements of that solution or that process that requires actual thought and understanding and really empathy around going, "Well how do I best support this citizen?" And what we tended to do is we took all of the things that were sort of laborious and took a lot of time and would slow down the overall process and we automated those and then we really focused on making sure that the elements that required the human, the human input was made as user friendly and centric as we possibly could. So, if there's a really complex case that needs to be processed, we were able to present the information in a really digestible and understandable way for the agents so that they could make a informed and sensible decision based around a citizen. And what that enabled us to do is essentially meet the demands of the volumes and the peaks that came in but also maintain the quality and if not improve, you know the accuracy of the claims processing that we had. >> So, how do you know, and maybe Lianne, you can address this. How do you know that it's successful on both sides of that equation? And, 'cause Amar raised a very good point. You have 70 to 80,000 employees that you're trying to make their work life much more efficient, much simpler and hopefully make them better at their jobs at the end of the day. But you're also taking care of 20 million clients on the, your side too. So, how do you, what's your measurement for success and what kind of like raw feedback do you get that says, "Okay, this has worked for both of our client bases, both our citizens and our employees?" >> Yeah, so we can look at this both from a a quantitative and a qualitative point of view as well. So, I think from a let take the kind figures first. So we are really hot on making sure that whatever automations we put in place we are there to measure how that automation is working what it's kind of doing and the impact that it's having from an operational point of view. So I think, you know, I think the proof of the fact that the Intelligent Automation Garage is working is that, you know, in the, in its lifetime, we've processed over 20 million items and cases so far. We have 65 scaled and transitioned automations and we've saved over 2 million operational hours. I was going to say that again that's 2 million operational hours. And what that allows us to do as an organization those 2 million hours have allowed us to rather than people as Amar, said, cutting and pasting and doing work that that is essentially very time consuming and repetitive. That 2 million hours we've been able to use on actual decision making. So, the stuff that you need as sentient human being to make judgment calls on and you know and kind of make those decisions that's what it's allowed us as an organization to do. And then I think from a quality point of view I think the feedback that we have from our operational teams is, you know is equally as as great. So, we have that kind of feedback from, you know all the way up from to the director level about, you know how it's kind of like I said that freeing up that time but actually making the operational, you know they don't have an easy job and it's making that an awful lot easier on a day to day basis. It has a real day to day impact. But also, you know, there are other things that kind of the knock on effects in terms of accuracy. So for example, robot will do is exactly as it's told it doesn't make any mistakes, it doesn't have sick days, you know, it does what it says on the tin and actually that kind of impact. So, it's not necessarily, you know, counting your numbers it's the fact that then doesn't generate a call from a customer that kind of says, "Well you, I think you've got this wrong." So, it's all that kind of, these kind of ripple effects that go out. I think is how we measure the fact that A, the garage is working and b, it's delivering the value that we needed to deliver. >> Robots, probably ask better questions too so yeah... (Lianne laughing) So, real quick, just real quick before you head out. So, the big challenge next, eureka, this works, right? Amar, you put together this fantastic system it's in great practice at the DWP, now what do we do? So, it's just in 30 seconds, Amar, maybe if you can look at, be the headlights down the road here for DWP and say, "This is where I think we can jump to next." >> Yeah, so I think, what we've been able to prove as I say is that is scaled innovation and having the return and the value that it creates is here to stay, right? So, I think the next things for us are a continuous expand the stuff that we're doing. Keeping hold of that culture, right? That culture of constantly solving difficult problems and being able to innovate and scale them. So, we are now doing a lot more automations across the department, you know, across different benefits across the digital agenda. I think we're also now becoming almost a bit of the fabric of enabling some of the digital transformation that big organizations look at, right? So moving to a world where you can have a venture driven architectures and being able to sort of scale that. I also think the natural sort of expansion of the team and the type of work that we're going to do is probably also going to expand into sort of the analytics side of it and understanding and seeing how we can take the data from the cases that we're processing to overall have a smoother journey across for our citizens. But it's looking, you know, the future's looking bright. I think we've got a number of different backlogs of items to work on. >> Well, you've got a great story to tell and thank you for sharing it with us here on "the CUBE", talking about DWP, the Department of Work and Pensions in the UK and the great work that Accenture's doing to make 20 million lives plus, a lot simpler for our friends in England. You've been watching ""the CUBE"" the AWS Executive Summit sponsored by Accenture. (bright upbeat music)
SUMMARY :
in the UK and for with us or with us. And Amar, I think, you and in the northeast of UK. Lianne, let's talk about what you do, And we also deal with health All right, so say that number again. And so how many transactions, if you will, I even know that number. So, you know, if the department But the problem that we have with that and the legacy systems that that in the virtual world. and you just referred to it So, all of those automations that we build of the kinds of things Lianne and we go, well actually, you know So, how do you know, and maybe Lianne, So, the stuff that you need So, the big challenge next, the department, you know, story to tell and thank you
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Matthew Jones & Richard Henshall | AnsibleFest 2022
>>Hey everyone. Welcome back to the Cube's coverage of Ansible Fest 2022. We are live in Chicago. This is day two of Waldo Wall coverage on the cube. John Fhrer here with me. Lisa Martin. John, today's a big news day. Yeah, >>Big time. I mean, we got the chief architect on this segments to be great. We have the lead product management. All the new stuff coming out really is a game changer. It's very cool and relevant. Very key to be relevant. And then, and being a part of the future. This is a changeover you see in the NextGen Cloud developer environment. Open source all coming together. So Ansible we've been covering for many, many years. We've always said they're in the middle of all the action and you're starting to see the picture. Yes. For me. So we're looking forward to a great segment. >>Yes. We've got two alumni back with us to unpack the news and all the great stuff that's going on here. Richard Hensel joins us Senior manager, Ansible Product Management, and Matthew Jones here, fresh from the keynote stage, Chief architect of Ansible Automation. Guys, great to have you on the program. Thanks >>For having us. Good to be here. >>So this morning was all about event driven Ansible. Unpack that. Talk about the impact that this is gonna have, The excitement, the buzz that you've heard on the show floor today. >>Yeah. You know, it's, it's exciting. We've been working on this for a while. We've been really excited to show this off because it's something that feels like the natural evolution of the platform and where it's going. Really being able to connect the automation with the sources of data and the actions that we know people want to use. We, we came into this knowing everybody here at this conference, this is something that everybody will be able to use. >>Talk about the innovations strategy. Cause we've always had these great conversations with Ansible. Oh yeah. The, the practitioners, they're, they're building the product with you. You guys are very hardcore on that. No secret. This is different. This is like a whole nother level of opportunity that's gonna take the, the community to new heights in terms of what they do in their job and free them up to do more creative development. >>Yeah, you're exactly right. You know, we, we know that people need to bring that sort of reactive and active automation to it. We've, we've done a lot of work to bring automation to everybody, to the masses. Now we need to meet them at the place where they are, where the, the where, where they have to do the most work and, and act in the most strategic and specific ways. >>All right. So now before we get into some of the deep dive, cause a ton of questions. This is really exciting product. Take a minute to explain what was the key announcement? Why, what specifically does this mean for the audience, watching customers and future customers? What's the big deal? To take a minute to explain what was announced. >>So this is about the, the evolution and the maturity of the automation that our users are doing. So, you know, you think about provisioning servers, you know, configuring networks, all that sort of, the stuff that we've established and everybody's been doing for a number of years. And then you go, Well, I've invested in that. I've done the heavy lifting, I've done the things that cost me agility. I think that cost me time. Well now I need to go further. So what can I go further into? And you move further at the stacks. You move away from the infrastructure, please. You move away from infrastructure as code. You move towards through configures code, up to officer's code. And you start to get into, well, I've got, I've got road tasks, I've got repetitive actions that I'm doing. I've got investigations, I've got remediations, I've got responses. >>Well, there's work that I do on a daily basis that is toil. Right. It's not efficient work. Right. Actually, we doing valuable work in the operation space as much as you were doing in, in the build space. And how do we move them up into that space? And it's, this is all based off observation. You can do this today, but how do we make it easier? We've gonna make it easier for them to do that and get, it's all about success. It's about the outcomes we're gonna drive users towards. They need to be successful as quickly as possible. How do we make that >>Happen? And Matt, I remember we talked in 2019 with Ansible, the word platform where we say, Hey, you know, platforms are super important. It's not a tool, tools and platforms as distinctions. You mentioned platform. This is now platform. A lot of people put a lot of work in into this Yeah. Claim what went on behind the scenes. So >>You're exactly right. And we've spent the last couple of years really taking that disparate set of tools that, that we've invested a lot of time in building that platform. It's been exciting to see it come together. We always knew that we wanted to capture more of, more of where people find automation and find they need automation, not just out on the edge, on the end of the, of the, of the actions and tasks that they need to do. They've got a lot of things coming in, a lot of things that they need to take care of. And the community is really what drives this for us. People who have been doing this for years and they've been asking us, Meet me halfway. Give me something. Give me a part of this platform and a capability that enables me to do this. So I I feel like we've done that and you did >>It. Yeah, exactly. For step one. >>And that must feel pretty good too, to be able to deliver what, you know, the masses are looking for and why they're looking >>For it. Yeah. This was, there was no question that we knew this was gonna deliver the kind of real value that people were looking for. >>Take us through the building blocks real quick. I know on stage you went through it in detail. What should people know about the core building blocks of, of this particular event driven >>Piece? Yeah. You know, I think the most important thing to understand at the, at the outset is the sources of data and events that come in. It's really easy to get lost in the details. Like, what do you mean a source? But, you know, we've shown examples using Kafka, but it's not just Kafka, right? It's, it's, it's web hooks, it's CI systems, it's any, any place that you can imagine an evict coming from your monitoring platforms. You can bring those together under the same umbrella. We're not requiring you to pick one or choose or what's your favorite one. You can bring, you can use them all and and condense them down into the, into the same place. >>There's a lot of data events everywhere now. There's more events. Yeah. Is there a standard interface? Is what's the, is there any kind of hook in there? Is what's, what's gonna limit? Or is there any limits? >>I I don't think there is a limit. I, you know, it's, and we can't even imagine where events and data are gonna come from, but we know we need to get them into the system in a way that makes the most sense for the, the customers. And then that, that drives through into the rule books. Like, okay, we have the data now, but what do we do with that data? How do we translate that into, into the action? What are the rules that need to follow? It's giving the, the, the person who is automating, who understands the data that's coming in and understands the task that they need to take. The, the rules are where they map those into it. And then the last part, of course is the playbook, the automation itself, which they already know. They're already experts in the system. So we've, we've, we've built this like eight lane highway. They get some right end of those actions. >>Let's talk about Richard, let's unpack those actions and the really kind of double click on the business outcomes that this is actually gonna enable organizations and any industry to achieve. >>Yeah, so >>I mean, it's, it, like Matt said, it's really hard to encapsulate everything that we see as possible. But if you just think about what happens when a system goes down, right? At that point in time, I'm potentially not making money, right? I'd say it's costing me time, it's costing me, that's a business impact. If I can speed up how quick I can resolve that problem, if I can reduce time in there, that's customer improvement, that's custom satisfaction. That's bottom line money for businesses, right? But it's also, it's also satisfaction for the users. You know, they're not involved in having the stressful get online, get quickly, activate whatever accounts you need to do, go and start doing discovery. You can detect a lot of that information for the discovery use case that we see, respond to an event, scan the system for that same logic that you would normally do as a user, as a human. >>And that's why the rules are important to add into ed. It's like, how do I take that human, that brain part that I would say, well, if I see this bit, oh, I'll go and have a look in this other log file. If I see this piece, I'll go and do something different. How do we translate that into Ansible so that you've got that conditional logic just to be able to say, if this do that, or if I see these three things, it means a certain outcome has happened. And then again, that defined, that's what's gonna help people like choose where it becomes useful. And that's how we, that's how we take that process >>Forward. I'm sure people are gonna get excited by this. I'm not sure the community already knows that, but as it's gonna attract more potential customers, what's different about it? Can you share the differentiation? Like wait minute, I already have that already. Do they have it already? What's different? What makes this different? What's, what's in it for them? >>Yeah. When we step up into a customer situation, an enterprise, an organization, what's really important becomes the, the ability to control where you do some of that work. So the control and the trust, You know, would you trust an automatic system to go and start making changes to hundreds of thousands of devices? And the answer is often not, not straight away. So how do we put this sort of sep the same separation of duties we have between dev and ops and all the nice structures we've done over the last number of years, and actually apply that to that programmatic access of automation that other systems do. So let's say a AIML systems that are detecting what's going on, observability platforms are, are much more intru or intrusive is the wrong word. They're much more observable of what's going on in the systems, right? But at the same time you go, I wanna make sure that I know that any point in time I can decide what, what is there and what can be run and who can run it and when they can run it. And that becomes an important dimension. >>The versatility seems like a big deal too. They can, Yeah. Any team could get >>Involved. And, and that's the, the same flexibility and the same extensibility of Ansible exists in this use case, right? The, the, the ability to take any of those tasks you wanna do in action, string them together, but what the way that it works for you, not the way that it works that we see, but the way that you see and you convert your operational DNA into how you do that automation and how that gets triggered as you see fit. >>Talk about this both of you. I'd like to get your perspectives on event driven Ansible as part of the automation journey that businesses are on. Obviously you can look at different industries and different businesses are, are at different places along that journey, but where does this fit in and kind of plugin to accelerating that journey? That's, >>That's a good question. You know, sometimes this ends up being like that last mile of we've adopted this automation, we've learned how to write automation. We even understand the things that we would need to automate, but how do we carry it over that last topic and connect it to our, our knowledge systems, our data stores, our data lakes, and how do we combine the expertise of the systems that we're managing with this automation that we've learned? Like you, you mentioned the, the, the community and the, the coalescing of data and information, the, the definition of the event rules and, and the event driven architecture. It lives alongside the automation that you've developed in the exact same place where you can feel that trust and ubiquity that we keep talking about. Right? It's there, it's certified. And we've talked a lot about secure supply chain recently. This gives you the ability to sign and certify that the rules and actions that we're taking and the sources that we're communicating with works exactly the same way. Yeah. And >>There's something we didn't, we didn't correlate this when we first started doing the work. We were, we were, we observe teams doing self-healing and you know, extending Ansible. And then over the last 18 months, what we've also seen is this movement, this platform engineering movement, the SRE teams becoming much more prominent. And this just nicely sits in as a type of use case for that type of transformation. You know, we've gotta remember that Ansible at is heart is also a transformative tool. Is like, how do you teach this behavior to a bunch of people? How do you upscale a larger base of engineers with what you want to be able to do? And I think this is such an important part that we, we just one say we stumbled into it, but it was a very, very nice, >>It was a natural progression. >>Exactly. >>Yeah. Yeah. Tom, Tom, when we were talking about Tom yesterday, Tom Anderson and he said, You guys bring up the SRE to you guys when you come on the cube. This is exactly a culture shift that we're talking about. I mean, SRE is really his legacy with Google. We all know that. Everyone kind of knows that, but it's become like a job title. Well they kind of, what does that even mean now if you're not Google, it means you're running stuff. DevOps has become a title. Yeah. So what that means is that's a cultural shift, not so much semantics Yeah. On title. This is kind of what you guys are targeting here, enabling people to run platforms, engineer them. Yeah. Like an architect and enable more co composability coding. >>And, and it's, so that's, that distinction is so important because one of the, you know, we see many customers come from different places. Many users from, you know, all the legacy or heritage of tools that have existed. And so often those processes are defined by the way that tool worked. Right? You had no other way that, that, and the, and it's, it happened 10 years ago, somebody implemented it, that's how it now works. And then they come and try and take something new and you go, well, you can't let the tool define your process. Now your culture and your objective has to define the process. So this is really, you know, how do we make sure we match that ability by giving them a flexible tool that let's say, Well what are you trying to achieve? I wanna achieve this outcome. That's the way you can do it. I >>Mean, that's how we match basically means my mind to get your reaction. It means I'm running stuff at scale. Yep. Engineer, I'm engineering and infrastructure at scale to enable, >>I'm responsible for it. And it's, it's my, it's my baby. It's my responsibility to do that. And how do we, how do we allow people to do that better? And you know, it, it's about, it's about freeing people up to focus on things that are really important and transformative. We can be transformative. And we do that by taking away the complexity and making things work fast. >>And that's what people want. People in their daily jobs want to be able to deliver value to the organization. You wanna feel that. But something Richard that you were talking about that struck me a couple minutes ago is, was a venture of an Ansible. There's employee benefits, there's customer benefits, Those two are ex inextricably linked. But I liked how you were talking about what it facilitates for both Yes. And all the way to the customer satisfaction, brand reputation. That's an important Yeah. Element for any brand to >>Consider. And that, I mean, you know, think about what digital transformation was all about. I mean, as we evolve past all these initial terms that come about, you know, we actually start getting to the meat of what these things are. And that is it connecting what you do with actually what is the purpose of what your business is trying to achieve. And you can't, you can't almost put money on that. That's, that's the, that's the holy grail of what you're trying to get to. So how, you know, and again, it just comes back to how do we facilitate, how do we make it easy? If we don't make it easier, we're not doing it right. We've gotta make it easier. >>Right. Well, exciting news. I want to get your guys' reaction and if you don't mind sharing your opinion or your commentary on what's different now with Ansible this year than just a few years ago in terms of the scope of what's out there, what's been built, what you guys are doing for the, for the customer base and the community. What's changed? Obviously the people's roles looked that they're gonna expand and have more, I say more power, you know, more keys to the kingdom, however you wanna look at it. But things have changed. What's changed now from a few years >>Ago. It's, you know, it, it's funny because we've spent a lot of time over the last couple years setting up the capabilities that you're seeing us deliver right now. Right. We, we look back two or three years ago and we knew where we wanted to be. We wanted to build things like eda. We wanted to invest in systems like Project Wisdom and the, the types of content, the cloud journey that, that now we're on and we're enabling for folks. But we had to make some really big changes. And those changes take time and, and take investment. The move into last year, John, we talked about execution environments. Yeah. And separating the control plane from the execution plane. All of that work that we did and the investment into the platform and stability of the platform leads us now into what >>Cap. And that's architectural decision. That's the long game in mind. Exactly. Making things more cohesive, but decoupled, that's an operating system kind of thinking. >>It, it totally is. It's a systems engineering and system architecture thinking. And now we can start building on top of these things like what comes after ed, what does ED allow us to do within the platform? All of the dev tools that we focused on that we haven't spent a lot of time talking about that from the product side. But being, coming in with prescriptive and opinionated dev tools, now we can show you how to build it. We can show you how to use it and connect it to your systems. Where can we go next? I'm really excited. >>Yeah. Your customer base two has also been part of from the beginning and they solve their own problems and they rolled it up, grow with it, and now it's a full on platform. The question I then ask is, okay, you believe it's a platform, which it is, it's enabling. What do you guys see as that possible dots that could connect that might come on top of this from a creativity standpoint, from an ecosystem standpoint, from an Ansible standpoint, from maybe Red Hat. I mean, wisdom shows that you can go into the treasure trove of IBM's research, pull out some AI and some machine learning. Both that in or shim layered in whatever you do. >>I mean, what I'm starting to see much more, especially as I, the nice thing about being here is actually getting face to face with customers again and you know, actually hearing what they're talking about. But you know, we've moved away from a Ansible specific story where I'm talking about how I, I was always, I was looking to automate, I was looking to go to Ansible. Well now I've got the automation capability. Now we've enhanced the automation. Capabil wisdom enhances the automation capability further. What about all those, those broader set of management solutions that I've got that I would like to start connecting to each other. So we're starting to take the same like, you know, you mentioned as then software architecture, software design principles. We'll apply those same application design principles, apply them to your IT management because we've got data center with the pressures on there. We've got the expansion into cloud, we've got the expansion to the edge, right? Each adding a new layer of complexity and a new layer of, you know, more that you have to then look after. But there's still the same >>Number of people. So a thousand flower blooms kind of situation. >>Exactly. And so how do I, how do I constrain, how do I tame it, right? How do I sit there and go, I, I can control that now I can look after that. I contain that. I can, I can deal with what I wanna do. So I'm focusing on what's important and we are getting stuff done. >>We, we've been quoting Andy Grove on the cube lately. Let chaos, rain and then rain in the chaos. Yes. Right? I mean that's kind of every inflection point has complexity before it gets simpler. >>Yeah, that's right. >>Yeah. You can't, there's answer that one. That's >>Perfectly. >>Yeah. Yeah. What do you expect to see chief ar you gotta have the vision. What's gonna pop out? What's that low, low hanging fruit? What's gonna bloom first? What do you think's gonna come? >>I, you know, my overarching vision is that I just want to be able to automate more. Where, where can we bring back, So edge cloud, right? That's obvious, but what things run in the cloud and and on the edge, right? Devices, you heard Chad in the keynote this morning talk about programmable logic controllers, sensors, fans, motors, things like that. This is the, the sort of, this is the next frontier of automation is that connecting your data centers and your systems, your applications and needs all the way out to where your customers are. Gas stations, point of sale systems. >>It's instant. It's instant. It is what it is. It's like just add, Just >>Add faster and bigger. Yeah. >>But what happens if, I'll give you a tease. What I think is, is what happens if this happens? So I've got much more rich feature, rich diverse set of tools looking after my systems, observing what's going on. And they go through a whole filtering process and they say such and such has happened, right? Wisdom picks that up and decides from that natural language statement that comes outta the back of that system. That's the task I think is now appropriate to run. Where do you run that? You need a secure execution capability. Pass that to an support, that single task. And now we run inside the automation platform at any of those locations that you just mentioned, right? Stitching those things together and having that sequence of events all the way through where you, you predefine what's possible. You know, you start to bias the system towards what is your accepted standard and then let those clever systems do what you are investing in them for, which is to run your IT and make it >>Easier. Rich here was on earlier, I said, hey, about voice activated it. Provision the cluster. Yeah. >>Last question guys, before we run out of time for this. For customers who take advantage of this new frontier, how can they get started with the bench of an what's? >>That's a good question. You know, we, we've engaged our community because they trust us and we trust them to build really good products. ansible.com/events. Oh man, >>I did have the, I >>Had the cup, the landing page. >>Find somebody find that. >>Well it's on GitHub, right? GitHub It is. >>Yeah it >>Is. Absolutely ansible.com. It's probably a link somewhere if I on the front page. Exactly. On GitHub. The good code too. >>Right? Exactly. And so look at there, you can see where we're going on our roadmap, what we're capable of today. Examples, we're gonna be doing labs and blogs and demonstrations of it over the next day, week, month. Right. You'll be able to see this evolve. You get to be the, the sort of vanguard of support and actions on this and >>Cause we really want, we really want users to play with it, right? Of course. We've been doing this for a while. We've seen what we think is right. We want users to play with it. Tell us whether the syntax works, whether it makes sense, how does it run, how does it work? That's the exciting part. But at the same time, we want the partners, you know, we, we don't know all the technologies, right? We want the partners that we have that work with us already in the community to go and sort of, you know, do those integrations, do those triggers to their systems, define rules for their stuff cuz they'll talk to their customers about it as >>Well. Right? Right. It'll be exciting to see what unfolds over the next six to nine months or so with the partners getting involved, the community getting involved. Guys, congratulations on the big announcements. Sounds like a lot of work. I can tell. We can tell. Your excitement level is huge and job well done. Thank you so much for joining us on the Cube. Thank you very much. Thank you. Our pleasure. Just All right, for our guests and John Furrier, I'm Lisa Martin. You're watching The Cube Live from Chicago, Ansible Fest 22. John and I will be right back with our next guest of Stay tuned.
SUMMARY :
Welcome back to the Cube's coverage of Ansible Fest 2022. This is a changeover you see in the NextGen Cloud Guys, great to have you on the program. Good to be here. Talk about the impact that this is gonna have, The excitement, the buzz that you've heard on the show and the actions that we know people want to use. that's gonna take the, the community to new heights in terms of what they do in their job and we need to meet them at the place where they are, where the, the where, where they have Take a minute to explain what was the key announcement? And you start to get into, well, I've got, I've got road tasks, I've got repetitive actions Actually, we doing valuable work in the operation space as much as you were doing in, in the build space. we say, Hey, you know, platforms are super important. on the end of the, of the, of the actions and tasks that they need to do. It. Yeah, exactly. For it. I know on stage you went through it in detail. it's any, any place that you can imagine an evict coming from your monitoring platforms. There's a lot of data events everywhere now. What are the rules that need to follow? outcomes that this is actually gonna enable organizations and any industry to achieve. You can detect a lot of that information for the discovery And that's how we, that's how we take that process Can you share the differentiation? So the control and the trust, You know, would you trust an automatic system to go and start making The versatility seems like a big deal too. The, the, the ability to take any of those tasks you wanna do in action, string them together, Obviously you can look at different industries and different businesses the exact same place where you can feel that trust and ubiquity that we keep talking we were, we observe teams doing self-healing and you know, extending Ansible. This is kind of what you guys are targeting That's the way you can do it. Mean, that's how we match basically means my mind to get your reaction. And you know, it, it's about, But something Richard that you were talking about that struck me a couple minutes ago is, So how, you know, and again, it just comes back to how do we facilitate, how do we make it easy? and have more, I say more power, you know, more keys to the kingdom, however you wanna look at it. And separating the control plane from the execution plane. That's the long game in mind. and opinionated dev tools, now we can show you how to build it. I mean, wisdom shows that you can go Each adding a new layer of complexity and a new layer of, you know, more that you have to then look So a thousand flower blooms kind of situation. I, I can control that now I can look after that. I mean that's kind of every inflection point has complexity before it gets simpler. That's What do you think's gonna come? I, you know, my overarching vision is that I just want to be able to automate more. It is what it is. Yeah. And now we run inside the automation platform at any of those locations that you Provision the cluster. Last question guys, before we run out of time for this. trust us and we trust them to build really good products. Well it's on GitHub, right? It's probably a link somewhere if I on the front page. And so look at there, you can see where we're going on our roadmap, what we're capable of But at the same time, we want the partners, you know, we, we don't know all the technologies, It'll be exciting to see what unfolds over the next six to nine months or so with the partners
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David Rapini, Rockwell Automation | AnsibleFest 2022
(upbeat music) >> Welcome back to Chicago, guys and gals. Lisa Martin here in Chicago with Ansible Fest 2022 with John Furrier. John, we've had great conversations. This is day two of our coverage. We were here yesterday. >> Yeah. >> We're here today. We've gotten to talk with great folks in the Ansible community, the partner ecosystem customers. We've broken some news that they've talked about. Now we're going to talk about industrial automation, IT/OT convergence. What excites you about this conversation? >> Yeah, this is going to be a great segment. This is one of the feature keynote presenters, customer Rockwell. Huge in OT, IT, edge, robotics, plants, equipment. Everything that we probably have, they do. This guest has really great story about what's cutting edge and what's relevant in the edge and IT slash automation area. Super relevant. Looking forward to the segment. >> Yes, please welcome David Rapini, the Global PlantPAx business manager at Rockwell Automation. David, great to have you on theCUBE. >> Thank you. Nice to be here. >> Give the audience a bit of an overview of Rockwell Automation and then let's dig into what you guys are doing there. >> Sure. Rockwell Automation probably is the largest global automation provider of equipment focused exclusively on automation. About 22,000 employees. About 7 billion kind of revenue numbers. We make, basically, controllers for the automation industry, industrialized software, power drives, you know, of the robotics content, smart cart kind of applications. >> Lisa: And what are your key industries that you're covering? >> Wow, so that's a broad market. So we do a lot of different industries. So we cover, obviously, oil and gas, life science, water, wastewater. We do automotive. So just about any industry, actually. Any place that needs industrial automation covering any type of manufacturing process or any type of process application. We're pretty much there. >> John: You know, it's interesting, IOT has been a word, in and of things, light bulb, wearables, industrial IOT where you're in is a really key space. It's physical plants. Sometimes it's sensitive critical infrastructure for governments, businesses. >> David: Exactly. >> I mean there's running stuff. >> David: Definitely. >> This is huge. >> Yeah, and it's a big area for us, like getting that data, you know, everybody talks about analytics and what the world's going to be happening to in that IT, OT space. And Rockwell's really well positioned at that lower level where we actually own the data, create the data for all that analytics that you're talking about. >> What was your main message today on stage? I want to replay that here and then get into it because I think this is really, we're starting to see, real traction in adoption, in automation, cloud scale, edges happening, exploding. What was your key message on stage today? >> Yeah, I think it's that the world's really changing in that space. You know, five years ago you would have had a completely different message around, you know that connectivity and having that content actually delivered to that space and having, like even the connectivity to that OT space makes people uncomfortable in that world because there's obviously moving pieces, you know, damage to equipment, you know God forbid any types of explosions or things like that on bad environmental type conditions. So we're working in that space to really make those connections much more open and now that those connections are starting to happen and we're getting more and more comfort with that, in that layer, there's a lot more we can do in that space which is kind of why we're here. >> And talk about why Ansible and what it's going to be able to unlock for Rockwell to be able to achieve. >> Sure. There's a lot of areas that we want to play with, but our, in Ansible but our first targets are really our, primarily our servers. So there's a lot of edge based servers out there, you know, we call them a pass server, which is a process automation system server. And there's an engineering workstation operator, which are those main core servers. Some of them are redundant, you know, the OT guys to them it's a burden to manage that content. They're good at making, you know, oil and gas they know how to do water wastewater. They know how to build cars. But managing servers, you know, not in their wheelhouse. >> John: Not in their wheelhouse.(laughs) >> Exactly. Right. So having that capability and that connection to get down there gives us some power with Ansible to go ahead and start building them initially. So making that initial builds out of the gate. That makes them really consistent and built together, so every application looks and feels the same and they know what they're going to get when their servers power up. So that's a big one. But, but just maintain them, keeping them patched, you know keeping security vulnerabilities down. You know, I was in a facility not long ago that was still running Windows 2000. Right. So, you know, they have an application there that's just working. It works. They don't want to touch it and it's been running for 20 years, so why touch it? Right. So this was going to kind of hopefully break that challenge. >> Make sure that you keep that password handy. (laughs) >> David: Yeah, exactly right. (laughs) >> We've had (indistinct) people leave. What about the security aspect is OT has been locked down, mindset, hardened, end to end, supply chains, vetted. Everything's kind of tight on the old OT model. Relatively secure when you get to IT, you mentioned vulnerabilities but the innovation's there too. So how does that reconcile for you? What's your reaction to that? >> Yeah, we see a big move there, right? So it used to be they were always head head to head butting heads IT, OT, you know it focuses on, you know, keeping the system secure keeping the data down, locked down, and reliable. OT focuses more on production, right? Making sure they hit their numbers in the production. So oftentimes, you know, having it push out a patch in the middle of production line in the middle of a day and rebooting a server shuts down production and you know, that those kind of conflicts. Yeah, exactly. So those conflicts were, were pretty common. There's still a lot of that there, but it's getting better. Yeah, right. And I see more and more of that working together as a team to, to solve a lot of those challenges. And honestly, I keep going back to the analytics angle and the diagnostics and that world of deep data, you know, big data kind of mining, you know, without the IT space to cover that the cloud data storage, the horsepower. >> If you had to kind of like rank the complexity 'cause we were just talking before you came on about things got to get complex before they can get simpler 'cause the inflection points bring that new capability. What's some of the complexities that you're seeing that are going to be either abstracted away or solved with some of these new technologies like Ansible and others that are coming fast? Cause at the end of the day it's got to still be easier. It's not going to be hard. That can't be harder. >> Yeah. So I'll give you a real world example that's a little embarrassing. So today we deliver our past servers as a solution and we we provide that as a VM image that people start with as the first building block. But once you start to deploy that and actually connect it with the rest of the infrastructure, hook it up to our factory talk directory, hook it up to the DNS service, once you start doing all that work it's about 700 mouse clicks that somebody has to know what they're doing to actually spin it up the rest of the way and get it connected with Ansible. We're cutting that number like in half is the hope. So, and, and we're going to continue to expand that and make it even less work for the users to >> Talk about skill gap issue. The training alone on that is to have the right people. >> That's the second big piece, right? So, so those OT people typically don't have that skill set. So you have to have a fairly high skilled level person to do that work. We're hoping to take that, that work off of them and put that on on answer. >> Yeah, that sounds pretty consistent. Do you think, is that the, kind of the consistency of the problem space is that the OT just has a different goal and they just need something to be invisible and easy, like electricity? >> Yeah, I think so. Especially in this world, right? In that OT space, right in in that IT space. Sorry. Yeah, so, so managing servers and things like that it's just is not what they want to want to deal with and it's not what they went to school for and it's not what they're doing when their job when they get hired. Right. Yeah. >> It sounds to me like Rockwell Automation is a facilitator of the IT and OT folks coming together and actually working better together, maybe understanding each other's requirements, goals, objectives. >> Most definitely. So we have, you know we are offering a lot of cloud content now. We're continuing to expand that content. We're working with a lot of different IT departments and OT departments to try to marriage those two groups together to try to bring that stuff together. We have a partnership with Cisco where we actually, you know, industrialize you know, some of their switch components and sell that as as part of our content and that relationship gives us a big inroad with a lot of the IT departments. >> That's important to have that be able to speak the language of both sides. >> Yeah, definitely. Right. Knowing and understanding the terminology and just being able to know the challenges that IT guys face as well as the OTs is really a big component of what we do. >> You know, one of the questions I wanted to ask and 'cause the keynote was very cool, but you made a comment that your claim to fame was that you wrote the code for the Spider-Man ride at Universal. Tell a story. How does that work? I'm just, I've rode them many times. So take us through that little journey. >> Yeah, so I, every time people ask me what we do for a living and automation, you know, I can talk about, you know, making cars and things like that, but it doesn't ring troops. So I did do a lot of work on Spider-Man Ride which is at Universal Studios, you know it was a real challenge, making sure you know how that connections actually work and make, I did most of the motion control content for that to make the movements of the cars, you know, seamless with the backgrounds. Definitely a lot of fun. So those kind of projects are rare but they're really fun when you get those. >> I hope you have a free pass for any time you want to go on it. >> I don't, unfortunately. >> Oh, you should. >> I try to get in the backrooms all the time at that facility but it's rare to hear. >> I mean it's like, it's a high end rollercoaster machine. It's like, I mean that is this robotics, industrial cause, this, I mean it's an intense ride. >> It is, and you know, you never move more than like eight feet on that whole ride and it feels like you've dropped, you know 2000 feet out of the sky on some of that content. So it's really amazing. I will say it's a little dated. I've been writing on the part of my team worked on the the Harry Potter rides, which are much next generation. >> I couldn't get on that one, line was too long. >> It's a long way, but it's worth it. >> Dave I asked you a question on the future for people watching who are new observing industrial IOT. What's the most important story going on in your world today? Is it the transformation? Is it the standards? Is it the security? What's, what are the top two or three things that are going on that are really transformative right now in automating at the edge? >> I really want to say that it's standardization. It's about using open standards and standard protocols to deliver content in a reusable fashion. So, you know, having custom proprietary content like a lot of automation suppliers or even like a lot of other industries, it's hard to maintain. It doesn't work well with other products. It's great 'cause you can do a lot of flexibility what you want to do, but at the end of the day it's about keeping the thing running and hooking it up to other components so that open standards based solution you'll see us spending more energy on you know, part of the Ansible open community thing is nice in that space as well. And you'll see us doing more stuff in that place that, that play. >> Talk about your influence there in the community. You know, we, we've been talking the last couple of days about Ansible is nothing if not the power of the community, the collaboration within. Talk about being able to influence that and what that means to you personally as well as to Rockwell. >> Yeah, so open communities are big for us. We have, you know, obviously a customer advisory boards and things like that that we deal with but we also have an open community forum where people can share dialogues and share ideas. We have large events, we have a process solution users group events where we bring in, you know hundreds not thousands of engineering people to to talk to all of these problems that they're facing. And it's not a Rockwell event it's a, you know, community event, right. Where we actually are talking about, you know what industry problem people are seeing. And a lot of the IT OT convergence thing is really top of mind. A lot of people say no minds especially the cybersecurity content. >> What are some of the things that you heard the last couple of days, announcement wise? Obviously big news coming out today that excites you about the direction that Ansible's going and how it's responding to the community. >> Yeah, I think a lot of their feedback that they get and sitting a lot of these sessions, they get a lot of interesting feedback from their customer base. And reacting to that I think is very high on their priority list. And what I've been seeing here, you know, some of the AI stuff that they were showing on automatically, like defining some of the scripts for their code that intelligence behind a lot of that content was amazing. I see a lot of that moving forward. And we're heading the same direction at Rockwell as well with more AI in our company. >> The data's a big story too coming out of all the devices, analytics, great stuff. >> Yeah, I'm pulling that data up into the cloud space and trying to do something valuable with all that data. It's, you know, we've had big data for a long time. It's just figuring out analytics and how to actually act on that data and get it back into the control to do something with. >> It's all getting aside. My serious question on this is that, you know is it the year finally OT and IT converge? Seems like it's been trying for about a decade. >> Yeah, that's a tough one to answer. So I would say it's not there yet. I think there's still a lot of conflict in that space. You know, the OT guys still have a long history of that space, but as you see more retirement and more people phasing out of that and younger crowds coming in, you know the automation space is ripe for that kind of transition because coming out of college, you know jumping into automation isn't always the top of the notch. A lot of people want to go work at the big Amazons or wherever. >> A lot, a lot of stuff going on in space. It's pretty cool. A lot of physical, I've seen a lot more machine learning and physical devices in the industry we've been reporting on. It's interesting. I think it's close to a tipping point because we saw machine learning and the trivial apps like chat bots never really took off, yep. Just expert systems basically, but they're not really going the next level. So now they are, you're starting to see more, you know of wisdom projects, you know, different models being adopted. So I see AI now kind of kicking up similar to OT IT. >> Yeah, most definitely. You know, we have a lot of projects in that space like doing predictive analysis on, let's just say something simple like a pump, right? If you have pumps out there that are running for years and years, but you notice that there's a trend that on day 305 or whatever you know, a bearing starts to fail all the time. You know, that kind of analytics can start doing predictive maintenance content and start pushing out work orders in advance before the things fail because downtime costs millions of dollars for these maintenance. >> Downtime also incidents, right? So you never know, right? >> Exactly. Right, right. So it's good to have that safety net at least from a manufacturing perspective. >> Final question for me. What's the most exciting thing going on in your world right now if you had to kind of pick one thing that you're most jazzed up about? >> I have to say, you know, Rockwell's doing a big shift to cloud-based content and more big data numbers like we were just talking about for that AI. That complexity of what you can do with AI and the value that you can do to like just, you know if I can make quality of a product a half a percent better that's millions of dollars for my customer and I see us doing a lot of work in that space and moving that forward. That's big for me, I think. >> And what are some of that, my last question is what are some of the impacts that customers can expect from that? >> Yeah, so everything from downtime to product quality to increasing production rates and volumes of data that come out. You know, we do something called model predictive control that does, you know, very tight control on control loops to improve like just the general product quality with a lot of the big data numbers that are coming in on that. So you'll see us moving more in that space too to improve you know, product quality and then downtime. >> And really driving outcomes, business outcomes for your customers. David, thank you so much for joining us on the program, sharing what Rockwell Automation is doing. We appreciate your insights, your time and we want to keep watching to see what comes next. >> Sure. Glad to be here. It's great. Thank you very much. >> Our pleasure. For our guest, our John Furrier. I'm Lisa Martin. You've watched theCUBE Live in Chicago, Ansible Fest 2022. Thanks for watching. (gentle music)
SUMMARY :
Welcome back to Chicago, guys and gals. in the Ansible community, the Everything that we probably have, they do. David, great to have you on theCUBE. Nice to be here. you guys are doing there. of the robotics content, smart Any place that needs industrial John: You know, it's interesting, you know, everybody talks about analytics into it because I think this is really, that the world's really for Rockwell to be able to achieve. you know, the OT guys and that connection to Make sure that you keep David: Yeah, exactly right. So how does that reconcile for you? of mining, you know, If you had to kind of to the DNS service, once you is to have the right people. So you have to have a is that the OT just has in in that IT space. of the IT and OT folks coming together a lot of the IT departments. have that be able to and just being able to know You know, one of the of the cars, you know, I hope you have a at that facility but it's rare to hear. It's like, I mean that is It is, and you know, I couldn't get on that Dave I asked you a of flexibility what you want to to you personally as well as to Rockwell. And a lot of the IT OT convergence thing that you heard the last couple of that content was amazing. coming out of all the devices, and get it back into the this is that, you know of conflict in that space. starting to see more, you know that on day 305 or whatever you know, So it's good to have that safety net if you had to kind of pick I have to say, you know, control that does, you to see what comes next. Thank you very much. in Chicago, Ansible Fest 2022.
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AnsibleFest 2022 theCUBE Report Summary
(soft music) >> Welcome back to Chicago guys and gals. Lisa Martin here with John Furrier. We have been covering Ansible Fest '22 for the last two days. This is our show wrap. We're going to leave you with some great insights into the things that we were able to dissect over the last two days. John, this has been an action packed two days. A lot of excitement, a lot of momentum. Good to be back in person. >> It's great to be back in person. It was the first time for you to do Ansible Fest. >> Yes. >> My first one was 2019 in person. That's the last time they had an event in person. So again, it's a very chill environment here, but it's content packed, great active loyal community and is growing. It's changing. Ansible now owned by Red Hat, and now Red Hat owned by IBM. Kind of see some game changing kind of movements here on the chess board, so to speak, in the industry. Ansible has always been a great product. It started in open source. It evolved configuration management configuring servers, networks. You know, really the nuts and bolts of IT. And became a fan favorite mainly because it was built by the fans and I think that never stopped. And I think you started to see an opportunity for Ansible to be not only just a, I won't say niche product or niche kind of use case to being the overall capabilities for large scale enterprise system architectures, system management. So it's very interesting. I mean I find it fascinating how, how it stays relevant and cool and continues to power through a massive shift >> A massive shift. They've done a great job though since the inception and through the acquisition of being still community first. You know, we talked a lot yesterday and today about helping organizations become automation first that Ansible has really stayed true to its roots in being community first, community driven and really that community flywheel was something that was very obvious the last couple of days. >> Yeah, I mean the community thing is is is their production system. I mean if you look at Red Hat, their open source, Ansible started open source, good that they're together. But what people may or may not know about Ansible is that they build their product from the community. So the community actually makes the suggestions. Ansible's just in listening modes. So when you have a system that's that efficient where you have direct working backwards from the customer like that, it's very efficient. Now, as a product manager you might want to worry about scope creep, but at the end of the day they do a good job of democratizing that process. So again, very strong product production system with open source, very relevant, solves the right problems. But this year the big story to me is the cultural shift of Ansible's relevance. And I think with multicloud on the horizon, operations is the new kind of developer kind of ground. DevOps has been around for a while. That's now shifted up to the developer themselves, the cloud native developer. But at cloud scale and hybrid computing, it's about the operations. It's about the data and the security. All of it's about the data. So to me there's a new ops configuration operating model that you're seeing people use, SRE and DevOps. That's the new culture, and the persona's changing. The operator of a large scale enterprise is going to be a lot different than it was past five, 10 years. So major cultural shift, and I think this community's going to step up to that position and fill that role. >> They seem to be having a lot of success meeting people where they are, meeting the demographics, delivering on how their community wants to work, how they want to collaborate. But yesterday you talked about operations. We talked a lot about Ops as code. Talk about what does that mean from your perspective, and what did you hear from our guests on the program with respect that being viable? >> Well great, that's a great point. Ops as code is the kind of their next layer of progression. Infrastructure is code. Configuration is code. Operations is code. To me that means running the company as software. So software influencing how operators, usually hardware in the past. Now it's infrastructure and software going to run things. So ops as code's, the next progression in how people are going to manage it. And I think most people think of that as enterprises get larger, when they hear words like SRE, which stands for Site Reliable Engineer. That came out of Google, and Google had all these servers that ran the search engine and at scale. And so one person managed boatload of servers and that was efficient. It was like a multiple 10x engineer, they used to call it. So that that was unique to Google but not everyone's Google. So it became language or parlance for someone who's running infrastructure but not everyone's that scale. So scale is a big issue. Ops as code is about scale and having that program ability as an operator. That's what Ops as code is. And that to me is a sign of where the scale meets the automation. Large scale is hard to do. Automating at large scale is even harder. So that's where Ansible fits in with their new automation platform. And you're seeing new things like signing code, making sure it's trusted and verified. So that's the software supply chain issue. So they're getting into the world where software, open source, automation are all happening at scale. So to me that's a huge concept of Ops as code. It's going to be very relevant, kind of the next gen positioning. >> Let's switch gears and talk about the partner ecosystem. We had Stefanie Chiras on yesterday, one of our longtime theCUBE alumni, talking about what they're doing with AWS in the marketplace. What was your take on that, and what's the "what's in it for me" for both Red Hat, Ansible and AWS? >> Yeah, so the big news on the automation platform was one. The other big news I thought was really, I won't say watered down, but it seems small but it's not. It's the Amazon Web Services relationship with Red Hat, now Ansible, where Ansible's now a product in AWS's marketplace. AWS marketplace is kind of hanging around. It's a catalog right now. It's not the most advanced technical system in the world, and it does over 2 billion plus revenue transactions. So even if it's just sitting there as a large marketplace, that's already doing massive amounts of disruption in the procurement, how software is bought. So we interviewed them in the past, and they're innovating on that. They're going to make that a real great platform. But the fact that Ansible's in the marketplace means that their sales are going to go up, number one. Number two, that means customers can consume it simply by clicking a button on their Amazon bill. That means they don't have to do anything. It's like getting a PO for free. It's like, hey, I'm going to buy Ansible, click, click, click. And then by the way, draw that down from their commitment to AWS. So that means Amazon's going into business with Ansible, and that is a huge revenue thing for Ansible, but also an operational efficiency thing that gives them more of an advantage over the competition. >> Talk what's in it for me as a customer. At Red Hat Summit a few months ago they announced similar partnership with Azure. Now we're talking about AWS. Customers are living in this hybrid cloud world, often by default. We're going to see that proliferate. What do you think this means for customers in terms of being able to- >> In the marketplace deal or Ansible? >> Yeah, the marketplace deal, but also what Red Hat and Ansible are doing with the hyperscalers to enable customers to live successfully in the hyper hybrid cloud world. >> It's just in the roots of the company. They give them the choice to consume the product on clouds that they like. So we're seeing a lot of clients that have standardized on AWS with their dev teams but also have productivity software on Azure. So you have the large enterprises, they sit on both clouds. So you know, Ansible, the customer wants to use Ansible anyway, they want that to happen. So it's a natural thing for them to work anywhere. I call that the Switzerland strategy. They'll play with all the clouds. Even though the clouds are fighting against each other, and they have to to differentiate, there's still going to be some common services. I think Ansible fits this shim layer between clouds but also a bolt on. Now that's a really a double win for them. They can bolt on to the cloud, Azure and bolt on to AWS and Google, and also be a shim layer technically in clouds as well. So there's two technical advantages to that strategy >> Can Ansible be a facilitator of hybrid cloud infrastructure for organizations, or a catalyst? >> I think it's going to be a gateway on ramp or gateway to multicloud or supercloud, as we call it, because Ansible's in that configuration layer. So you know, it's interesting to hear the IBM research story, which we're going to get to in a second around how they're doing the AI for Ansible with that wisdom project. But the idea of configuring stuff on the fly is really a concept that's needed for multicloud 'Cause programs don't want to have to configure anything. (he laughs) So standing up an application to run on Azure that's on AWS that spans both clouds, you're going to need to have that automation, and I think this is an opportunity whether they can get it or not, we'll see. I think Red Hat is probably angling on that hard, and I can see them kind of going there and some of the commentary kind of connects the dots for that. >> Let's dig into some of news that came out today. You just alluded to this. IBM research, we had on with Red Hat. Talk about what they call project wisdom, the value in that, what it also means for for Red Hat and IBM working together very synergistically. >> I mean, I think the project wisdom is an interesting dynamic because you got the confluence of the organic community of Ansible partnering with a research institution of IBM research. And I think that combination of practitioners and research groups is going to map itself out to academic and then you're going to see this kind of collaboration going forward. So I think it's a very nuanced story, but the impact to me is very clear that this is the new power brokers in the tech industry, because researchers have a lot of muscle in terms of deep research in the academic area, and the practitioners are the ones who are actually doing it. So when you bring those two forces together, that pretty much trumps any kind of standards bodies or anything else. So I think that's a huge signaling benefit to Ansible and Red Hat. I think that's an influence of Red Hat being bought by IBM. But the project itself is really amazing. It's taking AI and bringing it to Ansible, so you can do automated configurations. So for people who don't know how to code they can actually just automate stuff and know the process. I don't need to be a coder, I can just use the AI to do that. That's a low code, no code dynamic. That kind of helps with skill gaps, because I need to hire someone to do that. Today if I want to automate something, and I don't know how to code, I've got to get someone who codes. Here I can just do it and automate it. So if that continues to progress the way they want it to, that could literally be a game changer, 'cause now you have software configuring machines and that's pretty badass in my opinion. So that thought that was pretty cool. And again it's just an evolution of how AI is becoming more relevant. And I think it's directionally correct, and we'll see how it goes. >> And they also talked about we're nearing an inflection point in AI. You agree? >> Yeah I think AI is at an inflection point because it just falls short on the scale side. You see it with chatbots, NLP. You see what Amazon's doing. They're building these models. I think we're one step away from model scaling. I think the building the models is going to be one of these things where you're going to start to see marketplace and models and you start to composability of AI. That's where it's going to get very interesting to see which cloud is the best AI scale. So I think AI at scale's coming, and that's going to be something to watch really closely. >> Something exciting. Another thing that was big news today was the event driven Ansible. Talk about that, and that's something they've been working on in conjunction with the community for quite a while. They were very proud of that release and what that's going to enable organizations to do. >> Well I think that's more meat on the bone on the AI side 'cause in the big trend right now is MLAI ops. You hear that a lot. Oh, data ops or AI ops. What event driven automation does is allows you to take things that are going on in your world, infrastructure, triggers, alarms, notifications, data pipelining flows, things that go on in the plumbing of infrastructure. are being monitored and observed. So when events happen they trigger events. You want to stream something, you send a trigger and things happen. So these are called events. Events are wide ranging number of events. Kafka streaming for data. You got anything that produces data is an event. So harnessing that data into a pipeline is huge. So doing that at scale, that's where I think that product's a home run, and I think that's going to be a very valuable product, 'cause once you understand what the event triggers are, you then can automate that, and no humans involved. So that will save a lot of time for people in the the higher pay grade of MLAI ops automate some of that low level plumbing. They move their skill set to something more valuable or more impactful. >> And we talked about, speaking of impact, we talked about a lot of the business impact that organizations across industries are going to be able to likely achieve by using that. >> Yeah, I mean I think that you're going to see the community fill the gap on that. I mean the big part about all this is that their community builds the product and they have the the playbooks and they're shareable and they're reusable. So we produce content as a media company. They'd talk about content as is playbooks and documentation for people to use. So reuse and and reusing these playbooks is a huge part of it. So as they build up these catalogs and these playbooks and rules, it gets better by the community. So it's going to be interesting to see the adoption. That's going to be a big tell sign for what's going to happen. >> Yep, we get definitely are going to be watching that space. And the last thing, we got to talk to a couple of customers. We talked to Wells Fargo who says "We are a tech company that does banking," which I loved. We got to talk with Rockwell Automation. What are some of your takeaways from how the customers are leveraging Ansible and the technology to drive their businesses forward to meet demanding customers where they are? >> I think you're seeing the script flipping a little bit here, where the folks that used to use Ansible for configuration are flipping to be on the front edge of the innovation strategy where what process to automate is going to drive the profitability and scale. Cause you're talking about things like skill gaps, workflows. These are business constructs and people These are assets so they have economic value. So before it was just, IT serve the business, configure some servers, do some stuff. When you start getting into automation where you have expertise around what this means, that's economic value. So I think you're going to see the personas change significantly in this community where they're on the front lines, kind of like developers are. That's why ops as code is to me a developer kind of vibe. That's going to completely change how operations runs in IT. And I think that's going to be a very interesting cultural shift. And some will make it, some won't. That's going to be a big thing. Some people say, I'm going to retire. I'm old school storage server person, or no, I'm the new guard. I'm going to be the new team. I'm going be on the right side of history here. So they're clearly going down that right path in my opinion. >> What's your overall summary in the last minute of what this event delivered the last couple of days in terms of really talking about the transformation of enterprises and industries through automation? >> I think the big takeaway from me in listening and reading the tea leaves was the Ansible company and staff and the community together. It was really a call for arms. Like, hey, we've had it right from the beginning. We're on the right wave and the wave's getting bigger. So expand your scope, uplevel your skills. They're on the right side of history. And I think the message was engage more. Bring more people in because it is open source, and if they are on that track, you're going to see more of hey, we got it right, let's continue. So they got platform release. They got the key products coming out after years of work. So you know, they're doing their work. And the message I heard was, it's bigger than we thought. So I think that's interesting. We'll see what that means. We're going to unpack that after the event in series of showcases. But yeah, it was very positive, I thought. Very positive. >> Yeah, I think there was definitely some surprises in there for them. John, thank you so much. It's been a pleasure co-hosting with you the last couple of days, really uncovering what Ansible is doing, what they're enabling customers in every industry to achieve. >> Been fun. >> Yes. All right for my co-host, John Furrier, I'm Lisa Martin. You've been watching theCUBE's coverage of Ansible Fest 2022 live from Chicago. We hope you take good care and we'll see you soon.
SUMMARY :
for the last two days. It's great to be back in person. on the chess board, so to the last couple of days. of the day they do a good job on the program with So that's the software supply chain issue. in the marketplace. in the marketplace means We're going to see that proliferate. in the hyper hybrid cloud world. I call that the Switzerland strategy. of the commentary kind of the value in that, what it but the impact to me is very clear And they also talked and that's going to be something enable organizations to do. and I think that's going to about a lot of the business So it's going to be interesting and the technology to drive And I think that's going to be and staff and the community together. in every industry to achieve. and we'll see you soon.
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Tom Anderson, Red Hat | AnsibleFest 2022
>>Good morning, everyone from Chicago Live. The Cube is live at Ansible Fast 2022. Lisa Martin and John Ferer are here for two days of multiple coverage on the cube. Very excited to be back in person. Ansible's 10th anniversary, the first in-person event. John, since 2019. Yeah, great to be perfect. One of the nuggets dropped this morning and I know you was Opss code. >>Yeah, we're gonna hear about that OPSIS code here in this segment. We're gonna get in, but the leader of the, the business unit at Ansible, part of Red Hat. So look forward >>To this. Exactly. Tom Anderson joins us, one of our alumni. Welcome back to the program. Thank you. The VP and general manager of Red Hat. First of all, how great is it to be back in person with live guests and an engaged audience and then robust community? >>It is amazing. It really is. I kind of question whether this day was ever gonna come again after three years of being apart, but to see the crowd here and to see, like you said, the energy in the room this morning and the keynotes, it's fantastic. So it's fa I just couldn't be happier. >>So opsis code nugget drop this morning. Yep. We wanna dissect that with you as, as that was mentioned in the keynote this morning. As Ansible is pushing into the cloud and and into the edge, what does OPSIS code mean for end users and how is it gonna help them to use a term that was used a lot in the keynote level up their automation? >>Yeah, so what we see is, look, the day zero, day one provisioning of infrastructure. There's lots of tools, there's lots of ways to do that. Again, it's just the company's ambition and dedication to doing it. The tools are there, they can do that. We see the next big opportunity for automation is in day two operations. And what's happening right now in ops is that you have multiple clouds, you've got multiple data centers and now you've got edge environments. The number of things to manage on a day-to-day basis is only increasing. The complexity is only increasing this idea of a couple years ago where we're gonna do shift everything left onto the developer. It's nice idea, but you still have to operate these environments on a day two basis. So we see this opportunity as opsis code, just like we did infrastructures code, just like we did configuration as code. We see the next frontier as operations code. >>Yeah, and this is really a big trend as you know with cube reporting a lot on the cloud native velocity of the modern application developer these days, they're under, they're, it's a great time to be a software developer because all the open source goodness is happening, but they're going faster. They want self-service, they want it built in secure, They need guardrails, they need, they need faster ops. So that seems to be the pressure point. Is ops as code going to be that solution? Because you have a lot of people talking about multi-cloud, multiple environments, which sounds great on paper, but when you try to execute it, Yeah, there's complexity. So you know, the goal of complexity management has really been one of the key things around ops. How do I keep speed up and how do I reduce the complexities? These are big. How does, how does ops code fit into that? >>Yeah, so look, we, we see Ansible as this common automation back plane, if you will, that goes across all of these environments. It provides a common abstraction layer so that whether you're running on Azure, whether you're a GCP or whether you're AWS or whether you're, you know, a PLC out on a shop industrial edge floor with a plc, each of those things need to be automated. If we can abstract that into a common automation language, then that allows these domain experts to be able to offer their services to developers in a way that promotes the acceleration, if you will, of those developers tasks. And that developer doesn't have to know about the underlying complexities of storage or database or cloud or edge. They can just do their >>Job. You know, Tom, one of the things I observed in Keynote, and it comes across every time I, we have an event and in person it's more amplified. Cause you see it, the loyalty of the customer base. You have great community. It's very not corporate like here. It's very no big flashy news. But there's some news, hard news, It's very community driven. Check the box there. So continuing on the roots, I wanna get your thoughts on how now the modern era we're in, in this world, the purchasing power, again, I mentioned multicloud looks good on paper, which every CX I wanna be multiple clouds. I want choice now. Now you talk to the people running things like, whoa, hold on, boss. Yeah, the bottoms up is big part of the selection process of how people select and buying consume technology with open source, you don't need to like do a full buy. You can use open source and then get Ansible. Yeah. This is gonna be a big part of how the future of buying product is and implementing it. So I think it's gonna be a groundswell, bottoms up market in this new cloud native with O in the ops world. What's your reaction to that? What's your thoughts? >>So here, here's my thoughts. The bulk of the people here are practitioners. They love Ansible, they use Ansible in their day to day job. It's how it helped, makes 'em successful. Almost every executive that I go out and talk to and our customers, they tell me one of their number one pro or their number one problem is attracting you talent and retaining the talent that they have. And so how can they do that? They can give them the tools to do their job, the tools that they actually like. So not a top down, you know, old fashioned systems management. You're gonna use this tool whether you like it or not. But that bottoms up swell of people adopting open source tools like Ansible to do their job and enjoy it. So I see it as a way of the bottoms up addressing the top down initiative of the organization, which is skills retention, skills enhancement. And that's what we focus on here at this event. Are the practitioners, >>Is that the biggest customer conversation topic these days? Is this the skills gap, retention, attraction talent? Would you say it's more expansive as the organizations are so different? >>Well, so a lot of the folks that I meet are, you know, maybe not sea level, but they're executives in the organization, right? So they're struggling with attract, you know, pretty much everywhere I go, I was in Europe this summer, conversation was always the same. We got two problems. Tracking people. We can't find people, people we find we can't afford. So we need to automate what they would do. And, and then the second piece is the complexity of our environment is growing, right? I'm being asked to do more and I can't find more people to do it. What's my solution? It's automation, you know, at the end of the day, that's what it comes down to. >>It's interesting, the people who are gonna be involved in the scaling horizontally with automation are gonna have the keys to the kingdom. The old joke when it was, you know, they run everything. They power the business now the business is digital. You gotta be hybrid. So we see hybrids a steady state right now, hybrid cloud. When you bring the edge into the equation, how do you see that developing? Because we think it's gonna be continually be hybrid and that's gonna extend out on the edge. What is the ansible's view on how the edge evolves? What's, what's going on there? Can you share your thoughts on the expansion to the edge? >>There's a, our experience is there's a rapid modernization happening out at the edge, industrial edge, you know, oil and gas platforms, retail locations, industrial floors, all that kind of stuff. We see this convergence of OT and IT happening right now where some of the disciplines that enterprises have used in the IT area are gonna expand out into ot. But some of the requirements of ot of not having skilled IT resources, you know, in the store, in the fast food restaurant, on the oil platform, needing to have the tools to be able to automate those changes remotely. We're seeing a real acceleration of that right now. And frankly, Ansible's playing a big role in that. And it's connecting a lot of the connective tissue is around network. What is the key piece that connects all of this environment as network and those number of endpoints that need to be managed. Ansible is, you know, >>It's way use case for Ansible because Ansible built their business on configuration automation, which was don't send someone out to that branch office back in the old days. Exactly. Do it. Manual versus automation. Hey, automation every time. Yes. This is at large scale. I mean the scale magnitude, can you scope the scale of what's different? I mean go even go back 10 years, okay, where we were and how we got here, where we are today. Scope the size of the scale that's happening here. >>You know, hundreds of thousands of endpoints and things. That's not even the API points, but that's the kind of compute points, the network points, the servers it's in. It's, it's, you know what we would've never thought, you know, 10 years ago, a thousand endpoints was a lot or 10,000 endpoints was a lot of things to manage when you start talking about network devices. Yeah, yeah. Home network devices for employees that are remote employees that need to be in a secured network. Just the order of magnitude, maybe two orders of magnitude larger than it has been in the past. And so again, coming home to the automation world, >>The world's spun in your front, your front door right now. >>Yeah, yeah, yeah, >>Absolutely. Talk about, you talked about the acceleration. If we think of about the proliferation of, of devices online, especially the last two years, when, to your point, so many people shifted to remote and are still there. What are some of the, the changes in automation that we've seen as businesses have had to pivot and change so frequently and so many times to be successful? >>Yeah, so here's what we've seen, which is it's no longer acceptable for the owner of the network team or the ownership of the database or of the storage facility to, you can't wait for them to offer their service to people. Self-service is now the rule of thumb, right? So how can those infrastructure owners be able to offer their services to non IT people in a way that manages their compliance and makes them feel that they can get those resources without having to come and ask. And they do that by automating with Ansible and then offering those as package services out to their developers, to their QE teams, to their end users, to be able to consume and subscribe to that infrastructure knowing that they are the ones who are controlling how it's being provisioned, how it's being used. >>What are some of the, there were some great customers mentioned this morning in the keynote, but do you have a favorite example of a customer, regardless of industry that you think really shows the value and, and the evolution of the Ansible platform in its first 10 years and that really articulates the business value that automation delivers to a company? >>Yeah, no, it's a great question. I would think that, you know, if you wound the clock back 10 years, Ansible was all about server configuration management, right? That's what it was about was per provisioning, provisioning, you know, VMware infrastructure, vSphere, and then loading on VMs on top of that as it's expanded into network, into security and to storage and to database into cloud. It's become a much broader platform, if you will. And a good example is we have a customer, large oil and gas customer who is modernizing their oil platforms. I can imagine I not, I've not been on one, but I imagine the people that are out working on that oil platforms have greasy hands that are pushing on things. And they had this platform that the technology modernization included Azure. So connecting to data on Azure, rolling out new application updates, has to have a firewall, has to have network capabilities, has to have underlying OS to be able to do that. And Ansible was the glue that brought all that together to be able to modernize that oil platform. And so for me, that's the kind of thing where it sort of makes it real. You know, the actual businesses, >>The common set of services, this is, this is where we're seeing multi-cloud. Yeah. You start to have that conversation where, okay, I got this edge, it kind of looks the same, I gotta make it work. I'm a developer, I want some compute, I want to put this together. I have containers and orchestration behind it and kind of seeing the same kind of pattern. Yeah. Evolving at scale. So you guys have the platform, okay, I'm an open source. I love the open source. I got the platform 2.3, I see supply chain management in there. You got trusted signatures. That's a supply chain. We've been hearing a lot about security in the code. What else is in the platform that's updated? Can you share the, the, the new things that people should pay attention to in the platform? >>Yeah, we're gonna talk about a couple of things smaller around event driven Ansible, which is bringing Ansible into that really day two ops world where it's sort of hands free automation and, and, and operations where rather than someone pushing a button to trigger or initiate a piece of, of automation, an event will take place. I've detected an outta space condition, I've detected a security violation, I've detected something. Go to a rule book. That rule book will kick off in automation close that remediate that problem and close the thing without anyone ever having to do anything with that. So that's kind of one big area. And we're gonna talk tomorrow. We've got a real special announcement tomorrow with our friends from IBM research that I'm gonna, >>We'll have you on 10 30 Martha Calendars. >>But there's some really great stuff going on on the platform as we start to expand these use cases in multiple directions and how we take Ansible out to more and more people, automation out to more and more people from the inside, experts out to the consumers of automation, make it easier to create automation. >>Yeah. And one of the things I wanted to follow up on that and the skill gap, tying that together is you seeing heard in the keynote today around Stephanie was talking about enterprise architecture. It's not, I won't say corner case answer. I mean it's not one niche or narrow focus. Expanding the scope was mentioned by Katie, expand your scope grow, you got a lot of openings. People are hire now, Now Ansible is part of the enterprise architecture. It's not just one thing, it's, it's a complete, Explain what that means for the folks out there. Yeah. >>So when you start to connect what I call the technology domains, so the network team uses Ansible to automate their network infrastructure and configure all their systems. And the compute team uses it to deploy new servers on aws. And the security ops team use it to go out and gather facts when they have a threat detection happening and the storage team is using it to provision storage. When you start to then say, Okay, we have all these different domains and we want to connect those together into a set of workflows that goes across all of those domains. You have this common language and we're saying, okay, so it's not just the language, it's also the underlying platform that has to be scalable. It's gotta be secure. We talked about signing content. I mean, people don't understand the risk of an automation gone wild. You can, you can do a lot of damage to your infrastructure real fast with automation, just like you can do repair, right? So is what's running in my environment secure? Is it performant and is it scalable? I mean, those are the two, those are the three areas that we're really looking at with the platform right >>Now. Automation gone wild, it sounds like the next reality TV show. Yeah, I >>May, I may regret saying that. >>Sounds >>Like great. Especially on live tv. Great, >>Great podcast title right there. I made a mental note. Automation Gone Wild episode one. Here we are >>Talk about Ansible as is really being the, the catalyst to allow organizations to truly democratize automation. Okay. You, you talked about the different domains there and it seems to me like it's, it's positioned to really be the catalyst that's the driver of that democratization, which is where a lot of people wanna get to. >>Yeah. I mean for us, and you'll see in our sessions at Ansible Fest, we talk a lot about the culture, the culture of automation, right? And saying, okay, how do you include more and more people in your organization in this process? How can you get them to participate? So we talk about these ideas of communities of practice. So we bring the open source, the concepts of open source communities down into enterprises to build their own internal communities of practice around Ansible, where they're sharing best practices, skills, reusable content. That is one of the kind of key factors that we see as a success in inside organizations is the scales, is sort of bringing everybody into that culture of automation and not being afraid of automation saying, Look, it's not gonna take my job, it's gonna help me do my job better. >>Exactly. That automation argument always went, went to me crazy. Oh yeah, automating is gonna take my job away. You know, bank teller example, there's more bank tellers now than ever before. More atm. So the, the job shifts, I mean the value shifts. Yeah. This is kind of where the, where the automation helps. What's real quick, final minute we have left. Where does that value shift? I'm the person being automated away or job. Yeah. Where do you see the value job? Cause it's still tons of openings for people's skills, >>You know? So we see the shift from, particularly in operations from, here's my job, I look at a ticket queue, I grab a ticket, it's got a problem, I go look at a log, I look for a string and a log, I find out the air and I go, configuration change that. That's not a really, I wouldn't call that a fund existence for eight or 10 hours a day, but the idea, if I can use automation to do that for me and then focus on innovating, creating new capabilities in my environment, then you start to attract a new, you know, the next generation of operations people into a much more exciting role. >>Yeah. Architects too, they turned into architects that turned into the multiple jobs scope. It's like multi-tool player. It's like >>A, you know, Yeah, yeah. The five tool player, >>Five tool player in baseball is the best of the best. But, but kind of that's what's >>Happening. That's exactly what's happening, right? That's exactly what's happening. And it helps address that skills challenge. Yeah. And the talent challenge that organizations have as well. >>And everybody wants to be able to focus on delivering value to the organization. I have to get the end of the day. That's a human component that we all want. So it sounds like Ansible is well on its way to helping more and more organizations across industries achieve just that. Tom, it's great to have you back on the program. Sounds like you're coming back tomorrow, so we get day two of Tom. All right, excellent. Look forward to it. Congratulations on the first in-person event in three years and we look forward to talking to you >>Tomorrow. Thank you so much. >>All right, for our guests and John Furrier, I'm Lisa Martin. You're watching The Cube Live from Chicago, Day one of our coverage of Ansible Fest 2022. Stick around. John and I welcome back another Cube alumni next.
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One of the nuggets dropped this morning and I know you was We're gonna get in, but the leader of the, First of all, how great is it to be back in person with years of being apart, but to see the crowd here and to see, like you said, the energy in the room this morning and the keynotes, As Ansible is pushing into the cloud and and into the edge, We see the next big opportunity So you know, the goal of complexity management has really been one of the acceleration, if you will, of those developers tasks. This is gonna be a big part of how the future of buying product The bulk of the people here are practitioners. Well, so a lot of the folks that I meet are, you know, maybe not sea level, are gonna have the keys to the kingdom. What is the key piece that connects all of this environment as network and those number of endpoints that need to be I mean the scale magnitude, can you scope the scale of what's different? points, but that's the kind of compute points, the network points, the servers it's in. of devices online, especially the last two years, when, to your point, so many people shifted to remote of the network team or the ownership of the database or of the storage facility to, And so for me, that's the kind of thing where it sort of makes it real. So you guys have the platform, okay, I'm an open source. ever having to do anything with that. experts out to the consumers of automation, make it easier to create automation. People are hire now, Now Ansible is part of the enterprise architecture. And the security ops team use it to go out and gather facts when they have a threat detection Yeah, I Especially on live tv. I made a mental note. that's the driver of that democratization, which is where a lot of people wanna get to. That is one of the kind of key factors that we see as a success I mean the value shifts. I go look at a log, I look for a string and a log, I find out the air and I go, It's like multi-tool player. A, you know, Yeah, yeah. But, but kind of that's what's And the talent challenge that organizations have as well. Tom, it's great to have you back on the program. Thank you so much. Day one of our coverage of Ansible Fest 2022.
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Scott Kinane, Kyndryl Automation and Nelson Hsu, Red Hat | AnsibleFest 2022
>>Hey everyone. Welcome back to Chicago. Lisa Martin here with John Furrier. We're live with the Cube at Ansible Fest 2022. This is not only Ansible's 10th anniversary, John Wood. It's the first in-person event in three years. About 14 to 1500 people here talking about the evolution of automation, really the democratization opportunities. Ansible >>Is money, and this segment's gonna be great. Cub alumni are back, and we're gonna get an industry perspective on the automation journey. So it should be great. >>It will be great. We've got two alumni back for the price of wine. Scott Canine joins us, Director of Worldwide Automation at Kendra. A Nelson Shoe is back as well. Product marketing director at Red Hat. Guys, great to have you back on the, on the live cube. >>Oh, thank you for having us. And, and you know, it's really great to be back here live and in person and, and, you know, get a chance to see you guys again. >>Well, and also you get, you get such a sense of the actual Ansible community here. Yeah. And, and only a fraction of them that are here, but people are ready to be back. They're ready to collaborate in person. And I always can imagine the amount of innovation that happens at these events, just like off the show floor, people bumping into each other and go, Hey, I had this idea. What do you think, Scott? It's been just about a, a year since Kenel was formed. Talk to us about the last close to a year and what that's been like. Especially as the world has been so, chops >>The world been Yeah, exactly. Topsy turvy. People getting back to working in person and, and everything else. But, you know, you know, throw on that what we've done in the last year, taking Kendra, you know, outside of being a part of ibm Right. In our own company at this point, you know, and you know, you hear a lot of our executives and a lot of our people when we talk about it, like, Oh yeah, it's, you know, it's a $19 billion startup. We got freedom of action. We can do all these different things. But, you know, one of the ways I look at it is we are a $19 billion startup, which means we've got a lot of companies out there that are trusting us to, no matter what change we're doing, continue to deliver their operations, do it flawlessly, do it in a way so they can continue to, to service their clients effectively and, and don't break 'em. And, and so that to me, you know, the way we do that and the way I focusing on that is automation Ansible, obviously corridor strategy, getting there. >>Yeah. And I'd like to get your thoughts too, because we seeing a trend, we've been reporting on this with the cloud growth and the scale of cloud and distributed computing going cloud native, the automation is the front and piece center of all conversations. Automate this, make developers go faster. And with the pandemic, we're coming out of that pandemic. You post pandemic with large scale automation, system architecture, a lot more like architectural conversations and customers leaning on new things. Yeah. What are you seeing in this automation framework that you guys are talking about? What's been the hot playbook or recipe or, or architecture to, you know, play on words there, but I mean, this is kind of the, the key focus. >>Yeah. I mean, if you, one of the things that I com customer comp talks, I've been pulled into a lot recently, have all been around thinking about security, right? A lot in terms of security and compli, I think, I mean, think about the world environment as a whole, right here, everything that's been going on. So, so people are, are conscious of how much energy that's being used in their data centers, right? And people are conscious of how secure they are, right? Are they, you know, the, their end customers are trusting them with data information about them, right? And, and they're trusting us to make sure that those systems are secure to make sure that, you know, all that is taken care of in the right way. And so, you know that what's hot security and compliance, right? What can we do in the energy space, right? Can we do things to, to help clients understand better their energy consumption as, as, you know, especially as we get now in Europe to the winter months, can we do things there that'll help them also be better in that space, Right? Reduce their >>Costs and a lot more cloud rails obviously right there. You got closer and you got now Ansible, they're kind of there to help the customers put it together at scale. This has been the big conversation last year, remember was automate, automate, automate, right? This year it's automation everywhere, in every piece of the, the landscape edge. It's been big discussion tomorrow here about event driven stuff. This is kind of a change of focus and scope. Can you like, share your thoughts on how you see how big this is in terms of the, the, the customer journey >>In terms, I'm sorry, in terms of, >>In terms of their architecture, how they're rolling out automation, >>What's their Yeah, yeah. So, so in terms of their rolling out arch, arch in terms of them consuming architecture, right? And the architecture or consuming automation. Yeah. And rolling out the architecture for how they do that. You know, again, it, to me it's, it's a lot of, it's been focused around how do we do this in the most secure manner possible? How do we deliver the service to them and the most secure managers possible? How do they understand that it, that they can trust the automation and it's doing the right things on their environments, right? So it's not, you know, we're not pushing out or, or you know, it's not making bad policies >>And they're leaning on you guys. >>It's, it's not being putting malware out there, right? At the same time we're doing different things. And so they really rely on, on our customers, rely on us to really help them with that journey. >>I think a, a big part of that with Kendra as such a great partner and so many customers trusting them, is the fact that they really understand that enterprise. And so as, as Scott talks about the security aspect, we're not just talking to the IT operations people, right? We're talking across the enterprise, the security, the infrastructure, and the automation around that. So when we talk about hybrid cloud, we talk about network and security edge is a natural conversation to that, cuz absolutely at the edge network and security automation is critical. Otherwise, how are you gonna manage just the size of your edge as it grows? >>Yeah. And, and we've been, and that's another area that we've been having a a lot more conversations with clients on, is how do you do automation for IOT and edge based devices, right? We, you know, traditionally data center cloud, right? Kind of the core pieces of where we've been focusing on, but I, you know, recently I've been seeing a lot more opportunities and a lot more companies coming forward saying, you know, help us with the network space, help us with the iot space. We really wanna start getting to that level of automation and that part of our environments. And what >>Are some of the key barriers that customers are coming to you with saying, help us overcome these so that they can, you're smiling so that they can, can obviously attract and retain the right talent and also be able to determine what processes to automate to extract the most value and the most ROI for the organization. >>Yeah. And, and, and you know, that's, that's an interesting, the ROI conversation's always an interesting one, right? Because when you start having that with customers, some of the first things they think about, or the first, the natural place people go is, >>Oh, >>Labor takeout. I can do this with less people. Right? But that's not the end all be all of automation. In fact, you know, my personal view is that's, you know, maybe the, the the bottom 30%, right? That's kind of, then you have to think about the value you get above and beyond that standard operations, standardized processes, right? How are you gonna able to do those faster? How's that enabling your business, right? What's all the risks that's now been taken out by having these changes codified, right? By having them done in a manner that is repeatable, scalable, and, and, and really gets them to the point of, you know, what their business needs from an operational standpoint and >>Extracting that value. Nelson, talk about the automation journey from your perspective, How have you seen that evolve from your lens, especially over the last couple of years? >>It's a great question. You know, it's interesting because obviously all of our customers are at different stages of their automation journey. We have someone that just beginning looking at automation, they've been doing old scripts, if you will, the past. And then we have more that are embracing it, right? As a culture. So we have customers that are building cultures of automation, right? They have standups, they have automation guilds. It's, it's kind of a little bit of a, of a click. It's kind of, you know, building up steam in that momentum. And then we have, you know, the clients that Kindra works with, right? And they're very much focused on automation because they understand that they have a lack of resources, they don't have the expertise, they don't have the time to be able to deliver all this. Yeah. And that's really, Kendra really comes into effect to really help those customers accelerate their automation. Yeah. Right. And to that point, you know, we're doing a lot of innovation work with Kendra and we lean on them heavily because, you know, they're willing to make that commitment as a partner both on the, the, the day to day work that we do together as well as Ford looking at different architectures. >>Yeah. And, and the community aspect from our side internally has been tremendous in terms of us being able to expand what we'll be doing with automation and, and what a's been able to do with that community to get there. Right? Yeah. So to last month we did about 33 million day one, day two operations through automation, right? So that's what we've done. If you look at it, you know, if I break it down, it's really 80% of that standard global process stuff that we bring to the table. 20% of that is what our, our account teams are bringing specifically to their clients based on their needs and what they need to get done. Right. You know, one of my favorite examples of of, of this, right? We have a automation example out there for a, a client we've got in Japan, right? They tie, you know, they're, they're obviously concerned, you know, security a everything else that we've been talking about. >>They're also concerned about resiliency, right? In the face of natural disasters. Yeah. So they took our automation, they said, Okay, we're gonna tie your platform to seismic data that's coming through, and we understand what seismic data's happening. Okay, it's hitting a certain event. Let's automatically start kicking off resiliency operations so we can be prepared and thus keeps serving our clients when that's happening. Right? And that's not something like when you talk about a global team coming in and, and saying, we're gonna do all this. It's that community aspect, getting, getting the account focus, getting to that level, right? That's really brings value to clients. And that's one of the use cases, you know, and aaps enabled us to do with the a the community approach. We've got >>Now talk about this partnership. I think earlier when we were talking to Stephanie and Tom, the bottoms up Ansible community with top down kind of business objectives kind of come into play. You guys have a partnership where it's, there's some game changing things happening because Ansible's growing, continuing to have that scope grow from a skill set standpoint, expand the horizons, doing more automation at scale, and then you got business objectives where people wanna move faster in their, in their digital transformation. So to me, it's interesting that this part kind of hits both. >>It does really hit both. I mean, you know, the community cloud that Kendra has is so critical, right? Because they build that c i CF architecture internally, but they follow that community mantra, if you will. And community is so important to us, right? And that's really where we find innovation. So together with what we were call discussing about validated content earlier today becomes critical to build that content to really help people get started, Right? Validated content, content they can depend on and deliver, right? So that becomes critical on the other side, as you mentioned, is the reality of how do we get this done? Yeah. Right? How do we mature, how do we accelerate? And without the ability to drive those solutions to them to fix, if you are the problems that the line of business has. Well, if you don't answer those questions with the innovation, with the community, and then with the ap, it's, it, it does, it's gotta all come >>Together as, I mean, that community framework is interesting. I think we hear a lot in the cube, you know, Hey, let's do this. Sounds good. Who's gonna do it? Someone who's the operator. So there's a little skills gap going on. It's also a transformation in the roles of the operators in particular, and the dev, So the DevOps equation's completely going to the next level, right? And this is where people wanna move faster. So you're seeing a lot more managed services, a lot more Yes. Services that's, I won't say so much top down, but more like, let's do it and here's a play to get it done, right? Then backfill on the hiring, whether it's taking on a little bit of technical debt or going a little faster to get the proof points, >>Right? And I think one of the critical aspects is, you know, Ansible has it certified collections, right? And oftentimes we, we don't, I don't, I meet with customers two, three times a week, right? There's not a single one that doesn't emphasize the importance of partners and the importance of certified collections, Right? And kindra is included in that, right? Because they bring a lot of those certified collections. Use them, leverage them, it's helps customers get a jumpstarter, right? It's a few, it's their easy button, right? But they only get that and they value that because of the support that's there. >>Yeah. Right? They get the with >>The cert. Yeah. I was gonna say, just adding on the certified collections, right? We, so, you know, it was, it was great to see the hub come out with those capabilities because, you know, as we've gone through the last 12 months and, and change, one of the things that we focused more in on is network devices, network support, right? And, and so, you know, some of the certified collections out there for Cisco for F five, right? Some of those things we've been able to take back in and now build on top of with the expertise that we, we have in that space as well. And then use that as a starting point to more value for our clients. >>How is Kentrell working together with, with Red Hat and with Ansible to help organizations like you mentioned Nelson, they're on the journey varies considerably. Some are well on their way, others aren't. But for those to really start developing an automation, first culture, we talked a lot about cultural ship, we talked about it this morning. You can feel the power of that community and driving it, but how do you guys work together to help companies and any industry kind of really start understanding what an automation first culture is and then building it internally and getting some grounds? Well, >>Well, it's interesting, right? One of the, one of the things that really is we found really helpful is assessments, right? So you have silos and pockets of automation, and that's that challenge, right? So to be able to bring that, if you are automation community within an enterprise together, we often go out and we'll do an assessment, right? An automation assessment to really understand holistically how the enterprise could leverage automation not just in the pockets, but to bring it together. And when they bring that automation together, they can share, playbooks can share their experiences, right? And with Kindra and the multiple and the practices they have, right? They really bring that home from an industry perspective. They also bring that home, if you will, from a technology perspective. And they bring that together. So, you know, Kindra in that respect is the glue for our customer success. >>What's news? What's the next big thing that you guys see? Because if this continues down the road, this path, people are gonna get, the winds gonna get the successes. The new beachhead, if you will, is established. You got the edge around the corner. What's next for you guys in the partnership? How do you see it developing? >>No, we're looking at >>No, it's all good. So really, you know, I, I mentioned it earlier and, and the jour the automation journey paralleled by innovation, right? Customers today are automating, they're doing a great job. There's multiple tools out there. We understand we're not gonna be the only tool in the shed, but Ansible can come in and integrate that entire environment. And in a hybrid cloud environment, you want that there, right? I think what next is obviously the hybrid cloud is critical. The edge is critical, right? And I think that, you know, the needs and the requirements that Kindra hears that we have is kind of that future. And, you know, we, we often, often in, in Red Hat, we talk about a north star, right? And when I work with partners, ikin, do we talk about the North Star, where we want to get to? And that is the acceleration of automation. And I think both by the practical aspect of working with our customers and the innovation as partners, as business partners, technology partners will help accelerate >>That. Yeah. Scott, your perspective to bridge to the future is obviously hybrid and edge, how you bringing your customers along? >>Yes. So, so we see, you know, when we talk about my, when I talk about my automation strategy, our automated strategy, right? It's about being automated, orchestrated and intelligent, right? Kind of those, those three layers of the stack. We've been building out a lot of work, what we call our integrated AIOps layer for actionable insights, right? We've got a, you know, a goal to integrate that and, and we have integrated into our automation service for how we're delivering the whole package to our clients so they can better see opportunities for automation. What's the best way to go about it? You know, what are the, what are some of the, the issues they have, vulnerabilities they have in their environment and really bringing it to them in, in a real holistic manner. In fact, we internally, we call it our F five steering wheel, right? Based on the, the race thing, right? >>Because you think about the, the racing cars, f fives know they're right there, right? They got everything they need in front of 'em. Yeah. So our goal is been to, to include that into our automation view and service and build that out, right? So that's one way we're doing it. The additional way is, is through some announcements you probably heard, hopefully heard the last couple weeks through something called Kendra Bridge, right? Kendra Bridge is more the digitization of, of the way we deliver services for our clients to make it easier for them to consume and, and to, to make the barrier to entry for things like getting automation, getting it more in their environment, right? Lower as much as possible, right? So really integrated AIOps kind bridge. Those are really the two ways we see it as, as going forward. >>It's interesting, you know, we live through a lot of these different inflection points in the industry. Every time there's a big inflection point, there's more complexity that needs to be tamed, you know? And so you got innovation. If you got innovation coming and you got the clients wanna simplify and tame the complexity, this is a big part of what you guys do. >>Absolutely. Yeah. I mean, how do we, you know, most, when the clients come to us, right? Like I said, one, it's about trust. They trust us to do it because we can make it easy for them to not have to worry about that, right? Yeah. They don't have to worry about what it takes to secure the environment, manage it, run it, design it, build it for the, the cloud. We give 'em the ability, we give them the ability to focus on their core business while we do the stuff that's important to them, which >>Is absolutely critical that you, you can't emphasize trust in this relationship enough. I wish we had more time, guys, you're gonna have to come back. I think that's basically what this is boil down to. But thanks so much guys for talking with John and me about how Kendra and and Ansible are working together, really enabling your customers to, to unlock the value of automation across their organization and really make some big business changes. We appreciate your insights and your time. Fantastic. Thank you. Happy to do it and happy to do it any time. All right. Our pleasure. Thank you so much for our guests and John Furrier. I'm Lisa Martin. You're watching The Cube Live from Chicago. This is day one of our coverage of Ansible Fest 22. Don't go anywhere. Our next guest joins us in just a minute.
SUMMARY :
here talking about the evolution of automation, really the democratization opportunities. So it should be great. Guys, great to have you back on the, on the live cube. And, and you know, it's really great to be back here live and in person and, and, Well, and also you get, you get such a sense of the actual Ansible community here. And, and so that to me, you know, the way we do that and the way I focusing on that is automation Ansible, or, or architecture to, you know, play on words there, but I mean, this is kind of the, to help clients understand better their energy consumption as, as, you know, especially as we get now in Europe to the winter You got closer and you got now Ansible, So it's not, you know, we're not pushing out or, or you know, it's not making bad And so they really rely on, Otherwise, how are you gonna manage just the size of your edge as it grows? Kind of the core pieces of where we've been focusing on, but I, you know, recently I've been seeing a lot more opportunities Are some of the key barriers that customers are coming to you with saying, help us overcome these so that they Because when you start having that with customers, some of the first things they think about, or the first, scalable, and, and, and really gets them to the point of, you know, Nelson, talk about the automation journey from your perspective, How have you seen that evolve And to that point, you know, we're doing a lot of innovation work They tie, you know, they're, they're obviously concerned, you know, security a everything else that we've been talking about. And that's one of the use cases, you know, and aaps enabled us to do with the a the community approach. doing more automation at scale, and then you got business objectives where people wanna move faster in So that becomes critical on the other side, as you mentioned, I think we hear a lot in the cube, you know, Hey, And I think one of the critical aspects is, you know, Ansible has it certified collections, They get the with And, and so, you know, some of the certified collections out there for Cisco for How is Kentrell working together with, with Red Hat and with Ansible to help organizations like you mentioned Nelson, So to be able to bring that, if you are automation community What's the next big thing that you guys see? And I think that, you know, the needs and the requirements how you bringing your customers along? We've got a, you know, a goal to integrate that and, you probably heard, hopefully heard the last couple weeks through something called Kendra Bridge, right? tame the complexity, this is a big part of what you guys do. We give 'em the ability, we give them the ability to Thank you so much for our guests and John Furrier.
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Keynote Analysis | AnsibleFest 2022
(gentle music) >> Hello from Chicago, Lisa Martin here at AnsibleFest 2022 with John Furrier. John, it's great to be here. The transformation of enterprise and industry through automation. This is not only the 10th anniversary of Ansible, this was the first in-person AnsibleFest since 2019. >> It's awesome, it's awesome, Lisa, and I want to welcome everyone to our live performance here in Chicago. We were remote for two years, 2019 in Atlanta. AnsibleFest, part of Red Hat now, Red Hat part of IBM. So much has happened in the past couple years and I think one of the things that we're going to cover this week here in Chicago, is the evolution of Ansible, where it fits into the new cloud-native ecosystems emerging, and also, kind of, what it means for developers and operators. And we're going to see a lot of that here at AnsibleFest with wall-to-wall coverage, keynote just happened. Very interesting to see, you know, Ansible stayed true to their knitting, as you say, you know. What do they do? No big announcements. Some big community news. But humble. >> Very humble. Very humble, but also very excited. All the keynotes did a great job of addressing that community, and being grateful to the community for, really, the evolution that we see at Ansible and now 10 years later. They were talking a lot about smoothing operations for the developers, democratizing automation across the organization. They talked a little bit about that skills gap. I wanted to get your opinion, 'cause as we know there's, they talked about it from a demand perspective, there's over 300,000 open positions on LinkedIn for Ansible skills. So a lot of opportunity there, a lot of opportunity for them to help democratize automation across organizations. >> Yeah, I mean, I think the big theme last year we heard, "Three things, top three things at AnsibleFest 2021, Animation, Automation, Automation." Again, this year the same theme, "Automate everywhere" is what they're talking about. But I think you're right, there's a cultural shift where the entire cloud ecosystems kind of spun to the doorstep of what Ansible's ecosystem stood for for many years in the decade, which is configuration, running things at scale. That notion is now persistent across all the enterprise. And I think the key takeaway from the keynote, in my opinion, is that configuration and automation around devices and infrastructure stuff is an enterprise architecture now, it's not just a, kind of a corner case, or a specific use case, it's going to be native across the entire enterprise architecture. And that's why we heard a lot of cultural shift conversations. And that is where the people who are running the Ansible stuff, they're going to be the keys to having the keys to the kingdom. And I think you're going to see a lot more of this automation at scale. I love the introduction of ops-as-code, that's a little piggyback off of infrastructure-as-code and infrastructure-as-configuration. They're saying operations now is the new software model and it's like ops dev, not dev ops. So it's really interesting to see how the operator is now a very big important role in the next level of cloud native. And it's really exciting because this is kind of what we've been reporting on theCUBE, for over 12 years. So, watching Ansible grow organically into a powerhouse community is very interesting. To see how they operationalize this, you know, going forward. >> Well the operator's becoming really pivotal catalysts in this next way, that you've been covering for 12 years. You know, if we think about some of the challenges and the barriers to adopting automation that organizations have had, one of them has been skills, staff rather. The other has been, "Hey, we need to really determine which processes to automate, that's actually going to give us the most ROI, most bang for our buck." They talked a little bit about that today, but that's still something that Ansible is working with its customers and the community to help sort of demystify. >> Yeah and I think that they were front and center around, "You on the room," people in the room, "you make this happen." They're very much, it's not a top-down corporate thing, Ansible staying true to their roots as I mentioned. But the thing about skills gap is interesting, you heard Kaete Piccirilli talking about, "Level Up how your organization automates, push your people, expand your scope." So the theme is, the power is in the hands of this community to essentially be the new enterprise architecture for operations. At the same time that feeds the trend around, we're seeing this accelerated cloud-native developer we're seeing, we're going to be at KubeCon next week, that cloud-native developer, they want to go faster, they want self-service. So you're seeing higher velocity cloud-native development putting pressure on the ops teams to level up, so the theme kind of connects for me. I think Red Hat has got it right here, with Ansible, that the theme is shifting to ops better get their act together, to level up and to the velocity of what the developers are expecting. At the same time, giving them the freedom to be using infrastructure-as-code, infrastructure-as-configuration, and ultimately, ops-as-code. To me, I think this is like the evolution of how infrastructure-as-code, which is the nirvana of DevOps, now is ops-as-code. Which means, if that's true, ops becomes much more invisible, if you will, which is what developers want. >> And we're going to be breaking down ops-as-code today, no doubt, in our conversations with some of the great Ansible community folks and partners and leaders that we have on, as well as tomorrow in our full two days of coverage. You talked about cultural shift, we talk about that a lot John, it's challenging, but one of the things I think that was very palpable this morning, is the power of the Ansible community. Not just those folks that are here with us in Chicago, but all the folks watching virtually online. >> Yeah. >> Truly help drive that cultural shift that is needed for organizations to really be able to streamline cloud ops. >> Yeah and I think Adam Miller who came on, I thought his portion was excellent, around community. He talked about, you know, the 10 years, put a little exclamation point on that. Managing the communications within the community. He actually brought up IRC and Slack and then, "We have Discord." And they introduced a new standard for communications it's called Matrix, which is open-source based. And even in their decision making, their principles around open source stay true. Again, they checked the box there, I thought that was really cool. The other thing that, within the meat of the product, the automation platform, Matt Jones was talking about the scale, the managing at scale, is one thing. But the thing that I think that hit, jumped out at me, was that this trusted automation messaging was really huge. Signing, having signatures, that really hits the supply chain that we've been talking about, and we're going to talk about it next week at KubeCon, the software supply chain is trusting the code. And I think as you have automation, it's a really big part of the new platform. So, I thought that was really the meat on the bone there. >> That was a very strong theme, was the trust this morning. You know, another thing that was important was Walter Bentley, who's coming on, I believe, later today, talked about how organizations really need to think about the value that automation can deliver to the business and then develop an automation strategy, really thinking at it strategically rather than what a lot of folks have done. And they've put automation in sort of in silos and pockets. He's really talking about, how can you actually make it strategic across the organization and make sure that you really fully see and understand and can articulate the value to the business, from a competitive advantage perspective, that it's going to deliver. >> Yeah, and Stefanie Chiras who's coming on too, she mentioned a lot about the multi-cloud, multi-environment layer, how Ansible can sit across all the environments and then still support the cloud-native through what she called "an automation loop". That's going to be really talking to what we're seeing as multi-cloud or super-cloud, next-gen cloud, where Ansible's role of automating isn't just corner case in the enterprise. Again, if it's an enterprise-wide architecture, it will be a centerpiece of multi-cloud, multiple capabilities. Whether that's compatibility services or, you know, stuff running best of breed on different clouds. 'Cause, obviously Amazon was on stage here, they're talking about this, big Ansible supporter. So, we've got Google supporting Ansible, so you got the multiple clouds and even VM-Ware environments. So, Ansible sits across all this. And so, I think the big opportunity that I'm seeing come out of this, is that if Ansible is in this position, this could be a catalyst for them to be the multi-cloud hybrid architecture for configuration and operations, and I think, the edge is going to be a really interesting conversation. We have a lot of guests coming on, I'll talk about that. But, I think running distributed workloads across multiple clouds in multiple environments, that's a killer app and we'll see if they can pull it off. We're going to be drilling everyone on that topic today, so I'm looking forward to it. >> We're going to be dissecting that. I like how you paint that picture of Ansible really as the nucleus of that hybrid cloud strategy. You know, so many organizations are living in a hybrid cloud world for many reasons, but for Ansible to be able to be that catalyst. And question for you, if we think about that, when we talk about multi-cloud strategically or organically or whatnot, where is automation moving in terms of the customer conversation? We know Ansible's really focused on smoothing the developer experience, but where is automation going, in your vision, up the C-suite stack? >> Well, multi-cloud is a C-suite message and they love to hear that, but you talk to anyone who's in the trenches, they hate multi-cloud. It's more complexity and there's a lot of issues around latency. So what you're seeing is, you're starting to see an evolution of more about compatibility and interoperability. And this is kind of classic enterprise abstraction layers when you start getting into these inflection points, as things get better, so it gets sometimes more complex. So I think Ansible's notion of simplicity and ease of use, could be the catalyst for this abstraction layer between clouds. So it's all about reducing the complexities, because at the end of the day, if you want to do something on multiple clouds, whether that's run common services across, that's not making it simpler. You got to, it's going to be harder before it gets easier. So, if that makes any sense. So doing multi-cloud sounds great on paper, but it's really hard and that's why no one's really doing it. So you're going to start to see multi-cloud, what we call super-cloud, which is more capabilities on one cloud. And then having them still differentiate the idea that some standard's going to emerge, is complete fantasy. I think you're going to, we still need more innovation. Amazon does a great job, Microsoft's coming up on number two position as well, the clouds still need to differentiate. But that doesn't change Ansible's position. They can still be that shim layer or bolt-on, to whatever clouds do best. If you run 'em on machine learning on Google, that's cool. You want to use Amazon for this? How do you make those work? That's a hard problem. And, again, that's where automation ends up. >> And with that context, do you think that Ansible has the capability of helping to dial down some of the complexity that's in this hybrid multi-cloud world? >> Yeah, I mean, I think the thing about what's going on great here, that's unique in the history of the computer industry, is open source is so powerful and it continues to power away with growth. So, more code is coming. So, software supply chain is a big issue, we heard that with the trusted thing, but also now, how people buy now is different. You can actually try stuff out on open source and then go to Red Hat, Ansible, and say, "Hey, I'm going to get some support." So there's a lot of community collective intelligence involved in decision making, not just coding, but buyer selection and consumption. So the entire paradigm of purchasing software and using it, has completely changed. So, that puts Ansible in a leading position because they got a great community, and now you've got open source continuing to thrive away. So, if you're a customer, you don't need the big enterprise sales pitch you can just try the code, if you like it, then you go with Ansible. So it's really kind of set up nicely, this cloud market, for companies like Ansible, because they have the community and they got the software, it's open and it is what it is, it's transparent, everything's above board. >> Yeah, you know, you talk about the community, you mentioned Matrix earlier, and one of the things that was also quite resonant during the keynote this morning was the power of collaboration and how incredibly important that is to them, to stay native to their open-source roots, as you you said. But also really go to where the customers are. And they talked about that with respect to Matrix and Discord and that was an interesting, this is the community reaching out to really kind of grow upon itself. >> Well, being someone who's used all those tools, even IRC 'cause I'm old, all the old folks use IRC. Then the, kind of, Gen X'ers use, and the millennials use Slack. Discord, the way they mentioned Discord, it's so true. If you're a gamer, you're younger, you're using Discord. Now, Matrix is new, they're trying to introduce an open source, 'cause remember they don't control Discord and they don't control Slack. So Slack's Salesforce now, and Discord is probably going to try to get bought by Microsoft, but still, it's not open. So Matrix is their open-sourced chat service. And I thought that was interesting and I think, that got my attention, because that went against the principles of users that like Slack. So, it'd be great. I mean if Matrix, if that takes off, then that's going to be a case study of going against-the-grain on the best-of-breed package software like Slack or Discord. But I think the demographic shift is interesting. Discord is for younger generations, let's see how Matrix will do. And the uptake wasn't that big. Only been around for a couple months, we've seen almost 5,000 members. But, you know, not a failure. >> Right. >> But not a home run either. >> Right. Well we'll have to see how that progresses- >> Yeah, we'll see how that plays out. >> as all of the generations in the workforce today try to work together and collaborate. You know, if we think about some of the things that we're going to talk about today and tomorrow, business outcomes, increasing business agility, being able to ensure compliance, with security and regulatory requirements, which are only proliferating, really also helping organizations to optimize those costs and be as competitive as they possibly can. So I'm excited to dissect the announcements that came out today, some of the things that we're going to hear today and tomorrow, and really get a great view of the automation infrastructure marketplace and what's going on. >> Yeah, it's going to be great. Infrastructure-as-code, infrastructure-as-config, operations-as-code, it's all leading to, you know, distributed computing edge. It's hybrid. >> Yep. All right John- >> Yeah. >> looking forward to two days of wall-to-wall CUBE coverage with you, coming to you live from Chicago, at the first AnsibleFest in person, since 2019. Lisa Martin and John Furrier with you here all day today and tomorrow, stick around, our first guest joins us. We're going to dissect ops-as-code, stick around. (gentle music)
SUMMARY :
This is not only the 10th is the evolution of Ansible, and being grateful to the community having the keys to the kingdom. and the barriers to adopting automation that the theme is shifting to of the great Ansible community folks to really be able to streamline cloud ops. that really hits the supply chain and can articulate the and I think, the edge is going to really as the nucleus of the clouds still need to differentiate. and then go to Red Hat, Ansible, and say, and one of the things and the millennials use Slack. how that progresses- how that plays out. as all of the generations Yeah, it's going to be great. at the first AnsibleFest
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Ansiblefest 2022 Preview with Andrius Benokraitis
>>Hello, welcome to the Cube here in Palo Alto, California. We're here for a preview of Ansible Fest 2022 this year in Chicago, in Person. And I'm here with Andreas. I've been on Craus, who's a senior manager for Ansible Technical Marketing at Red Hat. And just great to see you Cube alumni. Thanks for coming on and giving us a preview of what to expect at Ansible Fest. Thanks. >>No problem. Thanks for having us and thanks for everyone tuning in. >>You know, one of the things that's exciting this year is one, it's back in person from 2019 was the last in person Ansible Fest. Always a great event for folks doing it. Cloud native configuration management and automation, I think, and last year in our virtual event was the three things where automation, automation, automation kind of drove the point home. This year it's, it's more exciting than ever because if you look at the growth of Cloud Native, we're seeing a lot more traction in mainstream enterprises with Kubernetes. And obviously containers continue to grow with open source, powering everything under the coverage. So like this has like become such a whole nother inflection point this year more than ever. There's a focus on not just automation, but where the dots are gonna connect into the future. So I'd like to get your thoughts on what we're gonna expect this year at Ansible Fest. What's the themes? What do you, what do you see coming down the pike? What can people expect, >>People can really expect? Thanks. Thanks very much John. Really excited. So we're gonna see a lot of what we've seen before, right? So a little difference is from the previous onsite Ansel Fest is, I think we no longer have to say, you know, what's Ansible? We typically have had to say, you know, what is this Ansible thing? I don't know what this is. This is automation. I think we've gone beyond that and this is great. Ansible itself is now the defacto, what we believe is the de facto kind of automation language and Ansible automation platform is the defacto automation platform. So as you move into this year, we we're gonna be able to see, be able to really hone in on really having those beginners starting off much, much more quickly. But also those that have no and love Ansible for over the years to take that automation to the next level to, to new areas. Either new domains going beyond the data center, into the cloud, and then going beyond by all the partner certifications, integrations that we have. So it's a lot, it's just more of, of everything I think. So it's more for everyone all the time. So it's not, it's you, it's, it's no longer kind of a beginner's for everything, but we go all the way to kind of crawl, walk, run for this one. >>You know, it always surprises me every year, I'm always surprised by how great open source I remember every year. It's like, pinch me, This is amazing. If you're a developer right now, it's a good time to be coding because of open source growth is, is at an all time high, continues to grow, more projects are emerging. DevOps, which really came out of the ethos of the kind of the early days of the cloud and, and and scaling infrastructure was, was about infrastructure as code, which was the dream we all had in the late two thousands. If you remember right now that's happened. DevOps is now in the C I C D pipeline. Developers are shifting. Left cloud native hybrid actually now is a steady state and that's pretty well documented. What, what's next beyond infrastructures code? What's beyond the on premise cloud integration from a, from a, from a tech standpoint, what are you guys seeing around infrastructures, code, what's next and then what's beyond on premise? >>I think the big thing is scale, right? So we've always been able to kind of automate people, developers, as you said, DevOps, you can automate from your laptop, you can open up your laptop, download some open source Ansible and you know, automate your windows, your Linux, your network, no problem. But how do you actually operationalize that in an enterprise way across large teams, right? A global environment and then being able to like actually secure that, right? Security is such a big, sp a big piece of that now. So being able to actually apply automation securely in secure environments. So, and wrap all of that around cloud, right? So we've always been talking about a, you, you mentioned it on premises going into the cloud, right? So being able to operationalize in the cloud. So being able to automate cloud targets. So being able to automate aws, Azure GCP targets, but also running your automation on the cloud like say OpenShift. So being able to dynamically load load balance, create execution on demand for Ansible in OpenShift. So it's kind of hard and we, we hope that an Ansible fest will be able to kind of like demystify that from like when you hear, when you hear the word cloud and, and cloud native and hybrid cloud, it kind of goes in your head. We hope to kind of clear that up for folks at, at the fest. >>Certainly we're gonna talk about Super Cloud as well with the cube there. I wanna hear your thoughts real quick on the edge. You know, we gonna hear anything about the edge. This, this year, again, Edge has become hugely important, but yet it's not clear to a lot of people what that looks like. Are we gonna hear anything there? >>Absolutely. Edges is huge. And to some people I will say that when, when you say edge automation, it may not click to some folks, but if you were to say automating wireless access points in a branch office, you thinking, oh, okay, I can't now I know what you're talking about. Right? So a lot of people really may not have made the connection to what Edge Automation is because we, you know, maybe that hasn't been defined. And as we start moving into edge automation, we can start talking about extending, right? We're already talking about extending the data center, especially for network automation. So network automation no longer is in data center. You can now extend that out to the branch office to campus Wireless, right? And you can also extend that out into other areas such as industrial applications, right? If you wanna move a glue gun from one end of the warehouse to the other, you know, that has to be automated and we'll be able to be able to do that by means of some of the enhancements we made for that. >>What can customers and attendees who are gonna be there either in person and after remote hybrid expect us hear about Ansible's automation platform this year? What's gonna be some of the announcements? Can you tease a little bit out on what >>I can tease a little bit? Yeah. You know, day one's gonna be more of making me upleveling what you have today. I think you're gonna see some of the, the futures, right? A lot of the things around Edge, you'll hear something called event driven automation. So you, this is, this is very akin to maybe self-driving or self-healing or, you know, being able to automatically say event is triggered and then you can actually cause some automation to be spun up to actually remediate those things. So going beyond observability, right? Observability is great, but just observing problems is, is, you know, I can look at a million things wrong in my network, but if they're not being remediated, you know, it doesn't really mean much. So, you know, talking about event driven there is gonna be really hot. And then a lot of the other use cases in frameworks, you know, going beyond the configuration, I think, yeah, >>I think they develop things. Cool. And, and final question for you, because one of the things that last year we came away with was automation. What's that next automation at scale. Because remember, you know, we remember where we came from writing scripts, automating things from just basic scripting and, and configuration automation to full scale automation. That's become a big part and we see a lot of that in the cloud. Native conversations with containers and whatnot. How do you scale at, at, at, in the cloud with the cloud na hyperscalers. So again, the relationship with the hyperscalers and scale, what can we expect to hear there? >>Oh, everything from, so we'll be teasing out a little bit. You, you know that we have Ansible automation platform on Azure as a marketplace offering. We may be extending that to maybe some other hyperscalers. So making it super easy for customers or prospects to get automating quickly in their hyperscaler of choice, using their own means and, and, and methods and processes. And then going beyond that and ensuring security. So I mess in security again, how do you ensure that what you're in, what you're actually automating is part of like a security supply chain is part of your content or part of your playbooks and keeping things actually running well at scale, like you said, >>Okay, you got Azure, I'll put, I'll put my guessing hat on. There's only a few others in the pull from. That's awesome. Congratulations. And looking forward to the event, final word here. What's, what's, what do you see outcome at the end of the event? What's gonna, what's in your mind's eye? What's the, what's the outcome look like? >>Yeah, I, I just gotta do a shameless plug. I'm actually running the labs and workshops. So if you're in person or if you're not, you know, come check out the labs and workshops. We have four rooms. You can just camp out and just do hands on learning with workshop instructor led learnings or self-paced training. You can see me and all that. But I think the future learnings here is really trying to futureproof everyone's use cases. So actually, you know, you talk about ai, you talk about Cloud native, talking about other Red Hat products being, being part of that conversation with re and OpenShift, it's really a great time to, to be automating right now. >>And it's interesting. And the Ansible community that's well, well known. They all know each other and it's, it, I won't say niche, it's not niche anymore. It used to be one of those areas where super important for making things run now we need to take cloud and cloud scale. Horizontal scalability across multiple environments is kind of an Ansible thing, right? It's like you need to think about how to scale the Ansible concept. And I think that's the big exciting thing that I see with Cloud Native Andrews is this idea that, you know, what Ansible stood for back then now applies to almost all environments. So the automation, the scaling of, of, of configurations and tearing stuff down and standing things up with machines and software is just, I think, an incredible opportunity. And I think it operations is now in the developer's hands and data and security ops are front and center in, in all these conversations. And it's gonna be super exciting. Can't wait to, can't wait to hear. Okay. Thanks for coming on. I really appreciate it. Thanks for, for giving your opinion. >>All right. I appreciate it. Thank you very much for hosting us. See you and we'll see you there in Chicago. >>Okay. Andrew's been a creative senior manager and it's potential marketing to breaking it down, getting the preview on what's coming, expect to hear more about automation and how it's relevant at scale and, and all new things are happening with cloud native inflection point. We're living right now. So we'll see you there. Thanks for watching.
SUMMARY :
And just great to see you Cube alumni. Thanks for having us and thanks for everyone tuning in. So I'd like to get your thoughts on what we're gonna expect this year at Ansible Fest. Ansel Fest is, I think we no longer have to say, you know, what's Ansible? premise cloud integration from a, from a, from a tech standpoint, what are you guys seeing around infrastructures, download some open source Ansible and you know, automate your windows, your Linux, I wanna hear your thoughts real quick on the edge. may not have made the connection to what Edge Automation is because we, you know, but just observing problems is, is, you know, I can look at a million things wrong in my network, So again, the relationship with the hyperscalers and scale, what can we expect to hear there? So I mess in security again, how do you ensure that what you're in, what's, what do you see outcome at the end of the event? you know, you talk about ai, you talk about Cloud native, talking about other Red Hat products you know, what Ansible stood for back then now applies to almost all environments. See you and we'll see you there in Chicago. So we'll see you there.
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Girish Pai, Cognizant | UiPath Forward 5
>>The Cube Presents UI Path Forward five. Brought to you by UI Path. >>Hi everybody. Welcome back to UI Path Forward at five. You're watching the Cubes coverage. Everybody here is automating everything. Mundane tasks, Enterprisewide Automation Platform Beats product. Dave Nicholson. Dave Ante, Garish Pie is here. He is the Global head of Intelligent Enterprise Automation at Cognizant Global. Si, good to see you. Thanks for coming to the queue. Thank you for having me. Tell us about your role. What are you focused on? So, >>So I lead the enterprise automation practice at Cognizant, and we are focused on three broad segments, right? So we help customers anchor to business outcomes in, in looking at the business outcomes, what we look to do is help them drive transformation at a process level, looking at it from a technology standpoint, and then helping them look at how they're trying to drive change across their entire enterprise and bringing that together, you know, and helping them harmonize both at a technology and at a process level in terms of, you know, the outcomes they're trying to achieve. So >>You guys are a partner, I see your booth over there, and you're also a customer, right? Yes, we are. So are you involved in the both sides? One side, what, what, what's your purpose? >>So we do, so we, we sort of work, So we have a full 360 degree relationship with the i p. So we work with them, you know, in a professional services capacity. They, they support us as a partnership in the marketplace where we go into a number of our customers jointly to drive turnkey transformational engagements from an automation standpoint and second from a, as a, as a, as a customer to UiPath, they've been supporting us, you know, drive a number of automation initiatives across our operations book over the course of the last two years. >>Okay. So tell us more about that. So you started your internal journey, we had you guys on last year. Yep. It were just getting started I think, I think I think you, your head count is what, 60,000 somewhere around? Yeah. 70,000. Yeah, $70,000 growing. I think at the time it was maybe less than 10% of the workforce was kind of automated and the goal was to automate everybody. How are you guys doing along >>The, I think it's starting to in industrialize quite significantly. So over the course of the last year since we last spoke to you, probably, you know, we've doubled the head count in terms of the number of people that are now, you know, officially what we call quote unquote citizen developers. And you know, how they are driving automation at a personal level, we've probably gone about 2.5 x in terms of the number of RS we've saved. So we've done about, I think 450,000 rs, you know, in terms of actual saves at a personal automation level. And look, it's, it's been a great, you know, last 12 months too, right? Because, you know, as we've sort of started to get the message percolated more and more, our teams have started to get energized. They are happy that they are, you know, getting a release in terms of what they're doing on a day to day basis, which is largely repetitive at times, very mundane. And now they have the ability to bring in technology to be able to embrace that and drive that, that you know, much more efficiently. >>Are you talking dozens of bots? Thousands of bots? What's the scope of? >>So I think we've, we've scaled to about 3,500 today in terms of the bots and, and it's, it's a journey that continues to evolve. For me, the number is probably something which I wouldn't anchor to because it's, look, it's end of the day what you end up releasing and what you end up freeing and what the teams are doing. And I think, you know, that's the way we are >>Leading. So you're saying like, we always talk about number of boss, but you're saying it's largely in a relevant metric? Well, and not if it's five versus a thousand. Okay. That's meaningful, right? But, but >>Yeah, I think look a number for me, I think it's not about the number, right? It's about the outcome and it's about what impact you're having in, in terms of, you know, what you're trying to get done at the end of the day, right? Because ultimately you're trying to better, you know, what you do on a day to day basis and you know, whether it's done through 10 or whether that's done through 10,000. >>Yeah. But you pay >>Form, >>Right? Exactly. So, so you better get some value out. Exactly. It's about the value. >>But is there, is there a, is there a curve in terms, you know, an s-curve in terms of scalability though? I mean we, we, we've heard organizations doing, from organizations doing an amazing amount of modernization and automation and they say they've got 15 bots running, you have 3,500. Is there a number where it becomes harder to manage or, or is there scalability involved? >>So look, for me, so let me answer it this way, right? I think, I think there are two aspects to it. I think the, the, the, the more you have, you know, the bigger the challenge in terms of how you run the controls, the governance and the residency in terms of, you know, how you manage the, you know, the, the setup of the bots itself. So I think, yeah, I mean we want to have it to a manageable number, but for us, in the way we've looked at the number of bots, one of the things that we've done is we also look at, you know, what's foundational versus what's nuanced in terms of the kind of use cases that you're trying to deliver. So, so any program of this nature, you need to have a setup, which is, you know, which allows you to sort of orchestrate it in the right manner so that as you sort of scale and you bring more people into that equation, you, it's, you're not just creating bots for the sake of it, but you're actually, you know, trying to look at what you can reuse, what you can orchestrate better. >>And then in the context of that, figuring out where you have the gaps and then hence, you know, sort of taking the delta approach of what else and what more you need to build it. >>So you guys have a big observation space. You work with a lot of customers and, and so what are you seeing as the trends when you look out there? How are you applying it to your own business and your customer's businesses? >>So look, for me, I think the last two years, if anything, the one thing I've taken away is that transformation is now extremely, extremely compressed, right? So, so it's almost, you know, what's true today is probably irrelevant tomorrow. So, which means you have to continually evolve in terms of what needs to be done, right? Second is experiences have become extremely, extremely crucial and critical and experiences of, in, in my mind, you know, two or three kinds, right? One the end customer second from an employee standpoint, and third, in terms of the partner ecosystem that you will have as an enterprise that you have to cater to, right? The other element that you know, which becomes true will always remain true is the whole outcome story in terms of, you know, how we have an anchor to why you're trying to do what you're trying to do. >>And that is, you know, core to what you need to get done. So in the way we've looked at it, as we've said, you know, as you sort of look at how transformation is now evolving and how compressed it's starting to become, the more you are able to orchestrate for what the enterprise is trying to get done in terms of modernization, in terms of digitization, in terms of end goals and end outcomes that they're trying to achieve. And the more you're able to sweat what sits within, you know, the enterprise bring that together as you think about automation is, you know, where the true value lies in terms of being able to create an agile enterprise. >>When you think about digital transformation, digital experiences, if it's, if it's a layer cake, where is automation in that, in that layer? Is it, is it sort of the bottom of the stack? Is it, is it the whole stack? >>So for me it's, I mean it's, it's evolved. If you take today's view, I think what's emerging is a very pervasive view of how you think about automation. It sits across, you know, the entire enterprise. It, it, it, it takes a people process, technology dimension, which is age old. It has to cover, you know, all forms of transformation. You know, whether you're looking at end, how do I say, impact in terms of how you're dealing with customers, whether you're looking at the infrastructure, whether you're looking at the data layer in between, it has to be embedded across the base, right? It, it, you have to take a pervasive approach. And for me, I think automation increasingly in the days ahead is gonna be an enterprise capability. You know, it has to be, you know, all pervasive in the way it needs to be set up. >>The key, the operative word there is pervasive. And that seems to be, you know, the era that we're entering, I don't know what you call it, call it the metaverse, I mean, you know, it's more than cloud and cloud is basically just the infrastructure, right? You're building on top of that, whether it's natural language processing or cryptography or virtual, I mean, there's so many different, you know, technology dimensions, right? But it, but the point about pervasive, okay, it's everywhere. It's sensing, it's anticipatory, it feels like there's this new, you know, construct, emerging of platform that is the basis for digital business, right? And I, and I feel like every 15 years our industry goes through some big transformation. How, how do you see it? You know, do you agree that you, it feels like, okay, something new is happening. It's, it's not gonna be the social media, you know, Facebook's not gonna continue to dominate the world as it does. You already seen some cracks in that armor. We saw Microsoft after the pc, and then of course it came back with cloud Amazon looks, you know, indestructible. But that, that's never the end story, right? In our, in our world, how do you see that? >>No, I think all of what you said, I, I would sort of tend to agree with, for me, look, I don't have a crystal ball to say, you know, what's gonna happen with Facebook or Amazon or >>Otherwise. Yeah. But that's what makes this fun. But >>I, Yeah, but, but I think for me, the, the core is I think you're dictated by, you know, us as end consumers, if you're a B2B or a b2b, b2c, you know, depending upon what business you're in, I think the end customer value dictates, you know, what evolves in terms of, you know, the, the manifestation of, you know, how you will two minutes sort of deliver services, the products that you'll get into. And in that context then, you know, whether you take a, a TikTok view to it or whether you take an Amazon view to it, or whether YouTube becomes relevant in the days ahead, I think it's gonna be dictated by, >>By customer, but it tends to be a technology that's the disruptor, it's the microprocessor or it's the social capability or, or maybe it's ai that, that is the catalyst for that. And then the customer adoption dictates, oh, you're right about that. But there, but the, the match is usually technology. Is that fair or not necessarily? Yeah, >>I still look, I mean you talked about metaverse earlier, right? I think we are, I think we are, it's probably hype more than it is reality right now, at least in my view. And it's, I think we are significantly out in terms of, you know, large scale adoption in terms of what needs to be done. You talk about blockchain, blockchains been around, you know, for at least a decade if not more in, in, right. The way it's being talked about, the adoption, you know, in terms of the, the, the applicability of the, you know, of what is that technology I think is understood, but the actual use cases in terms of how it can be taken into the market and how you can scale it across industries, I think is, you know, is still because >>The economics determine ultimately exactly the outcome. So, Okay, that makes sense. >>Yeah. Now you said you don't have a crystal ball. I, I have one, but when I look into it, it's sort of murky when I try to figure out the answer to the question, Is a platform necessary for this, for automation? I mean, this is really the direction, the question, the existential question in terms of the trajectory of UI path. It seems obvious that automation is critical. It's not as obvious where that automation is going to end up eventually because it's so critical. It feels like it's almost the same as, okay, there's an interface between my keystrokes and filling in a box with text. Well, of course there has to be, there has to be that interface, right? So why wouldn't everyone deliver that by default? So as you gaze into my crystal ball with me, tell me about the things that only a platform can do from your perspective. >>So, >>So, so, so think of it this way, right? I mean, any enterprise probably has hundreds of technologies that they've invested in some platform, some applications that you would've built and evolved over time, which are bespoke custom in nature. So for me, I think when you think about automation, I think it's the balance between the two. What a platform allows you to do is to be able to orchestrate, given the complexity and the, the spa that is any enterprise, you know, that's probably got the burden of, you know, what they've done over the course of the, the previous years. And then in that context then, you know, how do you sort of help get the, the best value out of that in terms of what you want to deliver as the end, end outcomes, if I can call it that, right? So for me, I don't think you can say it's, it's her platform versus the rest. >>I think it's gonna be, it's always gonna be a balance and to the question that you asked earlier. And in terms of saying where does an automation end up at? I think if it's gonna be a pervasive view, look, you know, if, if clients are trying to modernize and get onto the cloud, you can do automation at a cloud level too. Now, you know, do I say then, you know, is it, is it sort of inclusive or it's native to what the cloud providers offer? Or do I then go and say automation needs to be something which I will, you know, sort of overlay on top of what the cloud providers offer. So I think it depends upon what dimension that you come at it. So I don't think you can say it's one or the other. You have a platform, I think it helps you orchestrate quite significantly. But there are gonna be aspects within any enterprise, given the complexity that exists that you will have to balance out, you know, platform versus, you know, how you have to address it maybe in a more individual capacity. >>Garris, gotta go. Thank you so much. Appreciate your perspectives. Good conversation. All right, keep it right there. But trains will back it up. We'll be right back right after this short break. The cube live at UI path forward, five from Las Vegas.
SUMMARY :
Brought to you by What are you focused on? of, you know, the outcomes they're trying to achieve. So are you involved So we work with them, you know, in a professional services capacity. So you started your internal journey, They are happy that they are, you know, getting a release in terms of what they're doing on a day to day basis, which is largely And I think, you know, that's the way we are So you're saying like, we always talk about number of boss, but you're saying it's largely in a relevant metric? It's about the outcome and it's So, so you better get some value out. But is there, is there a, is there a curve in terms, you know, an s-curve in terms of scalability one of the things that we've done is we also look at, you know, what's foundational versus And then in the context of that, figuring out where you have the gaps and then hence, you know, sort of taking the delta So you guys have a big observation space. outcome story in terms of, you know, how we have an anchor to why you're trying to do what you're trying to do. And that is, you know, core to what you need to get done. You know, it has to be, you know, all pervasive in the way it needs to be set up. And that seems to be, you know, the era that we're But you know, what evolves in terms of, you know, the, the manifestation of, you know, that is the catalyst for that. I think we are significantly out in terms of, you know, large scale adoption in terms of what needs to be done. So, Okay, that makes sense. as you gaze into my crystal ball with me, tell me about the things that only a you know, how do you sort of help get the, the best value out of that in terms of what you want to deliver as Now, you know, do I say then, you know, is it, is it sort of inclusive or Thank you so much.
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Bob Pucci, State of Tennessee & Cristina Secrest, EY | UiPath Forward 5
>>The Cube presents UI Path Forward five. Brought to you by UI Path. >>Hi everybody. Welcome back to Las Vegas. You're watching the Cube's coverage of UI Path Forward. Five. We reach cruising altitude on day two. Christina Seacrest is here. She's the process Artificial intelligence and automation GPS automation leader at ey. And Bob PCIs, executive director for Intelligent Automation for the state of Tennessee. Folks, welcome to the cube. Thank you for Adam. >>Good >>To have you. Okay, I don't know if I messed up that title, Christina, but it's kind of interesting. You got process, you got ai, you got automation, you got gps. What's your role? >>I have a lot of rules, so thank you for that. Yeah, so my focus is first and foremost automation. So how do you get things like UI path into our clients, but also I focus specifically in our government and public sector clients. So sled specifically. So state local education. So that's why I'm here with the state of Tennessee. And then we also like to take it beyond automation. So how do you bring an artificial intelligence and all the technologies that come with that. So really full end to end spectrum of >>Automation. So Bob, when you think about the sort of the, the factors that are driving your organization of, how did you describe that, Those sort of external factors that inform your strategy. What, what's, what are the catalysts for how you determine to deploy technology? >>Well, it was primarily that we know tendency has a tendency to provide good customer service, but we want to get to a great status best in class, if you will. And we had an external advisory review where it said, Hey, you know, we could make automation to improve our customer experience. And so that was like a directive of the, the state leaders to go across the board and automate all processes statewide, starting with the 23 executive agencies. >>So where's the focus from that standpoint? Is it on just providing better interfaces to your constituents, your customers? Is it cutting costs or you actually have more budget to invest? Kind of a combination of >>Those? Yeah, so it's, it's really both qualitative and quantitative, right? So quantitative is where we're able to reduce hours and therefore we can redirect people to more less mundane work, if you will. And then qualitative is where we're able to reduce the errors, improve data quality, reduce cycle time for our citizens, you know, when they're making requests, et cetera. So it's, I think it's a combination of both of those quantitative and qualitative metrics that we are mandated in, in micromanaged, quite frankly to, to bring, make those >>Numbers. So I'm from Massachusetts, when I go to a a mass.gov website, I say, all this was done in the 1990s and you could just see where the different stovepipes were, were. But then every now and then you'll hit one and you'll say, Wow, okay, this is up to, it's such a great experience. And then the flip side of that is you want your employees to be happy and not have to do all this mundane work so you can retain the best people. You don't have to. So you're living that in, in state and, and local. So where did you start your automation journey? What role did EY play? Let's go. Yeah, >>Sure. So I, I, I think the thought for process automation was probably three or four years ago, but then we started the program about 18 months ago and there was a lot of, let's say behind the scenes work before we could bring EY in, you know, like what resources was I gonna have in, in the state that were gonna help me address all of the agency simultaneously, right? Cuz normally you'll see a project that'll do be more siloed across the state and say, we're gonna do this agency, we're gonna do this division. Well, you have 40 other agencies that are, you know, the momentum is it's just gonna fall, it wayside. So how we looked at it was let's blanket it and go across all 23 agencies at the same time, you know, identify common processes that are used across 40 divisions, for example, right? >>So, so what we basically did is we procured the software, you know, did the contracts, and then it was really about, I designed, I'm gonna say a multistream approach where they were, we could run multiple work streams, independent define all the architectures, required dev tests, production, the disaster recovery at the same time in parallel developed the center of excellence, the operation model, the processes, methodologies. And the third one was, let's go out to a few divisions, business administration, health, you know, health, human resources, and be able to do a process inventory to see what was there. And then based on that, there's all this theory of well let's do a proof of concept. Let's do a proof of technology, let's do apply. Well, the bottom line is rpa technology's been around for a long time. It's proven there's nothing to prove. But really what was important to prove before we decided to go, you know, full tilt was, you know, develop a proof of perceived business value. >>Are we gonna bring in the, the business value, the hours and the qu qualitative metrics that is expected by our ex executive team, The leadership, we were able to do that, you know, with the help of help of ey, we built out the prototypes and we got the green light to go forward, got ey to start, and then we just basically went pedal to the metal. We had our foundation already defined. We built up the architecture in less than one to two months. Now, in, in a public sector or private sector, it's just not heard of, right? But we have a tendency with EYs technical team, myself, we look around the, the road around the rock instead, the rock in the road, right? So we ended up coming up with a very unique, very easy to easy to handle architecture that was very scalable. And then were able to hit the ground running and deploy in production by December where head of >>Was EY involved in the whole, you know, dev test production, dr. Center of excellence, the, the process inventory or did you bring them in? Did you kind of do that internally then bring EY in for the proof of >>Value? EY was actually awarded the contract for soup to nuts, basically the first phase, which was those four work streams I told you about. And they worked with myself and the state of Tennessee infrastructure architecture teams. We needed to get these things defined and signed off the architecture so we could expedite getting them built out. And then they, and they basically ran all four work streams, you know, the process, inventory, the prototype, the, the proof of perceived business value, the building out the center of excellence, working with myself. And, and this wasn't just us in a, a vacuum, we ended up having to, I mean, I could do the strategy, I could do the technology and I could said the roadmap and all the good stuff, but we had to actually meet with a lot of the state or tendency organizations on change management. How do we end up putting this process or an automation in the middle of the, the normal traditional process, right? So there was a lot of interaction there and getting their feedback and then tweaking our operational model based on feedback from the state of Tennessee. So it was all very collective collaborative. I think that would be the keyword is collaborative and then building out everything. So then, and then we ended up going to the next way where they knew so much and we were, we had such a tight timeframe that we continued with ey. >>So Christina, Bob mentioned center of excellence a couple of times in the state of Tennessee, but then beyond state of Tennessee, other organizations you've worked with in this space, what's the relationship between center of excellence and this thing we've been hearing about over the last couple of days, the citizen developer has that been, has, has, has that been leveraged in the state of Tennessee? Bob, have you seen that leveraged in other places? Christina? What's that relationship look like? >>Yeah, so we don't leverage that, that model yet we have centralized model and there's reasons for that. So we don't end up having maverick's, runoff runoffs have one off, have, you know, have a a UI path version or down this division or have another RPA tool in another division, right? So then all of a sudden we're, we have a maintenance nightmare. Manageability nightmare. So we basically, you know, I I I negotiate an ELA with UI path, so therefore if anyone wants to go do another automation on another division, or they would basically follow our model, our design, our coe, our quality gates. We we're the gatekeepers to bring into production. >>Got it. Now, yeah. Now Christina, what's your perspective? Because I can imagine Nashville and Memphis might have very different ideas about a lot of things. Yeah. Little Tennessee reference there, but what, what, what about what, what about other places are you, are you seeing the citizen developer leveraged in, in some kinds of places more than others or >>What? Yeah. Yeah. And that's part of, because of the foundation we're building. Yeah. So we laid, you know, when, when Bob talks about the first phase of eight weeks, that was amazingly fast, even in that's ridiculous. Spoke about it to say you're gonna lay these four foundations. I was excited, like, I was like, wow, this, this is a very serious client. They wanna go fast and they wanna get that momentum, but the AUM was laid out so we could propel ourselves. So we are at 40 automations right now. We're in the works of creating 80 more automations in this next year. We'll be at 120 really quickly. The AUM is critical. And I will say at a client, I've, I've worked with over 50 clients on automation programs. The way state of Tennessee treats the aom and they abide by it, it is the living document of how you go and go fast. Got it. And the one thing I would say is it's also allowed us to have such immense quality. So I always talk about you put in forward, you put in another 80, we're at 98% uptime on all our automations, meaning they don't go down. And that's because of the AOM we set up. And the natural progression is going to be how do you take it to citizen developer? How do you take it to, we call, you know, process automation plus, >>But methodically, methodically, not just throwing it out at the beginning and, and hoping the chaos >>Works. Exactly. Exactly. And >>The ratio of of bots to automations, is that one to one or you have automation? Oh no, the single bot is doing multiple. So how many bots are you talking about? >>We're doing, Bob, you're gonna answer this better than I will, but the efficiency is amazing. We've been pushing that. >>So our ratio now, cause we have a high density architecture we put in is four bots, excuse me, four processes. The one bot and four bots, The one virtual machine EC two server. Right? So it's four to one, four to one. Now what we're going to get by next summer, we'll do more analysis. We'll probably get the six to one, six to one that's made serious shrinkage of our footprint from a machine, you know, management perspective from 60 down to seven right now we're gonna add the next chunk. We add another 80 automations in FIS gear 24. We're only gonna add two more bot, two more servers. Right? So that's only 10 running like close to 200 bucks. >>And, and is doing this on prem in the cloud? >>No, our, the architecture's fully >>Oh, cloud based >>Ct. Yeah. So we use UiPath SAS model. Yeah. Right. So that handles the orchestrator, the attended bots, all the other tooling you need automation hub, process minor et etc. Etc. Cetera. And then on the state side in aws we have, we use unattended bots, cert bots that have to go down into the legacy systems, et cetera. And they're sitting on EC two instances. >>Was there, was there a security not hole that you had to get through internally? What was that like? >>No, actually we, we, we were lock and step with the security team on this. I mean, there are some standards and templates and you know, what we had to follow, you know, but they're doing an assessment every single release, they do assessments on little bots, what systems it's activating or are accessing, et cetera. The data, because you have fedra data of FTI data, you know, in the public sector to make sure we're not touching it. >>Do you guys golf? >>I do, yeah. Not Well, yes, >>If you mean I I like golf but not don't golf well, but so you know what, what a mulligan is. If you had a Mulligan right, for the state of Tennessee, what'd you learn? What would you do differently? You know, what are some of the gotchas you see maybe Christina in, in other customers and then maybe specifically state of Tennessee, >>Right? I would say, you know, it is the intangibles. So when we talk about our clients that go fast and go big, like state of Tennessee, it's because that, that we call it phase zero that gets done that Bob did. It's about making sure you've got the sponsorship. So we've got executive sponsorship all the way up. You've got amazing stakeholder engagement. So you're communicating the value of what we're trying to do. And you're, you're showing them the value. We have been really focused on the return on investment and we'll talk a little bit about that, but it's how do you make sure that when you do, you know, states are different with those agencies, you have such an opportunity to maximize return on investment if you do it right, because you're not talking about automation in one agency, you're talking it across multiple agencies. We call that the multiplier effect. And that's huge. And if you understand that and how to actually apply that, the value you get is amazing. So I, I don't, I can't say there's a mulligan here, Bob, you may think of some, I know on other clients, if you don't line up your stakeholders and you don't set the expectations early on, you meander and you may get five, six automations in over the year. You know, when I go to clients and say, we're doing 40, we're doing 80, they're like, >>Wow, that's the, but that's the bottom line. Gotcha. Is if you, if you want to have an operational impact and have multiple zeros, you gotta go through that process that you said up front. >>Exactly. A >>Anything you do differently, Bob? >>Well, I I what I do differently, I mean, I think, I mean we, we did get executive sponsorship, you know, and in one area, but we still have to go out to all the 23 agencies and get, and bring awareness and kind of like set the hook to bring 'em in, right? Bring 'em to the, to the, to the lake. Right. And, and I think if, if it was more of a blanket top down, getting every agency to agree to, you know, in investigate automation, it would've been a lot easier. So we're, we're, we're getting it done. We've gone through 13 agencies already and less than a year, all of our releases are sprinkling across multiple agencies. So it's not like a silo. I'll look at that. Everyone at every agency is being impacted. So I think that's great. But I, I think our, our Mueller now is just trying to make sure we have enough backlog to do the next sprints. >>Is it, you know, the ROI on these initiatives is, is, is so clear and so fast. Is it self-funding? Is there gain sharing or do you just give business, give money back to the state and have to scramble for more? Do you get to, you know, get a lick off that cone? >>Unfortunately we don't, but I, I, I try to see if we could get some property like, nah, we don't do that. It's all cost, cost based. But, but our ROI is very attractive, I think for, for doing a whole state, you know, transformation. I think our ROI is three and a half to four years. Right. And that's pretty mind blowing. Even if you look at private sector or, I, I think some of the, the key things which people are noticing, even though we're in public sector, we're we are very nimble. This project is extremely nimble. We've had people come in, exactly, we need this, so we're gonna get penalized. Okay, knock it out in four hours, four days. Right? So it's that nimbleness that you just don't hear of even in private sector or public sector. And we're just able to do that for all the collaboration we do across ey, across myself and across all the other organizations that I, that I kind of drag along or what have, >>What do you, what do you, do you see any limits to the opportunities here? I mean, is this a decade long opportunity? Is you have that much runway >>Or that's just not my dna, so we're gonna, we're gonna probably do it like in four years, but Well, when >>You say do it, I mean, will you be done at that point? Or do you see the weight, >>Look at, you know, we could boil the ocean and I think this is one of the reasons why we're successful is we could boil the ocean and and be, it will be 10 attended 20 year program. Yeah. Okay. Or we looked at it, we had some of EY guys look at it and say, I said, what's the 25 80 rule? Meaning, you know, give me, So if we had 500 processes, tell me how many processes will gimme 80% of the hours. And it was 125, it was a 25 80 rule. I said, that's what we're doing it, we're doing, we're gonna do the 80% of the hours quantifiably. Now when we're done with that pass, then we'll have those other ones that are bringing 20% of the hours, that's when we might be bringing citizens in. That's what we're bringing state workers in. But at that same time, we will be going back in the wave and doing advanced ai. Right. Or advance ia, in other words. So right now we do rpa, ocr, icr, but you know, there's NL ml nps, there's virtual agents and stuff. So that's like the wave we're gonna do through the ones we've already gone through. Got it. Right. So it'll probably be a two or three wave or iterations. >>Cool. Guys, thanks so much for coming into the cube. Great story. Really appreciate you taking us through it. Thank you so much for having us. You're very welcome. All right, keep it right there. Dave Nicholson. The Dave ante. We back at UI path forward five from the Venetian in Las Vegas. Keep it right there.
SUMMARY :
Brought to you by Thank you for Adam. you got ai, you got automation, you got gps. So how do you bring an artificial intelligence and all the technologies that come with that. of, how did you describe that, Those sort of external factors that inform your strategy. but we want to get to a great status best in class, if you will. reduce cycle time for our citizens, you know, when they're making requests, et cetera. So where did you start your automation journey? Well, you have 40 other agencies that are, you know, to prove before we decided to go, you know, full tilt was, you know, got the green light to go forward, got ey to start, and then we just basically went Was EY involved in the whole, you know, dev test production, dr. And then they, and they basically ran all four work streams, you know, the process, inventory, you know, I I I negotiate an ELA with UI path, so therefore if Because I can imagine Nashville and Memphis might have very So we laid, you know, when, when Bob talks about the first And So how many bots are you talking about? We're doing, Bob, you're gonna answer this better than I will, but the efficiency is amazing. machine, you know, management perspective from 60 down to seven right the attended bots, all the other tooling you need automation hub, process minor et etc. Etc. I mean, there are some standards and templates and you know, what we had to follow, you know, but they're doing an assessment I do, yeah. If you had a Mulligan right, for the state of Tennessee, what'd you learn? on the return on investment and we'll talk a little bit about that, but it's how do you make sure that when you do, Wow, that's the, but that's the bottom line. Exactly. down, getting every agency to agree to, you know, in investigate automation, Is it, you know, the ROI on these initiatives is, So it's that nimbleness that you just don't hear of even in So that's like the wave we're gonna do through the ones we've already gone Thank you so much for having us.
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Keynote Analysis | UiPath Forward5
>>The Cube presents UI Path Forward five, brought to you by UI Path. >>Hi everybody. Welcome to Las Vegas. We're here in the Venetian, formerly the Sans Convention Center covering UI Path Forward five. This is the fourth time the Cube has covered forward, not counting the years during Covid, but UiPath was one of the first companies last year to bring back physical events. We did it at the Bellagio last year, Lisa Martin and myself. Today, my co-host is David Nicholson, coming off of last week's awesome CrowdStrike show back here in Vegas. David talking about UI path. UI path is a company that had a very strange path, as I wrote one time to IPO this company that was founded in 2005 and was basically a development shop. And then they realized they got lightning in a bottle with this RPA thing. Yeah. And Daniel Deez, the founder of the company, just really drove it hard and they really didn't do any big kind of VC raise for several years. >>And then all of a sudden, boom, the rocket ship took off, kind of really got out over their skis a little bit, but then got to IPO and, and has had a very successful sort of penetration into the market. The IPO obviously has not gone as well. We can talk about that, but, but they've hit a billion dollars in arr. There aren't a lot of companies that, you know, have hit a billion dollars in ARR that quickly. These guys had massive valuations that were cut back, obviously with the, with the downturn, but also some execution misuses. But the one thing about UiPath, Dave, is they've been very successful at penetrating customers. And that's the thing you always get at forward customer stories. And the other thing I'll, I'll, I'll add is that it started out with the narrative was, oh, automation software, robots, they're gonna take away jobs. The opposite has happened, the zero unemployment. Now basically we're heading into a recession, we're actually probably in a recession. And so how do you combat a recession? You put automation to work and gain if, if, if, if inflation is five to 7% and you can get 20% from automation. Well, it's a good roi. But you sat in the keynotes, it was really your first exposure to the company. What were your thoughts? >>Yeah, I think the whole subject is interesting. I think if you've been involved in tech for a while, the first thing you think of is, well, hold on a second. Isn't this just high tech scripting? Aren't you essentially just automating stuff? How, how cool can that possibly be? >>Well, it kinda was in the >>Beginning. Yeah, yeah. But, but, but when you dig into it, to your, to your point about the concern about displacing human beings, the first things that can automate it are the mundane and the repetitive tasks, which then frees individuals up frontline individuals who are doing those tasks to do more strategic things for the business. So when you, when we, you know, one of the things that was talked about in the keynote was this idea of an army of citizen developers within an organization. Not, you know, not just folks who are innovating and automating at the core of enterprise applications, but also folks out on the front line automating the tasks that are interfering with their productivity. So it seems like it's a win-win for, for everybody throughout the enterprise. >>Yeah. So let's take a, let's take folks through the, the keynote to, basically we learned there are 3,500 people here, roughly, you know, we're in the Venetian and we do a lot of shows at, at the Venetian, formerly the San Convention Center. The one thing about UiPath, they, they are a cool company. Yeah, they are orange colors, kinda like pure storage, but they got the robots moving around. The setup is very nice, it's very welcoming and very cool, but 300 3500 attendees, including partners and UiPath employees, 250 sessions. They've got a CIO, automation council and a pickleball court inside this hall, which pickleball is, you know, all the rage. So Bobby, Patrick and Mary Telo kicked it off. Bobby's the cmo, Mary's the head of branding, and Bobby raised four themes. It it, this is a tool that it's, this is RPA is going from a tool to a way of operating and innovating. >>The second thing is, the big news here is the UI path business platform, something like that. They're calling, but they're talking about about platform and they're really super gluing that to digital transformation. The third is really outcomes shifting from tactical. I have a robot, a software robot on my desk doing, you know, mimicking what I do with the script to something that's transformative. We're seeing this operationalized very deeply. We'll go into some examples. And then the fourth theme is automation is being featured as a strategic line item in annual reports. Bobby Patrick, as he left the stage, I think he was commenting on my piece where I said that RPA automation is more discretionary than some other things. He said, this is not discretionary, it's strategic. You know, unfortunately when you're heading into a recession, you can, you can put off some of the more strategic items. However, the flip side of that, Dave, is as they were saying before, if you're gonna, if if you're, if you're looking at five to 7% inflation may be a way to attack that is with automation. Yeah. >>There's no question, there's no question that automation is a way to attack that. There's no question that automation is critical moving forward. There's no question that we have moved. We're in the, you know, we're, we're still in the age of cloud, but automation is gonna be absolutely critical. The question is, what will UI path's role be in that market? And, and, and when you hear, when you hear UI path talk about platform versus tool sets and things like that, that's a critical differentiator because if they are just a tool, then why wouldn't someone exploit a tool that is within an application environment instead of exploiting a platform? So what I'm gonna be looking for in terms of the, the folks we talked to over the next few days is this question of, you know, make the case that this is actually a platform that extends across all kinds of application environments. If they can't seize that high ground moving forward, it's it's gonna be, it's gonna be tough for them. >>Well, they're betting the company on >>That, that's Rob Ensslin coming in. That's why he's part of the, the equation. But >>That platform play is they are betting the company. And, and the reason is, so the, the, the history here is in the early days of this sort of RPA craze, Automation Anywhere and UI path went out, they both raised a ton of money. UI Path rocketed out to the lead. They had a much e easier to install, you know, Automation Anywhere, Blue Prism, some of the other legacy business process folks, you know, kind of had on-prem, Big Stacks, UiPath came in a really simple self-serve platform and took off and really got a foothold in the market. And then started building or or making some of these acquisitions like Process Gold, like cloud elements, which is API automation. More recently Reiner, We, which is natural language processing. We heard them up on the stage today and they've been putting that together to do not just rpa but process mining, task mining, you know, document automation, et cetera. >>And so Rob Ins insulin was brought in from Google, formerly Google and SAP, to really provide that sort of financial and go to market expertise as well as Shim Gupta who's, who's the cfo. So they, they, and they were kinda late with that. They sort of did all this post ipo. I wish they had done it, you know, somewhat beforehand, but they're sort of bringing in that adult supervision supervision that's necessary. Rob Sland, I thought was very cogent. He was assertive on stage, he was really clear, he was energetic. He talked about the phases, e r p, Internet cloud and the now automation is a new S-curve. He quoted a Forester analyst talking about that. He also had a great quote. He said, you know, the old adage better, faster, cheaper, pick two. He said, You don't have to do that anymore with automation. He cited reports from analysts, 50% efficiency improvement, 40% productivity improvement, 40% improvement in customer satisfaction. >>And then what I always, again, love about UiPath is they're no shortage of customers. They do as good a job as anybody, and I think I would say the best of, of, of getting customers to talk about their experiences. You'll see that on the cube all this week, talked about Changi airport from Singapore. They're adding 50 able to service 50 million new customers, new travelers with no new headcount company called Vital or retail. And how you say that a hundred thousand employees having access to it. Uber, 150% ROI in one year. New York state getting 1.2 million relief checks out in two weeks and identifying potentially 12 billion in fraud. They also talk about 25% of the, of the UI path finance team is digital. And they've, they've only incremented headcount, you know, very slightly one and a half times their revenue's grown. What a 10 x? And really he talked about how to, for how to turn automation into a force multiplier for growth. And to your point, I think that's their challenge. What were your thoughts on Rob ens insulin's keynote? >>First of all, in addition to his background, Rob brings a brand with him. Rob Ensslin is a brand, and that brand is enterprise overarching platform. Someone you go to for that platform play, not for a tool set. And again, I'll, I'll say it again. It's critically important that they, that they demonstrate this to the marketplace, that they are a platform worth embracing as opposed to simply a tool set. Because the large enterprise software providers are going to provide their own tool sets within their platforms. And if you can't convince someone that it's worth doing two things instead of one thing, you're, you're, you're never gonna make it. So I've had experiences with Rob when he was at Google. He's, he's, he's the right person for the job and I, and I I I buy into his strategy and narrative about where we are and the critical nature of automation question remains, will you I path to be able to benefit from that trend. >>So a couple things on that. So your point about sap, you know, is right on EY was up on stage. They, EY is a huge SAP customer and they chose UI path to automate their SAP installation, right? And they're going all in with UI path as a partner. Of course. I I often like to say that the global system integrators, they like to eat at the trough, right? When you see GSIs like EY and others coming into the ecosystem, that means there's business being done. We saw Orange up on stage, which was really interesting. >>Javier from Spain. Yeah. Yep. >>Talking about he had this really cool dashboard and then Ted Coomer was talking about the business automation platform and all the different chapters and the evolution. They've gotta get to a platform play because the thing I failed to mention is Microsoft a couple years ago made a tuck in acquisition and got it to this market really providing individual automations and making it, you know, it's Microsoft, they're gonna make it really easy to add it really >>Cheaply. SAP would tell you that they have the same thing and, >>And then, and then just grow from that. So UiPath has to pivot to a platform play. They started this back in 2019, but as you know, it takes a long time to integrate stuff. Okay. So they're, they're, they're working through that. But this is, you know, Rob ends and put up on the, the slide go big, I, I tweeted, took a page outta Michael Dell. Go big or go home. Final thoughts before we break? >>I think go big or go home is pretty much sums it up. I mean this is, this is an existential mission that UiPath is on right now, starting to stay forward. They need to seize that high ground of platform versus tool set. Otherwise they will never get beyond where they are now. I I I, I do wanna mention too, to folks in the audience, there's a huge difference between a billion dollar valuation and a billion dollars in revenue every year. So, so, you know, these, these guys have reached a milestone, there's no question about that. But to get to that next level platform, platform, platform, and I know we'll be, we'll be probing our guests on that question over the next couple years. >>Yeah. And the key is obviously gonna be keep servicing the customers, you know, all the financial machinations and you know, they reduced yesterday their guidance from the high end being 25% ARR growth down to roughly 20% when you, when you factor out currency conversions. UiPath has a lot of business overseas. They're taking that overseas revenue and converting it back to dollars though dollars are appreciated. So they're less of them. I know this is kind of the inside baseball, but, but we're gonna get into that over the next two days. Dave Ante and Dave, you're watching the Cubes coverage of UI path forward, five from Las Vegas. We'll be right back, right after this short break.
SUMMARY :
The Cube presents UI Path Forward five, brought to you by And Daniel Deez, the founder of the company, And that's the thing you always Aren't you essentially just automating stuff? when we, you know, one of the things that was talked about in the keynote was this idea of an army of you know, all the rage. a software robot on my desk doing, you know, mimicking what I do with the script to this question of, you know, make the case that this is actually a platform But They had a much e easier to install, you know, Automation Anywhere, He said, you know, the old adage better, And how you say that a hundred thousand employees important that they, that they demonstrate this to the marketplace, that they are a and they chose UI path to automate their SAP installation, play because the thing I failed to mention is Microsoft a couple years ago made a tuck in acquisition and SAP would tell you that they have the same thing and, They started this back in 2019, but as you know, it takes a long time to integrate stuff. So, so, you know, you know, they reduced yesterday their guidance from the high end being 25% ARR growth
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Ray Wang, Constellation & Pascal Bornet, Best-selling Author | UiPath FORWARD 5
>>The Cube Presents UI Path Forward five. Brought to you by UI Path, >>Everybody. We're back in Las Vegas. The cube's coverage we're day one at UI Path forward. Five. Pascal Borne is here. He's an expert and bestselling author in the topic of AI and automation and the book Intelligent Automation. Welcome to the world of Hyper Automation, the first book on the topic. And of course, Ray Wong is back on the cube. He's the founder, chairman and principal analyst, Constellation Reese, also bestselling author of Everybody Wants To Rule the World. Guys, thanks so much for coming on The Cubes. Always a pleasure. Ray Pascal, First time on the Cube, I believe. >>Yes, thank you. Thanks for the invitation. Thank you. >>So what is artificial about artificial intelligence, >>For sure, not people. >>So, okay, so you guys are both speaking at the conference, Ray today. I think you're interviewing the co CEOs. What do you make of that? What's, what are you gonna, what are you gonna probe with these guys? Like, how they're gonna divide their divide and conquer, and why do you think the, the company Danielle in particular, decided to bring in Rob Sland? >>Well, you know what I mean, Like, you know, these companies are now at a different stage of growth, right? There's that early battle between RPA vendors. Now we're actually talking something different, right? We're talking about where does automation go? How do we get the decisioning? What's the next best action? That's gonna be the next step. And to take where UI path is today to somewhere else, You really want someone with that enterprise cred and experience the sales motions, the packages, the partnership capabilities, and who else better than Roblin? He, that's, he's done, he can do that in his sleep, but now he's gotta do that in a new space, taking whole category to another level. Now, Daniel on the other hand, right, I mean, he's the visionary founder. He put this thing from nothing to where he is today, right? I mean, at that point you want your founder thinking about the next set of ideas, right? So you get this interesting dynamic that we've seen for a while with co CEOs, those that are doing the operations, getting the stuff out the door, and then letting the founders get a chance to go back and rethink, take a look at the perspective, and hopefully get a chance to build the next idea or take the next idea back into the organization. >>Right? Very well said. Pascal, why did you write your book on intelligent automation and, and hyper automation, and what's changed since you've written that book? >>So, I, I wrote this book, An Intelligent Automation, two years ago. At that time, it was really a new topic. It was really about the key, the, the key, the key content of the, of the book is really about combining different technologies to automate the most complex end to end business processes in companies. And when I say capabilities, it's, we, we hear a lot about up here, especially here, robotic process automation. But up here alone, if you just trying to transform a company with only up here, you just fall short. Okay? A lot of those processes need more than execution. They need language, they need the capacity to view, to see, they need the capacity to understand and to, and to create insights. So by combining process automation with ai, natural language processing, computer vision, you give this capability to create impact by automating end to end processes in companies. >>I, I like the test, what I hear in the keynote with independent experts like yourself. So we're hearing that that intelligent automation or automation is a fundamental component of digital transformation. Is it? Or is it more sort of a back office sort of hidden in inside plumbing Ray? What do you think? >>Well, you start by understanding what's going on in the process phase. And that's where you see discover become very important in that keynote, right? And that's where process mining's playing a role. Then you gotta automate stuff. But when you get to operations, that's really where the change is going to happen, right? We actually think that, you know, when you're doing the digital transformation pieces, right? Analytics, automation and AI are coming together to create a concept we call decision velocity. You and I make a quick decision, boom, how long does it take to get out? Management committee could free forever, right? A week, two months, never. But if you're thinking about competing with the automation, right? These decisions are actually being done a hundred times per second by machine, even a thousand times per second. That asymmetry is really what people are facing at the moment. >>And the companies that are gonna be able to do that and start automating decisions are gonna be operating at another level. Back to what Pascal's book talking about, right? And there are four questions everyone has to ask you, like, when do you fully intelligently automate? And that happens right in the background when you augment the machine with a human. So we can find why did you make an exception? Why did you break a roll? Why didn't you follow this protocol so we can get it down to a higher level confidence? When do you augment the human with the machine so we can give you the information so you can act quickly. And the last one is, when do you wanna insert a human in the process? That's gonna be the biggest question. Order to cash, incident or resolution, Hire to retire, procure to pay. It doesn't matter. When do you want to put a human in the process? When do you want a man in the middle, person in the middle? And more importantly, when do you want insert friction? >>So Pascal, you wrote your book in the middle of the, the pandemic. Yes. And, and so, you know, pre pandemic digital transformation was kind of a buzzword. A lot of people gave it lip service, eh, not on my watch, I don't have to worry about that. But then it became sort of, you're not a digital business, you're out of business. So, so what have you seen as the catalyst for adoption of automation? Was it the, the pandemic? Was it sort of good runway before that? What's changed? You know, pre isolation, post isolation economy. >>You, you make me think about a joke. Who, who did your best digital transformation over the last years? The ceo, C H R O, the Covid. >>It's a big record ball, right? Yeah. >>Right. And that's exactly true. You know, before pandemic digital transformation was a competitive advantage. >>Companies that went into it had an opportunity to get a bit better than their, their competitors during the pandemic. Things have changed completely. Companies that were not digitalized and automated could not survive. And we've seen so many companies just burning out and, and, and those companies that have been able to capitalize on intelligent automation, digital transformations during the pandemic have been able not only to survive, but to, to thrive, to really create their place on the market. So that's, that has been a catalyst, definitely a catalyst for that. That explains the success of the book, basically. Yeah. >>Okay. Okay. >>So you're familiar with the concept of Stew the food, right? So Stew by definition is something that's delicious to eat. Stew isn't simply taking one of every ingredient from the pantry and throwing it in the pot and stirring it around. When we start talking about intelligent automation, artificial intelligence, augmented intelligence, it starts getting a bit overwhelming. My spy sense goes off and I start thinking, this sounds like mush. It doesn't sound like Stew. So I wanna hear from each of you, what is the methodical process that, that people need to go through when they're going through digital trans transmission, digital transformation, so that you get delicious stew instead of a mush that's just confused everything in your business. So you, Ray, you want, you want to, you wanna answer that first? >>Yeah. You know, I mean, we've been talking about digital transformation since 2010, right? And part of it was really getting the business model, right? What are you trying to achieve? Is that a new type of offering? Are you changing the way you monetize something? Are you taking existing process and applying it to a new set of technologies? And what do you wanna accomplish, right? Once you start there, then it becomes a whole lot of operational stuff. And it's more than st right? I mean, it, it could be like, well, I can't use those words there. But the point being is it could be a complete like, operational exercise. It could be a complete revenue exercise, it could be a regulatory exercise, it could be something about where you want to take growth into the next level. And each one of those processes, some of it is automation, right? There's a big component of it today. But most of it is really rethinking about what you want things to do, right? How do you actually make things to be successful, right? Do I reorganize a process? Do I insert a place to do monetization? Where do I put engagement in place? How do I collect data along the way so I can build better feedback loop? What can I do to build the business graph so that I have that knowledge for the future so I can go forward doing that so I can be successful. >>The Pascal should, should, should the directive be first ia, then ai? Or are these, are these things going to happen in parallel naturally? What's your position on that? Is it first, >>So it, so, >>So AI is part of IA because that's, it's, it's part of the big umbrella. And very often I got the question. So how do you differentiate AI in, I a, I like to say that AI is only the brain. So think of ai cuz I'm consider, I consider AI as machine learning, Okay? Think of AI in a, like a brain near jar that only can think, create, insight, learn, but doesn't do anything, doesn't have any arms, doesn't have any eyes, doesn't not have any mouth and ears can't talk, can't understand with ia, you, you give those capabilities to ai. You, you basically, you create a cap, the capability, technological capability that is able to do more than just thinking, learning and, and create insight, but also acting, speaking, understanding the environment, viewing it, interacting with it. So basically performing these, those end to end processes that are performed currently by people in companies. >>Yeah, we're gonna get to a point where we get to what we call a dynamic scenario generation. You're talking to me, you get excited, well, I changed the story because something else shows up, or you're talking to me and you're really upset. We're gonna have to actually ch, you know, address that issue right away. Well, we want the ability to have that sense and respond capability so that the next best action is served. So your data, your process, the journey, all the analytics on the top end, that's all gonna be served up and changed along the way. As we go from 2D journeys to 3D scenarios in the metaverse, if we think about what happens from a decentralized world to decentralized, and we think about what's happening from web two to web three, we're gonna make those types of shifts so that things are moving along. Everything's a choose your end venture journey. >>So I hope I remember this correctly from your book. You talked about disruption scenarios within industries and within companies. And I go back to the early days of, of our industry and East coast Prime, Wang, dg, they're all gone. And then, but, but you look at companies like Microsoft, you know, they were, they were able to, you know, get through that novel. Yeah. Ibm, you know, I call it survived. Intel is now going through their, you know, their challenge. So, so maybe it's inevitable, but how do you see the future in terms of disruption with an industry, Forget our industry for a second, all industry across, whether it's healthcare, financial services, manufacturing, automobiles, et cetera. How do you see the disruption scenario? I'm pretty sure you talked about this in your book, it's been a while since I read it, but I wonder if you could talk about that disruption scenario and, and the role that automation is going to play, either as the disruptor or as the protector of the incumbents. >>Let's take healthcare and auto as an example. Healthcare is a great example. If we think about what's going on, not enough nurses, massive shortage, right? What are we doing at the moment? We're setting five foot nine robots to do non-patient care. We're trying to capture enough information off, you know, patient analytics like this watch is gonna capture vitals from a going forward. We're doing a lot what we can do in the ambient level so that information and data is automatically captured and decisions are being rendered against that. Maybe you're gonna change your diet along the way, maybe you're gonna walk an extra 10 minutes. All those things are gonna be provided in that level of automation. Take the car business. It's not about selling cars. Tesla's a great example. We talk about this all the time. What Tesla's doing, they're basically gonna be an insurance company with all the data they have. They have better data than the insurance companies. They can do better underwriting, they've got better mapping information and insights they can actually suggest next best action do collision avoidance, right? Those are all the things that are actually happening today. And automation plays a big role, not just in the collection of that, that information insight, but also in the ability to make recommendations, to do predictions and to help you prevent things from going wrong. >>So, you know, it's interesting. It's like you talk about Tesla as the, the disrupting the insurance companies. It's almost like the over the top vendors have all the data relative to the telcos and mopped them up for lunch. Pascal, I wanna ask you, you know, the topic of future of work kind of was a bromide before, but, but now I feel like, you know, post pandemic, it, it actually has substance. How do you see the future of work? Can you even summarize what it's gonna look like? It's, it's, Or are we here? >>It's, yeah, it's, and definitely it's, it's more and more important topic currently. And you, you all heard about the great resignation and how employee experience is more and more important for companies according to have a business review. The companies that take care of their employee experience are four times more profitable that those that don't. So it's a, it's a, it's an issue for CEOs and, and shareholders. Now, how do we get there? How, how do we, how do we improve the, the quality of the employee experience, understanding the people, getting information from them, educating them. I'm talking about educating them on those new technologies and how they can benefit from those empowering them. And, and I think we've talked a lot about this, about the democratization local type of, of technologies that democratize the access to those technologies. Everyone can be empowered today to change their work, improve their work, and finally, incentivization. I think it's a very important point where companies that, yeah, I >>Give that. What's gonna be the key message of your talk tomorrow. Give us the bumper sticker, >>If you will. Oh, I'm gonna talk, It's a little bit different. I'm gonna talk for the IT community in this, in the context of the IT summit. And I'm gonna talk about the future of intelligent automation. So basically how new technologies will impact beyond what we see today, The future of work. >>Well, I always love having you on the cube, so articulate and, and and crisp. What's, what's exciting you these days, you know, in your world, I know you're traveling around a lot, but what's, what's hot? >>Yeah, I think one of the coolest thing that's going on right now is the fact that we're trying to figure out do we go to work or do we not go to work? Back to your other point, I mean, I don't know, work, work is, I mean, for me, work has been everywhere, right? And we're starting to figure out what that means. I think the second thing though is this notion around mission and purpose. And everyone's trying to figure out what does that mean for themselves? And that's really, I don't know if it's a great, great resignation. We call it great refactoring, right? Where you work, when you work, how we work, why you work, that's changing. But more importantly, the business models are changing. The monetization models are changing macro dynamics that are happening. Us versus China, G seven versus bricks, right? War on the dollar. All these things are happening around us at this moment and, and I think it's gonna really reshape us the way that we came out of the seventies into the eighties. >>Guys, always a pleasure having folks like yourself on, Thank you, Pascal. Been great to see you again. All right, Dave Nicholson, Dave Ante, keep it right there. Forward five from Las Vegas. You're watching the cue.
SUMMARY :
Brought to you by And of course, Ray Wong is back on the cube. Thanks for the invitation. What's, what are you gonna, what are you gonna probe with these guys? I mean, at that point you want your founder thinking about the next set Pascal, why did you write your book on intelligent automation and, the key, the key content of the, of the book is really about combining different technologies to automate What do you think? And that's where you see discover become very important And that happens right in the background when you augment So Pascal, you wrote your book in the middle of the, the pandemic. You, you make me think about a joke. It's a big record ball, right? And that's exactly true. That explains the success of the book, basically. you want, you want to, you wanna answer that first? And what do you wanna accomplish, right? So how do you differentiate AI in, I a, I We're gonna have to actually ch, you know, address that issue right away. about that disruption scenario and, and the role that automation is going to play, either as the disruptor to do predictions and to help you prevent things from going wrong. How do you see the future of work? is more and more important for companies according to have a business review. What's gonna be the key message of your talk tomorrow. And I'm gonna talk about the future of intelligent automation. what's exciting you these days, you know, in your world, I know you're traveling around a lot, when you work, how we work, why you work, that's changing. Been great to see you again.
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Andy Thurai, Constellation Research & Daniel Newman, Futurum Research | UiPath Forward5 2022
The Cube Presents UI Path Forward five. Brought to you by UI Path. >>I Ready, Dave Ante with David Nicholson. We're back at UI Path forward. Five. We're getting ready for the big guns to come in, the two co CEOs, but we have a really special analyst panel now. We're excited to have Daniel Newman here. He's the Principal analyst at Future and Research. And Andy Dai, who's the Vice president and Principal Analyst at Constellation Research. Guys, good to see you. Thanks for making some time to come on the queue. >>Glad to be here. Always >>Good. So, >>Andy, you're deep into ai. You and I have been talking about having you come to our maor office. I'm, I'm really excited that we're able to meet here. What have you seen at the show so far? What are your big takeaways? You know, day one and a half? >>Yeah, well, so first of all, I'm d AI because my last name has AI and I >>Already talk about, >>So, but, but all jokes aside, there are a lot of good things I heard from the conference, right? I mean, one is the last two years because of the pandemic, the growth has been phenomenal for, for a lot of those robotic automation intelligent automation companies, right? So because the low hanging through position making processes have been already taken care of where they going to find the next growth spot, right? That was the question I was looking answers to. And they have some inverse, one good acquisition. They had intelligent document processing, but more importantly they're trying to move from detrimental rules based RPA automation into AI based, more probabilistic subjective decision making areas. That's a huge market, tons of money involved in it, but it's going to be a harder problem to solve. Love to see the execut. >>Well, it's also a big pivot for the, for the company. It started out as sort of a a point product and now is moving to, to platform. But to end of the macro is not in UI pass favor. It's not really in any, you know, tech company's favor, but especially, you know, a company that's going into a transition transitioning to go to market cetera. What are you seeing, what's your take on the macro? I mean, I know you follow the financial markets very closely. There's a lot of negative sentiment right now. Are you as negative as the sentiment? >>Well, the, the broad sentiment comes with some pretty good historical data, right? We've had probably one of the worst market years in multiple decades. And of course we're coming into a situation where all the, the factors are really not in our favor. You've got in interest rates climbing, you've got wildly high inflation, you've had a, you know, helicopters dumping money on the economy for a period of time. And we're, we're gonna get into this great reset is what I keep talking about. But, you know, I had the opportunity to talk to Bill McDermott recently on one of my shows and Bill's CEO of ServiceNow, in case anybody there doesn't know, but >>Former, >>Yeah, really well spoken guy. But you know, him and I kind of went back and forth and we came up with this kind of concept that we were gonna have to tech our way out of what's about to come. You can almost be certain recession is gonna come. But for companies like UiPath, I actually think there's a tremendous opportunity because the bottom line is companies are gonna be looking at their bottom line. A year ago it was all about growth a deal, like the Adobe Figma deal would've been, been lauded, people would've been excited. Now everybody's looking at going, how are they paying that price? Everybody's discounting the future growth. They're looking at the situation, say, what's gonna happen next? Well, bottom line is now they're looking at that. How profitable are we? Are you making money? Are you growing that bottom line? Are you creating earnings? We're >>Gonna come in >>Era, we're gonna come into an era where companies are gonna say, you know what? People are expensive. The inflationary cost of hiring is expensive. You know, what's less expensive? Investing in the cloud, investing in ai, investing in workflow and automation and things that actually enable businesses to expand, keep costs somewhat contained fixed costs, and scale their businesses and get themselves in a good position for when the economy turns to return to >>Grow. So since prior to the pandemic cloud containers, m l and RPA slash automation have been the big four that from a spending data standpoint have been above the line above all kind of the rest in terms of spending momentum up until last quarter, AI and RPA slash automation declined. So my question is, are those two areas discretionary or more discretionary than other technology investments you heard? >>Well, I, I think we're in a, a period where companies are, I won't say they've stopped spending, but you listened to Mark Benioff, you talked about the elongated sales cycle, right? I think companies right now are being very reflective and they're doing a lot of introspection. They're looking at their business and saying, We hired a lot of people. We hired really fast. Do we need to cut? Do we need to freeze? We've made investments in technology, are we getting a return on 'em? We all know that the analytics, whether it's you know, digital adoption platforms or just analytics in the business, say, What is all this money we've been spending doing for us and how productive are we? But I will tell you universally, the companies are looking at workflow automations that enable things. Whether that's onboarding customers, whether that's delivering experiences, whether that's, you know, full, you know, price to quote technologies, automate, automate, automate. By doing that, they're gonna bring down the cost, they're gonna control themselves as best as possible in a tough macro. And then when they come out of it, these processes are gonna be beneficiary in a, in a growth environment even more so, >>Andy UiPath rocketed to a leadership position, largely due to the, the product and the simplicity of the product relative to the competition. And then as you well know, they expanded into, you know, platform. So how do you see the competitive environment? A UI path is again focusing on that platform play Automation Anywhere couldn't get to public market. They had turnover at the go to market level. Chris Riley joined a lot of, lot of hope left Microsoft joined into the fray, obviously is having an impact that you're certainly seeing spending momentum around Microsoft. Then SAP service Now Salesforce, every software company the planet thinks they should get every dollar spent on software. You know, they, they see UI pass momentum and they say, Hey, we can, we can take some of that off the table. How do you see the competitive environment right now? >>So first of all, in in my mind, UI path is slightly better because of a couple of reasons. One, as you said, it's ease of use. >>They're able to customize it variable to what they want. So that's a real easy development advantage. And then the, when you develop the bots and equal, it takes on an average anywhere between two to maybe six weeks, generally speaking, in some industries regulated government might take more so that it's faster, quicker, easier than others in a sense. So people love using that. The second advantage of what they have in my mind is that not only they are available as a managed SA solution on, on cloud, on Azure Cloud, but also they have this version that you can install, maintain, manage any way you want, whether it's a public cloud or, or your own data center and so on so forth. That's not available with almost, not all of them have it, Few have it, but not all of the competitors have it. So they have an advantage there as well. Where it could become useful would be one of the areas that they haven't even expanded is the government. >>Government is the what, >>Sorry? The government. Yeah, related solutions, right? Defense, government, all of those areas when you go, which haven't even started for various reasons. For example, they're worried about laying off people, worried about cost, worried about automating things. There's a lot of hurdles to overcome. But once you overcome that, if you want to go there, nobody's going to use, or most of them will be very of using something on the cloud. So they have a solution for version variation of that. So they are set up to come to that next level. I mean, I don't know if you guys were at the keynote, the CEO talked about how their plans to go from 1 billion to 5 billion in ar. So they're set up to capture the market. But again, as you said, every big software company saw their momentum, they want to get into it, they want to compete with them. So >>Well, to get to 5 billion, they've gotta accelerate growth. I mean, if you do 20% cer over the next, you know, through the end of the decade, they don't quite get there. So they're gonna have to, you know, they lowered their forecast out of the high 20 or mid twenties to 18%. They're gonna have to accelerate that. And we've seen that before. We see it in cloud where cloud, you know, accelerates growth even though you got the lower large numbers. Go ahead Dave. >>Yeah, so Daniel, then how do we, how do we think of this market? How do we measure the TAM for total addressable market for automation? I mean, you know, what's that? What's that metric that shows how unautomated are we, how inefficient are we? Is there a, is there a 5% efficiency that can be gained? Is there a 40% efficiency that can be gained? Because if you're talking about, you know, how much much of the market can UI path capture, first of all, how big is the market? And then is UI path poised to take advantage of that compared to the actual purveyors of the software that people are interacting with? I'm interacting with an E R p, an ER P system that has built into it the ability to automate processes. Then why do I need 'EM UI path? So first, how do you evaluate TAM? Second, how do you evaluate whether UI Path is gonna have a chance in this market where RPAs built into the applications that we actually use? Yeah, >>I think that TAM is evolving, and I don't have it in front of me right now, but what I'll tell you about the TAM is there's sort of the legacy RPA tam and then there's what I would sort of evolve to call the IPA and workflow automation tam that is being addressed by many of these software companies that you asked in the competitive equation. In the, in the, in the question, what we're seeing is a world where companies are gonna say, if we can automate it, we will automate it. That's, it's actually non-negotiable. Now, the process in the ability to a arrive at automation at scale has long been a battle front within the nor every organization. We've been able to automate things for a long time. Why has it more been done? It's the same thing with analytics. There's been numerous studies in analytics that have basically shown companies that have been able to embrace, adopt, and implement analytics, have significantly better performances, better performances on revenue growth, better performances and operational cost management, better performances with customer experience. >>Guess what? Not everybody, every company can get to this. Now there's a couple of things behind this and I'm gonna, I'm gonna try to close my answer out cause I'm getting a little long winded here. But the first thing is automation is a cultural challenge in most organizations. We've done endless research on companies digitally transforming and automating their business. And what we've found is largely the technology are somewhat comparable. Meaning, you know, I, I've heard what he is saying about some of the advantages of partnership with Microsoft, very compelling. But you know what, all these companies that have automation offerings, whether it's you know, through a Salesforce, Microsoft, whether it's a specialized rpa like an Automation Anywhere or a UI path, their solutions can be deployed and successful. The company's ability to take the investment, implement it successfully and get buy in across the organization tends to always be the hurdle. An old CIO stat, 50% of IT projects fail. That stat is still almost accurate today. It's not 50% of technology is bad, but those failures are because the culture doesn't get behind it. And automation's a tricky one because there's a lot of people that feel on the outside rather than the inside of an automation transformation. >>So, Andy, so how do you think about the, to Dave's question, the SAPs the service nows trying to, you know, at least take some red crumbs off the table. They, they're gonna, they're gonna create these automation stove pipes, but in Automation Anywhere or, or UI path is a horizontal play, are they not? And so how do you think about that progression? Well, so >>First of all, all of this other companies, when they, they, whether it's a build, acquire, what have you, these guys already have what, five, seven years on them. So it's gonna be difficult for them to catch up with the Center of Excellence knowledge on the use cases, what they got to catch up with them. That's gonna be a lot of catch up. Just to give you an idea, Microsoft Power Automate has been there for a while, right? They're supposedly doing well as well, but they still choose to partner with the UiPath as well to get them to the next level. So there's going to be competition coming from all areas, but it's, it's about, you know, highlights. >>So, so who is the competition? Is it Microsoft chipping away an individual productivity? Is it a service now? Who's got a platform play? Is it themselves just being able to execute >>All plus also, but I think the, the most, I wouldn't say competition, but it's more people are not aware of what areas need to be automated, right? For example, one of the things I was talking about with a couple of customers is, so they have a automation hub where you can put the, the process and and task that need to be automated and then you prioritize and start working on it. And, and almost all of them that I speak to, they keep saying that most of the process and task identification that they need to do for automation, it's manual right now. So, which means it's limited, you have to go and execute it. When people find out and tell you that's what need to be fixed, you try to go and fix that. But imagine if there is a way, I mean the have solutions they're showcasing now if it becomes popular, if you're able to identify tasks that are very inefficient or or process that's very inefficient, automatically score them up saying that, you know what, this is what is going to be ROI and you execute on it. That's going to be huge. So >>I think ts right, there's no shortage of, of a market. I would, I would agree with you Rob Sland this morning talked about the progression. He sort of compared it to e R P of the early days. I sort of have a love hate with E R P cuz of the complexity of the implementation and the, and the cost. However, first of all, a couple points and I love to get your thoughts for you. If you went back, I know 25 years, you, you wouldn't have been able to pick SAP out of a lineup and say that's gonna be the leader in E R P and they ended up, you know, doing really, really well. But the more interesting angle is if you could have figured out the customers that were implementing e r p in, in a really high quality fashion, those are the companies that really did well. You buy their stocks, they really took off cuz they were killing their other industry competitors. So, fast forward to automation. Will automation live up to its hype and your opinion, will it be as transformative and will the, the practitioners of automation see the same type of uplift in their markets, in their market caps, in their competitiveness as did sort of the early adopters and the excellent adopters of brp? What are your thoughts? Well, >>I think it's an interesting comparison. Maybe answer it slightly different way. I think the future is that automation is a non-negotiable in every enterprise organization. I think if you're a large organization, we have absolutely filled our, our organizations with waste too much overhead, too much expense, too much technical debt and automation is an answer. This is the way we want to interact, right? We want a chat bot that actually gives us good answers that can answer on a Tuesday at 11:00 PM at night when we want to know if the right dog food, you know, and I'm saying that, you know, that's what we want. That's the outcome we want. And businesses have to be driven by the outcome. Here's what I'm not sure about, Dave, is we have an era where over the last three to five years, a lot of products have become companies and a lot of 'EM products became companies ended up in public markets. >>And so the RPA space is one of those areas that got this explosive amount of growth. And you look at it and there's two ways. Is this horizontally a business rpa or is this going to be something that's gonna be a target of those Microsofts and those SAPs and say, Look, we need hyper automation to be deeply integrated at the E R P crm, hcm SCM level. We're gonna build by this or we're gonna build this. And you're already hearing it in the partnerships, but this is how I think the story ends. I I think either the companies like UiPath get much bigger, they get much more rounded in their, in their offerings. Or you're gonna have a large company like a Microsoft come in and say, you know what? Buy it rather >>Than build can they can, they can, can this company, maybe not so much here, but can a company like Automation Anywhere stay acquisition? Well, >>I use the, I use the Service now as an, as a parallel because they're a company that I thought would always end up inside of a bigger company and now you're like, I think they're too big. I think they've they've dropped >>That, that chart. Yeah, they're acquisition proof. I would agree. But these guys aren't yet Nora's automation. They work for >>A while and it's not necessarily a bad thing. Sometimes getting bit bought is good, but what I mean is it's gonna be core and these big companies know it cuz they're all talking >>About, but as independent analysts, we want to see independent companies. >>I wanna see the right thing. >>It just makes it fun. >>The right thing >>Customers. Yeah, but you know, okay, Oracle buy more customers, more >>Customers. >>I'm kidding. Yeah, I guess it's the right thing. It just makes it more fun when you have really good independent competitors that >>We >>Absolutely so, and, and spend way more on r and d than these big companies who spend a lot more on stock buyback. But I know you gotta go. Thanks so much for spending some time, making time for Cube Andy. Great to see you. Good to see as well. All right, we are wrapping up day one, Dave Blan and Dave Nicholson live. You can hear the action behind us, forward in five on the Cube, right back.
SUMMARY :
Brought to you by UI guns to come in, the two co CEOs, but we have a really special analyst panel now. Glad to be here. You and I have been talking about having you come to our I mean, one is the last two years because of It's not really in any, you know, tech company's favor, but especially, you know, you know, I had the opportunity to talk to Bill McDermott recently on one of my shows and But you know, him and I kind of went back and forth and we came up with this Era, we're gonna come into an era where companies are gonna say, you know what? or more discretionary than other technology investments you heard? But I will tell you universally, And then as you well know, they expanded into, you know, platform. One, as you said, it's ease of use. And then the, when you develop the bots and equal, it takes on an average anywhere between Defense, government, all of those areas when you go, So they're gonna have to, you know, they lowered their forecast out I mean, you know, I think that TAM is evolving, and I don't have it in front of me right now, but what I'll tell you about the TAM is there's investment, implement it successfully and get buy in across the organization tends to always be the hurdle. trying to, you know, at least take some red crumbs off the table. Just to give you an idea, Microsoft Power Automate has of the process and task identification that they need to do for automation, it's manual right now. a lineup and say that's gonna be the leader in E R P and they ended up, you know, doing really, you know, and I'm saying that, you know, that's what we want. And you look at it and there's two ways. I think they've they've dropped I would agree. Sometimes getting bit bought is good, but what I mean is it's gonna be core and Yeah, but you know, okay, Oracle buy more customers, more It just makes it more fun when you have really good independent But I know you gotta go.
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Derk Weinheimer, Roboyo & James Furlong, PUMA | UiPath FORWARD 5
>>The Cube presents UI Path Forward. Five. Brought to you by UI Path. >>Welcome back to The Cube's coverage of UI Path Forward. Five from Las Vegas. We're inside. The formerly was The Sands, now it's the Venetian Convention Center. Dave Nicholson. David, Deb. I've never seen it set up like this before. UI Path's. Very cool company. So of course the setup has to be cool, not like tons of concrete. James Furlong is here, the Vice President of Supply Chain Management and projects at Puma. And Derek Weimer is the CEO of Robo, who's an implementation partner, expert at Intelligent Automation. Folks, welcome to the Cube. Good to see you. Great to have you on. >>Thank you. It's a pleasure. >>So what's happening at Puma these days? I love your sneakers, but you guys probably do more than that, but let's tell us about, give us the update on Puma. >>Yeah, absolutely. Puma's one of the world's leading sports, sports brands. So we encompass all things sports. We do footwear, we do apparel, we do accessories. Cobra, Puma golf is underneath our umbrella as well. So we get the added benefit of having that category as well. And yeah, trade, trade all over the world and it's an exciting, exciting brand to be with. >>And di Robo Atlanta based really specialists in intelligent automation. That's pretty much all you do, is that right? >>Yeah, we are a pure play intelligence automation professional services firm. That's all we do. We're the world's largest firm that focuses only on automation headquarter in Germany, but with a large presence here in Americas. >>So we hear from a lot of customers. We've heard from like with the journey it started, you know, mid last decade, Puma James is just getting started. We April you mentioned. So take us through that. What was the catalyst as you're exiting the, the pandemic, the isolation economy we call it? Yeah. What was the catalyst tell, take us through the sort of business case for automation. >>Sure, absolutely. So Puma, our mission is forever faster. It's, it's our mantra and something we live and breathe. So naturally we have an intense focus on innovation and, and automation. So with that mindset, the way this all kicked off is that I had the opportunity to go into some of our distribution facility and I was unbelievably impressed with the automation that I saw there. So how automation augmented the employee workforce. And it was just very impressive to see that some of our state of the art technology and automation at the same time. Then I went back to the office with that excitement and that passion and I saw that we had the opportunity to take that to our employee base as well. We sort of lacked that same intense focus on how do we take automation and technology like I saw at the distribution facilities and bring it to our employees because picture a large workforce of talented, dedicated employees and they just couldn't keep up with the explosive growth who's seen explosive growth over the last couple of years and they just couldn't keep up with it. So I said that that's it. We need to, to take that same passion and innovation and enter in hyper hyper automation. So we went to the leadership team and no surprise they were all in. We went with them with the idea of bringing hyper automation, starting with RPA to, to our office employees. And they were in, they support innovation and they said, Great, what do you need? Really? Go for it. >>The first question wasn't how much, >>Actually the first question I will say that the funny part is, is they said, Well I like this, it sounds too good to be true. And because it, it really does. If you're new to it like we were and I'm pitching all the benefits that RPA could bring, it does sound too good to me. True. So they said, All right, you know, we trust you and, and go for it. What do you need? Resources, just let us know. So sure enough, I had a proof of concept, I had an idea, but now what? I didn't know where to go from there. So that's where we did some intensive research into software suppliers, but also implementation partners because now we knew what we wanted to do. We had excitement, we had leadership buy-in now, now what do I do? So this is when we entered our partnership to figure out, okay, help Puma on this journey. >>How'd you guys find each other? You know, >>Just intensive research and spoke with a lot of people here. Is there a lot of great organizations? But at the end of the day, they really supported everything that Houma stood for, what we're looking to do and had a lot of trust in the beginning and Dirk and his team and how he could help us on this journey. Yeah. >>Now James, your, your job title system for supply chain management. It is, but I understand that you have had a variety of roles within the organization. Now if we're talking about another domain, artificial intelligence, machine learning. Yeah. There's always this concept of domain expertise. Yeah. And how when you're trying to automate things in that realm, domain expertise is critical. Yeah. You have domain expertise outside of your job title. Yeah. So has that helped you with this journey looking at automation, being able to, being able to have insight into those other organizations? >>Yeah, absolutely. And I think when we were pitching it to the leadership team in the beginning, that enabled me to look at each one sitting at the table and saying, alright, and on the sales, on a commercial side, I was a head of sales for one of the trade channels. I could speak directly to him in the benefits it could have with not with tribal knowledge and with an expertise. So it wasn't something that, it was just, oh, that's supply chain. I could sit, you know, with the, our CFO and talk to him about the, the benefits for his group merchandising and legal so on. I was really able to kind of speak to each one of them and how it would support, because I had that knowledge from being blessed of 15 years experience at, at Puma. So yeah, I was able to take all of that and figure out how do I make sure not just supply chain benefits from rpa, but how does the whole organization benefit from not only RPA but the hyper automation strategy. >>So what's an engagement look like? You start, I presume you, you gotta do some type of assessment and, and you know, of some upfront planning work. Yeah. What does that look like? How, what's the starting point? Take us through that >>Journey. Yeah, so exactly. So the, the key when you're trying to get value from Intel automation is finding the right opportunities, right? And you can automate a lot of things, but which are the things that are gonna drive the most value and, and the value that actually matters to the company, right? So where are you trying to get to from a strategic level, your objectives and how do you actually use automation to help you get to there? So the first thing is, what are the opportunities gonna help you do that? And then once you identify, what we recommend is start with something that's gonna be, you know, accessible, small, You're gonna get a quick win. Cuz then the important thing is once you get that out there, you build the momentum and excitement in the organization that then leads to more and more. And then you build a proper pipeline and you and you get that the, the engagement. >>So what was that discovery like? Was it you fly up there and do a, a chalk talk? Or did you already know James, like where you wanted to focus? >>Yeah, I knew I had a solid proof of concept with the disruptions in supply chain we couldn't keep up with, with all the changes and supply. So right away I knew that I have a very substantial impact on the organization and it would be a solid proof of concept. It was something that not only would supply chain steal, but our customers would feel that we would be servicing them better. Our sales team, the commercial team, marketing impacted everybody. But at the same time it was tangible. I saw two people that just physically couldn't get their, their work done despite how talented and hardworking they were. So I, I was in on that proof of concept and then I just took that idea with some strong advice from Dirk and and his team on, okay, well how do I take that? But then also use that to evangelize through the organization. What are some pitfalls to avoid? Because as a proof of concept, they just told me it's too good to be true. I believe in it. So it was so important to me that it >>Was successful. >>It get your neck out. Oh, I sure was. Which is a little scary, but I had confidence that we would >>Do it. But your poc you had to have a systems view. Yes. Right? Cuz you were trying to, I think you, I'm inferring that you had two people working really hard, but they couldn't get their job done. Yeah, for sure. They were just sitting on their hands. Right. Waiting. Okay. So you kind of knew where the bottlenecks were. Yes. And that's what you attacked and or you helped James and her the team think through that or, >>Yeah, exactly. So, so a couple points you were asking about her domain model of knowledge earlier, and I think that's really key to the puma's success with it, is that they've come at it from a business point of view, what matters to the business. And at the point, you know, supply chain challenges, how do we use automation to address that? And then, you know, and then it's gonna, it's actually gonna, you know, pick opportunities that are gonna matter to the business. Yeah, >>Yeah. At the same time, we, we knew this could be a scary thing, right? If it's not done right, you know, automation definitely can, can take a, a wrong path. So what we relied on them for is tell us how to make this successful. We wanted structure, we wanted oversight, we wanted to balance that with speed and really, you know, developing our pipeline, but at the same time, tell us how to do this right? How do we set up a center, our first ever center of excellence? They help us set that up. Our steerco, our process definition documents are like, they really helped us add that structure to how to make this successful, sustainable and make sure that we were standing things up the right way versus launching into a strong proof, proof of concept. But then it's not gonna be scalable if we didn't really take their strong advice on how to make this something, you know, that had the right oversight, the right investment. So that was, that was key as >>Well for us. So when you looked at the POC and James was saying there were potential pitfalls, what were those pitfalls? Like what did you tell Puma, Hey, watch out for this, watch out for that. What was sort of the best advice there? >>Yeah, so I think one is understanding complexity, right? So a lot of opportunities sound good, but you want to make sure that it's, it's feasible with the right tool set. And also that you're not bit off too much in the beginning is really important. And so some of that is that bringing that expertise to say, Okay, yeah, look, that does something, a good process. You're gonna get value out. It's not gonna be overly complicated. It's a good place to start. And then also, I guess the thing too to mention is it's more than just a technology project. And that's the thing that we also really focus on is it's actually as much about the change management, it's much about, you know, what is the right story, the business case around it, the technology actually in a way is the easy part and it's all the stuff around it that really makes the POC effective, >>Obviously the process. Yeah. Been the people I presume getting to adopt, >>Right? And I think, again, with our, our brand mantra forever faster, we, we get that support that the buy-in from the top is is there from, from the beginning. So that's a benefit that some companies don't, they don't have, right? They have a little resistance maybe from the top. We're trying to get everyone's buy in it. And we had that. So we had, you know, the buy-in the engagement, we were ready to go. So now we just needed someone to kind of help us. >>One more if I may. Yeah, yeah. Gabe, six months in. Yes. That's the business impact that, can >>You tell you? That was tremendous. Yeah. >>Really already six months. Wow. >>Yeah, >>Absolutely. Cfo, CFO's dream. Yeah. >>And again, and, and we had a CFO change mid, mid project. So the new CFO comes in, not new to Puma, the same thing. Super, super smart guy. And I had to sit and again pitch, you know, pitch what it is and the support that I needed by way of investment. And he saw the results and he was all in, you know, what do you need, what's next? And instantly was challenging his departments, Why don't he got competitive, right? We're a competitive bunch, so why don't you know, you should have more in the pipeline. And he was, he was bought in. So there was that fear of a new CFO coming in and how do you show value? Because some of it is, it's very easy to show right away, You know, we were able to refocus those two full-time employees on, on higher value chain activity and you know, they're doing a tremendous job and they're, you know, they have the, the bot and the automation supporting them. So he saw that right away. And we can show him that. But he also understands, as does the whole leadership team, the concept of downstream impacts that you can't necessarily, you know, touch and, and put on paper. So he sees some, but then he also recognizes all the other upstream and downstream impacts that it's had and he's all in and supports whatever, whatever we need. >>Yeah. New CFOs like George Seaford taking over for bill walls. >>Yeah, exactly. Exactly. We >>Have, we have to keep showing results and it has to be sustainable. So that's, again, we'll rely on our partnership to say, okay, this is the beginning, you know, what's next? Keep us, you know, honest on oversight and, and any pitfalls that we should avoid because he's excited. But at the same time, we need to make sure that we sustain those results and, and show what's next. Now they all gotta taste to the apple and they're very eager to see what's next in, in, in this hyper automation journey. >>Well, Dirk, you've partnered on this journey, this specific journey with, with, with Puma. But from your perspective in the broader marketplace, what would be the perfect low hanging fruit opportunity that you would like to have somebody call you and say, Hey, we've got, we've got this perspective engagement with a client. What would be the, what would be the like, Oh yeah, that's easy, that's huge roi really quickly, What does that look like? >>Yeah, I think there's, there's a few areas, right? You know, one task automation RPA is a, is a really good entry point, right? Because it's, it's, it's not overly complex. It doesn't involve a lot of complicated technologies. And I'd say the, the usual starting areas, you know, you, you finance back office, you know, shared service, invoice processing, you know, payables is a very good opportunity area. HR is also an area I would look at, you know, in new, new employee onboarding process or you know, payroll, et cetera. And then supply chain is actually becoming more and more, more common, right? So those would be I guess, top three areas I would mention. And >>Then, and then kind of follow onto that, what's the tip of this sphere? What's the sort of emerging market Yeah. >>For >>This kind of technology? >>I think there's two things. One, it's taking a holistic into end view and leveraging multiple, you know, technology, you know, beyond just rpa, right? You know, intelligent document processing, iml, you know, bringing all this to bear to actually do a true digital transformation. That's, that's number one. And then I'd say the second is going from focusing on cost and efficiency to actually getting into the front office and how do you, how do you actually increase revenue? How do you increase margin? How do you actually, you know, help with that, that top line growth. I think that's really, and that's where you're leveraging technologies, you know, like the, the AI as an example to really help you understand how do you optimize. >>So James, that's, that becomes then an enterprise wide initiative. Yeah. That's, that's, is that your vision? Maybe maybe lay that out for >>Us a bit. Yeah, ab absolutely. The, the vision is now that we've seen what, what it can do, how do we take it from being managed by just, you know, supply chain and this proof of concept cuz I manage projects, but now it's bigger than just a supply chain project. And how do we sort of evangelize that through the whole organization And you know, they mentioned on main stage this, the creation of new jobs and, and roles and how a, a company might set out their strategic directive now is, is changing and evolving. So you know that that's our idea now and that what we'll need support next is how should we structure now for success. And so that it's across the whole enterprise. But that's, that's the vision for >>Sure. What worries you do, you worried about it like taking off and getting outta control and not being governed and so you have to be a little bit careful there. >>Yeah, for sure. That was really important to us. And we actually got to leverage a lot of heavy lifting that Puma Global had done at the same time that we were coming up and, and thinking of the idea of rpa. They were having the same thoughts and they did a lot of heavy lifting again, about not only the software providers but also what does the structure look like, the oversight, a center of excellence globally. So we were able to really leverage a lot of best practices and SOPs that they had set out and we were able to kind of leverage those, bring those to Puma North America so that we didn't face that fear cuz that would be a limiting factor for us. So because we were so disciplined and we could leverage the work that they had done, that fear wasn't, wasn't there. Now we have to stay, you know, on top of it. And as people get excited, how do you kind of mirror the excitement and with it at the same time that the oversight and not getting, you know, too, too big, too fast. So that's the balance that we'll, we'll work through now. It's a good problem to have. >>Well, exactly. It is super exciting. Great story. Congratulations on, on the success and good luck. Thank you. Yeah, you very much for coming to the, Yeah. Thank you. Thank you. All right. And thank you for watching. Keep it right there. Dave Nicholson Andante right back, the cube live from Las Vegas UI path forward. Five.
SUMMARY :
Brought to you by So of course the setup has to be cool, not like tons of concrete. It's a pleasure. So what's happening at Puma these days? So we get the added benefit of having that category as well. That's pretty much all you do, is that right? Yeah, we are a pure play intelligence automation professional services firm. We've heard from like with the journey it started, you know, So we went to the leadership team and no surprise they were So they said, All right, you know, we trust you and, and go for it. But at the end of the day, they really supported everything that Houma stood for, what we're looking to do So has that helped you I could sit, you know, with the, our CFO and talk to him about the, the benefits for his and you know, of some upfront planning work. And then once you identify, what we recommend is start with something that's gonna be, you know, But at the same time it was tangible. but I had confidence that we would And that's what you attacked and or you helped James And at the point, you know, supply chain challenges, how do we use automation to address that? we wanted oversight, we wanted to balance that with speed and really, you know, So when you looked at the POC and James was saying there is it's actually as much about the change management, it's much about, you know, Obviously the process. you know, the buy-in the engagement, we were ready to go. That's the business impact that, That was tremendous. Really already six months. Yeah. And he saw the results and he was all in, you know, what do you need, Yeah, exactly. But at the same time, we need to make sure that we sustain those results and, hanging fruit opportunity that you would like to have somebody call you and say, you know, in new, new employee onboarding process or you know, payroll, et cetera. What's the sort of emerging leveraging multiple, you know, technology, you know, beyond just rpa, right? So James, that's, that becomes then an enterprise wide initiative. the whole organization And you know, they mentioned on main stage this, and so you have to be a little bit careful there. Now we have to stay, you know, on top of it. And thank you for watching.
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Breaking Analysis: We Have the Data…What Private Tech Companies Don’t Tell you About Their Business
>> From The Cube Studios in Palo Alto and Boston, bringing you data driven insights from The Cube at ETR. This is "Breaking Analysis" with Dave Vellante. >> The reverse momentum in tech stocks caused by rising interest rates, less attractive discounted cash flow models, and more tepid forward guidance, can be easily measured by public market valuations. And while there's lots of discussion about the impact on private companies and cash runway and 409A valuations, measuring the performance of non-public companies isn't as easy. IPOs have dried up and public statements by private companies, of course, they accentuate the good and they kind of hide the bad. Real data, unless you're an insider, is hard to find. Hello and welcome to this week's "Wikibon Cube Insights" powered by ETR. In this "Breaking Analysis", we unlock some of the secrets that non-public, emerging tech companies may or may not be sharing. And we do this by introducing you to a capability from ETR that we've not exposed you to over the past couple of years, it's called the Emerging Technologies Survey, and it is packed with sentiment data and performance data based on surveys of more than a thousand CIOs and IT buyers covering more than 400 companies. And we've invited back our colleague, Erik Bradley of ETR to help explain the survey and the data that we're going to cover today. Erik, this survey is something that I've not personally spent much time on, but I'm blown away at the data. It's really unique and detailed. First of all, welcome. Good to see you again. >> Great to see you too, Dave, and I'm really happy to be talking about the ETS or the Emerging Technology Survey. Even our own clients of constituents probably don't spend as much time in here as they should. >> Yeah, because there's so much in the mainstream, but let's pull up a slide to bring out the survey composition. Tell us about the study. How often do you run it? What's the background and the methodology? >> Yeah, you were just spot on the way you were talking about the private tech companies out there. So what we did is we decided to take all the vendors that we track that are not yet public and move 'em over to the ETS. And there isn't a lot of information out there. If you're not in Silicon (indistinct), you're not going to get this stuff. So PitchBook and Tech Crunch are two out there that gives some data on these guys. But what we really wanted to do was go out to our community. We have 6,000, ITDMs in our community. We wanted to ask them, "Are you aware of these companies? And if so, are you allocating any resources to them? Are you planning to evaluate them," and really just kind of figure out what we can do. So this particular survey, as you can see, 1000 plus responses, over 450 vendors that we track. And essentially what we're trying to do here is talk about your evaluation and awareness of these companies and also your utilization. And also if you're not utilizing 'em, then we can also figure out your sales conversion or churn. So this is interesting, not only for the ITDMs themselves to figure out what their peers are evaluating and what they should put in POCs against the big guys when contracts come up. But it's also really interesting for the tech vendors themselves to see how they're performing. >> And you can see 2/3 of the respondents are director level of above. You got 28% is C-suite. There is of course a North America bias, 70, 75% is North America. But these smaller companies, you know, that's when they start doing business. So, okay. We're going to do a couple of things here today. First, we're going to give you the big picture across the sectors that ETR covers within the ETS survey. And then we're going to look at the high and low sentiment for the larger private companies. And then we're going to do the same for the smaller private companies, the ones that don't have as much mindshare. And then I'm going to put those two groups together and we're going to look at two dimensions, actually three dimensions, which companies are being evaluated the most. Second, companies are getting the most usage and adoption of their offerings. And then third, which companies are seeing the highest churn rates, which of course is a silent killer of companies. And then finally, we're going to look at the sentiment and mindshare for two key areas that we like to cover often here on "Breaking Analysis", security and data. And data comprises database, including data warehousing, and then big data analytics is the second part of data. And then machine learning and AI is the third section within data that we're going to look at. Now, one other thing before we get into it, ETR very often will include open source offerings in the mix, even though they're not companies like TensorFlow or Kubernetes, for example. And we'll call that out during this discussion. The reason this is done is for context, because everyone is using open source. It is the heart of innovation and many business models are super glued to an open source offering, like take MariaDB, for example. There's the foundation and then there's with the open source code and then there, of course, the company that sells services around the offering. Okay, so let's first look at the highest and lowest sentiment among these private firms, the ones that have the highest mindshare. So they're naturally going to be somewhat larger. And we do this on two dimensions, sentiment on the vertical axis and mindshare on the horizontal axis and note the open source tool, see Kubernetes, Postgres, Kafka, TensorFlow, Jenkins, Grafana, et cetera. So Erik, please explain what we're looking at here, how it's derived and what the data tells us. >> Certainly, so there is a lot here, so we're going to break it down first of all by explaining just what mindshare and net sentiment is. You explain the axis. We have so many evaluation metrics, but we need to aggregate them into one so that way we can rank against each other. Net sentiment is really the aggregation of all the positive and subtracting out the negative. So the net sentiment is a very quick way of looking at where these companies stand versus their peers in their sectors and sub sectors. Mindshare is basically the awareness of them, which is good for very early stage companies. And you'll see some names on here that are obviously been around for a very long time. And they're clearly be the bigger on the axis on the outside. Kubernetes, for instance, as you mentioned, is open source. This de facto standard for all container orchestration, and it should be that far up into the right, because that's what everyone's using. In fact, the open source leaders are so prevalent in the emerging technology survey that we break them out later in our analysis, 'cause it's really not fair to include them and compare them to the actual companies that are providing the support and the security around that open source technology. But no survey, no analysis, no research would be complete without including these open source tech. So what we're looking at here, if I can just get away from the open source names, we see other things like Databricks and OneTrust . They're repeating as top net sentiment performers here. And then also the design vendors. People don't spend a lot of time on 'em, but Miro and Figma. This is their third survey in a row where they're just dominating that sentiment overall. And Adobe should probably take note of that because they're really coming after them. But Databricks, we all know probably would've been a public company by now if the market hadn't turned, but you can see just how dominant they are in a survey of nothing but private companies. And we'll see that again when we talk about the database later. >> And I'll just add, so you see automation anywhere on there, the big UiPath competitor company that was not able to get to the public markets. They've been trying. Snyk, Peter McKay's company, they've raised a bunch of money, big security player. They're doing some really interesting things in developer security, helping developers secure the data flow, H2O.ai, Dataiku AI company. We saw them at the Snowflake Summit. Redis Labs, Netskope and security. So a lot of names that we know that ultimately we think are probably going to be hitting the public market. Okay, here's the same view for private companies with less mindshare, Erik. Take us through this one. >> On the previous slide too real quickly, I wanted to pull that security scorecard and we'll get back into it. But this is a newcomer, that I couldn't believe how strong their data was, but we'll bring that up in a second. Now, when we go to the ones of lower mindshare, it's interesting to talk about open source, right? Kubernetes was all the way on the top right. Everyone uses containers. Here we see Istio up there. Not everyone is using service mesh as much. And that's why Istio is in the smaller breakout. But still when you talk about net sentiment, it's about the leader, it's the highest one there is. So really interesting to point out. Then we see other names like Collibra in the data side really performing well. And again, as always security, very well represented here. We have Aqua, Wiz, Armis, which is a standout in this survey this time around. They do IoT security. I hadn't even heard of them until I started digging into the data here. And I couldn't believe how well they were doing. And then of course you have AnyScale, which is doing a second best in this and the best name in the survey Hugging Face, which is a machine learning AI tool. Also doing really well on a net sentiment, but they're not as far along on that access of mindshare just yet. So these are again, emerging companies that might not be as well represented in the enterprise as they will be in a couple of years. >> Hugging Face sounds like something you do with your two year old. Like you said, you see high performers, AnyScale do machine learning and you mentioned them. They came out of Berkeley. Collibra Governance, InfluxData is on there. InfluxDB's a time series database. And yeah, of course, Alex, if you bring that back up, you get a big group of red dots, right? That's the bad zone, I guess, which Sisense does vis, Yellowbrick Data is a NPP database. How should we interpret the red dots, Erik? I mean, is it necessarily a bad thing? Could it be misinterpreted? What's your take on that? >> Sure, well, let me just explain the definition of it first from a data science perspective, right? We're a data company first. So the gray dots that you're seeing that aren't named, that's the mean that's the average. So in order for you to be on this chart, you have to be at least one standard deviation above or below that average. So that gray is where we're saying, "Hey, this is where the lump of average comes in. This is where everyone normally stands." So you either have to be an outperformer or an underperformer to even show up in this analysis. So by definition, yes, the red dots are bad. You're at least one standard deviation below the average of your peers. It's not where you want to be. And if you're on the lower left, not only are you not performing well from a utilization or an actual usage rate, but people don't even know who you are. So that's a problem, obviously. And the VCs and the PEs out there that are backing these companies, they're the ones who mostly are interested in this data. >> Yeah. Oh, that's great explanation. Thank you for that. No, nice benchmarking there and yeah, you don't want to be in the red. All right, let's get into the next segment here. Here going to look at evaluation rates, adoption and the all important churn. First new evaluations. Let's bring up that slide. And Erik, take us through this. >> So essentially I just want to explain what evaluation means is that people will cite that they either plan to evaluate the company or they're currently evaluating. So that means we're aware of 'em and we are choosing to do a POC of them. And then we'll see later how that turns into utilization, which is what a company wants to see, awareness, evaluation, and then actually utilizing them. That's sort of the life cycle for these emerging companies. So what we're seeing here, again, with very high evaluation rates. H2O, we mentioned. SecurityScorecard jumped up again. Chargebee, Snyk, Salt Security, Armis. A lot of security names are up here, Aqua, Netskope, which God has been around forever. I still can't believe it's in an Emerging Technology Survey But so many of these names fall in data and security again, which is why we decided to pick those out Dave. And on the lower side, Vena, Acton, those unfortunately took the dubious award of the lowest evaluations in our survey, but I prefer to focus on the positive. So SecurityScorecard, again, real standout in this one, they're in a security assessment space, basically. They'll come in and assess for you how your security hygiene is. And it's an area of a real interest right now amongst our ITDM community. >> Yeah, I mean, I think those, and then Arctic Wolf is up there too. They're doing managed services. You had mentioned Netskope. Yeah, okay. All right, let's look at now adoption. These are the companies whose offerings are being used the most and are above that standard deviation in the green. Take us through this, Erik. >> Sure, yet again, what we're looking at is, okay, we went from awareness, we went to evaluation. Now it's about utilization, which means a survey respondent's going to state "Yes, we evaluated and we plan to utilize it" or "It's already in our enterprise and we're actually allocating further resources to it." Not surprising, again, a lot of open source, the reason why, it's free. So it's really easy to grow your utilization on something that's free. But as you and I both know, as Red Hat proved, there's a lot of money to be made once the open source is adopted, right? You need the governance, you need the security, you need the support wrapped around it. So here we're seeing Kubernetes, Postgres, Apache Kafka, Jenkins, Grafana. These are all open source based names. But if we're looking at names that are non open source, we're going to see Databricks, Automation Anywhere, Rubrik all have the highest mindshare. So these are the names, not surprisingly, all names that probably should have been public by now. Everyone's expecting an IPO imminently. These are the names that have the highest mindshare. If we talk about the highest utilization rates, again, Miro and Figma pop up, and I know they're not household names, but they are just dominant in this survey. These are applications that are meant for design software and, again, they're going after an Autodesk or a CAD or Adobe type of thing. It is just dominant how high the utilization rates are here, which again is something Adobe should be paying attention to. And then you'll see a little bit lower, but also interesting, we see Collibra again, we see Hugging Face again. And these are names that are obviously in the data governance, ML, AI side. So we're seeing a ton of data, a ton of security and Rubrik was interesting in this one, too, high utilization and high mindshare. We know how pervasive they are in the enterprise already. >> Erik, Alex, keep that up for a second, if you would. So yeah, you mentioned Rubrik. Cohesity's not on there. They're sort of the big one. We're going to talk about them in a moment. Puppet is interesting to me because you remember the early days of that sort of space, you had Puppet and Chef and then you had Ansible. Red Hat bought Ansible and then Ansible really took off. So it's interesting to see Puppet on there as well. Okay. So now let's look at the churn because this one is where you don't want to be. It's, of course, all red 'cause churn is bad. Take us through this, Erik. >> Yeah, definitely don't want to be here and I don't love to dwell on the negative. So we won't spend as much time. But to your point, there's one thing I want to point out that think it's important. So you see Rubrik in the same spot, but Rubrik has so many citations in our survey that it actually would make sense that they're both being high utilization and churn just because they're so well represented. They have such a high overall representation in our survey. And the reason I call that out is Cohesity. Cohesity has an extremely high churn rate here about 17% and unlike Rubrik, they were not on the utilization side. So Rubrik is seeing both, Cohesity is not. It's not being utilized, but it's seeing a high churn. So that's the way you can look at this data and say, "Hm." Same thing with Puppet. You noticed that it was on the other slide. It's also on this one. So basically what it means is a lot of people are giving Puppet a shot, but it's starting to churn, which means it's not as sticky as we would like. One that was surprising on here for me was Tanium. It's kind of jumbled in there. It's hard to see in the middle, but Tanium, I was very surprised to see as high of a churn because what I do hear from our end user community is that people that use it, like it. It really kind of spreads into not only vulnerability management, but also that endpoint detection and response side. So I was surprised by that one, mostly to see Tanium in here. Mural, again, was another one of those application design softwares that's seeing a very high churn as well. >> So you're saying if you're in both... Alex, bring that back up if you would. So if you're in both like MariaDB is for example, I think, yeah, they're in both. They're both green in the previous one and red here, that's not as bad. You mentioned Rubrik is going to be in both. Cohesity is a bit of a concern. Cohesity just brought on Sanjay Poonen. So this could be a go to market issue, right? I mean, 'cause Cohesity has got a great product and they got really happy customers. So they're just maybe having to figure out, okay, what's the right ideal customer profile and Sanjay Poonen, I guarantee, is going to have that company cranking. I mean they had been doing very well on the surveys and had fallen off of a bit. The other interesting things wondering the previous survey I saw Cvent, which is an event platform. My only reason I pay attention to that is 'cause we actually have an event platform. We don't sell it separately. We bundle it as part of our offerings. And you see Hopin on here. Hopin raised a billion dollars during the pandemic. And we were like, "Wow, that's going to blow up." And so you see Hopin on the churn and you didn't see 'em in the previous chart, but that's sort of interesting. Like you said, let's not kind of dwell on the negative, but you really don't. You know, churn is a real big concern. Okay, now we're going to drill down into two sectors, security and data. Where data comprises three areas, database and data warehousing, machine learning and AI and big data analytics. So first let's take a look at the security sector. Now this is interesting because not only is it a sector drill down, but also gives an indicator of how much money the firm has raised, which is the size of that bubble. And to tell us if a company is punching above its weight and efficiently using its venture capital. Erik, take us through this slide. Explain the dots, the size of the dots. Set this up please. >> Yeah. So again, the axis is still the same, net sentiment and mindshare, but what we've done this time is we've taken publicly available information on how much capital company is raised and that'll be the size of the circle you see around the name. And then whether it's green or red is basically saying relative to the amount of money they've raised, how are they doing in our data? So when you see a Netskope, which has been around forever, raised a lot of money, that's why you're going to see them more leading towards red, 'cause it's just been around forever and kind of would expect it. Versus a name like SecurityScorecard, which is only raised a little bit of money and it's actually performing just as well, if not better than a name, like a Netskope. OneTrust doing absolutely incredible right now. BeyondTrust. We've seen the issues with Okta, right. So those are two names that play in that space that obviously are probably getting some looks about what's going on right now. Wiz, we've all heard about right? So raised a ton of money. It's doing well on net sentiment, but the mindshare isn't as well as you'd want, which is why you're going to see a little bit of that red versus a name like Aqua, which is doing container and application security. And hasn't raised as much money, but is really neck and neck with a name like Wiz. So that is why on a relative basis, you'll see that more green. As we all know, information security is never going away. But as we'll get to later in the program, Dave, I'm not sure in this current market environment, if people are as willing to do POCs and switch away from their security provider, right. There's a little bit of tepidness out there, a little trepidation. So right now we're seeing overall a slight pause, a slight cooling in overall evaluations on the security side versus historical levels a year ago. >> Now let's stay on here for a second. So a couple things I want to point out. So it's interesting. Now Snyk has raised over, I think $800 million but you can see them, they're high on the vertical and the horizontal, but now compare that to Lacework. It's hard to see, but they're kind of buried in the middle there. That's the biggest dot in this whole thing. I think I'm interpreting this correctly. They've raised over a billion dollars. It's a Mike Speiser company. He was the founding investor in Snowflake. So people watch that very closely, but that's an example of where they're not punching above their weight. They recently had a layoff and they got to fine tune things, but I'm still confident they they're going to do well. 'Cause they're approaching security as a data problem, which is probably people having trouble getting their arms around that. And then again, I see Arctic Wolf. They're not red, they're not green, but they've raised fair amount of money, but it's showing up to the right and decent level there. And a couple of the other ones that you mentioned, Netskope. Yeah, they've raised a lot of money, but they're actually performing where you want. What you don't want is where Lacework is, right. They've got some work to do to really take advantage of the money that they raised last November and prior to that. >> Yeah, if you're seeing that more neutral color, like you're calling out with an Arctic Wolf, like that means relative to their peers, this is where they should be. It's when you're seeing that red on a Lacework where we all know, wow, you raised a ton of money and your mindshare isn't where it should be. Your net sentiment is not where it should be comparatively. And then you see these great standouts, like Salt Security and SecurityScorecard and Abnormal. You know they haven't raised that much money yet, but their net sentiment's higher and their mindshare's doing well. So those basically in a nutshell, if you're a PE or a VC and you see a small green circle, then you're doing well, then it means you made a good investment. >> Some of these guys, I don't know, but you see these small green circles. Those are the ones you want to start digging into and maybe help them catch a wave. Okay, let's get into the data discussion. And again, three areas, database slash data warehousing, big data analytics and ML AI. First, we're going to look at the database sector. So Alex, thank you for bringing that up. Alright, take us through this, Erik. Actually, let me just say Postgres SQL. I got to ask you about this. It shows some funding, but that actually could be a mix of EDB, the company that commercializes Postgres and Postgres the open source database, which is a transaction system and kind of an open source Oracle. You see MariaDB is a database, but open source database. But the companies they've raised over $200 million and they filed an S-4. So Erik looks like this might be a little bit of mashup of companies and open source products. Help us understand this. >> Yeah, it's tough when you start dealing with the open source side and I'll be honest with you, there is a little bit of a mashup here. There are certain names here that are a hundred percent for profit companies. And then there are others that are obviously open source based like Redis is open source, but Redis Labs is the one trying to monetize the support around it. So you're a hundred percent accurate on this slide. I think one of the things here that's important to note though, is just how important open source is to data. If you're going to be going to any of these areas, it's going to be open source based to begin with. And Neo4j is one I want to call out here. It's not one everyone's familiar with, but it's basically geographical charting database, which is a name that we're seeing on a net sentiment side actually really, really high. When you think about it's the third overall net sentiment for a niche database play. It's not as big on the mindshare 'cause it's use cases aren't as often, but third biggest play on net sentiment. I found really interesting on this slide. >> And again, so MariaDB, as I said, they filed an S-4 I think $50 million in revenue, that might even be ARR. So they're not huge, but they're getting there. And by the way, MariaDB, if you don't know, was the company that was formed the day that Oracle bought Sun in which they got MySQL and MariaDB has done a really good job of replacing a lot of MySQL instances. Oracle has responded with MySQL HeatWave, which was kind of the Oracle version of MySQL. So there's some interesting battles going on there. If you think about the LAMP stack, the M in the LAMP stack was MySQL. And so now it's all MariaDB replacing that MySQL for a large part. And then you see again, the red, you know, you got to have some concerns about there. Aerospike's been around for a long time. SingleStore changed their name a couple years ago, last year. Yellowbrick Data, Fire Bolt was kind of going after Snowflake for a while, but yeah, you want to get out of that red zone. So they got some work to do. >> And Dave, real quick for the people that aren't aware, I just want to let them know that we can cut this data with the public company data as well. So we can cross over this with that because some of these names are competing with the larger public company names as well. So we can go ahead and cross reference like a MariaDB with a Mongo, for instance, or of something of that nature. So it's not in this slide, but at another point we can certainly explain on a relative basis how these private names are doing compared to the other ones as well. >> All right, let's take a quick look at analytics. Alex, bring that up if you would. Go ahead, Erik. >> Yeah, I mean, essentially here, I can't see it on my screen, my apologies. I just kind of went to blank on that. So gimme one second to catch up. >> So I could set it up while you're doing that. You got Grafana up and to the right. I mean, this is huge right. >> Got it thank you. I lost my screen there for a second. Yep. Again, open source name Grafana, absolutely up and to the right. But as we know, Grafana Labs is actually picking up a lot of speed based on Grafana, of course. And I think we might actually hear some noise from them coming this year. The names that are actually a little bit more disappointing than I want to call out are names like ThoughtSpot. It's been around forever. Their mindshare of course is second best here but based on the amount of time they've been around and the amount of money they've raised, it's not actually outperforming the way it should be. We're seeing Moogsoft obviously make some waves. That's very high net sentiment for that company. It's, you know, what, third, fourth position overall in this entire area, Another name like Fivetran, Matillion is doing well. Fivetran, even though it's got a high net sentiment, again, it's raised so much money that we would've expected a little bit more at this point. I know you know this space extremely well, but basically what we're looking at here and to the bottom left, you're going to see some names with a lot of red, large circles that really just aren't performing that well. InfluxData, however, second highest net sentiment. And it's really pretty early on in this stage and the feedback we're getting on this name is the use cases are great, the efficacy's great. And I think it's one to watch out for. >> InfluxData, time series database. The other interesting things I just noticed here, you got Tamer on here, which is that little small green. Those are the ones we were saying before, look for those guys. They might be some of the interesting companies out there and then observe Jeremy Burton's company. They do observability on top of Snowflake, not green, but kind of in that gray. So that's kind of cool. Monte Carlo is another one, they're sort of slightly green. They are doing some really interesting things in data and data mesh. So yeah, okay. So I can spend all day on this stuff, Erik, phenomenal data. I got to get back and really dig in. Let's end with machine learning and AI. Now this chart it's similar in its dimensions, of course, except for the money raised. We're not showing that size of the bubble, but AI is so hot. We wanted to cover that here, Erik, explain this please. Why TensorFlow is highlighted and walk us through this chart. >> Yeah, it's funny yet again, right? Another open source name, TensorFlow being up there. And I just want to explain, we do break out machine learning, AI is its own sector. A lot of this of course really is intertwined with the data side, but it is on its own area. And one of the things I think that's most important here to break out is Databricks. We started to cover Databricks in machine learning, AI. That company has grown into much, much more than that. So I do want to state to you Dave, and also the audience out there that moving forward, we're going to be moving Databricks out of only the MA/AI into other sectors. So we can kind of value them against their peers a little bit better. But in this instance, you could just see how dominant they are in this area. And one thing that's not here, but I do want to point out is that we have the ability to break this down by industry vertical, organization size. And when I break this down into Fortune 500 and Fortune 1000, both Databricks and Tensorflow are even better than you see here. So it's quite interesting to see that the names that are succeeding are also succeeding with the largest organizations in the world. And as we know, large organizations means large budgets. So this is one area that I just thought was really interesting to point out that as we break it down, the data by vertical, these two names still are the outstanding players. >> I just also want to call it H2O.ai. They're getting a lot of buzz in the marketplace and I'm seeing them a lot more. Anaconda, another one. Dataiku consistently popping up. DataRobot is also interesting because all the kerfuffle that's going on there. The Cube guy, Cube alum, Chris Lynch stepped down as executive chairman. All this stuff came out about how the executives were taking money off the table and didn't allow the employees to participate in that money raising deal. So that's pissed a lot of people off. And so they're now going through some kind of uncomfortable things, which is unfortunate because DataRobot, I noticed, we haven't covered them that much in "Breaking Analysis", but I've noticed them oftentimes, Erik, in the surveys doing really well. So you would think that company has a lot of potential. But yeah, it's an important space that we're going to continue to watch. Let me ask you Erik, can you contextualize this from a time series standpoint? I mean, how is this changed over time? >> Yeah, again, not show here, but in the data. I'm sorry, go ahead. >> No, I'm sorry. What I meant, I should have interjected. In other words, you would think in a downturn that these emerging companies would be less interesting to buyers 'cause they're more risky. What have you seen? >> Yeah, and it was interesting before we went live, you and I were having this conversation about "Is the downturn stopping people from evaluating these private companies or not," right. In a larger sense, that's really what we're doing here. How are these private companies doing when it comes down to the actual practitioners? The people with the budget, the people with the decision making. And so what I did is, we have historical data as you know, I went back to the Emerging Technology Survey we did in November of 21, right at the crest right before the market started to really fall and everything kind of started to fall apart there. And what I noticed is on the security side, very much so, we're seeing less evaluations than we were in November 21. So I broke it down. On cloud security, net sentiment went from 21% to 16% from November '21. That's a pretty big drop. And again, that sentiment is our one aggregate metric for overall positivity, meaning utilization and actual evaluation of the name. Again in database, we saw it drop a little bit from 19% to 13%. However, in analytics we actually saw it stay steady. So it's pretty interesting that yes, cloud security and security in general is always going to be important. But right now we're seeing less overall net sentiment in that space. But within analytics, we're seeing steady with growing mindshare. And also to your point earlier in machine learning, AI, we're seeing steady net sentiment and mindshare has grown a whopping 25% to 30%. So despite the downturn, we're seeing more awareness of these companies in analytics and machine learning and a steady, actual utilization of them. I can't say the same in security and database. They're actually shrinking a little bit since the end of last year. >> You know it's interesting, we were on a round table, Erik does these round tables with CISOs and CIOs, and I remember one time you had asked the question, "How do you think about some of these emerging tech companies?" And one of the executives said, "I always include somebody in the bottom left of the Gartner Magic Quadrant in my RFPs. I think he said, "That's how I found," I don't know, it was Zscaler or something like that years before anybody ever knew of them "Because they're going to help me get to the next level." So it's interesting to see Erik in these sectors, how they're holding up in many cases. >> Yeah. It's a very important part for the actual IT practitioners themselves. There's always contracts coming up and you always have to worry about your next round of negotiations. And that's one of the roles these guys play. You have to do a POC when contracts come up, but it's also their job to stay on top of the new technology. You can't fall behind. Like everyone's a software company. Now everyone's a tech company, no matter what you're doing. So these guys have to stay in on top of it. And that's what this ETS can do. You can go in here and look and say, "All right, I'm going to evaluate their technology," and it could be twofold. It might be that you're ready to upgrade your technology and they're actually pushing the envelope or it simply might be I'm using them as a negotiation ploy. So when I go back to the big guy who I have full intentions of writing that contract to, at least I have some negotiation leverage. >> Erik, we got to leave it there. I could spend all day. I'm going to definitely dig into this on my own time. Thank you for introducing this, really appreciate your time today. >> I always enjoy it, Dave and I hope everyone out there has a great holiday weekend. Enjoy the rest of the summer. And, you know, I love to talk data. So anytime you want, just point the camera on me and I'll start talking data. >> You got it. I also want to thank the team at ETR, not only Erik, but Darren Bramen who's a data scientist, really helped prepare this data, the entire team over at ETR. I cannot tell you how much additional data there is. We are just scratching the surface in this "Breaking Analysis". So great job guys. I want to thank Alex Myerson. Who's on production and he manages the podcast. Ken Shifman as well, who's just coming back from VMware Explore. Kristen Martin and Cheryl Knight help get the word out on social media and in our newsletters. And Rob Hof is our editor in chief over at SiliconANGLE. Does some great editing for us. Thank you. All of you guys. Remember these episodes, they're all available as podcast, wherever you listen. All you got to do is just search "Breaking Analysis" podcast. I publish each week on wikibon.com and siliconangle.com. Or you can email me to get in touch david.vellante@siliconangle.com. You can DM me at dvellante or comment on my LinkedIn posts and please do check out etr.ai for the best survey data in the enterprise tech business. This is Dave Vellante for Erik Bradley and The Cube Insights powered by ETR. Thanks for watching. Be well. And we'll see you next time on "Breaking Analysis". (upbeat music)
SUMMARY :
bringing you data driven it's called the Emerging Great to see you too, Dave, so much in the mainstream, not only for the ITDMs themselves It is the heart of innovation So the net sentiment is a very So a lot of names that we And then of course you have AnyScale, That's the bad zone, I guess, So the gray dots that you're rates, adoption and the all And on the lower side, Vena, Acton, in the green. are in the enterprise already. So now let's look at the churn So that's the way you can look of dwell on the negative, So again, the axis is still the same, And a couple of the other And then you see these great standouts, Those are the ones you want to but Redis Labs is the one And by the way, MariaDB, So it's not in this slide, Alex, bring that up if you would. So gimme one second to catch up. So I could set it up but based on the amount of time Those are the ones we were saying before, And one of the things I think didn't allow the employees to here, but in the data. What have you seen? the market started to really And one of the executives said, And that's one of the Thank you for introducing this, just point the camera on me We are just scratching the surface
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Breaking Analysis: RPA has Become a Transformation Catalyst, Here's What's New
>> From theCUBE studios in Palo Alto in Boston, bringing you data driven insights from theCUBE and ETR, this is "Breaking Analysis" with Dave Vellante >> In its early days, robotic process automation emerged from rudimentary screen scraping, macros and workflow automation software. Once a script heavy and limited tool that largely was used to eliminate mundane tasks for individual users, and by the way still is, RPA's evolved into an enterprise-wide mega trend that puts automation at the center of digital business initiatives. Hello and welcome to this week's Wikibon CUBE Insights, powered by ETR. In this breaking analysis, we present our quarterly update of the trends in RPA and automation and share the latest survey data from enterprise technology research. RPA has grown quite rapidly and the acronym is becoming a convenient misnomer in a way. I mean the real action in RPA has evolved into enterprise-wide automation initiatives. Once exclusively focused really on back office automation and areas such as finance, RPA has now become an enterprise initiative as many larger organizations especially, move well beyond cost savings and outside of the CFO's purview. We predicted in early "Breaking Analysis" episodes that productivity declines in the US and Europe especially, would require automation to solve some of the world's most pressing problems. And that's what's happening. Automation today is attacking not only the labor shortage but it's supporting optimizations in ESG, supply chain, helping with inflation challenges, improving capital allocation. For example, the supply chain issues today, think about what they require. Somebody's got to do research, they got to figure out inventory management, they got to go into different systems, do prioritizations, do price matching, and perform a number of other complex tasks. These are time consuming processes. Now the combination of RPA and machine intelligence is helping managers compress the time to value and optimize decision making. Organizations are realizing that a digital business goes beyond cloud and SaaS, and puts data, AI and automation at the core leveraging cloud and SaaS but reimagining entire workflows and customer experiences. Moreover, low code solutions are taking off and dramatically expanding the ability of organizations to make changes to their processes. We're also seeing adjacencies to RPA becoming folded into enterprise automation initiatives. And that trend will continue for example Legacy software testing tools. This is especially important as companies SaaSify their business and look for modern testing tools that can keep pace with their transformations. So the bottom line is, RPA or intelligent automation has become a strategic priority for many companies. And that means you got to get the CIO involved to ensure that the governance and compliance edicts of the organization are appropriately met. And that alignment occurs across the technology and business lines. A couple of years ago, when we saw that RPA could be much much more than what it was at the time, we revisited our total available market or TAM analysis. And in doing so, we felt there would be a confluence of automation, AI, and data and that the front and back office schism would converge. That is shown here. This is our updated TAM chart, which we shared a while back with a dramatically larger scope. We were interested that, just a few days ago by the way Forrester put out a new report, picked up by Digital Nation, that the RPA market would reach 22 billion by 2025. Now, as we said at the time our TAM includes the entire ecosystem including professional services as does Forrester's recent report and the projections they're in. So see that little dotted red line there, that's about at the 22 billion mark. We're a few years away but we definitely feel as though this is taking shape the way we had previously envisioned. That is to say a progression from back office blending with customer facing processes becoming a core element of digital transformations and eventually entering the realm of automated systems of agency where automations are reliable enough and trusted enough to make realtime decisions at scale for a much, much wider scope of enterprise activities. So we see this evolving over the 2020s or the balance of this decade and becoming a massive multi hundred billion dollar market. Now, unfortunately for later investors, this enthusiasm that I'm sharing around automation has not translated into price momentum for the stocks in this sector. Here are the charts, the stock charts for four RPA related players with market values inserted in each graphic. We've set the cross hairs approximately at the timing of UiPath's IPO. And that's where we'll start. UiPath IPOed last April and you can see the steady decline in its price. UiPath's Series F investors got in at $30 billion valuation, so that's been halved, more than half. But UiPath is the leader in this sector as we'll see in a moment. So investors are just going to have to be patient. Now, you know the problem with these hot tech companies is the cat gets let out of the bag before the IPO because they raise so much private money, it hits the headlines and then, at the time you had zero interest rates, you had the tech stock boom during the pandemic, so you're just going to have to wait it out to get a nice return if you got in sort of post IPO. You know, which... I think this business will deliver over the long term. Now, Blue Prism is interesting because it's being bought by SS&C Technologies after a bidding war with Vista. So that's why their stock has held up pretty reasonably. Vista's PE firm, which owns TIBCO and was going to mash it, Blue Prism that is, together with TIBCO. That was a play I always liked because RPA is going to be integrated across the board. And TIBCO is an integration company, and I felt it was in a good position to do that. But SS&C obvious said, "Hey, we can do that too." And look, they're getting a proven RPA tech stack for 10% of the value of UiPath. Might be a sharp move, we'll see. Or maybe they'll jack prices and squeeze the cashflow, I honestly have no idea. And we shelled the other two players here who really aren't RPA specialists. Appian is a low code business process development platform and Pegasystems of course, we've reported on them extensively. They're a longtime business process player that has done pretty well. But both stocks have suffered pretty dramatically since last April. So let's take a look at the customer survey data and see what it tells us. The ETR survey data shows a pretty robust picture frankly. This chart depicts the net score or customer spending momentum on that vertical axis and market share or pervasiveness relative to other companies and technologies in the ETR dataset, that's on the horizontal. That red dotted line at the 40% mark, that indicates an elevated spending level for the company within this technology. The chart insert you see there shows how the company positions are plotted using net score and market share or Ns. And ETR's tool has a couple of cool features. We can click on the dot and it allows you to track the progression over time, in this case going back to January, 2020 that's the lines that we've inserted here. So we'll start with Microsoft and we'll get that over with. Microsoft acquired a company called Softomotive for a reported a hundred million dollars thereabout, it's a little more than that. So pretty much a lunch money for Mr. Softy. So Microsoft bought the company in May and look at the gray line where it started showing up in the October ETR surveys at a very highly elevated level, typical Microsoft, right? I mean, a lot of spending momentum and they're pretty much ubiquitous. And it just stayed there and it's gone up and to the right, just really a dominant picture. But Microsoft Power Automate is really kind of a personal productivity tool not super feature rich like some of the others that we're going to talk about, it's just part of the giant Microsoft software estate. And there's a substantial amount of overlap between, for example, UiPath's and Automation Anywhere's customer bases and Power Automate users. And it's speaking with the number of customers. They'll say, "Yeah, we use Power Automate," but they see enterprise automation platforms as much more feature rich and capable and they see a role for both. But it's something to watch out for because Microsoft can obviously take a bite out of virtually any platform and moderate the enthusiasm for it. But nonetheless, these other firms that we're mentioning here, the two leaders, they really stand out, UiPath and Automation Anywhere. Both are elevated well above that 40% line with a meaningful presence in the data set. And you can see the path that they took to get to where they are today. Now we had predicted in 2021 in our predictions post that Automation Anywhere would IPO in 2021. So we predicted that in December of 2020 but it hasn't happened yet. The company obviously wasn't ready, and it brought in new management. We reported on that, Chris Riley as the Chief Revenue Officer, and it made other moves to show up their business. Now let me say this about Riley. I've known him him for years, he's a world class sales leader, one of the best in the tech business. And he knows how to build a world class go to market team, I guarantee that's what he's doing. I have no doubt he's completely reinventing his sales team, the alliances, he's got a lot of experience of that when he was at EMC and Dell and HPE, and he knows the channel really well. So I have a great deal of confidence that if Automation Anywhere's product is any good, which the ETR data clearly shows that it is, then the company is going to do very well. Now, as for the timing of an IPO, look, with the market choppiness, who knows? Automation Anywhere, they raised a ton of dough and it was last valued around... In 2019, it was just north of 7 billion. And so if UiPath is valued at 15 billion, you could speculate that Automation Anywhere can't be valued at much more than 10 billion, maybe a little under, maybe a little over. And so they might wait for the market volatility to chill out a little bit before they do the IPO or maybe they've got some further cleanup to do and they want to get their metrics better, but we'll see. Now to the point earlier about Blue Prism, look at its position on the vertical axis, very respectable. Just a finer point on Pega. We've always said that they're not an RPA specialist but they have an RPA offering and a presence in the ETR data set in this sector. And they got a sizeable market cap so we'd like to include them. Now here's another look at the net score data. The way net score works is ETR asks customers, are you adopting a platform for the first time? That's that lime green there. Are you accelerating spending on the platform by 6% or more relative to last year, or sometimes relative to some other point in time, this is relative to last year. That's the forest green. Is your spending flat or is it, that's the gray, or is it decreasing by 6% or worse? Or are you churning? That's that bright red. You subtract the reds from the greens and you get net score which is shown for each company on the right along with the Ns in the survey. So other than Pega, every company shown here has new adoptions in the double digits, not a lot of churn. UiPath and and Automation Anywhere have net scores well over that 40% mark. Now, some other data points on those two, ETR did a little peeling of the onion in their data set and I found a couple of interesting nuggets. UiPath in the Fortune 500 has a 91% net score and a 77% net score in the Global 2000. So significantly higher than its overall average. This speaks to the company's strong presence in larger companies and the adoption and how larger companies are leaning in. Although UiPath's actually still solid in smaller firms as well by the way but... Now the other piece of information is, when asked why they buy UiPath over alternatives customers said a robust feature set, technical lead and compatibility with their existing environment. Now to Automation Anywhere. They have a 72% net score in the Fortune 500, well above its average across the survey, but 46% only in the Global 2000 below its overall average shown here of 54. So we'd like to see a wider aperture in the Global 2000. Again, this is a survey set, who knows, but oftentimes these surveys are indicative. So maybe Automation Anywhere just working that out, more time, figuring out the go to market in the Global 2000 beyond those larger customers. Now, when asked why they buy from Automation Anywhere versus the competition customers cited a robust feature set, just like UiPath, technological lead, just like UiPath, and fast ROI. Now I really believe that both for Automation Anywhere and UiPath, the time to value is much compressed relative to most technology projects. So I would highlight that as well. And I think that's a fundamental reason, one of the reasons why RPA has taken off. All right let's wrap up. The bottom line is this space is moving and it's evolving quickly, and will keep on a fast pace given the customer poll, the funding levels that have been poured into the space, and, of course, the competitive climate. We're seeing a new transformation agenda emerge. Pre COVID, the catalyst was back office efficiency. During the pandemic, we saw an acceleration and organizations are taking the lessons learned from that forced March experience, the digital I sometimes call it, and they're realizing a couple things. One, they can attack much more complex problems than previously envisioned. And two, in order to cloudify and SaaSify their businesses, they need to put automation along with data and AI at the core to completely transform into a digital entity. Now we're moving well beyond automating bespoke tasks and paving the cow path as I sometimes like to say. And we're seeing much more integration across systems like ERP and HR and finance and logistics et cetera, collaboration, customer experience, and importantly, this has to extend into broader ecosystems. We're also seeing a rise in semantic workflows to tackle more complex problems. We're talking here about going beyond a linear process of automation. Like for instance, read this, click on that, copy that, put it here, join it with that, drag and drop it over here and send it over there. It's evolving into a much more interpreter of actions using machine intelligence to watch, to learn, to infer, and then ultimately act as well as discover other process automation opportunities. So think about the way work is done today. Going into various applications, you grab data, you trombone back out, you do it again, in and out, in and out, in and out of these systems, et cetera, NASM, and replacing that sequence with a much more intelligent process. We're also seeing a lot more involvement from C-level executives, especially the CIO, but also the chief digital officer, the chief data officer, with low code solutions enabling lines of business to be much more involved in the game. So look, it's still early here. This sector, in my view, hasn't even hit that steep part of the S-curve yet, it's still building momentum with larger firms leading the innovation, investing in things like centers of excellence and training, digging in to find new ways of doing things. It's a huge priority because the efficiencies that large companies get, they drop right to the bottom line and the big ER the more money that drops. We see that in the adoption data and we think it's just getting started. So keep an eye on this space. It's not a fad, it's here to stay. Okay, that's it for now. Thanks to my colleagues, Stephanie Chan who helped research this week's topics and Alex Myerson on the production team who also manages the Breaking Analysis Podcast, Kristen Martin and Cheryl Knight, helped get the word out on social. Thanks guys. Your great teamwork, really appreciate that. Now remember, these episodes, they're all available as podcasts, wherever you listen just search "Breaking Analysis Podcast". Check out ETR's website at etr.ai. And we also publish a full report every week on wikibon.com and siliconangle.com. You can get in touch with me directly, david.vellante@siliconangle.com is my email. You can DM me @dvellante or comment on our LinkedIn posts. This is Dave Vellante for theCUBE Insights, powered by ETR. Have a great week, stay safe, be well, and we'll see you next time. (outro music)
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ACC PA3 Bhaskar Ghosh and Rajendra Prasad
>>we'll go back to the cubes. Coverage of the age of US Executive Summit at Davis. Reinvent made possible by Accenture My name is Dave Volunteer. We're gonna talk about the arm nation advantage, embraced the future of productivity, improve speed quality and customer experience through artificial intelligence. And we herewith Bhaskar goes, Who's the chief strategy Officer X censure in Rajendra RP Prasad is the senior managing director in Global Automation. The Accenture guys walk into the Cube. Get to seal. >>Thank you. >>Hey, congratulations on the new book. I know it's like giving birth, but it's a mini version. If the well, the automation advantage embraced a future of productivity, improve speed, quality and customer experience to artificial intelligence. What inspired you to write this book? Can you tell us a little bit more about it and how businesses are going to be able to take advantage of the information that's in there? Maybe you could start, >>so I think you know, if we say that what inspired as primarily the two things really style, you know, over inspired have to start this project in first of all is the technology change step change in the technology. Second is the mile maturity of the buyer maturity of the market when it's a little more, you know, when I talk about the technology change, automation is nothing new in the industry. In the starting from the Industrial Revolution, always, industry adopted the automation. But last few years would happen. That there is a significant change in the technology in terms of not of new technologies are coming together like cloud data, artificial intelligence, machine learning and they are gearing match you, and that created a huge opportunity in the industry. So that is number one second if fighting the maturity of the buyer. So buyers are always buying automation, adopting the automation. So when I talked to this different by a different industrial wire, suddenly we realise they're not asking about workings automation, how that will help. But primarily they're talking about how they can scaling. They have all have done the pilot, the prototype, how they can take the full advantage in their enterprise through scheme and talking to few client few of our clients, and he realised that it's best to write this boat and film all our clients to take advantage of this new technologies to skill up their business. If I give a little more than inside that one, exactly we are trying to do in this boat primarily, we dealt with three things. One is the individual automation which deals with the human efficiency. Second is the industrial automation who visited a group efficiency. And third is the intelligent automation. We deal city business, official efficiency while business value. So we believe that this is what will really change their business and help our client help the automation. It users to really make clear an impact in their business. >>Yeah, And so you talked about that? The maturity of the customer. And and I like the way you should describe that spectrum ending with intelligent automation. So the point is you not just paving the cow path, if you will, automating processes that maybe were invented decades ago. You're really trying to rethink the best approach. And that's where you going to get the most business value, our peace In thinking about the maturity, I think the a pre pandemic people were maybe a little reluctant s Bhaskar was saying maybe needed some education. But But how? If things change me, obviously the penned Emmick has had a huge impact. It's accelerated things, but but what's changed in the business environment? In terms of the need to implement automation? R. P >>thank you Well, that is an excellent question. As even through the pandemic, most of the enterprises accelerated what I call as the digital transformation, technology transformation and the war all time that it takes to do. The transformation is compressed in our most land prices. Now do compress transformation. The core of it is innovation and innovation, led technology and technology based solutions. To drive this transformation automation. Artificial intelligence becomes hot of what we do while we are implementing this accelerators. Innovation enablers within the enterprises, most of the enterprises prior to the pandemic we're looking automation and I as a solution for cost efficiency. Saving cost in DePina deriving capacity efficiency does if they do the transformation when we press the fast forward but draw the transformation journey liberating automation. What happens is most of the enterprises which the focus from cost efficiency to speed to market application availability and system resiliency at the core. When I speaking to most of the sea woes Corrine Wall in the tech transformation they have now embrace automation and air as a Conan able to bribe this journeys towards, you know, growth, innovation, lead application, availability and transformation and sustainability of the applications through the are A book addresses all of these aspects, including the most important element of which is compute storeys and the enablement that it can accomplish through cloud transformation, cloud computing services and how I I and Michelle learning take log technologies can in a benefit from transformation to the block. In addition, we also heard person talk about automation in the cloud zero automation taking journey towards the cloud on automation Once you're in the clouds, water the philosophy and principles he should be following to drive the motivation. We also provide holy holistic approach to dry automation by focusing process technology that includes talent and change management and also addressing automation culture for the organisations in the way they work as they go forward. >>You mentioned a couple things computing, storage and when we look at our surveys, guys is it is interesting to see em, especially since the pandemic, four items have popped up where all the spending momentum is cloud province reasons scale and in resource and, you know, be able the report to remotely containers because a lot of people have work loads on Prem that they just can automatically move in the company, want to do development in the cloud and maybe connect to some of those on from work clothes. R P A. Which is underscores automation in, of course, and R. P. You mentioned a computing storage and, of course, the other pieces. Data's We have always data, but so my question is, how has the cloud and eight of us specifically influenced changes in automation? In a >>brilliant question and brilliant point, I say no winner. I talked to my clients. One of the things that I always says, Yeah, I I is nothing but y for the data that is the of the data. So that date of place underlying a very critical part of applying intelligence, artificial intelligence and I in the organization's right as the organisation move along their automation journey. Like you said, promoting process automation to contain a realisation to establishing data, building the data cubes and managing the massive data leveraging cloud and how Yebda please can help in a significant way to help the data stratification Dana Enablement data analysis and not data clustering classification All aspects of the what we need to do within the between the data space that helps for the Lord scale automation effort, the cloud and and ablest place a significant role to help accelerate and enable the data part. Once you do that, building mission learning models on the top of it liberating containers clusters develops techniques to drive, you know the principles on the top of it is very makes it easier to drive that on foster enablement advancement through cloud technologists. Alternatively, using automation itself to come enable the cloud transformation data transformation data migration aspects to manage the complexity, speed and scale is very important. The book stresses the very importance of fuelling the motion of the entire organisation to agility, embracing new development methods like automation in the cloud develops Davis a cop's and the importance of oral cloud adoptions that bills the foundational elements of, you know, making sure you're automation and air capabilities are established in a way that it is scalable and sustainable within the organisations as they move forward, >>Right? Thank you for that r p vast crime want to come back to this notion of maturity and and just quite automation. So Andy Jossy made the phrase undifferentiated, heavy lifting popular. But that was largely last decade. Apply to it. And now we're talking about deeper business integration. And so you know, automation certainly is solves the problem of Okay, I can take Monday and cast like provisioning storage in compute and automate that great. But what is some of the business problems, that deeper business integration that we're solving through things? And I want to use the phrase they used earlier intelligent automation? What is that? Can you give an example? >>Let's a very good question as we said, that the automation is a journey, you know, if we talk to any blind, so everybody wants to use data and artificial intelligence to transform their business, so that is very simple. But the point is that you cannot reach their anti unless you follow the steps. So in our book, we have explained that the process that means you know, we defined in a five steps. We said that everybody has to follow the foundation, which is primarily tools driven optimise, which is process drivel. An official see improvement, which is primarily are driven. Then comes predictive capability, the organisation, which is data driven, and then intelligence, which is primarily artificial intelligence driven. Now, when I talked about the use of artificial intelligence and this new intelligent in the business, what the what I mean is basically improved decision making in every level in the organisation and give the example. We have given multiple example in this, both in a very simple example, if I take suppose, a financial secretary organisation, they're selling wealth management product to the client, so they have a number of management product, and they have number of their number of clients a different profile. But now what is happening? This artificial intelligence is helping their agents to target the night product for the night customers. So then, at the success rate is very high. So that is a change that is a change in the way they do business. Now some of the platform companies like Amazon on Netflix. He will see that this this killed is a very native skill for them. They used the artificial intelligence try to use everywhere, but there a lot of other companies who are trying to adopt this killed today. Their fundamental problem is they do not have the right data. They do not have the capability. They do not have all the processes so that they can inject the decision making artificial intelligence capability in every decision making to empower their workforce. And that is what we have written in this book. To provide the guidance to this in this book. How they can use the better business decision improved the create, the more business value using artificial intelligence and intelligent automation. >>Interesting. Bhaskar are gonna stay with you, you know, in their book in the middle of last decade, Erik Brynjolfsson and Andy McAfee wrote the second Machine Age, and they made a point in the book that machines have always replaced humans in instead of various tasks. But for the first time ever, we're seeing machines replacing human in cognitive task that scares a lot of people so hardy you inspire employees to embrace the change that automation can bring. What what are you seeing is the best ways to do that? >>This is a very good question. The intelligent automation implementation is not, Iet Project is primarily change management. It's primarily change in the culture, the people in the organisation into embrace this change and how they will get empowered with the machine. It is not about the replacing people by machine, which has happened historically into the earlier stages of automation, which I explained. But in this intelligent automation, it is basically empowering people to do the better. Dwelled the example. That is the thing we have written in the book about about a newspaper, 100 years old newspaper in Italy. And you know, this industry has gone through multiple automation and changes black and white printing, printing to digital. Everything happened. And now what is happening? They're using artificial intelligence, so they're writers are using those technologies to write faster. So when they are writing immediately, they're getting supported with the later they're supporting with the related article they are supporting with this script, even they're supported to the heading of this article. So the question is that it is not replacing the news, you know, the content writer, but is basically empowering them so that they can produce the better quality of product they can, better writing in a faster time. So is very different approach and that is why is, um, needs a change management and it's a cultural change. >>Garden R P What's it for me? Why should we read the automation advantage? Maybe you can talk about some of the key takeaways and, you know, maybe the best places to start on an automation journey. >>Very will cut the fastest MP, Newer automation journey and Claude Adoption Journey is to start simple and start right if you know what's have free one of the process, Guru says, If you don't know where you are on a map, a map won't help you, so to start right, a company needs to know where they are on a map today, identify the right focus areas, create a clear roadmap and then move forward with the structured approach for successful our option. The other important element is if you automate an inefficient process, we are going to make your inefficiency run more efficiently. So it is very important to baseline, and then I established the baseline and know very or on the journey map. This is one of the key teams we discuss in the Automation Advantis book, with principles and tips and real world examples on how to approach each of these stages. We also stress the importance of building the right architecture is for intelligent automation, cloud enablement, security at the core of automation and the platform centric approach. Leading enterprises can fade out adopters and Iraq, whether they are in the early stages of the automation, journey or surrender advanced stage the formation journey. They can look at the automation advantage book and build and take the best practises and and what is provided as a practical tips within the book to drive there. Automation journey. This also includes importance of having right partners in the cloud space, like a loveliest who can accelerate automation, journey and making sure accompanies cloud migration. Strategy includes automation, automation, lead, yea and data as part of their journey. Management. >>That's great. Good advice there. Bring us home. Maybe you can wrap it up with the final final world. >>So, lefty, keep it very simple. This book will help you to create difference in your business with the power of automation and artificial intelligence. >>That's a simple message and will governor what industry you're in? There is a disruptions scenario for your industry and that disruption scenarios going to involve automation, so you better get ahead of editor game. They're The book is available, of course, at amazon dot com. You can get more information. X censure dot com slash automation advantage. Gosh, thanks so much for coming in the Cube. Really appreciate your time. >>Thank you. Thank >>you. >>Eh? Thank you for watching this episode of the eight of US Executive Summit of reinvent made possible by Accenture. Keep it right there for more discussions that educating spy inspire You're watching the queue.
SUMMARY :
X censure in Rajendra RP Prasad is the senior managing director in Global Hey, congratulations on the new book. maturity of the buyer maturity of the market when it's a little more, and I like the way you should describe that spectrum ending with intelligent automation. most of the enterprises prior to the pandemic we're looking automation the cloud and maybe connect to some of those on from work clothes. of fuelling the motion of the entire organisation to agility, So Andy Jossy made the phrase that the automation is a journey, you know, if we talk to any blind, But for the first time ever, replacing the news, you know, the content writer, Maybe you can talk about some of the key takeaways and, you know, maybe the best places to start on This is one of the key teams we discuss Maybe you can wrap it up with the final final world. This book will help you to create difference Gosh, thanks so much for coming in the Cube. Thank you. the queue.
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2021 128 Bhaskar Ghosh and Rajendra Prasad
(upbeat music) >> Welcome back to the Cube's coverage of the AWS Executive Summit at AWS re:Invent made possible by Accenture. My name is Dave Vellante. We going to talk about The Automation Advantage, embrace the future of productivity, and improve speed quality and customer experience through artificial intelligence. And we're here with Bhaskar Ghosh who is the Chief Strategy Officer at Accenture and Rajendra 'RP' Prasad who is a Senior Managing Director and Global Automation Lead at Accenture. Guys, welcome to the cube, good to see you. >> Good to see you. >> Hello, David, thank you. >> Hey, congratulations on the new book. I know it's not like giving birth, but it's a mini version if you will. The automation advantage embraced a future of productivity, improved speed, quality, and customer experience through artificial intelligence. What inspired you to write this book? Can you tell us a little bit more about it, and how businesses are going to be able to take advantage of the information that's in there? That's great. Maybe you could start. >> Okay. So I think, you know, if we say that what inspired us, primarily the two things really inspired us to start this project. First of all, is the technology change, step change in the technology. Second is the maturity of the buyer, maturity of the market. So let me explain a little more. When I talk about the technology change, automation is nothing new in the industry, starting from the industrial revolution, always industry adopted the automation. But last few years, what happened, that there is a significant change in the technology in terms of lot of new technologies are coming together like Cloud, Data, Artificial Intelligence, machine learning, and they are getting matured. I think that created a huge opportunity in the industry. So that is number one. Second thing I think the maturity of the buyer. So buyers are always buying the automation, adopting the automation. So when I talk to this different buyer, different industrial buyer, suddenly we realize, they are not asking about what is automation. How that will help. But primarily they're talking about how they can scale it. They have all have done the pilot, the prototype, how they can take the full advantage in that enterprise to scale. And after talking to a few clients, few of our clients, they don't realize that it would be best to write this book and help all our clients to take advantage of this new technologies to scale up their business. If I give them a little more insight that what exactly we are trying to do in this book, primarily we dealt with three things. One is the individual automation, which deals with the human efficiency. Second is the industrial automation, which deals with the group efficiency . And third is the intelligent automation, which deals with the business efficiency or business value. So we believe that, this is what will really change their business and help our client help the automation IT users to really make an impact in their business. >> Yeah, and so you talked about that, the maturity of the customer and I liked the way you sort of described that spectrum ending with intelligent automation. So the point is you're not just paving the cow path if you will, automating processes that maybe were invented decades ago, you're really trying to rethink the best approach. And that's where you going to get the most business value and RP in thinking about the maturity, I think in pre-pandemic, people were maybe a little reluctant or as Bhaskar was saying, maybe needed some education. But how have things changed? Obviously the pandemic has had a huge impact. It's accelerated things. But what's changed in the business environment in terms of the need to implement automation, RP? >> Thank you for that is an excellent question. As we went through the pandemic, most of the enterprises accelerated what I call as the digital transformation. Technology transformation. And the overall time that it takes to do the transformation has compressed. Most of the enterprises now do compress transformation. The core of it is innovation and innovation led technology and technology based solutions. To drive this transformation, automation, artificial intelligence becomes part of what we do, while we are implementing these accelerators, innovation enablers within the enterprises. Most of the enterprises prior to the pandemic, we're looking, automation and AI as a solution for cost efficiency, saving costs and not deriving capacity efficiency as if they do the transformation (indistinct). Let me press the fast forward button through the transformation journey, leveraging automation. What happens is most of the enterprises switch the focus from cost efficiency to speed, to market, application availability and system resiliency are the core. When I speak to most of the CIO's, who are involved in the tech transformation, they now embrace automation and AI as a core enabler to drive this journeys towards, growth, innovation led, application availability and transformation and sustainability of the applications through their journey. Our book addresses, all of these aspects, including the most important element of AI, which is compute, storage and the enablement that it can accomplish through cloud transformation, cloud computing services and how AI and machine learning technologies can benefit from transformation to the cloud. In addition, we also address and talk about automation in the cloud. Automation, taking journey towards the cloud and automation, once you are in the cloud, what are the philosophy and principles you should be following to drive that automation? We also provide holistic approach to drive automation by focusing process technology that includes talent and change management, and also addressing automation culture for the organizations in the way they work as they move forward. >> So you mentioned a couple of things, compute and storage and when we look at our surveys, guys, it's interesting to see, especially since the pandemic, four items have popped up, where all the spending momentum is cloud, but for obvious reasons, scale and resource, and be able to work remotely, contain us because a lot of people have workloads on prem that they just can't automatically move into cloud, but they want to do development in the cloud and maybe connect to some of those on-prem workloads, RPA, which is _automation, and of course, AI. And, RP, you mentioned compute and storage, and of course the other pieces' data. So we have all this data. But so my question is, how has the cloud and AWS specifically influenced changes in automation in AI? >> Brilliant question and brilliant point. I say, whenever I talk to my clients, one of the things that I always say is, AI is nothing but an UI for the data. Let me repeat that, AI is the UI of the data. So that data plays a underlying and very critical part of applied intelligence, artificial intelligence and AI in the organizations, right? As the organization move along their automation journey, like you said, robotic process automation to containerization, to establishing data, building the data cubes and managing the massive data leveraging cloud and how AWS can help in a significant way to help the data stratification, data enablement, data analysis, and data clustering, classification, all aspects of that what we need to do within the data space. That helps for the large scale automation effort. The cloud and AWS plays a significant role to help accelerate and enable the data part. Once you do that, building machine learning models on the top of it, leveraging containers, clusters, DevOps techniques to drive, the AI principles on the top of it is very, it's kind of makes it easier to drive that and foster enablement advancement through cloud technologies. Alternatively, using automation itself to kind of enable the cloud transformation, data transformation, data migration aspects to manage the complexity speed and scale is very important. The book stresses the very importance of fueling the motion of the entire organization through agility, embracing new development, whether it's like automation in the cloud, DevOps, DevSecOps and the importance of oral cloud adoption that builds the foundational elements of making sure your automation and AI capabilities are established in a way that it is scalable and sustainable within the organizations as they move forward. >> Great. Thank you for that, RP. Bhaskar, I want to come back to this notion of maturity and just apply it to automation. So, Andy Jassy made the phrase, undifferentiated heavy lifting popular, but that was largely last decade applied to IT. And now we're talking about deeper business integration. And so, automation certainly solves the problem of, okay, I got to take mundane tasks like provisioning, storage, and compute and automate that. Great. But what are some of the business problems that deeper business integration that we're solving through things that, and I want to use the phrase that you used earlier, intelligent automation. What is that? And can you give an example? >> That's a very good question. As we said, that the automation is a journey. If we talk to any clients, so everybody wants to use data and artificial intelligence to transform their business. So that is very simple, but the point is that you cannot reach there unless you follow the steps. So in our book we have explained the process. That means, we defined in a five steps. We said that everybody has to follow the foundation which is primarily the tools driven, optimize, which is process-driven then efficiency improvement, which is primarily RPA driven, then comes predictive capability, the organization, which is data driven and then intelligence, which is primarily artificial intelligence driven. Now, when I talk about the use of artificial intelligence and this new intelligent ID in the business, what we mean is basically improved decision-making in every level in the organization. I'll give you an example. We have given multiple example in this book and a very simple example if I take. Suppose a financial sector organization, they're selling wealth management product to the clients. So they have a number of wealth management products and they have number, there are number of clients with different profile, but now what is happening, this artificial intelligence is helping their agents to target the right product for the right customer, so that the success rate is very high. So that is a change. That is a change in the way they do business. Now, some of the platform companies like Amazon and Netflix, you will see that this skill is a very native skill for them. They use the artificial intelligence, try to use everywhere. But there are a lot of other companies who are trying to adopt this skill today. Their fundamental problem is that they do not have the right data. They do not have that capability. They do not have all the processes so that they can inject the decision-making artificial intelligence capability in every decision-making to empower their workforce. And that is what we have written in this book to provide the guidance to this in this book. How they can use the better business decision, improve then create the more business value using artificial intelligence and intelligent automation. >> Interesting, Bhaskar, I want to stay with you, in their book, in the middle of last decade, Erik Brynjolfsson and Andy McAfee wrote. The Second Machine Age and they made the point in the book that machines have always replaced humans in sort of various tasks, but for the first time ever, we're seeing, machines replacing humans in cognitive tasks, and that scares a lot of people. So how do you inspire employees to embrace the change that automation can bring? What are you seeing as the best ways to do that? >> That's a very good question. Intelligent automation implementation is not an IT project. It's primarily change management. It's primarily change in the culture. The people in the organization need to embrace this change and how they will get empowered with the machine. It is not about the replacing people by machine, which has happened historically into the earliest stages of automation, which I explained. But in this intelligent automation, it is basically empowering people to do the better job. I will give you example. That is the thing we have written in the book, about a newspaper, a hundred years old newspaper in Italy. And this industry has gone through multiple automation and changes. So black and white printing to color, printing to digital, everything happened. And now what is happening, they are using artificial intelligence, so their writers are using those technologies to write faster, so when they're writing immediately, they are getting supported with the data, they are supporting with the related article. They are supporting with the script, even they're supported with the heading of this article. So the question is that it is not replacing the news, the content writer, but it's basically empowering them so that they can produce the better quality of product, they can be better at writing in a faster time. So it's a very different approach and that is why this needs a change management than a cultural change. >> Got it. RP, what's in it for me? Why should we read the automation advantage? Maybe you could talk about some of the key takeaways and maybe the best places to start on an automation journey. >> Very good question. The fastest step in your automation journey and cloud adoption journey is to start simple and start right. If you know what's happening, one of the process guru says, "If you don't know where you are on a map, a map won't help you." So to start right, a company needs to know where they are on a map today, identify the right focus areas, create a clear roadmap and then move forward with a structured approach for successful adoption. The other important element is if you automate an inefficient process, you are going to make your inefficiency run more efficiently. So it is very important to baseline and establish the baseline and know where you are on the journey map. This is one of the key themes we discuss in the Automation Advantage book. With principles and tips and real world examples on how to approach each of these stages. We also stress the importance of building the right architectures for intelligent automation, cloud enablement, security at the core of automation and the platform centric approach. Leading enterprises can fit on adopters and whether they are in the earlier stages of the automation journey or they're in the advanced stage of automation journey. They can look at the Automation Advantage book and build and take the best practices and what is provided as a practical tips within the book to drive their automation journey. This also includes importance of having right partners in the cloud space like AWS, who can accelerate automation journey and making sure a company's cloud migration strategy includes automation, automation-led AI and data as part of their journey management. >> That's great. Good advice there. But Bhaskar, bring us home, maybe you could wrap it up with the final word. >> So let me keep it very simple. This book will help you to create difference in your business with the power of automation and artificial intelligence. >> That's a simple message. And no matter what industry you're in, there is a disruption scenario for your industry, and that disruption scenario is going to involve automation. So you better get ahead of the game there. The book is available of course, at Amazon.com and you can get more information at accenture.com/automationadvantage. Guys, thanks so much for coming in the Cube. I really appreciate your time. >> Thank you. >> Thank you. >> And thank you for watching this episode of the AWS Executive Summit at re:Invent made possible by Accenture. Keep it right there for more discussions that educate and inspire, you're watching the Cube. (upbeat music)
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Mariesa Coughanour, Cognizant | UiPath FORWARD IV
>> (Announcer) From the Bellagio hotel in Las Vegas. It's theCube covering UiPath FORWARD IV, brought to you by UiPath. >> Good afternoon. Welcome back to theCube's live coverage of UiPath FORWARD IV. Lisa Martin here with Dave Vellante. We're on day two of our coverage. We've been talking a lot about automation, all of the opportunities that it's uncovering across industries. We're now going to be talking about a big company undergoing its own automation-led digital transformation. Joining us next, Mariesa Coughanour, head of Automation Advisory Services at Cognizant. Mariesa, welcome to the program. >> Thank you for having me. I'm excited to be here today. >> So let's talk. So Cognizant is a part, both a partner and a customer of UiPath. >> Yes. >> We're going to talk about you in the customer realm today. Cognizant is undergoing its own automation-led digital transformation. Let's talk about that. Talk to me about some of the business outcomes that are, that you're expecting, how it's going to transform the employee experience, the customer experience. >> (Mariesa) Sure, absolutely. We actually started working with automation ourselves back in 2018, where we just put in a CoE, we said we want to drive it into our business operations. But about a year ago, we said, let's go further. I really wanted to play with all of our employees. We wanted to empower them. We talk about citizen development, of robot for every person. And we know that that's really the future. That's where we're going. We're digitally transforming our organizations. And so what we did is we sat down and we worked really closely with UiPath on how do we do this? What kind of training do we need? We're going to need some process, some governance in there. And so we put that in place and, you know, we said, let's get this going this year. So we went out, we did, our first Hackathon, went really well. It was Bring Your Own Bots. So BYOB, so, fun themes. And we got some good savings. We actually drove over 10,000, close to 20,000 hours back into the organization. And we said after that, let's go a bit bigger though. And we did what's called Game of Bots. So obviously we know where that came from, right? And we said, we're going to go a little bit longer and we want to go bigger. So we went and had 2,500 people participate over eight weeks. We built over a thousand bots. And guess what? We drove over 200,000 hours back into the organization in just eight weeks. So super big success story. People loved it. Our teams were excited. We recognized over 200 people out of that with team awards, who submitted the most ideas. And even our top leadership said, let's do a presentation. So the guys and gals who had the top, biggest impact automations got to meet with our top senior leaders and present out to them. It's been awesome. And now we're starting to move that force. We're scaling bigger. We're actually going pretty big in Cognizant. We have some big goals right now. >> That's a gob of hours. Game of Bots, get it? GOB. >> (laughs) >> Come on, with me. >> It is a gob of hours. >> How do you measure the hours? Is it a back of napkin kind of thing? We ask people, Hey, how much, how what, how do you actually measure it? >> No, we actually track it. We could see how many hours people were doing a certain tasks and things that they do every day, whether they're running reports, submitting claims for a customer. And so we're able to see that that time is actually going down. We're faster. We get better quality. People were also able to get hours back in their day so they could do more value added work in the organization. So we actually do track it. And we're able to really measure those tangible outcomes for the teams. >> Sounds like you guys have been moving pretty quickly on this. >> We are. >> So the appetite at Cognizant was there, the culture was there to embrace it. Those are probably, I imagine, two big facilitators of being able to move at the speed and the scale, >> Yeah >> that, with what you're doing. >> Culture was there. We're really digitally savvy. I would say we're digital at heart in Cognizant. We are, we're really a tech company and we really focus on how to be at the forefront of all things when it comes to technology. But we said, we also want to transform how we work. So starting to shift the conversation from, you know, do you want to automate, to why not? How do we actually start talking about, you know, I have this to do list, but you know what, actually, we can improve if we did some of this other stuff instead. So let's free up that time, but use automation there and we can actually grow things. We can add more value. We do all that stuff on your to-do list that I think everybody has and they want to get to, but you get caught up in your day-to-day job all the time. So we're actually getting people to be more excited about and have a real voice. And I actually think that's important. Is that, it's not just about giving people the tool, it's about shifting our culture to really embrace digital, embrace this technology, because we're trying to transform how we all work. And we want to lead by example. >> So we talk about BPO. Business Process Optimization, right? It was kind of the buzz word of the '90s and early 2000s. A lot of times it meant putting in SAP. (chuckles) >> (Mariesa) (laughs) Yeah. >> So that's evolved. And there's some companies that would say, "Hey, we specialize in that," technology companies, obviously, >> (Mariesa) Yep. >> you know, SI's as well. How do you think about the difference between end-to-end enterprise automation and, and sort of traditional BPO? >> I think it has to come together a bit, is one thing. So when you do the BPO, or you do shared services, or you outsource some of the work. We actually put into those contracts, because we do a lot of that for our customers. And we put in automation. The step we took further was we actually started to empower people to actually build the automations themselves, which meant we actually had to work with customers too. So they knew we were doing this. We wanted to make sure they understood, they were comfortable. We put any controls in place that they also needed, to make sure that, you know, we didn't impact any of their services. We want to make it better. We want them to feel nothing but bigger, better results in outcomes. And then as you think about the enterprise side, we have to compliment, because a lot of those processes do feed back into how you run a business. And so we focus on how do you bring both of those stories together so that you're driving synergies across the board. And actually some good lessons learned along the way because some of this stuff becomes reusable. You have best practices you could share across the board. And we want to make sure that we are connecting the dots from the shared services BPO work, back into the enterprise because really a process is end to end, an organization. And we want to help people think that way and also get the results that way too. >> Is that end to end automation, at enterprise automation, more tech heavy, or, or maybe it's tech light in a way, whereas BPO is maybe a lot more, sort of, lean thinking, a lot more chalkboard. Are we deep into the, so I, sometimes, you're saying they have to come together. >> They do yeah. >> But from, from where I guess is, is what I'm trying to better understand. >> So I would think about it this way. When you think about a process, right, from when you even placed an order, the whole way through when you fulfill it for a customer. There's work that we, we do outsource all the time, right? So maybe it's the, the PO process, some of the order transactions from the payment, but you also have the pieces is actually touching the customer, too. You have the pieces that are fulfilling the order. So we say end to end, that is really thinking about that beginning, from a conversation with the customer, the whole way to when we're delivering. And I do think there's a lot of technology. That is something I think everyone gravitates to because there is a lot. Especially if you're going to go end to end, you have to be able to take in documents. You have automation. You're not going to know all the rules, no matter how many times you ask, you're going to need machine learning to be able to help figure it out and get smarter as what, as you go along the way. But as you're putting this into place, what's important is: as you're thinking about, kind of, transforming that business so that they're feeling the results the whole way through, because if you just focus on one, you might create a bottleneck, right? You might've got super fast, but the guy who's going to get the work from you, they're going to feel like, oh my goodness, there's all this work on my plate. So we really want to make sure that we create that seamless experience for everyone across the board, as we put it in. >> And how does UiPath, help facilitate that? >> Across the board, I mean, we were sitting down, we were laying out our program. 'Cause we're actually trying to get to 60,000 strong. So we have 7,000 trained today. We're going to get to 60,000. That's our plan. So we're working very closely with UiPath on what does that training that you need to have in place? What's that model? How do we get people comfortable? Because one thing you'll find is not everyone's in the same spot. Some are going to jump in, dive right in, give me the tool. I want to build. I love this. Others might need a little bit more confidence boost. They might need more handholding. And I think that's really important. And it's probably the one thing I would add too, as you do talk a lot about the technologies, we put it in, but it's the people at the end of the day, it's how you help them adopt, feel comfortable with this technology and really embrace it. That's really going to be the difference on whether, how fast you get down that line for transformation. >> Is it a classic bell curve? You got your 10% early adopters, you got a big fat middle, and then you've got some laggards who come along. >> It kind of is. And I think what's important is that middle is all up in how you do it because 10% are always going to love it. You're always going to have a few people, they're a little extra nervous maybe. But in the middle, if you really think about it, and you're able to put in that culture, you're able to put in your leadership is engaged. You're putting us in gamification, make it fun. That's what we found is, if we got people really having fun up front with it, it gives people a reason to be a part of it. And also, why don't we let people partner up? We can give them the technology, but if someone's not as comfortable, let us do teams. Let's meet people where they're at and then move them along this journey. And let's try to accelerate the best we can. >> How did you gamify it? Crypto. No. (chuckles) >> (laughs) >> (laughs) No, no crypto. But I will say we have some really cool prizes and people were super excited to get to do the presentations because they got to show their, their bots live, their creations, to the team. And I think that was important. Not everyone always is able to capture all the results, but we wanted to actually talk about like, what were the ideas, share it across the board. Cause it also generated ideas. because what you'll find is, when you hear something like, you know what, that's kind of what I do. Wonder if I could do some automation too. At least submit an idea, and then, maybe they're moving down the line, they're getting their hands on the technology. And I think that's how we all push the needle forward and move this along faster. >> One of the most important things about automation is letting people be able to move away from the mundane, the repetitive tasks, that they probably don't enjoy. And being able to focus more on their core competencies or more strategic initiatives that really make them more relevant to themselves and to their company. And it sounds like you guys have achieved that pretty quickly and, and you have an aggressive plan >> (chuckles) We do. >> to go from 7,000 to 60,000. >> Yes. And that's really the power of automation, if you think about it. We all have things in our job we don't like to do. I don't know about you guys, but there's things that I'm like, oh man, like, can we please automate this? Expense reports, for example. All about automated expense reports. (laughs) But it's really about freeing people up. Think about it. These people went to school, they often have degrees and things, and they do get caught in a lot of the manual things, downloading reports, consolidating data, you know, submitting spreadsheets and forms. Imagine if we're able to make that easier for people, we give them what they need to do their job. So that all that stuff you would like to do, that you know would improve things. You know would make the company better. The culture better. Heck, maybe it's a new product that people know would be really awesome to go build, but everyone feels like they're so busy. They don't have the time to do it. I mean, that's one of the big values of automation. Is this value creation conversation that you get to have with people. And you get to start asking 'why not' a little bit more. >> You've mentioned a couple of times the IDC presentation this morning. And we were talking about earlier, and the pie chart of, of, of value benefits was cost savings, which was very large, new revenue, which was very large. And then I think 15% was quality improvements. And that, I think that's an underappreciated slice of the pie. Somebody, I think years ago, of the UiPath FORWARD said to me, I can very inexpensively apply Six Sigma to business process. >> (Mariesa) Yeah. >> And I could never afford to do that before RPA. And, and so I wonder if you could talk to the quality impacts that you're seeing. >> Absolutely. I actually spent a lot of time in Lean Six Sigma in my early career days. And one of the things about it too, is when you're doing automation, we actually asked that question upfront, can we just simplify, can we just stop doing this? Because you don't want to automate a bad process either. So you want to ask some of those questions. >> (Dave) Yeah. >> But you're spot on. There's a ton of quality benefits that you get from automation. And one of the things I've actually seen is if you focus on some of the quality upfront, process gets better. Get better impact, as when you get faster. If you have better quality, and get faster, you also get your cost out targets. And I, that really matters because quality also, beyond being able to drive the cost out, it also helps a lot with the experience that people face. Customers are frustrated if they have poor quality, something doesn't work the way it's supposed to, a site's not working the way it should. And also even employees, they go, how many times, if you try to do something and you try to follow a process and something's hung up or who knows what happened, right. It's frustrating. So if you're able to improve the quality in the process, not only do you get the cost savings, but you get these, it's softer tan, there's still tangible experiences that get better and actually motivates people to want to do more. >> And those motivated people are probably dealing with customers much, much better. >> Yes, yeah. >> I mean, it's, I always think the employee experience is so, is, is a critical component. >> It is. >> But the customer experience. So how has the customer experience improved at Cognizant as a result of building in automation and enabling all these people? >> Yeah, they're loving the results because we're giving them back efficiencies in their process immediately by putting this automation in. These are quick impacts they're feeling and we're able to do more for them as well. So we're actually having conversations now on how do we drive more efficiencies for you and also, you know, how can we do more? Is there more volume of work? Is there more we could be doing to add value back to your organization? And that's what you want to talk about with customers is we're able to give you this value. And by the way, we actually did X for you now as well, because we knew you needed it. And we have the capacity to do this for you. So it's a really positive conversation, but we did have to upfront talk to them about it, to make sure that we, everyone was on board. They're comfortable. And we're continuing to have those conversations because you know, sometimes you're in a regulated business and we did put a little extra control in. Absolutely okay. But we want to be able to drive these efficiencies back for them. So they feel it in their own operations internally too. And it hits their bottom line and oftentimes helps their employees too, because we interact with them. So those downstream benefits and sometimes even upstream get some nice returns there as well. >> We've heard from, well, we're going to have Daniel on soon. He's the CEO. We've of course heard from CFOs. We've, that's kind of one of the main springs of RPA in the early days. We've heard a lot more CIOs at this event and we have a CTO coming on later. Are these C suite executives totally aligned in their objectives? Do they have they have different agendas? What are you seeing in terms of serving the C suite? >> Yeah. They're all going to have a little bit different agendas, right? Cause that's, their roles have different objectives, but they all align back to the strategy, obviously, for their company. But they're going to have portions of it that they're trying to drive and deliver. What we do see is that there's still some merging that needs to happen between the operations, the more business focused side and the more technical side. But we do, we're starting to see that convergence happen. Because what happens is, is that, you have these technologists, who really are going to have to help move you forward. We're, you know, we're applying AI, ML. Very technical technologies, and we want to make sure we do it right, that we put the right governance in. And we think about the security that we have to have in place for this too. And but we also have the business outcomes and coming together is where you really see the results. If you look at all of those that have reached true maturity, it's where you see these agendas aligning a bit more because you also have to shift the culture too. And it's a collaboration point. You need to be able to have the tech savvy folks. It helps bring them along this journey, but you also have to have the business depth as because you're looking at a process and you're going really deep into it to apply the technology. So it's when people partner is when we really see the results become more exponential. >> So digital transformation, you know, we hear that term a lot. And automation-led digital transformation. >> Yep. >> I hear a lot of data led digital transformations are those parallel tracks, or they can talk a lot about convergence. >> Yeah. >> Are they? I mean, they're not competing. They're obviously very much related. How do you see the data agenda and the automation agenda coming together. >> They have to. Because you really need good quality data to be able to enable your automation at the end of the day. And, but they actually play nicely together. You can actually use automation to help go back and improve your master data management too, which is the core of your information because that's actually where a lot of the struggle sometimes comes, is in the quality of the data that everyone has to work with. So you see the data agenda working on, "How do I clean this? How do I get more insightful, predictful information?" And then from an automation standpoint, how do I then use that to go take action? So all we see is you bring it together, to be able to identify where do you need to get in the process? How do I get the right information? So the automation also is proven data behind it, that we drove the outcomes, because that's where you take it to the bank at the end of the day. Is that you see it in the data itself. But I think one of the things I've seen with automation that helps drive the digital transformation conversation is, the business and IT teams are coming together and having a joint conversation now. People are excited. They're understanding it. I think that's why people jumped on with RPA so quickly, was because they're like, I get this, this is rule-based, this is my business process. I just tell it what to do. I'll take that. I want to do that. And so people got excited about that. And then they said, let's do more. How do I make it more intelligent? How do I help it do things in my process that it's harder for me to explain because there's just so much information here. There's so many nuances. Well, we have the technology can help make it more intelligent, smarter, and learn, so that we're able to drive that back into the business itself to transform. >> You mentioned Master Data Management is, is the data agenda as it relates to automation, primarily reporting, is it moving? Is it transcending reporting into the building of data products, for example, data services that can be monetized either within Cognizant or in your customer base? >> So it's really evolving. I would say some start with reports. That's easy. That's where we'll start, but I'll just kind of give you maybe a little example. So we have a customer and we work with them. So they have customers where they need to, when they call in, the sales folks and the contact centers, they have to upsell. So they work with a lot of different restaurants and different, maybe, bars and, you know, different companies that have different type of like beverages and things like that. So we worked with them to show, how are they performing today with all their sales reps? And then we started to use some automation to be able to get them more helpful information the moment the customer's calling in. And we also did some semantic analysis on a voice, how people were, how were they sounding? How was their tone? Were they happy? Were they upset? Were they sad during the call? And we fed that information back to those teams, back to those managers, and went back even to their training programs. What they actually saw was a ton of top line growth. They saw all of their metrics starting to get better, and they also start to get more predictive on ways that they can use more data to drive the support for those teams and their customers. Like for example, if you know holidays are coming up or a certain time of year with weather, we're able to actually put that type of information in and helps those sales reps better serve their customers. >> Last question, some of the announcements that came out yesterday and some of the news today about UiPath, what excites you about the technology and how it's going to continue to enable you to, to foster this new culture that you've shifted? >> I think, so one thing about UiPath that we've always loved to be able to partner with them as we're still customer centric. And you see that in every announcement that they're doing, and also they're focused on this true process transformation, intelligent end to end thinking, because I think a lot of times when we've had conversations most get stuck in kind of point solutions. And that's just because people are trying to solve today's problems. But with where UiPath is moving and where we want to move to, is how do we help you to really transform how people work? We know automation is a part of our future. We know it's going to be how we work in the future. And we love about UiPath is to really think about how do we integrate it? How do we make those connections? So we can drive the bigger results, we can make it easier for people to adopt and really embrace it because we need to bring the people along this journey and we need to be able to actually impact our processes too, so we can transform them. So I think that's one thing that's been really exciting is just watching them in general. Involved with the announcements the last couple of days, we really see them continue to push that needle. >> Excellent. Well, Mariesa, thanks for joining us. Talking to us about the automation-led digital transformation at Cognizant. Good luck raising your trained individuals from 7K to 60K. It sounds like the momentum is there. The culture's there. We can't wait to hear what happens next! >> Awesome. Thanks again for having me today. >> Our pleasure. >> Good to see you. >> Thank you. >> For Dave Vellante, I'm Lisa Martin live in Las Vegas at the Bellagio. UiPath FORWARD IV is the event we're covering. We'll be right back with our next guest. >> (bubbly outro music)
SUMMARY :
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>>From the Bellagio hotel in Las Vegas, it's the cube covering UI path forward for brought to you by >>Hello from Las Vegas, live at the Bellagio. Lisa Martin, with Dave Volante. We are at UI path forward for, like I said, in Las Vegas. So great to be in person, sitting at an anchor desk with a co-anchor. And I guess we're going to be talking about deploying new technologies and a large global enterprise. Nikki Harris is here. Manage your application, performing platform engineering services at Chevron Vicky. Welcome to the program. Hey, thank >>You. Happy to be >>Here. So isn't it great to be we're outdoors. Nice that everyone's nice and safe, but great to be back at an in-person event where so many hallway conversations can spark more innovation. That's one of the things I think a lot of us have been missing in the last 18 months. You've been with Chevron almost 15 years, but this is, we're talking about 142 year old organization. Talk to me about the evolution of it that you've seen. >>Very happy to do that. Um, a lot of, uh, I would say the greatest jump forward we saw in cloud and we started our cloud transformation before digital transformation came along. Uh, but it was the, really the thing that enabled us to, uh, be ready, I would say for the extra value, the extra push. And so we were so happy to be well positioned. So we started our cloud journey in 2017 and, uh, between 2018 and 19, because of the investments in automation, it just took off and today we're still receiving the benefits of that. Um, but prior to that, it took a little bit longer. Uh, also we had an agile transformation, which was very helpful because we can't really afford to move at waterfall speed anymore. Um, and so cloud and agile really helped boost that and get us started. >>So whenever we get a practitioner on, we have a million questions. So, so can we start with your role? Are you in it, that's where you're in that organization or >>I am in it. So I'm a product line manager. We support really the core for software engineers and citizen developers. So on the software engineering side, CICB pipeline, dev ops tooling, code frameworks, all of that to make our software engineers more productive and on the citizen development side, same philosophy, we want to make them more productive, not worry about how do I do it, just how to apply their business logic. So we support the citizen development programs and the underlying platforms. >>So they gave, when you talked about cloud in 2017, are you talking about infrastructure as a service platform, as a service SAS, all of the above, cause cause you have to do, I'm sure you were doing SAS before then, but how do you think about cloud? >>So that's a great question. Yes. We were always doing SAS and we continue to do SAS. Uh, so, and Chevron was one of the earlier adopters of UI path for cloud. We do want to be cloud first, always, always, always. And we are trying to really reduce and restrict our on-prem footprint. Um, but the automation we started in kind of 20 17, 20 18 is, um, I would call it infrastructure as code. Uh, so deploying everything with code, um, the same way all the time, uh, which was partly a technical shift, but also a really big cultural shift that instead of having people doing the same task, you know, 400 different ways, which is hard to sustain, it's hard to troubleshoot. Uh, so we took the pain in, in building that and there's a lot of pain in, in the transformation itself, but the upside when you're finished is amazing. >>Yeah. So that's what you just answered. My next question, which was what is the catalyst? It was seeing the clouds potential for programmable infrastructure. And that sounds like it was a game changer. >>It was a huge game changer. And that really, uh, on the software engineering side, the whole way we do infrastructure, the way we program everything. Uh, but we also found we're not touching part of the organization with that transformation. And that's where the citizen development programs and RPA comes in is, you know, Hey, we're really proud of ourselves. We did so well, but how do we get to the edge, uh, where we haven't been able to have the same impact with that automation >>For an organization that I mentioned 142 years young will say, I guess you could say old for an organization young for a person where in, in terms of the cultural change, that's hard to, to manifest across such a historic history institution. Talk to me about the appetite for automation. You said you guys started doing automation, bringing it into the organization and in the last five years or so, what's been the appetite across different lines of business to embrace it, to see it as an advantage rather than taking jobs away. >>Uh, so there's never appetite for automation on its own because you're changing someone's process. Um, but what there is appetite for is the results. Uh, and also, uh, we went through a large organizational transformation. So in addition to value, um, you know, bottom line cost savings, we have people who are just improving their, their workflow for themselves. And so there's also a sense of empowerment for them. So I would say the empowerment and then the results are much bigger drivers. And then you say, oh, if you want that, yes, by the way, this is how we get that. But it's not, you know, automation for automation sake. Uh, but people understand, they understand now the value of it and they, the more they learn, they understand that, um, doing one process 25 ways, it's not a way to run your business, >>Right. How to actually drive this outcomes that they're looking for. >>So how did it start? When did it start in? It was an it led initiative or was it a department? >>It led, >>Yes. Okay. And so, so focused on the it department. So you automating certain tasks within it or, or not necessarily >>Necessarily. So, um, it led, but as the foundation for all the business units. So again, we focus on the core, but we also focus on enablement. So anybody who's a builder maker, developer out there in the business units, we just want to make their job easier, better, faster, um, just for the business logic. So then we'd bring them in and say, here's how you do it. Um, but they bring the best ideas, right? They know their business processes. I don't know their business processes. If I sat down and said, here's where automation value is, um, we wouldn't be doing so well. They know where it is. Uh, we just give them the tools to, to find that value. And you know, it's extraordinary how they find it. If there's a lot of manual processes out there, >>A common story, when you talk to UI path, customers, that'll start maybe one person in a department and then people looking over her shoulder going, oh, I want some of that. And then it explodes. It sounds like you were taking a much more whole house approach. >>We are taking a whole house approach, but we did start early with POC. Uh, and so, and then those proved their value pretty easily and pretty quickly. And so then it was a determination of, Hey, we would like to do something bigger here than just leave this technology out there. We're just leaving all this value on the table. We're leaving all this skill sets, all this passion, all this enthusiasm in our citizen community. We don't think we can transform as a corporation. If we leave that energy motivation skill on the table >>And some color to the ROI. Have you said to POC, you're a good, quick hit, obviously. Could you give us some details on that? What can you tell us? >>What can I tell you? Okay, well, so, um, from when we started the program three years, I think we're showing about $6 million of return. Um, we, we see the value just in time savings like everybody else does. And we have, so that's with about, um, 300 automations, six over 600,000 hours I think saved. Uh, but first year it's just so easy. You can see it. It's not hard to calculate it, the hour saving, very simple calculation. So anybody who's concerned about ROI, it's so simple, it's so easy. You should be able to find it in your first year if you're not finding it in your first year. Um, I mean, obviously it grows, but if you're not finding some return in the first year, I would say, you know, take a look at what you need to adjust because it's not that hard >>CFO. Sorry. One more question. If I may, and your CFO saw that, okay. Time-savings essentially was the business result, but it wasn't necessarily it, was it hard or were they, did your CFO say, ah, that's kind of soft dollars or is it >>Both hard and soft? So, and yeah, we would never put a dollar sign next to something that doesn't hit the income statement. So I'm very careful about that. Right. Um, but yeah, it's both because some times, um, somebody actually changed their group first and they're feeling the process pain after. And so the healing of automating something. So the, just the two people can do it. Uh, we've seen that use case as well. It's harder to capture any savings because it's not really savings there, but it's, it's um, more of a job satisfaction. So there's a lot of soft benefits that go with it, but we don't usually, you know, commit, turn that into dollars. That's not very valuable. Yeah. >>Use those employee Mo employees that are far more productive are eventually helping the customers be more productive as well. I think they're directly linked. Well, you said you found ROI quickly and that's something that you iPad says about itself that customers are generally achieving an ROI of a break even within months alone. So when you talk to other professionals in oil and gas, how do you talk to them about automation being really a critical driver of that business's success and transformation? >>Uh, I think in large enterprises, whether they're in our sector or not, some of them just struggle with the sheer scale, it's almost like, where do I start? So they do see the value. Uh, but it's more about how do I, how do I start this thing? How do I scale this thing? How do I structure a program? Um, I have not found anyone that says, I don't believe the value proposition again, it's pretty easy to do. >>And the RPA POC started after cloud. Right. So it was, am I right about that? It was 18, 19 timeframe. >>Uh, I would say actually starting around the same time were done in, in 2017. So yeah. >>And so, uh, was there anything specific in your industry that you targeted? I mean, you obviously wanted to hit the high value items first. Was there anything particular there? >>Um, that's a really good question. I think we, our journey looks like other companies kind of, they start with the back office. Those are the easiest processes to, for people to understand. And just in terms of, you know, where do I have a heavy manual load? Uh, so some of our first work was with finance in currency conversion. So pretty, pretty manual intensive for a global company. Pretty big deal, lots of immediate value. Uh, but if you think of, let's talk about Wells. So, you know, we have systems for mapping, Wells drilling, Wells, uh, you'd be surprised some of those systems look kind of like your ERP. They have kind of the same challenges. So, um, as we extend outside of traditional kind of HR finance audit practices into the rest of our business, the use cases are similar. Um, I've got disparate documents. I have systems that don't talk to each other. Well, I have somebody who S and we have a lot of partners. So if you're in a project with five partners and everybody's producing a different type of document or something, how do you make some sense out of that? Uh, so use cases like that, um, we're finding in our upstream and downstream businesses also, >>And you did an RFP at the time, wrote a bunch of vendors and ran them through the cycles or >>Comparisons yeah. Early on >>While UI path, what was it about >>Strong user experience? So, uh, because this is primarily citizen enabled and so that feedback, Hey, could I learn this quickly? Was it easy to use? Those were really the most important things in selection. I mean, we always look at costs that's important too. Um, but also a company's position. So their ability to scale and grow. Um, there's a lot of people in this market, uh, because of the interest in automation. Uh, so part of it is also understanding the strength of the company behind as well. >>One of the things that was mentioned in the keynote this morning, I think it was a stat from Gartner that in 2016, or was about 2% of, um, automateable processes were automated fast forward. Now it's about 25%. There's still a tremendous amount of potential for organizations and any industry to deploy automation. You've said, you've got about 300 plus automation so far. What are some of the things that are coming next that you can see, >>Sure. What is our upside, or where do we stop or our growth taper? Um, I don't think we know, uh, we get so much from our user community in terms of what can we do now? Um, there are so empowered, so I wouldn't want to set limits on ourselves in terms of what we can do. Uh, but certainly we're looking at, um, text analytics, really, how do we manage that document? How do we extract that data, use models to get that into our data lake? Uh, but there's still always the work of finding still that last mile of process. There's many parts of our business still untouched. And so we don't, we don't let, or we don't want to let up on that. That's still important to go after all of that and keep the programs going >>W Chevron huge company. And you've got probably one of everything that's ever been invented in technology. We're seeing a trend where a lot of these, these software companies are embedding RPA into their platforms. You see it with the ERP vendors, uh, uh, acquisitions being made for service management, you know, big cloud guys ha have, uh, you know, on and on and on. And, and so how do you think about those sort of vertically integrated stacks versus what you're doing with UI path? >>So for me, I think of them the same as a code extension. So, because that was more popular a few years ago on those big platforms and you're right, we have one of everything. Um, but it's important to when you think of investment and ROI, uh, where do we actually spend money? It's in maintaining the capability, keeping the programs, doing the training, that's an investment. And so when someone comes to me and says, can you support some other tool? Um, I usually say maybe not, is there a business case for that because we want to be able to deploy to the whole enterprise, um, that isn't to say that somebody who's got a workflow that stays within that platform, that that might be inappropriate use for them, but a very sure it's not an appropriate use to extend it out of that platform somewhere else. >>Uh, and so we draw the line really, what do we, enterprise automation. We want to be very careful about the tools we use for that. And, and the reason for that is not just security, reliability, and the ability to scale those programs. Because when someone calls me and says, my stuff doesn't scale, it's like ours does. Um, and so, but the org capability investment is also it's, it's not small. Uh, and so if you've got to believe in this, you have to keep feeding it. You have to keep training new people, bringing them on. Uh, and so you can't really do that across 12 platforms, right? >>You're creating your own flywheel and that's how you can accelerate ROI. Right? >>Correct. Although, you know, the citizen developers are driving the wheel for sure. >>You, as in Chevron mean not Vicki, Inc. >>Vicky, thank you so much. We are out of time, but thanks for stopping by talking to us about automation in a large global enterprise at Chevron. I won't look at Chevron at the same again. Now I know how forward-thinking they are and how much they are embracing technology. We appreciate your time. >>It's been my pleasure. Thank you both. >>All right. For Dave Volante and Lisa Martin, we live at the Bellagio in Las Vegas UI path forward for we'll be right back.
SUMMARY :
So great to be in person, Nice that everyone's nice and safe, but great to be back at an in-person And so we were so happy to be well positioned. we start with your role? So we support the citizen development programs and Um, but the automation we started in And that sounds like it was a game changer. Uh, but we also found we're not touching part of the organization with that transformation. and in the last five years or so, what's been the appetite across different lines of business to embrace it, So in addition to value, um, you know, bottom line cost savings, How to actually drive this outcomes that they're looking for. So you automating certain tasks within So then we'd bring them in and say, here's how you do it. A common story, when you talk to UI path, customers, that'll start maybe one person in a department And so then it was a determination of, Hey, we would like to do something bigger here And some color to the ROI. And we have, so that's with about, was it hard or were they, did your CFO say, ah, that's kind of soft dollars or So there's a lot of soft benefits that go with it, but we don't usually, you know, commit, So when you talk to other professionals in oil and gas, Um, I have not found anyone that says, I don't believe the value proposition And the RPA POC started after cloud. Uh, I would say actually starting around the same time were done in, that you targeted? Uh, but if you think of, let's talk Comparisons yeah. So their ability to scale and grow. What are some of the things that are coming next that you can see, And so we don't, we don't let, or we don't want to let up on that. And, and so how do you think about those sort of vertically integrated stacks versus Um, but it's important to Uh, and so you can't really do that across 12 platforms, You're creating your own flywheel and that's how you can accelerate ROI. Although, you know, the citizen developers are driving the wheel for sure. Vicky, thank you so much. Thank you both. UI path forward for we'll be right back.
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Breaking Analysis: UiPath...Fast Forward to Enterprise Automation
>> From The Cube studios in Palo Alto in Boston, bringing you data driven insights from The Cube and ETR, this is Breaking Analysis with Dave Vellante. >> UiPath has always been an unconventional company. You know it started with humble beginnings. It's essentially a software development shop. Then it caught lightning in a bottle with its computer vision technology. It's really, it's simplification mantra and it created a very easy to deploy software robot system for bespoke departments so they could automate mundane tasks. You know the story. The company grew rapidly, was able to go public early this year. Now consistent with its out-of-the-ordinary approach, while other firms are shutting down travel and physical events, UiPath is moving ahead with Forward IV, it's annual user conference next week with a live audience there at the Bellagio in Las Vegas. It's also fast forwarding as a company, determined to lead the charge beyond RPA and execute on a more all-encompassing Enterprise automation agenda. Hello everyone and welcome to this week's Wikibond Cube Insights powered by ETR. In this breaking analysis and ahead of Forward IV, we'll update you in the RPA market the progress that UiPath has made since its IPO and bringing some ETR customer survey data that's contextualized the company's position in the overall market and relative to the competition. Here's a quick rundown of today's agenda. First I want to tell you theCube is going to be at Forward IV at the Bellagio next week. UiPath, this is their big customer event. It's live, it's a physical event. It's primarily outdoors. You have to be vaccinated to attend. Now, this not completely out of the ordinary. John Furrier and theCube were at AWS Public Sector this past week and we were at Mobile World Congress in one of the first big hybrid events of the year at Barcelona. We thought that event would kick of the fall event season, live event in earnest but the COVID crisis has caused many tech firms, most tech firms actually, to hit pause button. Not UiPath, they're moving ahead. They're going forward and we see a growing trend for smaller VIP events with a virtual component, topic maybe for another day. Now we've talked extensively about the productivity challenges and the automation mandate the pandemic has thrust upon us. Now, we've seen pretty dramatic productivity improvements as remote work kicked in but its brought new stresses. For example, according to Qualtrics, 32% of working moms said their mental health has declined since the pandemic hit. 15% of working dads said the same by the way. So, one has to question the sustainability of this perpetual workday. And we're seeing a continuum of automation solutions emerging and we'll talk about that today. We're seeing tons of M&A as well but now, in that continuum, on the left-side of the spectrum, there's Microsoft who in some ways, they stand alone and their Azure is becoming ubiquitous as a SaaS-Cloud collaboration and productivity platform. Microsoft is everywhere and in virtually every market, whether video conferencing, security, database, cloud, CRM, analytics, you name it. Microsoft is pretty much there and RPA is no different. With the acquisition of Softomotive last year, Microsoft entered the RTA market in earnest and is penetrating very deeply into the space, particularly as it pertains to personal productivity building on its software stake. Now in the middle of that spectrum if you will, we're seeing more M&A and that's defined really by the big software giants. Think of this domain as integrated software place. SAP, they acquired Contextere. They also acquired a company called Process Insights, Service now acquired Inttellebot. Salesforce acquired Servicetrace, we see Infor entering the frame and I would put even Pega, Pega systems in this camp. Software companies focused on integrating RPA into their broader workflows, into their software platforms and this is important because these platforms are entrenched Their well guardants of thoughts and complicated with lots of touchpoints and integration points and frankly they are much harder to automate because of their entrenched legacy. Now, on the far side of that spectrum, are the horizontal automation players and that's been let by UiPath with automation anywhere as the number two player in this domain. And I even put a blue prism in there more M&A recently announced that Vista is going to acquire them Vista also owns Tibco, they are going to merge those two companies. You know Tibco is come up with the integration play. So again I would put them in that you know, horizontal piece of the spectrum. So with that as background, we're going to look at how UiPath has performed since we last covered them and IPO and I'm going to bring in some ETR survey data to get the spending view from customers and we'll wrap up. Now, just to emphasize the importance of automation and the automation mandate, we talk about it all the time in this program. We use this ETR chart. It's a two dimensional view with net score which is the measure of spending momentum on the vertical axis and market share which is a proxy for pervasiveness in the data set that's on the horizontal axis. Now note that red dotted line, it signifies companies within elevated position on the net score vertical axis anything over that is considered pretty good. Very good. Now this shows every spending segment within the ETR taxonomy. And the four spending categories with the greatest velocity are AI, cloud, containers and RPA. And they have topped the charts for quite a while now. They are the only 4 categories which have sustained above that 40% line consistently throughout the pandemic and even before. Now the impressive thing about cloud of course is it has both spending momentum on the vertical axis and a very large market share or presence in the data set. The point is RPA is nascent still. It has an affinity with AI as a means of more intelligently identifying and streamlining process improvements. And so we expect those two to remain elevated and grow to the right together. UiPath pegs its TAM, total available market at 60 billion. And the reality is that could be understated. Okay, as we reported from the UiPath S1 analysis we did pre IPO, the company at that time had an ARR annual recurring revenue of $580 million and it was growing at 65% annually. And nearly 8000 customers at the time, a 1000 of which had an ARR in excess of a 100k. And the net revenue retention the company had was over 145%. So let's take a look at the pictures 6 months forward. We mentioned the $60 billion TAM, ARR now up over $726.5 million on its way to a billion ARR holding pretty steady at 60% growth as is NRR, net revenue retention and more then a 1000 new customers and 200 more with over a 100000 in ARR and a small operating profit which by the way exceeded the consensuses pretty substantially. Profitability is not shown here and no one seems to care anyway these days. It's all about growing into that TAM. Well that's a pretty good looking picture, isn't it? The company had a beat and a raise for the quarter earlier this month, so looking good right. Well you ask how come the stock is not doing better. That's an interesting question. So let's first look at the stocks performance on a relative basis. Here we show UiPath performance against Pega systems and blue prism, the other two publicly traded automation. Pure plays sort of in the case of Pega. So UiPath outperformed post its IPO but since the early summer Pega is been the big winner while UiPath slowly decelerated. You see Blue prism was at the lag until it was announced that it was in an acquisition talks with a couple of PE firms and the prospects of a bidding war sent that yellow line up as you can see. UiPath as you can see on the inset, has a much higher valuation than Pega and way higher than blue Prism. Pega interestingly is growing revenues nicely at around 40%. And I think what's happening is that the street simply wants more. Even though UiPath beat and raised, Wallstreet is still getting comfortable with management which is new to the public market game and the company just needs to demonstrate a track record and build trust. There's also some education around billings and multi-year contracts that the company addressed on its last earnings call. But the street was concerned about ARR for new logos. It appears to be slowing down sequentially and a notable decline in billings momentum which UiPath CFO addressed on the earnings call saying look they don't need the trade margin for prepaid multi year deals, given the strong cash position. Why give anything up. And even though I said nobody cares about profitability well, I guess that's true until you guide for an operating loss when you've been showing small profit in recent quarters what UiPath did. Then, obviously people start to care. So UiPath is in bit of an unknown territory to the street and it has a valuation, it's pretty rich. Very rich actually at 30 times revenue multiple or greater than 30 times revenue multiple. So that's why in my view, investors are being cautious. But I want to address a dynamic that we have seen with this high growth rocket chip companies. Something we talked about Snowflake and I think you are seeing some of that here with UiPath. Different model in the sense that Snowflake is pure cloud but I'm talking about concerns around ARR and from new logos and that growth in a sequential basis. And here's what's happening in my view with UiPath. You have a company that started within departments with a smaller average contract size, ACV maybe 25000, may be 50000 but not deep six figure deals. That wasn't UiPath's play. And because the company focused so heavily on simplicity and made it really easy to adapt, customers saw really fast ROI. I mean break-even in months. So we very quickly saw expansion into other departments. So when ACV started to rise and installations expanded within each customer, UiPath realized it had to move beyond a point product and it started thing about a platform and making acquisitions like Processgold and others and this marked a much deeper expansion into the customer base. And you can see that here in this UiPath chart that they shared at their investor deck, customers that bought in 2016 and 2017 expanded their spend 13, 15, 18, 20x So the LTV, life time value of the customer is growing dramatically and because UiPath is focused on simplicity, and has a very facile premium model much easier to try before you buy than its competitors it's CAC, Customer acquisition cost are likely much lower than some of its peers. And that's a key dynamic. So don't get freaked out by some of those concerns that we raised earlier because just like Snowflake what's happening is that the company for sure is gaining new customers, may be just not at the same rate but don't miss the forest through the trees I.e getting more money from their existing customers which means retention, loyalty and growth. Now speaking of forest, this chart is the dynamic I'm talking about, its an ETR graphic that shows the components of net score against spending momentum. Net score breaks down into 5 areas. That lime green at the top is new additions. Okay, so that's only 11% of the customer mentions. By the way we are talking about more than a 125 responses for UiPath. So it's meaningful, it's actually larger in this survey or certainly comparable to Microsoft. So that's just something right there. The next bar is the forest green. Forest green is what I want you to focus. That's customer spending 6% or more in the second half of the year relative to the first half. The gray is flat spending which is quite large. The pink or light red, that's spending customers spending 6% or worse, that's a 4% number. But look at the bottom bar. There is no bar, that's churn. 0% of the responders in the survey are churning. And Churn is the silent killer of SaaS companies. 0% defections. So you've got 46% spending more, nobody leaving. That's the dynamic powering UiPath right now and I would take this picture any day over a larger lime green and a smaller forest green and a bigger churn number. Okay, it's pretty good, not Snowflake good but it's solid. So how does this picture compare to UiPath's peers. Let's take a look at that. So this is ETR data, same data showing the granularity net score for Microsoft power automate, UiPath automation anywhere, Blue Prism and Pega. So as we said before, Microsoft is ubiquitous. What can we say about that. But UiPath is right there with a more robust platform. Not to overlook Microsoft, you can't but UiPath will you that the don't compete head to head for enterprise automation deals with Microsoft and may be they will over time. They do however compete head to head with automation anywhere. And their picture is quite strong as you can see here. You know as is Blue Prism's picture and even Pega. Although Blue Prism automation anywhere UiPtah and power automate all have net scores on this chart as you can see the tables in the upper right over 40%, Pega does not. But you can see Pega as a pure play RPA vendor it's a little bit of sort of apples and oranges there but they do sell RPA and ETR captures in their taxonomy so why not include them. Also note that UiPath has as I said before more mentions in the survey than power automate which is actually quite interesting given the ubiquity of Microsoft. Now, one other notable note is the bright red that's defections and only UiPath is showing zero defections Everybody else has at least little of the slims on defections. Okay, so take that as you will but its another data point, the one that is powerful nit only for UiPath but really for the entire sector. Now the last ETR data point that we want to share is the famous two dimensional view. Like the sector chart we showed earlier, this graphic shows the net score on the vertical axis that's against spending velocity and market share or pervasiveness on the horizontal axis. So as we said earlier, UiPath actually has a greater presence in the survey than the ever present Microsoft. Remember, this is the July survey. We don't have full results from the September-October survey yet and we can't release them until ETR is out of its quiet period but I expect the entire sector, like everything is going to be slightly down because as reported last week tech spending is moderated slightly in the second half of this year. But we don't expect the picture to change dramatically UiPath and power automate we think are going to lead in market presence and those two plus automation anywhere is going to show the strength in spending momentum as will most of the sector. We'll see who comes in above the 40% line. Okay, what to watch at Forward IV. So in summary I'll be looking for a few things. One, UiPath has hinted toward a big platform announcement that will deepen its capabilities to beyond being an RPA point tool into much more of an enterprise automation platform, rewriting a lot of the code Linux, cloud, better automation of the UI, you are going to hear all kind of new product announcements that are coming so I'll be listening for those details. I want to hear more from customers that further confirm what I've been hearing from them over the last couple of years and get more data especially on their ROI, on their land and expand, I want to understand that dynamic and that true enterprise automation. It's going to be good to get an update face to face and test some of our assumptions here and see where the gaps are and where UiPath can improve. Third, I want to talk to ecosystem players to see where they are in participating in the value chain here. What kind of partner has UiPath become since its IPO, are they investing more in the ecosystem, how do partners fit into that flywheel. Fourth, I want to hear from UiPath management Daniel Dines and other UiPath leaders, their exiting toddler wheel and coming into an adolescence phase or early adulthood. And what does that progression look like, how does it feel, what's the vibe at the show. And finally I'm very excited to participate in a live in-person event to see what's working, to see how hybrid events are evolving, we got to good glimpse at Mobile congress and this week in DC at public sector summit. As you know theCube is doing hybrid events for years and we intend to continue to lead in this regard and bring you the best real time information as possible. Okay, that's it for today. Remember these episodes are all available as podcasts wherever you listen, all you do is search breaking analysis podcast. We publish each week on Wikibound.com and Siliconangle.com and you can always connect on twitter @dvellante or email me at David.vellante@siliconangle.com Appreciate the comments on LinkedIn and don't forget to check out ETR.plus for all the survey data. This is Dave Vellante for theCube insights powered by ETR. Be well and will see you next time. (upbeat music)
SUMMARY :
bringing you data driven insights and blue prism, the other two
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Richard Henshall & Thomas Anderson, Red Hat | AnsibleFest 2021
(upbeat music) >> Welcome to AnsibleFest, 2021, the virtual version. This is The Cube and my name is Dave Volante. We're going to dig into automation and its continuing evolution. Tom Anderson is here. He's the vice president of Red Hat Ansible, the automation platform. And Richard Henshall is also here, Senior Manager of Ansible Product Management, of course, at Red Hat. Guys, welcome to the cube. Good to see you. >> Thanks for having us. >> Thank you for having us Dave. You're welcome, so Rich with this latest release of the Ansible Automation Platform, AAP, we'll get the acronyms out of the way. The focus seems to be an expanding the reach of automation and its potential use cases. I mean, I'll say automation everywhere, not to be confused with the RPA vendor, but the point is, you're trying to make it easier to automate things like provisioning, configuration management, application deployment, throw in orchestration and all these other IT processes. Now, you've talked about this theme in previous releases of AAP. So what's new in this release? What can customers do now that they couldn't do before? >> Yeah, it's a good question thank you. So, we look at this in two dimensions. So, the first dimension we have is like where automation can happen, right? So, you know, we always have traditional data center, clouds being been very prevalent for us for the last, you know, sort of five, 10 years in most people's view. But now we have the Edge, right? So now we have Edge computing, which is sometimes a lot more of the same, but also it comes with a different dynamic of how it has to be sort of used and utilized by different use cases, different industry segments. But then, while you expand the use cases to make sure that people can do automation where they need to do it and make sure if we don't close to the Edge or close to the data center, based on where the technology needs to be run, you also have to think about who's now using automation. So, the second dimension is making sure that different users can take access. You mentioned like application deployment, or infrastructure, or network configuration. We expand the number of different users we have that are starting to take advantage of Ansible. So how do we get more developers? How do we get into the developer workflow, into the development workflow, for how Ansible is created, as well as how we help with the operational, the posts deployment stage that people do operating automation, as well as then the running of Ansible Automation Platform itself. >> Excellent, okay. So, in thinking about some of those various roles or personas, I mean, I think about product leads. I would see developers, obviously you're going to be in there. Managers I would think want that view. You know the thrust seems to be, you're trying to continue to enhance the experience, for these personas and others, I suppose, with new tooling. Maybe you could add some color to that and what's happening in the market Tom if you take this and Rich chime in, what's happening in the market that makes this so important? Who are the key roles and personas that you're targeting? >> Yeah. So, there's a couple of things happening here. I mean, traditionally the people that had been using Ansible to automate their subsystems were the domain expert for that subsystem, right? I'm the storage operations team. I'm the network operations team. I'm using this tool to automate the tasks that I do day to day to operate my piece of the sub system. Now, what they're being asked to do is to expose that subsystem to other constituencies in the organization, right? So they had not, they're not waiting for a call to come in to say, can I have a network segment? Can I have this storage allocated to me? Can I deploy these servers so I can start testing or building or deploying my application. Those subsystems need to be exposed to those different audiences. And so the type of automation that is required is different. Now, we need to expose those subsystems in a way that makes those domain owners comfortable. So they're okay with another audience having access to their subsystem. But at the same time, they're able to ensure the governance and compliance around that, and then give that third-party that developer, that QE person, that man, that business, that line of business manager, whoever it might be, that's accessing that resource, a interface that is friendly and easy enough for them to do. It's kind of the democratization. I know it's a cliche, but the democratization of automated automation within organizations, giving them roles, specific experiences, of how they can access these different subsystems and speed their access to these systems and deploy applications. >> So if we could stay on that for a second, cause that's a complicated situation. You're now opening this up. You Richard mentioned the Edge. So you got to make sure that the person that's getting access has access, but then you also have to make sure that that individual can't screw it up, do things that you don't want that individual to do. And it's probably a whole other set of compliance issues and policy things that you have to bake in. Is that, am I getting that right? >> Yeah. And then that's the aspect of it. When you start to think, you know, Tom listed off there, you know, 10, you can just keep adding different sort of personas that individuals that work in roles, identify with as themselves. I'm a network person, I'm a storage person. To us they're all just Ansible users, right? There may be using a slightly different way, maybe using it slightly different places, but they're just an Ansible user, right? And so as you have, like those people that just like become organically, you've now got thousands potentially of Ansible users inside a large enterprise organization, or if you know, a couple of hundred if your smaller. But you're then go, well, what do I do with Ansible, right? And so at that point, you then start to say, now we try to look at it as what's their use of Ansible itself, because it's not just a command line tool. It's got a management interface, it's got analytics, we've got content management, we've got operational runtime, we've got responsiveness to, you know, disaster recovery scenarios for when, you know, when you need to be able to do certain actions, you may use it in different ways at different places. So we start, try and break out, what is the person doing with Ansible Automation Platform at this part of their workflow? Are they creating content, right? Are they consuming content, or are they operating that automation content for those other constituent users that Tom referred to. >> Yeah, that's really helpful because there's context, there are different roles, different personas need different contexts, you know, trying to do different things. Sometimes somebody just wants to see the analytics to make sure it's, you know, hey, everything's green, Oh, we got a yellow, versus, hey actually want to make some changes and I'm authorized to do so. Let's shift gears a little bit and talk about containers. I want to understand how containers are driving change for customers. Maybe what new tools you're providing to support this space? What about the Edge? Yeah, how real is that in terms of tangible pockets or patterns that you can identify that require new types of capabilities that you're delivering? Maybe you can help us unpack that a little bit. >> Okay so, I think there's two ways to look at containers, right? So the first is how are we utilizing the container technology itself, right? So containers are a package, right? So the amount of work we've been doing as Ansible's become more successful in the last couple of years, separating content out with Ansible collections. The ability to bring back manage, control a containerized runtime of Ansible so that you can lifecycle it, you can deploy it, it becomes portable. Edge is important there. How do I make sure I have the same automation running in the data center as the same automation running out on the Edge, if I'm looking at something that needs to be identical. The portability that the packaging of the container gives us, is a fantastic advantage, given you need to bring together just that automation you want. Smaller footprint, more refined footprint, lifecycle manage footprint. But at the same time, containers are also a very useful way of scaling the operation, right? And so as red hat puts things like Open Shift out in all these different locations, how can we leverage those platforms, to push the runtime of Ansible, the execution component, the execution plane of Ansible. How into anywhere that's hospitable for it to run? And as you move out towards Edge, as you move further away from the data center, you need a more ubiquitous sort of like run-time plane that you can put these things on. So they can just spin up when as, and when you need to. Potentially even at the end, actually being on the device, because at the same time with Edge, you also have different limits around how Edge works. It's not just about, hey I'm wifi points in an NFL stadium, actually, you're talking about I'm at the end of a 2000 mile, you know, piece of cable on an oil pipeline or potentially I'm a refinery out in the Gulf of Mexico. You know, you've got a very different dynamic to how you interact with that end point, than you do when it's a nice big controlled network, you know, powered location, which is well-governed and well-orchestrated. >> That's good. Thank you Rich. So Tom, think about automation, you know, back in the day, seems like a long time ago, but it really wasn't, automation used to scare some IT folks, because you know, sometimes it created unintended consequences or maybe it was a cultural thing and that you didn't want to automate themselves out of a job, but regardless. The cloud has changed that mindset, you know, showing us what's possible. You guys obviously had a big role in that, and the pandemic and digital initiatives, they really have made I call it the automation mandate. It was like the fourth March to digital, at least that's how I see it. I wonder if you could talk about, how you see your users approaching automation in as it relates to their business goals. Do you think automation is still being treated sometimes with trepidation or as a side project for some organizations or is it really continuing to evolve as a mainstream business imperative? >> Yes, so Dave we see it continuing to evolve as a strategic imperative for our customers. I mean, you'll, hear some of the keynote folks that are speaking here today. I've done an interview or doing an interview with Joe Mills from Discover, talking about extreme automation throughout Discovers organization. You'll hear representatives from JPMC talk about 22,000 JPMC employees contributing automation content in their environment, across 20 or 22 countries. I mean, just think about that scale, and the number of people that are involved in automation now and their tasks. So I think it's, I think we are, we have moved beyond or are moving beyond that idea that automation is just there to replace people's jobs. And it's much more about automation replacing the mundane, increasing consistency, increasing security, increasing agility, and giving people an opportunity to do more and more interesting stuff. So that's what we hear from our customers, this idea of them building. And it's not just the technology piece, but it's the cultural piece inside organizations where they're building these guilds or communities of practice, bringing people together to share best practices and experience with automation, so that they can feel comfortable learning from others and sharing with others and driving the organization forward. So we see a lot of that, and you'll hear a lot of that, at some of the Ansible Fest sessions this week. >> Well, I mean though I think that's a really important point. The last point you made about the skills, because I think you're right. I think we have moved beyond it's just job replacement. I don't know anybody who loves provisioning LUNs and say, oh, I'm the best in the world at that. It's just kind of something that was maybe important 10, 15, 20 years ago, but today, he should let the machines do that. So that's the whole skills transformation, is obviously a big part of digital transformation. Isn't it? >> It absolutely is. And frankly, we still hear, it's an impediment, that skills shortages are still an impediment to our customer success. They are still skilling up. I mean, honestly, that's one of the differentiators, for Ansible, as a language, a human readable language, that is easy to learn, easy to use, easy to share across an organization. So that's why you see job boards, and whatnot with so many opportunities that require or, or ask for Ansible skills out there. It's just a, it's become sort of a ubiquitous automation language in organizations, because it can be shared across lots of different roles. You don't have to be a Ruby software developer or a Python software developer to create automation with Ansible. You can be Tom Anderson or Rich Henshall. You don't have to, you don't have to be the, you know, the, the sharpest software developer in the world to take advantage of it. So anyway, that's one of the things that kind of overcoming some of the skills apprehension and bringing people into this, into the kind of new environment, of thinking about automation as code, not software code, but thinking of it like code. >> Got it. Guys we've got to leave it there, but Rich, how about you bring us home. We'll give you the last word. >> I mean, I think, you know what Tom just said there I think, about the skills side of things, is I think that the part that made it resonates the most. I mean I was a customer before I joined Red Hat, and trying to get large numbers of people, onto a same path, to try and achieve that outbound objective, that an organization has. The objective of an organization is not to automate, it's to achieve what is needed by what the automation facilitates. So how do we get those different groups to go from, Hey, this is about me, to this is actually about what we're trying to achieve as a business what we're trying to facilitate as a business, and how do we get those people easier access, a reduced barrier of entry to the skills they need to help make that successful, that compliments what they do, in their primary role, with a really strong secondary skill set that helps them do all the bits and pieces they need to do to make that job work. >> That's great, I mean you guys have done a great job, I mean it wasn't clear, you know, decade ago, or maybe half a decade ago, who was going to win this battle. Ansible clearly has market momentum and has become the leader. So guys congratulations on that and good job. Keep it going. I really appreciate your time. >> Thank you. >> Thank you. Thanks. >> Okay. This is the cubes, continuous coverage of Ansible Fest, 2021. Keep it right there for more content that educates and inspires. Thanks for watching. (upbeat music)
SUMMARY :
the automation platform. not to be confused with the RPA vendor, needs to be run, you You know the thrust seems to be, the tasks that I do day to So you got to make sure that the person or if you know, a couple to make sure it's, you know, I'm at the end of a 2000 mile, you know, and that you didn't want to automate and the number of people that are involved So that's the whole skills transformation, have to be the, you know, how about you bring us home. it's to achieve what is needed and has become the leader. Thank you. more content that educates
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Scott Kinane, Lisa Chambers & Anand Gopalakrishnan, Kyndryl | AnsibleFest 2021
(upbeat music) >> Hello, welcome to theCUBE's coverage of AnsibleFest 2021 virtual; I'm John Furrier, your host of theCUBE. We've got a great power panel here from Kyndryl whose great company has spun out of IBM. IT services great, technology, great conversation. Scott Kinane, director of worldwide automation, Anand Gopalakrishnan, chief automation architect, love the title, from Kyndryl, and Lisa Chavez, automations architect from Kyndryl. Guys, thanks for coming on. Appreciate the conversation. Looking forward to it. >> Thanks John glad to be here. >> Thank you. >> Scott, we covered you guys at IBM Think 2021, the new name, everything's happening. The extreme focus, the tactical execution has been pretty much on cloud, cloud native automation. This is the conversation. Knowing how much has gone behind the new name, can you just take a minute to share, give us an update on who Kyndryl is and how that's going? >> Yeah, I'd love to. You know, as Kyndryl, we really have the privilege of being responsible for designing, building, managing, and modernizing, you know, the mission critical systems that the world depends on every day, you know? When our thousands of clients span every industry and are leaders in their industries, right? You run the mission critical application environments for, you know, seven of the 10 largest airlines, 28 of the top 50 banks, right? All the largest mobile providers. You know, most of the largest retailers out there, and so on and so forth, right? That these companies really trust us to ensure that their business operations are really flawlessly being run. And operating our scale, and with the quality that these clients demand, is only possible by doing enterprise strength automation. Right? It's only, you know, it's not only about reactive automation, but using intelligent automation so we can predict and prevent issues before they really become a problem. Right? And because of our intelligent approach to automation, our clients have a... you know, they get tremendous business benefits for it, right? Retailers can open stores faster because systems and services are deployed more efficiently, right? Banks ATM's right, we all depend on those day to day, you know. They're working when you need them with our automation behind the scenes. You know, healthcare systems are more robust and responsive because we monitor for potential breaks and prevent them before they occur, right. Data processing systems, right. We hear about breaches all the time, right? Our clients are more secure because their environments are checked into, are checked to ensure that security exposures are quickly discovered and intermediated, right? So like automation, orchestration, intelligence, driving the world's digital economy, right. If you ask what Kyndryl is it, you know, that's our DNA. And it's really what we do well. >> Yeah, what's interesting, I want to get you to just quick followup on that because the name implies kind of a fresh perspective, working together. There's a lot of shared experiences and that. And the new normal now is honestly with hybrid and virtual continuing, people are doing things differently. And I would like you, if you don't mind taking a minute to share about the automation environment that you guys are operating in, because it's a different approach, but the game is still the same. Right? (John and Scott laugh) You got to make sure that these things are scaling and people are working again. So it's a combination of people and technology, in a new equation. Take a minute to talk about that. >> Yeah, I'd love to. You know, and you're right, right; the game is really changing. And automation is really ingrained into, needs to be ingrained in the way everybody's approaching what they do day to day. And if you talk about automation, in a way it's really included in what we do in our BAU delivery operations, right. And we do it at a tremendous scale, right. Where we have, you know, millions of infrastructure components and applications managed with automation, right. We're going to talk a little bit about CACF here in a few minutes, right? We've got over half a million devices themselves boarded onto that, and we're running over 11 million automations on a month to month basis through that, through the, the Red Hat technology that that's built on, right. We've got RPA as a key part of our environment, running millions of transactions through that on a yearly basis, right. And our automation's really covering the entire stack, right? It's not just about traditional IT, but we cover public cloud, private cloud, hybrid, you know, network components, applications and business processes, right? You talked about people, right. Help desk, right. We cover automation to automate a lot of the help desk processes are happening behind the scenes; security and resiliency. And it's really about driving all that through, you know, not just prescriptive reactions, but you know, us using our experience; insights we have from our data lakes, and intel, and AI ops technologies, and really making proactive based decisions based on that to really help drive the value back for our clients and to ensure that they're operating the way they need to. >> Yeah, that systems mindset, outcome driven focus is unique. That's awesome, congratulations. And onto Lisa, we're going to get into the architect side of it, because you're seeing more and more automation at the center of all the conversation. Reminds me of the machine learning AI vibe a couple of years ago. It's like, oh yeah, everything's MLAI. Automation, now everything's automation. Anand, your title is chief automation architect, love that title. What do you do? Like, I mean, you're architecting more automation, are you? Could you take a minute to explain your role? I love the title. And automation is really the technology driving a lot of the change. What do you do? >> Thank you, John. So let me first thank you for allowing us to come and speak to you and inform here about what we have done using Ansible and the other Red Hat products. So Ansible is one of the many products that we have used within Red Hat to support the solution that we have deployed, Paul, as our automation community framework, right? So, Scott touched upon it a few minutes earlier in terms of what are we doing for our clients? How do we make sure that our client's environment is secure? How do we make sure that our client environment is available all the time? So that... Are the infrastructure services that we're providing for our clients has a direct impact for their clients. So this is where the implementation of automation using the products that we have from Red Hat has helped us achieve. And we'll continue, we will continue to expand on supporting that, right. So let me break this into two parts. One is from an infrastructure standpoint, how we have implemented the solution and scaled it in such a way that we can support the number of devices that Scott was referring to earlier, And also the number of clients that we have touched on. And the second part, I'll let my colleague Lisa talk about the application architecture and the application scalability that we have, right? So firstly, we touch on infrastructure. So if you look at the way we needed to establish a capability to provide support for our clients, we wanted to make sure our infrastructure is available all the time, right? That's very important. So, before we even basically say, hey, we're going to make sure that our client's infrastructure is available all the time or our client's infrastructure is secure. And also we provide, we are able to provide the automation services for the infrastructure service that we're providing, right? So the stack that we built was to support our solution to be truly cloud native. So we began with of course, using OCP, which is the OpenShift cloud platform that we have. We relied on Red Hat CoreOS, which is basically enabling the automation platform to be deployed as a true cloud native application; that can be scalable to not just within one country, but multiple countries. Supporting data privacy that we need to have, supporting the compliance parts of that we need to support, and scalable to support the half a billion devices that we are supporting today. Right? So essentially, if you look at what we have, is a capability enabled on the entire stack of the Red Hat products that we have. And we are able to focus on ensuring that we are able to provide the automation by gaining efficiencies, right? If you look at a lot of automations that we have it's about biggest in complexities, right? So just think about the amount of risk that we are removing, and the quality that we are assuring from the qualified and standardized changes that we are basically implementing. Or, just, the amount of risk that we are able to eliminate by removing thousands of manual labor hours as well. So if you look at the automation need, it's not just about efficiency of the removal of labor hours, but efficiency of providing standards and efficiency of providing the capabilities that support our clients, who their needs; i.e. making sure that their infrastructure is compliant, their infrastructure is secure, and their infrastructure is highly available all the time. So it just basically making sure that we are able to address what we call as day one and day two activities, while we are able to support their day two infrastructure services activities; i.e. right from ground up. Building the server, which is provisioning, doing some provisioning activities, and deploying applications, and basically supporting the applications once they are deployed. So look at the scale, we have quite a bit there. >> So, you got the cloud native platform... >> Hey, careful Anand... >> You've got the cloud native platform, right? Let me just summarize that; cloud native platform for scale. So that means you're aligning, and targeting, and working with people who will want to do cloud native applications. >> Absolutely. >> And they want fast speed. (John laughing) >> Yes, and they want... >> They want everything to go faster. And by the way, the compliance piece is super important because if you can take that away from them, for waiting for the answers from the compliance department or security department, then that's the flywheel. Is that what you're getting at? This is the trend? >> Absolutely. So I'm going to turn it over to Lisa, who's going to help us. >> Yeah >> Go ahead Lisa >> Lisa, weigh in on the flywheel here. (Lisa chuckles) >> Yeah. Sure, sure. Yeah. So, so one of the things that CACF allows us to do, right, and it's again, as Anand described, `it's a very robust, powerful infrastructure. Supports many, many clients as we run a lot of applications through this infrastructure. And we do things like run security health checks on all our client's servers, and process the data real time and get that data out to our teams to address issues almost immediately, right? Scott touched on the fact that we are monitoring incident data real time and taking automated actions to correct problems in the environment. These are just really, really powerful capabilities that we're able to offer. We also have other use cases, we do a lot of identity management, primary and secondary controls through the CACF infrastructure. So we're able to have one point of connectivity into our client's environments. It's agentless, right, so you set up one connection to their servers and we can do a whole lot of management of various things through this single automation platform. So... >> So I, so that just to call this up, this is actually very powerful. And first of all, you mentioned the CACF that's the cloud automation community framework. >> Yes, correct. >> Right. >> Okay, so that's the platform. (Lisa chuckles) >> Yes >> Okay, so now the platforms' there; and now talk about the advantages. Because the power here is this truly highlights the transformation of DevOps, infrastructure as code, and microservices, coming around the corner where the developer; And I know developers want to build security into the applications from day one and take advantage of new services as they come online. That is now one. That puts the pressure on the old IT teams, the old security teams, who have been the NoOps. No, you can't do or slow, are slower. This is a trend, this is actually happening. And this culture shift is happening. Could you guys weigh in on that because this is a really important part of this story. >> Yeah. I mean, I think, you know, if you go back, circa 2019 or so, right. You know, we were back then and we were recognized as a leader in the automation space by a lot of the analysts. But we kind of look at that culture change you were just talking about and look at, you know, how do we become more agile? How do we go faster and what we're doing, right. And then I'm working with Jason McKerr and the Red Hat's Ansible automation platform team. We kind of define this platform that Lisa and Anand are talking to, right. Wrapping together, the OpenShift and Ansible, and 3scale with, you know, our services platform with Watson, and, and, you know, it really gave us the ability to leverage two of our core capabilities, right? The first, you know, in order for us to go faster, was our community model, right? Our community experience, right? So we've got a large delivery community that's out there really experts in a lot of, experts in a lot of technologies and industries. And, and by putting this in place, it gave us a way to really leverage them more in that community model development, so they could create, and we can harvest more of the automation playbooks. A lot of the different use cases that Lisa was talking incident remediation, patch scanning and deployment, security compliance, checking and enforcement. You know, basically anything that needs to get done as part of our what we'd call day one or day two operations we do for a client, right. And Steve's approach really to, to do a lot of high quality automation and get to the point where we could get thousands of automation modules that our clients could, that we could use as a part of our, a part of our services we delivered to the client environments. And, you know, that type of speed and agility, and being able to kind of leverage that was something that wasn't there previously. It also gave us a way to leverage, I guess they are one of our other core capabilities, right; which is a systems integrator, right? So we were able to focus more, by having that core engine in place, we were able to form focus more on our integrator experience and integrate, you know, IBM technologies, ServiceNow, ScienceLogic, VMware, and many more, right to the engine itself. So you know, basically, you know, all the applications out there that the, the clients then depend on for their business environments integrate directly with them; so we could more seamlessly bring the automation to their, to their environments, right. So it really gave us both the, the ability to change our culture, have a community model in place that we didn't before and really leveraged that services integrator expertise that we bring to the table, and act really fast on behalf of our clients out there. >> That's great stuff. Lisa, Lisa if you don't mind, could you share your thoughts on what's different about the community platform, and because automation has been around for a while, you do a couple of times, you do something repetitive, you automate it. Automate it out of way, and that's efficiency. Anand was the one saying that. >> Yeah but within Kyndryl, we have a very strong community and we have very strong security guidelines around what the community produces and what we deliver to our clients, right? So, we give our teams a lot of flexibility, but we also make sure that the content is very secure; we do a lot of testing. We have very strong security teams that do actual physical, penetration testing, right. They actually could try and come in and break things. So, you know, we really feel good about, you know, not only do we give our teams the flexibility, but we also, you know, make sure that it's safe for our clients. >> How's the relationship with Ansible evolving? Because as Ansible continues to do well with automation; automations now, like in automation as code, if things are discoverable, reuse is a big topic in the community model. How is Ansible factoring into your success? >> So... So firstly, I want to break this again into two discussions, right? One is the product itself. And second is how we have collaborated very closely with our colleagues at Red Hat, right? So essentially it's the feedback that we get from our clients, which is then fed into our solution, and then from our solution, we basically say, does it meet what our client's requirements are? If it doesn't, then we work with our Red Hat colleagues and say, hey, you know, we need some enhancements to be made. And we've been, we've been lucky enough to work with our colleagues at Red Hat, very closely, where we have been able to make some core product changes to support our clients requirements, right. And that's very, very important in terms of the collaboration from, with Red Hat, from a, you know, from a client standpoint. That's number one. Number two, from a product standpoint, Ansible, and the use of Ansible itself, right? Or Ansible Tower as the automation hub that we've been using. So we began this with a very base product capability, which was through what we call event automation. That was our first. Then we said, no, I think we can certainly look at expanding this to beyond event automation. I.e. can we do, when we say event that is very typically BAU activities, day two activities. But then we said, can we, can we do day one, day two infrastructure services automation? We said yes, why not? And then we worked again with our colleagues at Red Hat, identifying opportunities to improve on those. And we basically enhanced the framework to support those additional use cases that we basically identified. And as a matter of fact, we are continually looking at improving as well. In terms of not just hey, using the base product as is, but also receiving that feedback, giving that feedback to our Red Hat colleagues, and then implementing it as we go. So that's the, that's the approach we have taken. >> And what's the other half of the subject? Split it in two, What's the other half? >> Yep. But the other half is the actual implementation itself. So we like, which is basically expanding the use cases to go from beyond event automation to back from building the server, to also patching compliance. And now we're actually looking at even what we call service requests automation. By this is we basically want to be able to say hey user, we want a specific action to be performed on a particular end point. Can we take it to that next level as well? So that's where we are basically looking at as we progress. So we're not done. I would say we're still at the beginning of expansion. >> Yeah. >> Well no, I totally agree. I think it's early days, and I think a lot of it's, you mentioned day two operations; I love that. Day zero, day one, day two. Does anyone want to take a stab at defining what day two operations is? (John laughing) >> Do you want to go? >> Well, I got the experts here. It's good to get the definitions out there. >> Absolutely. >> 'Cause day one you're provisioned, right? >> Day zero, you provision. >> Day zero you provision. >> So day zero they look at... Yeah, so day zero you look at what is the infrastructure, what's the hardware that's there. And then day one you do what we call post provisioning activities, configuring everything that we need to do, like deploying the middleware applications, making sure the applications are configured properly, making sure that our, you know, the operating systems that we need to have. Whether it is a base operating system or operating systems for supporting the containers that are basically going to be enabled, all those will need to be looked at, right? So that's day one. Then day two is business as usual. >> Everything breaks on day two. (everyone laughs) >> Although I... >> Day one's fun, everything's good, we got everything up and running. We stood it up, and day two it breaks; And like, you know it's his fault. >> Exactly. >> Who's fault is it? (everyone laughing) So if you look at the approach that we took was, we said, let's start with the day two, then get to day zero, right. So which time where we have lots of lessons learned as we go through. And that's the expansion of how we are looking at Ansible. >> Well this is, all fun aside. First of all, it's all fun to have, to have to have jokes like that; but the reality is that the hardened operational discipline required to go beyond day one is critical, right? So this is where we start getting into the ops side where security downtime, disruptive operations, it's got to be programmable. And by the way, automation is in there too. So which means that it's not humans it's software running. Right? So, edge is going to complicate the hell out of that too. So, day two becomes super important from an architecture standpoint. You guys are the architects; what's the strategy, what should people be doing? What, what, how should, because day one is fun. You get it up, stand it up. But then it starts getting benefit; people start paying attention. >> Yep. _ And then you need to scale it and harden it. What's the strategy? What should people do? >> Yeah. I mean, if you think about automation, right? It's not... oh, I should, I meant to say John, you know, if it breaks, it's always Anand's fault, always Anand's. (John, Lisa, and Anand laugh) Don't ask any of that. >> I agree. >> Exactly. Thank you, Lisa. (everyone laughing) But, but automate, you know, you know, automation in a lot of conversations, people talk about it as gaining efficiency. And you know, it's not just that, you know, Automation is about de-risking complexities. Right? Think about all the risk that's removed, you know, and quality assured from the codified and standardized changes, right. Think about all the risk removed from eliminating, you know, tens of thousands of manual labor hours that have to be done. And those various things, right, that get done. So, for, we talk about day two operations, what we're doing, getting more automation in there, you know, our focus is definitely how do we de-risk changes? How do we make it safer for the clients? How do we make it more secure for the clients? And how do we ensure that their business operations, you know, are operating at their peak efficiencies? >> Yeah. And as I mentioned, we really go above and beyond on the security. We have much, much, much automated testing. And we also have the penetration testing I was talking about, so. We take security very seriously. Yeah. >> Yeah. >> I think what's interesting about what you guys are doing with the platform is, it's cloud native. You start to see not just the replatforming, but the fun parts. When you start thinking about refactoring applications and benefits start to come out of nowhere; I go new benefits, new net, new use cases. So I think the outcomes side of this is interesting. A lot of people talk about, okay let's focus on the cost, but there's now net new positive, potentially revenue impact for your customers. This is kind of where the game changes a lot. What do you guys think about that; 'cuz that's, you know, you always have this argument with folks who are very cost centric, repatriated for getting off the cloud, or let's look at the net new opportunities that are going to be enabled by rapid programming, identifying new workflows, automating them, and creating value. >> Yeah. I mean, this is, you know, you're talking about the future where we're going, things that we do, you know, obviously getting more closer to, and being directly aligned with the DevSecOps teams that are out there. You talk about day two, you know, the closer we are to those guys, the better for, for us and everybody else that's going there, going forward. You know, and as you know, businesses keep returning to their pre COVID level levels, you know, automation gives the possibility and that ones that we were doing gives possibility for hopefully the clients to do more of that revenue capture, right. Being able to, you know, be ahead a little bit earlier, being able to stand up retail stores faster, right. Being able to deploy business-based applications that are, generating revenue for the clients at a you know, you know, at a moment's notice. Things like that are really possible with automation, and possible with the way we've done this solution with Red Hat and our clients, right. And I think we've got tons of benefits there. We're seeing, you know, we've got almost 900 clients supported on it today, right. You know Anand hit on, we've got half a million plus devices that are connected to this, right. And we're seeing things where, you know, the clients are, are, that are on this are, are getting results, you know, Something such as 61% of all tickets being resolved with no human intervention, you know, 84% of their entire service base server base is being checked automatically for security and compliance daily. And, and, you know, we could go through lots of those different metrics, but the, you know, the fact we can do that for our clients gives, gives through automation, gives, you know, our engineers, our delivery community, the ability to closely more closely work with the client to do those revenue generation activities; to help them capture more, more revenue in the market. >> We'll just put that in context, the scale and speed of what's happening with those numbers; I mean, it's significant. It's not like it's a small little test. That's like large scale. Scale's the advantage of cloud. Cloud is a scale game. The advantage is scaling and handling that scale. What's your thoughts? >> Absolutely. So if you basically, again, when we started this, we started small, right. In terms of the use cases that we wanted to tackle, the number of devices that we said we could basically handle, right. But then once we saw the benefits, the initial benefits of how quickly we were able to fix some of the problems from a day one day, two standpoint; or address some of the compliance and patching issues that we needed to look at, right. We, we quickly saw opportunities and said, how fast can we go? And in terms of, well, it's not just how fast can we go in terms of setting up our own infrastructure by you know, saying, hey, we are cloud native. I can just spin up another container and, you know, make sure that I can have another a hundred servers onboarded to support, or a hundred that network devices to be onboarded to support and so on, right. So it was also the scale from a automation standpoint, where we needed to make sure that our resources were skilled, to develop the automations as well. So the scale is not in terms of just the infrastructure, but the scale is also in terms of people that can do the automation in terms of, you know, providing the services for our infrastructure, right. So that's how we approached it. People and then an application and infrastructure. So that included providing education in, in Kyndryl today rose to about 11,000 people that we have trained on Ansible, the use of Ansible, and the use of Ansible Tower, and just even doing development of the playbooks using Ansible. That's a theme. if you look at, if you look at, it's not just infrastructure scale. It's infrastructure scale, application to be able to scale to that infrastructure, and people to be able to scale to what we're trying to do to support our clients as well. >> I think the people think is huge because you have a side benefit here as harmony, and the teams. You got cohesiveness that breeds peace, not war. (everyone laughs) >> Absolutely. >> That's between teams. >> If you look at the, you know, the words that we said; cloud automation, community framework. If you really break it down, right, it's a framework, but for who? It's for the community. >> Yeah. >> But, what are they doing? They're building automation. >> Yeah >> And that is what >> The Security team wants to, >> the cloud is about, right? >> The security team wants to, make the apps go faster, The apps want to be fast, they don't want to be waiting. Everything's about going faster; Pass, shoot, score, as they say in sports. But, but, okay, I love this conversation. I think it's going to be the beginning of a big wave. How do people engage and how do I get involved if I want to use the cloud automation community framework? What's the consumption side for, how do you guys push this out there, and how do people engage with you? >> Scott do you want to take that one? >> Yeah. I mean the, the easiest way is, you know, Kyndryl, you know, we're, we're out there. We're, coming forward with our company, a spin off from IBM, come engage with our sales reps, come engage with our, our outsourcing, our social risk management service delivery organizations, and, and, you know, happy to get them engaged, get them on board, and get them using the automation framework we've got in place. >> That's awesome. Great. Well, great stuff. Love the automation conversation. Automation and hybrid are the big, big trends that are never going to stop. It's going to be a hybrid world we live in. And the edge is exciting. It's got, you mentioned the edge; it's just more and more action. It's a distributed computing paradigm. I mean, it really the same. We've seen this movie before Anand. Yeah, in tech. So now it's automation. So great stuff. Lisa, thank you for coming on; I appreciate it. >> Thank you. >> Thanks. >> Thank you, John. >> Thank you, John. We have coverage for Ansible Fest 2021. Power panel breaking down automation with Kyndryl. The importance of community, the importance of cohesiveness with teams, but more importantly, the outcome, the speed of development and security. I'm John for theCUBE, thanks for watching. (upbeat music)
SUMMARY :
love the title, from Kyndryl, Scott, we covered you that the world depends And the new normal now is honestly Where we have, you know, a lot of the change. and the quality that we are assuring So, you got the You've got the cloud And they want fast speed. And by the way, the compliance So I'm going to turn it over to Lisa, Lisa, weigh in on the flywheel here. and get that data out to our teams So I, so that just to call this up, Okay, so that's the platform. and now talk about the advantages. the ability to change our culture, the community platform, the flexibility, but we also, in the community model. the feedback that we get from our clients, So we like, which is basically you mentioned day two Well, I got the experts here. making sure that our, you know, Everything breaks on day two. And like, you know it's his fault. And that's the expansion of And by the way, automation What's the strategy? to say John, you know, And you know, it's not And we also have the penetration testing that are going to be enabled the closer we are to those Scale's the advantage of cloud. the number of devices that we said and the teams. It's for the community. But, what are they doing? the beginning of a big wave. easiest way is, you know, And the edge is exciting. the importance of cohesiveness with teams,
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Andy Harris, Osirium | Postgres Vision 2021
(upbeat music) >> From around the globe, it's theCUBE. With digital coverage of Postgres Vision 2021 brought to you by EDB. >> Well, good day, everybody. John Walls here on theCUBE. We continue our coverage here at Postgres Vision in 2021. Talking today with Andy Harris, who is the Chief Technology Officer at Osirium, a leader in the Privileged Access Management Space, and Andy, good day to you. Thanks for joining us here on theCUBE. >> Good morning to you and good afternoon, yes. >> That's right. Joining us from overseas over in England, we're on this side of the big pond, but nonetheless, we're joined by the power of Zoom. So again, thanks for the time. Andy, for those who aren't familiar who are watching about Osirium, share a little bit about your various service levels of what you provide, the kind of solutions you provide, and how you've achieved a great success in this space. >> Okay. I know these things, mine will be boring. So I'll just put a little slide up now, which is the minimum I think I can get away with which is that we're all about managing privilege. So that's privileged at the endpoint, Privileged Access Management, and Privileged Process Automation. So wherever a CIS admin has to do something on a machine that needs privilege, we like to be involved. Obviously, we like to be able to delegate all the way down to the business functions with Privileged Process Automation and with the EDB or the BDR part of that functionality in EDB that really fits in to our Privileged Access Management. So what I'll do just to take you away from our product. So I'll just quickly show you a slide of the architecture, which is as simple as we have these nodes. If you like the running ADB BDR and they can perform log-ins to a target device using privileged credentials, which we control when we might be really long up to about 128 characters. >> So Andy, if you would, I think you had put together a little show and tell you a demonstration for how when these systems are perhaps under siege if you will. That there are ways in which obviously you've developed to counter this and to be able to continue secure communications, which in the privilege assets world as you know is paramount. >> Yes, indeed. So I'll show you another slide, which gives you a kind of a overview of everything that's going on and you're going to see a little demonstration of two nodes here that has the BDL technology on and they can make these logins, and we have these characters, Bob and Allison. I've just noticed how it marks in department turn Alice to Allison. they should really be Alice because you get Bob, Alice, Carol, Dave, which are the standard encryption users. And what we're going to do is we're going to demonstrate that you can have breaks in the network. So I'm just sharing the network breaks slide. I'm showing the second network break slide. And then we have this function that we've built which we're going to demonstrate for you today, which is called evil beatings. And what it does is whilst there is a politician in the network, we are going to refresh many thousands of times the credentials on the target device. And then we're going to heal the break in the network and then prove that everything is still working. So right now, I'm going to zoom over to my live connection, terminal connections to the machine. And I'm going to run this command here, which is Python EV3. And I'm going to put a hundred cycles in it which is going to do around about 10,000 password refreshes. Okay. And I'm then going to go over to Chrome, and I should have a system here waiting for me. And in this system, you'll see that I've got the device demo and I've got this come online, SSH. And if I click on this I've got a live connection to this machine. Even whilst I have a huge number of queued up and I'll just show you the queued out connections through the admin interface. The system is working extremely hard at the moment. And in fact, if I show you this slide here, you can see that I have all of these queued credential resets and that is giving our system an awful lot of grief. Yeah. I can go back to the device connection and it is all here still top. Why not? And as you can see, it is all working perfectly. And if I was a user of EDB, I think this has to be one of the demonstrations I'd be interested in because it's one of the first things that we did when we dropped that functionality into our products. We wanted to know how well it would work under extreme conditions because you don't think of extreme conditions as normal working, but whenever you have 10 nodes in different countries, there will always be a network break somewhere and someone will always need to be refreshing passwords a ridiculous rates of knots. So Andy let's talk about this kind of the notion that you're providing here, this about accountability and visibility, audit-ability, all these insights that you're providing through this kind of demonstration you've given us how critical is that today, especially when we know there are so many possible intrusions and so many opportunities with legacy systems and new apps and all of this. I mean talking about those three pillars, if you will, the importance of that and what we just saw in terms of providing that peace of mind that everybody wants in their system. >> That's a cracking question. I'm going to enjoy that question. Legacy systems, that's a really good question. If you, we have NHS, which is our national health service and we have hospitals and you have hospitals every country has hospitals. And the equipment that they use like the MRI scanners, the electro-microscope, some of the blood analysis machines, the systems in those costs multiple Gillions of dollars or should use dollars euros, dollars, pounds and the operating systems running those systems, the lifetime of that piece of equipment is much much longer than the lifetime of an operating system. So we glibly throw around this idea of legacy systems and to a hospital that's a system that's a mere five years old and has got to be delivering for another 15 years. But in reality, all of this stuff gets, acquires vulnerabilities because our adversaries the people that want to do organizations bad things ransomware and all the rest of it they are spending all that time learning about the vulnerabilities of old systems. So the beauty of what we do is being able to take those old legacy systems and put a zero trust safety shell around them, and then use extremely long credentials which can't be cracked. And then we make sure that those credentials don't go anywhere near any workstations. But what they do do, is they're inside that ADB database encrypted with a master encryption key, and they make that jump just inside the zero trust boundary so that Bob and Alice outside can get administration connections inside for them to work. So what we're doing is providing safety for those legacy systems. We are also providing an environment for old apps to run in as well. So we have something called a map server which I didn't think you'd asked us that question. I'd have to find you some slides or presentations, which we want to do. We have a map server, which is effectively a very protected window server, and you can put your old applications on them and you can let them age gracefully and carry on running. Dot net 3.5 and all of those old things. And we can map your connection into the older application and then map those connections out. But in terms of the other aspects of it is the hospital stay open 24 hours a day banks run 24 hours a day and they need to be managed from anywhere. We're in a global pandemic, people are working from home. That means that people are working from laptops and all sorts of things that haven't been provisioned by centrality and could all have all sorts of threats and problems to them. And being able to access any time is really important. And because we are changing the credentials on these machines on a regular basis, you cannot lose one. It's absolutely critical. You cannot go around losing Windows active directory domain credentials it just can't be done. And if you have a situation where you've just updated a password and you've had a failure one of those 10 nodes has the correct set of credentials. And when the system heals, you have to work out which one of the 10 it is and the one that did it last must be the one that updates all the other 10 nodes. And I think the important thing is as Osirium we have the responsibility for doing the updates and we have the responsibility for tracking all those things. But we hand the responsibility of making sure that all the other 10 nodes are up to date which just drop it into bi-directional replication and it just happens. And you've seen it happen. I mean, might be just for the fun of it, We'll go back to that demonstration Chrome, and you can see we're still connected to that machine. That's all still running fine but we could go off to our management thing, refresh it and you see that everything there is successful. I can go to a second machine and I can make a second connection to that device. Yet, in the meantime that password has been changed, Oh, I mean, I wouldn't like to tell you how many times it's been changed. I need to be on a slightly different device. I was going to do a reveal password for you, I'll make another connection but the passwords will be typically, do a top on that just to create some more load. But the passwords will typically be... I'll come back to me. They'll typically be 128 characters long. >> Andy, if I could, I mean, 'cause I think you're really showing this very complex set of challenges that you have these days, right? In terms of providing access to multiple devices across, in multiple networking challenges, when you talk to your prospective clients about the kind of how this security perimeters changed, it's very different now than it was four or five years ago. What are the key points that you want them to take away from your discussion about how they have to think about security and access especially in this day and age when we've even seen here in the States. Some very serious intrusions that I think certainly get everybody's attention. >> That's a great question again. They're all... The way that I would answer that question would definitely depend on the continent that I was talking to. But my favorite answer will be a European answer, so I'll give you a European answer. One of the things that you're doing when you come along and provide Privileged Access Management to a traditional IT team, is your taking away the sysadmins right now, before privilege access, they will know the passwords. They will be keeping the passwords in a password vault or something like this. So they own the passwords, they own the credentials. And when you come along with a product like privilege access management you're taking over management of those credentials and you're protecting those systems from a whole wide range of threats. And one of those threats is from the system administrators themselves. And they understand that. So what I would say, it's an interesting question. 'Cause I'm like, I'm thinking I've got two ways of answering I can answer as if I'm talking to management or as if I'm talking to the people who are actually going to use the products and I feel more aligned with the, I feel more aligned with the actual users. >> Yeah, I think let's just, we'll focus on that and I'll let you know, we just have a moment or two left. So if you could maybe boil it down for me a little bit. >> Boiling it down, I would say now look here CIS admins. It's really important that you get your job done but you need to understand that those privileged accounts that you're using on those systems are absolute gold dust if they get into the hands of your adversaries and you need protections income away from those adversaries, but we trust you and we are going to get you the access to your machines as fast as possible. So we're a little bit like a nightclub bouncer but we're like the Heineken of nightclub bounces. When you arrive, we know it's you and we're going to get you to your favorite machine logged on as domain admin, as fast as possible. And while you're there, we're going to cut that session recording of you. And just keep you safe and on the right side. >> All right, I'm going to enjoy my night in the nightclub. Now I can sleep easy tonight knowing that Andy Harris and Osirium are on the case. Thanks, Andy. Andy Harris speaking with us. So the Chief Technology Officer from Osirium as part of our Postgres vision, 2021, coverage here on theCUBE. (upbeat music) >> From theCUBE studios in Palo Alto, in Boston connecting with thought leaders all around the world. This is theCUBE conversation.
SUMMARY :
brought to you by EDB. and Andy, good day to you. Good morning to you of what you provide, the kind So I'll just quickly show you So Andy, if you would, I and I'll just show you and you can put your that you have these days, right? And when you come along and I'll let you know, we just and on the right side. and Osirium are on the case. leaders all around the world.
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