(upbeat music) >> Welcome back to theCUBE's continuing coverage of Snowflake Summit 22 live from Caesars Forum in Las Vegas. I'm Lisa Martin with Dave Vellante. We've got a couple of guests joining us now. We're going to be talking about financial services. Rinesh Patel joins us, the Global Head of Financial Services for Snowflake, and Jack Berkowitz, Chief Data Officer at ADP. Guys, welcome to the program. >> Thanks, thanks for having us. >> Thanks for having us. >> Talk to us about what's going on in the financial services industry as a whole. Obviously, we've seen so much change in the last couple of years. What does the data experience look like for internal folks and of course, for those end user consumers and clients? >> So, one of the big things happening inside of the financial services industry is overcoming the COVID wait, right? A lot of banks, a lot of institutions like ours had a lot of stuff on-prem. And then the move to the Cloud allows us to have that flexibility to deal with it. And out of that is also all these new capabilities. So the machine learning revolution has really hit the services industry, right? And so it's affecting how our IT teams or our data teams are building applications. Also really affecting what the end consumers get out of them. And so there's all sorts of consumerization of the experience over the past couple of years much faster than we ever expected it to happen. >> Right, we have these expectations as consumers that bleed into our business lives that I can do transactions. It's going to be on the swipe in terms of checking authenticity, fraud detection, et cetera. And of course we don't want things to go back in terms of how brands are serving us. Talk about some of the things that you guys have put in place with Snowflake in the last couple of years, particularly at ADP. >> Yeah, so one of the big things that we've done, is, one of the things that we provide is compensation data. So we issue a thing called the National Employment Report that informs the world as to what's happening in the U.S. economy in terms of workers. And then we have compensation data on top of that. So the thing that we've been able to do with Snowflake is to lower the time that it takes us to process that and get that information out into the fingertips of people. And so people can use it to see what's changed in terms of with the worker changes, how much people are making. And they can get it very, very quickly. And we're able to do that with Snowflake now. Used to take us weeks, now it's in a matter of moments we can get that updated information out to people. >> Interesting. It helps with the talent war and- >> Helps in the talent war, helps people adjust, even where they're going to put supply chain in reaction to where people are migrating. We can have all of that inside of the Snowflake system and available almost instantaneously. >> You guys announced the Financial Data Cloud last year. What was that like? 'Cause I know we had Frank on early, he clearly was driving the verticalization of Snowflake if you will, which is kind of rare for a relatively new software company but what's that been like? Give us the update on where you're at and biggest vertical, right? >> Absolutely, it's been an exciting 12 months. We're a platform, but the journey and the vision is more. We're trying to bring together a fragmented ecosystem across financial services. The aim is really to bring together key customers, key data providers, key solution providers all across the different Clouds that exist to allow them to collaborate with data in a seamless way. To solve industry problems. To solve industry problems like ESG, to solve industry problems like quantitative research. And we're seeing a massive groundswell of customers coming to Snowflake, looking at the Financial Services Data Cloud now to actually solve business problems, business critical problems. That's really driving a lot of change in terms of how they operate, in terms of how they win customers, mitigate risk and so forth. >> Jack, I think, I feel like the only industry that's sometimes more complicated than security, is data. Maybe not, security's still maybe more fragmented- >> Well really the intersection of the two is a nightmare. >> And so as you look out on this ecosystem, how do you as the chief data officer, how do you and your organization, what process do you use to decide, okay, which of the, like a chef, which of these ingredients am I going to put together for my business. >> It's a great question, right? There's been explosion of companies. We kind of look at it in two ways. One is we want to make sure that the software and the data can interoperate because we don't want to be in the business of writing bridge code. So first thing is, is having the ecosystem so that the things are tested and can work together. The other area is, and it's important to us is understanding the risk profile of that company. We process about 20% of the U.S. payroll, another 25% of the taxes. And so there's a risk to us that we have an imperative to protect. So we're looking at those companies are they financed, what's their management team. What's the sales experience like, that's important to us. And so technology and the experience of the company coming together are super important to us. >> What's your purview as a chief data officer, I mean, a lot of CDOs that I know came out of the back office and it was a compliance or data quality. You come out of industry from a technology company. So you're sort of the modern... You're like the modern CDO. >> Thanks. Thanks. >> Dave: What's your role? >> I appreciate that. >> You know what I'm saying though? >> And for a while it was like, oh yeah, compliance. >> So I actually- >> And then all of a sudden, boom, big deal. >> Yeah, I really have two jobs. So I have that job with data governance but a lot of data security. But I also have a product development unit, a massive business in monetization of data or people analytics or these compensation benchmarks or helping people get mortgages. So providing that information, so that people can get their mortgage, or their bank loans, or all this other type of transactional data. *So it's both sides of that equation is my reading inside. >> You're responsible for building data products? >> That's right. >> Directly. >> That's right. I've got a massive team that builds data products. >> Okay. That's somewhat unique in your... >> I think it's where CDOs need to be. So we build data products. We build, and we assist as a hub to allow other business units to build analytics that help them either optimize their cost or increase their sales. And then we help with all that governance and communication, we don't want to divide it up. There's a continuum to it. >> And you're a peer of the CIO and the CISO? >> Yeah, exactly. They're my peers. I actually talk to them almost every day. So I've got the CIO as a peer. >> It's a team. >> I've got the security as a peer and we get things done together. >> Talk about the alignment with business. We've been talking a lot about alignment with the data folks, the business folks, the technical folks to identify the right solutions, to be able to govern data, to monetize it, to create data products. What does that... You mentioned a couple of your cohorts, but on the business side, who are some of those key folks? >> So we're like any other big, big organization. We have lots of different business units. So we work directly with either the operational team or the heads of those business units to divine analytic missions that they'll actually execute. And at the same time, we actually have a business unit that's all around data monetization. And so I work with them every single day. And so these business units will come together. I think the big thing for us is to define value and measure that value as we go. As long as we're measuring that value as we go, then we can continue to see improvements. And so, like I said, sometimes it's bottom line, sometimes it's top line, but we're involved. Data is actually a substrate of the company. It's not a side thing to the company. >> Yeah, you are. >> ADP. >> Yeah but if they say data first but you really are data first. >> Yeah. I mean, our CEO says- >> Data's your product. >> Data's our middle name. And it literally is. >> Well, so what do you do in the Snowflake financial services data Cloud? Are you monetizing? >> Yeah. >> What's the plan? >> Yeah, so we have clients. So part of our data monetization is actually providing aggregate and anonymized information that helps other clients make business decisions. So they'll take it into their analytics. So, supply chain optimization, where should we actually put the warehouses based on the population shifts? And so we're actually using the file distribution capabilities or the information distribution, no longer files, where we use Snowflake to actually be that data cloud for those clients. So the data just pops up for our other clients. >> I think the industry's existed a lot with the physical movement of data. When you physically move data, you also physically move the data management challenges. Where do you store it? How do you map it? How do you concord it? And ultimately data sharing is taking away that friction that exists. So it's easier to be able to make informed decisions with the data at hand across two counterparties. >> Yeah, and there's a benefit to us 'cause it lowers our friction. We can have a conversation and somebody can be... Obviously the contracts have to be signed, but once they get done, somebody's up and running on it within minutes. And where it used to be, as you were saying, the movement of data and loss of control, we never actually lose control of it. We know where it is. >> Or yeah, contracts signed, now you got to go through this long process of making sure everything's cool, or a lot of times it could slow down the sale. >> That's right. >> Let's see how that's going to... Let's do a little advanced work. Now you're working without a contract. Here, you can say, "Hey, we're in the Snowflake data cloud. It's governed, you're a part of the ecosystem." >> Yeah, and the ecosystem we announced, oh gee, I think it's probably almost a year and a half ago, a relationship with ICE, Intercontinental Exchange, where they're actually taking our information and their information and creating a new data product that they in turn sell. So you get this sort of combination. >> Absolutely. The ability to form partnerships and monetize data with your partners vastly increases as a consequence. >> Talk to us about the adoption of the financial services data cloud in the last what, maybe nine months or so, since it was announced? And also in terms of the its value proposition, how does the ADP use case articulate that? >> So, very much so. So in terms of momentum, we're a global organization, as you mentioned, we are verticalized. So we have increasingly more expertise and expertise experience now within financial services that allows us to really engage and accelerate our momentum with the top banks, with the biggest asset managers by AUM, insurance companies, sovereign wealth funds on Snowflake. And obviously those data providers and solution providers that we engage with. So the momentum's really there. We're really moving very, very fast in a great market because we've got great opportunity with the capabilities that we have. I mean, ADP is just one of many use cases that we're working with and collaborations that we're taking to market. So yeah, the opportunity to monetize data and help our partners monetize the data has vastly increased within this space. >> When you think about... Oh go ahead, please. >> Yeah I was just going to say, and from our perspective, as we were getting into this, Snowflake was with us on the journey. And that's been a big deal. >> So when you think about data privacy, governance, et cetera, and public policy, it seems like you have, obviously you got things going on in Europe, and you got California, you have other states, there's increasing in complexity. You guys probably love that. (Dave laughs) More data warehouses, but where are we at with that whole? >> It's a great question. Privacy is... We hold some of the most critical information about people because that's our job to help people get paid. And we respect that as sort of our prime agenda. Part of it deals with the technology. How do you monitor, how do you see, make sure that you comply with all these regulations, but a lot of it has to do with the basic ethics of why you're doing and what you're doing. So we have a data and AI ethics board that meets and reviews our use cases. Make sure not only are we doing things properly to the regulation, but are these the types of products, are these the types of opportunities that we as a company want to stand behind on behalf of the consumers? Our company's been around 75 years. We talk about ourselves as a national asset. We have a trust relationship. We want to ensure that that trust relationship is never violated. >> Are you in a position where you can influence public policy and create more standards or framework. >> We actually are, right. We issue something every month called the National Employment Report. It actually tells you what's happening in the U.S. economy. We also issue it in some overseas countries like France. Because of that, we work a lot with various groups. And we can help shape, either data policy, we're involved in understanding although we don't necessarily want to be out in the front, but we want to learn about what's happening with federal trade commission, EOC, because at the end of the day we serve people, I always joke ADP, it's my grandfather's ADP. Well, it was actually my grandfather's ADP. (Dave laughs) He was a small businessman, and he used a ADP all those years ago. So we want to be part of that conversation because we want to continue to earn that trust every day. >> Well, plus your observation space is pretty wide. >> And you've got context and perspective on that that you can bring. >> We move somewhere between two, two and a half trillion dollars a year through our systems. And so we understand what's happening in the economy. >> What are some of the, oh sorry. >> Can your National Employment Report combined with a little Snowflake magic tell us what the hell's going to happen with this economy? >> It's really interesting you say that. Yeah, we actually can. >> Okay. (panelists laugh) >> I think when you think about the amount of data that we are working with, the types of partners that we're working with, the opportunities are infinite. They really, really are. >> So it's either a magic eight ball or it's a crystal ball, but you have it. >> We think- >> We've just uncovered that here on theCUBE. >> We think we have great partners. We have great data. We have a set of industry problems out there that we're working, collaboration with the community to be able to solve. >> What are some of the upcoming use cases Rinesh, that excite you, that are coming up in financial services- >> Great question. >> That snowflake is just going to knock out of the park. >> So look, I think there's a set of here and now problems that the industry faces, ESG's a good one. If you think about ESG, it means many different things from business ethics, to diversity, to your carbon footprint and every asset manager has to make sure they have now some form of green strategy that reflects the values of their investors. And every bank is looking to put in place sustainable lending to help their corporate customers transition. That's a big data problem. And so we're very much at the center of helping those organizations support those informed investors and help those corporates transition to a more sustainable landscape. >> Let me give you an example on Snowflake, we launched capabilities about diversity benchmarks. The first time in the industry companies can understand for their industry, their size, their location what their diversity profile looks like and their org chart profile looks like to differentiate or at least to understand are they doing the right things inside the business. The ability for banks to understand that and everything else, it's a big deal. And that was built on Snowflake. >> I think it's massive, especially in the context of the question around regulation 'cause we're seeing more and more disclosure agreements come out where regulators are making sure that there's no greenwashing taking place. So when you have really strong sources of data that are standardized, that allow that investment process to ingest that data, it does allow for a better outcome for investors. >> Real data, I mean, that diversity example they don't have to rely on a survey. >> It's not a survey. >> Anecdotes. >> It's coming right out of the transactional systems and it's updated, whenever those paychecks are run, whether it's weekly, whether it's biweekly or monthly, all that information gets updated and it's available. >> So it sounds like ADP is a facilitator of a lot of companies ESG initiatives, at least in part? >> Well, we partner with companies all the time. We have over 900,000 clients and all of them are... We've never spoken to a client who's not concerned about their people. And that's just good business. And so, yeah we're involved in that and we'll see where it goes over time now. >> I think there's tremendous opportunity if you think about the data that the ADP have in terms of diversity, in terms of gender pay gap. Huge, huge opportunity to incorporate that, as I said into the ESG principles and criteria. >> Good, 'cause that definitely is what needs to be addressed. (Lisa laughs) Guys thank you so much for joining Dave and me on the program, talking about Snowflake ADP, what you're doing together, and the massive potential that you're helping unlock with the value of data. We appreciate your insights and your time. >> Thank you for having us. >> Dave: Thanks guys. >> Thank you so much. >> For our guests, and Dave Vellante, I'm Lisa Martin. You're watching theCUBE, live in Las Vegas at Snowflake Summit 22. Dave and I will be right back with our next guest. (upbeat music)

(upbeat music) [Narrator] Live from Las Vegas. It's the CUBE, covering Oracle Modern Customer Experience 2017. Brought to you by Oracle. >> Welcome back everyone. We're live in Las Vegas here at the Mandalay Bay for Oracle's Modern Customer Experience conference, their second year. This is the CUBE, Silicon ANGLES flagship program. We go out to the events and extract the signal from the noise. I'm John Furrier. My co-host Peter Burris, head of research at Wikibon.com. Our next guest is Jack Berkowitz who's the Vice President of Products and Data Science at Oracle. Well, great to have you on the CUBE. Thanks for coming on. >> Thanks a lot. >> Appreciate it. Love talking to the product guys, getting down and dirty on the products. So, AI is hot this year. It's everywhere. Everyone's got an AI in their product. What is the AI component in your product? >> Well, what we're working on is building truly adaptive experiences for people. So, we have a whole bunch of different techniques and technologies all of it comes together essentially to create a system that amplifies peoples capabilities. That's really the key thing. Two real important components. First of all, it's all about data. Everybody talks about it. Well, what we've put together is, in terms of consumers, is the largest collection of consumer data in the Oracle data cloud. So we take advantage of all that consumer data. We also have a lot of work going on with collecting business data, both Oracle originated data as well as partner data. We're bringing that all that together and it sets the context for the AI. Now on top of that we have not just the latest trends in terms of machine learning or neural networks or things like that, but we're borrowing concepts from advertising, borrowing concepts from hedge funds so that we can make a real-time system. It's all about real-time. >> You mentioned neural networks. A lot of stuff conceptually in computer science has been around literally for decades. What is, from your definition - obviously cloud creates a lot of data out there now, but what is AI these days? Because everyone now is seeing AI as a mainstream term. Even the word metadata, since Snowden's thing, is now a mainstream term. Who would have thought metadata and AI would be talked about at kitchen tables? >> Yeah. >> What is AI from your perspective? >> Yeah, from my perspective it's really about augmenting folks. It's really about helping people do things. So maybe we'll automate some very manual tasks out, right, that will free up people to have more time to do some other things. I don't think it's about replacing people. People are creative. We want to get people back to being creative and people are great at problem solving so let's get them that information. Let's get them aid so they can get back to it. >> And give them options. >> Give them options, exactly. Exactly. You know, if you can free up somebody from having to manipulate spreadsheets and all this other stuff so they can just get the answer and get on with things, people are happier. >> So Oracle is using first-person data and third-person data to build these capabilities, right? >> Jack: Yeah, exactly. >> How is that going to play out? How is Oracle going to go to a customer and say we will appropriately utilize this third-person data in a way that does not undermine your first-person rights or value proposition? >> That's a great question. So, privacy and respect has been sort of the principle we've been driving at here. So there's the mechanics of it. People can opt in. People can opt out. There's all the mechanics and the regulatory side of it but it's really about how do you use these things so that it doesn't feel creepy. How do you do this in a subtle way so that somebody accepts the fact that that's the case? And it's really about the benefit to the person as to whether or not they're willing to make that trade-off. A great example is Waze. Waze I use all the time to get around San Francisco traffic. You guys probably use it as well. Well, guess what? If you really think about it, Waze knows what time I leave the house in the morning, what time I come home. Uber knows that once a month I leave at 2:00 on a Sunday and come back a week later. So, as long as you think about that, I'm getting a benefit from Waze I'm happy to have that partnership with them in terms of my data and they respect it and so therefore it works. >> And that comes back to some of the broader concepts of modern customer experience. It is that quid pro quo that I'll take a little data from you to improve the service that I'm able to provide as measured by the increasing value customer experience that's provided. >> Yeah, that's right. I used to live in London and in London there's these stores where you can go in and that sales guy has been there for like twenty years and you just develop a relationship. He knows you. He knows your kids, and so sure enough, stationary store or whatever it is and he gives you that personal experience. That's a relationship that I've built. That really all we're trying to do with all of this. We're trying to create a situation where people can have relationships again. >> And he's prompted with history of knowing you, just give you a pleasant surprise or experience that makes you go wow. And that's data driven now. So how do you guys do that? Cause this is something that, you know, Mark Heard brought up in his keynote that every little experience in the world is a data touchpoint. >> Jack: Yeah. >> And digital, whatever you're doing, so how do you guys put that in motion for data because that means data's got to be freely available. >> Data's got to be freely available. One of the big things that we brought to bear with the Suite X is that the data is connected and the experiences are connected so really we're talking about adding that connected intelligence on top of that data. So, it's not just the data. In fact we talked about it last night. It's not just the data even from the CX systems from service, but even the feed of what inventory's going on in real-time. So I can tell somebody if something's broken, hey, tell you what. This store has it. You can go exchange it, in real-time. Instead of having to wait for a courier or things like that. So it is that data being connected and the fact that our third-party data, you know this consumer data, is actually connected as well. So we bring that in on the fly with the appropriate context so it just works. >> So one of the new things here is the adaptive intelligence positioning products. What is that and take a minute to explain the features of how that came to be and how it's different from the competition. >> Okay, great. So the products are very purposeful built apps that plug in and amplify Oracle cloud apps and you can actually put in a third-party capability if you happen to have it. So that's the capability and it's got the decision science and machine learning and the data. >> Peter: So give me an example of a product. >> So a product is adaptive intelligence offers which we were showing here. It gives product recommendations, gives promotions, gives content recommendations on websites but also in your email. If you go into the store you get the same stuff and we can then go and activate advertising campaigns to bring in more people based on those successful pick ups of products or promotions. Its a great example. Very constrained use case addressed? >> Peter: Fed by a lot of different data. >> Fed by a lot of different data. The reason why they're adaptive is because they happen in real-time. So this isn't a batch mode thing. We don't calculate it the day before. We don't calculate it a week before or every three hours. It's actually click by click for you, and for you, reacting and re-scoring and re-balancing. And so we can get a wisdom of the crowds going on and an individual reaction, click by click, interaction by interaction. >> This is an important point I think that's nuanced in the industry. You mentioned batch mode which talks about how things are processed and managed to real-time and the big data space is a huge transition whether you're looking at hadoop or in memory or at all the architectures out there from batch data lakes to data in motion they're calling it. >> Yeah, exactly. >> So now you have this free flowing scalable data layers, if you will, every where, so being adaptive means what? Being ready? Being ... >> Being ready is the fundamental principle to getting to being adaptive. Being adaptive is just like this conversation. Being able to adjust, right? And not giving you the same exact answer seven times in a row because you asked me the same question. >> Or if it's in some talking point database you'd pull up from a FAQ. >> Peter: So it adapts to context. >> It's all about adapting to context. If the concepts change, then the system will adopt that context and adapt it's response. >> That's right. And we were showing last night, even in the interaction, as more context is given, the system can then pick that up and spin and then give you what you need? >> The Omni Channel is a term that's not new but certainly is amplified by this because now you have a world certainly with multiple clouds available to customers but also data is everywhere. Data is everywhere and channels are everywhere. >> Data is everywhere. And being adaptive also means customizing something at a point and time >> Exactly. and you might not know what it is up until seconds or near real-time or actually real-time. >> Real time, right? Real human time. 100 milliseconds. 150 milliseconds, anywhere in the world, is what we're striving for. >> And that means knowing that in some database somewhere you checked into a hotel, The Four Seasons, doing a little check in the hotel and now, oh, you left your house on Uber. Oh, you're the CEO of Oracle. You're in a rental car. I'm going to give you a different experience. >> Jack: Yeah. >> Knowing you're a travel warrior, executive. That's kind of what Mark Heard was trying to get to yesterday. >> Yeah, that's what he's getting to. So it's a bit of a journey, right? This is not a sprint. So there's been all this press and you think, oh my god, if I don't have ... It's a journey. It's a bit of a marathon, but these are the experiences that are happening. >> I want to pick up on 150 milliseconds is quite the design point. I mean human beings are not able to register information faster than about 80 milliseconds. >> Jack: Yeah, yeah. So you're talking about two brain cycles coming back to that. >> Jack: Yeah. >> I mean it's an analogy but it's not a bad one. >> Jack: No. >> 150 milliseconds anywhere in the world. That is a supreme design point. >> And it is what we're shooting for. Obviously there's things about networks and everything that have to be worked through but yeah, that responsiveness, but you're seeing that responsiveness at some of the big consumer sites. You see that type of responsiveness. That's what we want to get to. >> So at the risk of getting too technical here, how does multiple cloud integration or hopping change that equation? Is this one of the reasons it's going to drive customers to a tighter relationship with Oracle because it's going to be easier to provide the 150 millisecond response inside the Oracle fabric? >> Yeah, you nailed it. And I don't want to take too many shots at my competitors, but I'm going to. We don't have to move data. I don't have to move my data from me to AWS to some place else, right, Blue Mix, whatever it happens to be. And because we don't have to move data, we can get that speed. And because it's behind the fabric, as you put it, we can get that speed. We have the ability to scale the data centers. We have the data centers located where we need them. Now your recommendations, if you happen to be here today, they're here. They may transition to Sydney if you're in Australia to be able to give you that speed but that is the notion to have that seamless experience for you, even for travelers. >> That's a gauntlet. You just threw down a gauntlet. >> Jack: I did. Yeah. >> And that's what we're going to go compete against. Because what we're competing is on the experience for people. We're not competing on who's got the better algorithm. We're competing on that experience to people and everything about that. >> So that also brings up the point of third-party data because to have that speed certainly you have advantages in your architecture but humans don't care about Oracle and on which server. They care about what's going on on their phone, on their mobile. >> Jack: That's right. >> Okay, so the user, that requires some integration. So it won't be 100 percent Oracle. There's some third-party. What's the architecture, philosophy, guiding principles around integrating third-party data for you guys. Because it's certainly part of the system. It's part of the product, but I don't think it's ... >> So there's third=party data which could be from data partners or Oracle originated data through our Oracle data cloud or the 1500 licensed data partners there and there's also third-party systems. So for example if somebody had Magento Commerce and they wanted to include that into our capability. On the third party systems, we actually have built this around an API architecture or infrastructure using REST and it's basically a challenge I gave my PMs. I said look, I want you to test against the Oracle cloud system. I want you to test against the Oracle on-prem system and I want you to find the leading third-party system. I don't care if it's sales force or anybody else and I want you to test against that and so as long as people can map to the REST APIs that we have, they can have inter-operation with their systems. >> I mean the architectural philosophy is to decouple and make highly cohesive elements and you guys are a big part of that with Oracle as a component. >> Jack: That's right. >> But I'm still going to need to get stuff from other places and so API is a strategy and microservices are all going to be involved with that. >> Yeah, and actually we deployed a full microservice architecture so behind the scenes on that offers one, 19 microservices interplaying and operating. >> But the reality is this is going to be one of the biggest challenges that answers faces is that how we bridge, or how we gateway, cloud services from a lot of different providers is a non-trivial challenge. >> Jack: That's right. >> I remember back early on in my career when we had all these mini computer companies and each one had their own proprietary network on the shop floor for doing cell controllers or finance or whatever it might be and when customers wanted to bring those things together the mini computer companies said, yeah, put a bridge in place. >> Yeah, exactly. >> And along came TCPIP and Cisco and said forget that. Throw them all out. It wasn't the microprocessor that couldn't stick to those mini computer companies. It was TCPIP. The challenge that we face here is how are we going to do something similar because we're not going to bridge these things. The latency and the speed, and you hit the key point, where is the data, is going to have an enormous impact on this. >> That's right. And again, the investments we have been making with the CX Cloud Suite will allow us to do that. Allow us to take advantage with a whole bunch of data right away and the integration with the ODCs, so we couldn't probably have done this two or three years ago because we weren't ready. We're ready now. And now we can start to build it. We can start to take it now up to the next level. >> And to his point about the road map and TCPIP was interesting. We're all historians here. We're old enough to remember those days, but TCPIP standardized the OSI model which was a fantasy of seven layers of open standards if you remember. >> Jack: Seven layers, yep, whew. >> Peter: See we still talk about it. >> What layer are you on? >> But at the time, the proprietary was IBM and DEC owned the network stacks so that essentially leveled off there so the high-water mark was operating at TCPIP. Is there an equivalent analog to that in this world because IF you can almost take what he said and say take it to the cloud and say look at some point in this whatever stack you want to call it, if it is a stack, there has to be a moment of coalescing around something for everybody. And then a point of differentiation. >> So yeah, and again I'm just going to go back - and that's a great question by the way and it's - I'm like thinking this through as I say it, but I'm going to go right back to what I said. It's about people. So if I coalesce the information around that person, whether that person is a consumer or that person's a sales guy or that person's working on inventory management or better yet disaster relief, which is all those things put together. It's about them and about what they need. So if I get that central object around people, around companies then I have something that I can coalesce and share a semantic on. So the semantic is another old seven layer word. I didn't want to say it today but I can have ... >> Disruptive enabler. >> So then what you're saying is that we need a stack, and I use that word prohibitively, but we need a way of characterizing layer seven application so that we have ... >> Or horizontal >> Either way. But the idea is that we need to get more into how the data gets handled and not just how the message gets handled. >> Jack: That's right. >> OSI's always focused on how the message got handled. Now we're focused on how the data gets handled given that messaging substraight and that is going to be the big challenge for the industry. >> Jack: Yeah. >> Well, certainly Larry Ellis is going to love this conversation, OSI, TCPIP, going old school right here. >> Jack: Like you said, we're all old and yeah, that's what we grew up in. >> Yeah, but this is definitely ... >> Hey, today's computers and today's notions are built on the shoulders of giants. >> Well the enabling that's happening is so disruptive it's going to be a 20 or 30 year innovation window and we're just at the beginning. So the final question I have for you Jack is summarize for the folks watching. What is the exciting things about the AI and the adaptive intelligence announcements and products that you guys are showing here and how does that go forward into the future without revealing any kind of secrets on Oracle like you're a public company. What's the bottom line? What's the exciting thing they should know about? >> I think the exciting thing is that they're going to be able to take advantage of these technologies, these techniques, all this stuff, without having to hire a thousand data scientists in a seven month program or seven year program to take advantage of it. They're going to be able to get up and running very, very quickly. They can experiment with it to be able to make sure that it's doing the right thing. From a CX company, they can get back to doing what they do which is building great product, building great promotions, building a great customer service experience. They don't have to worry about gee, what's our seven year plan for building AI capabilities? That's pretty exciting. It lets them get back to doing what they do which is to compete on their products. >> And I think the messaging of this show is really good because you talk about empowerment, the hero. It's kind of gimmicky but the truth is what cloud has shown in the world is you can offload some of those mundane stuff and really focus on the task at hand, being creative or building solutions, or whatever you're doing. >> Yeah. Mark was talking about it. You have this much money to spend, what's my decision to spend it on. Spend it on competing with your products. >> All right, Jack Berkowitz live here inside the CUBE here at Oracle's Modern Customer Experience, talking about the products, the data science, AI's hot. Great products. Thanks for joining us. Appreciate it. Welcome to the CUBE and good job sharing some great insight and the data here. I'm John Furrier with Peter Burris. We'll be back with more after this short break. (upbeat music)

>> Host: Live from Las Vegas. It's The Cube! Covering Oracle Modern Customer Experience 2017. (electronic music) Brought to you by Oracle. >> Okay, welcome back everyone, we're here live at the Mandalay Bay for Oracle's Modern CX Show, Modern Customer Experience, this is the Cube, I'm John Furrier. My co-host, Peter Burris, two days of wall-to-wall coverage. Day two, my next guest is Katrina Gosek, Senior Director Commerce Product Strategy, (mumbles) Oracle upper world a few years ago, and Alistair Galbraith Sr, Director of CX, Customer Experience Innovation Lab with Oracle. Welcome to The Cube, great to see you. >> Thank you. >> Thanks, welcome. >> So commerce is part of the story, it's just not marketing, there's transactions involved, there's R & D, there's a lot of technology. The show here is the common theme of just modernizing the customer experience, which is good, because it's the outcomes. But commerce is one of them. Give us the update, what's hot for you guys this week? >> Yeah, I think what's different this year, from any other year in the past is the pace of innovation is changing, because I think there's so much disruption in the commerce space, and particularly in retail and also B to B commerce. There's lots of new expectations from customers. I know we've been saying that for years, right? But I think the technologies now, that can enable some new experiences, have rapidly changed. Now it's completely fathomable to leverage AI to drive more high-end personalization or to leverage internet of things, to embed commerce more into everyday experience. >> John: Where's the innovation in retail? 'Cause retail's not a stranger to data. They've had data models going back, but certainly digital changes things, they're at the edge of the networks, so it's a little bit of internet of things meets consumer data, the data's huge if you can get the identity of the person. That seems to be the key conversation: how do you guys enable that to take advantage of the sea of data that you're providing form the data cloud, third party and first party data? >> Well I think there's a lot of fun approaches. Oracle has a technology called the Oracle ID Graph, which starts to merge a lot of identities across channels, so where customers are using data cloud, that can inform those micro interactions as they move between channels, and I think one of the trends we've been seeing this year that we're talking about as My Channel, is that customers no longer really complete one interaction or one transaction in one place. They might start on mobile, move to voice, move into a physical store, and we're trying to track that customer in all of those places, so a lot of our focus, and you see data cloud moves into AI, is enabling brands to move this data around more easily without needing to know everything about the customer themselves. >> John: Well that's the key for the experience of the customer, because they don't want to have to answer the same questions again if they're on a chat bot, and they've already been at a transaction. Knowing what someone's doing at any given time is good contextual data. >> Alistair: Yep. >> Well it's funny you say that, because when we talk to customers or end consumers, they're not thinking, "I need more artificial intelligence, "I need more data around my experience, "I need internet of things", they're thinking, "I want convenience, I want this to be fast and quick, "I want you to know me as a brand, "I don't want to have to re-enter everything. "If I'm talking to a customer service agent, "versus someone in the store, versus interacting online". So data's a huge part of that, the challenge is how do you make it consistent? >> John: Katrina has a great point: it's not the technology, it's about what they're trying to do. >> Katrina: Yeah, exactly, very much. >> Well the experience comes back to, in many respects, convenience, and, "I want you to sustain "the state of where I am in my journey for me". >> Katrina: Correct, yeah. >> Or at least not blow my state up. So it's interesting, the journey used to be a role or a context thing, and now we're adding physical location to it, as well as device. So go back to this notion of new experiences. 'Cause it's got to be more than, you can look at something on your phone and then transact on your phone. What are some of the new experiences on the horizon? 'Cause that is a lot to do with where you guys think digital technology's going to go. >> I think some of those experiences are micro-interactions, so that could be people are using voice shopping, but not for the entire purchase, just a re-order this thing, what's the status of this thing? And brands are also using the data that they're gathering to tweak and adjust those interactions. So we're seeing data coming from real world devices and IOT changing the expectation of the customer, as they, maybe, we showed some stories where people are re-ordering products using voice, and then when they shift between these channels, that micro piece of data is really changing that interaction. The other challenge we're seeing is the consistency of the interaction, you said yourself, not only it's the complexity of "what did I do?", but if I do something here and I do something here, I should get the same experience both times. >> So we're talking mostly at this point about the B to C, the consumer world. In many respects, some of the most interesting experiences, we can envisage in the B to B world, where a community of sellers is selling to a community of buyers, and the state that's really important is how does that buying community interact with each other? As they discover things and share information. So how do you see this notion of new experiences starting to manifest itself in the B to B world? >> Katrina: Yeah, it's interesting you say that, because I often, we work with both B to C and B to B clients, and I actually think B to B has always been more focused on personalization, because they do have so much information about their customers, contract data, a lot of information about the buyer, the companies, they've always done kind of online custom personalized catalogs. So I think there's a lot that B to C can learn from B to B about how to leverage that data to personalize experiences. >> John: And vice-versa too, it's interesting, to that point, the B to C is a leading indicator on the experience side, but B to B's got the blocking and tackling down, if they have the data. 'Cause having the data, you get the goods. Okay, so here's the question for you: with the consumers going to digital, you're seeing massive, we were reporting yesterday, here on The Cube and also on siliconhill.com, as well as Adage, not that we didn't predict this, but ad spend now on digital has surpassed TV for the first time. Which is an indicator, but the ad tech world's changing, because how people are engaging with the customer is changing, so the question is, what technology is going to help transition those ad dollars, from banner ads to older formats to something more compelling and using data? 'Cause you can imagine retail being less about click, buy, to sharing data. So the spend's going to only grow on advertising or reaching consumers. That conversion, that experience is going to have to move from direct response clicking, to more experience, what tech is out there? >> Well, I think the biggest challenge has always been tracking and personalizing for a unique interaction. Just the sheer volume of data that's coming in, it's just too hard to consume. So I think the blend of AI and AI with the ability to tweak, adjust, look at multi-variate tests, and change the interaction as it goes, that's going to really massively affect the journeys for retailers, and I think the big benefit as brands move to the cloud, the cost of innovation, the cost of trying something and failing is so much less, and the pace of innovation is so much faster, I think we're seeing people try new things with the data they've got. Find out what works and what doesn't. >> Here's a question for you guys. We're talking to Jess Cahill, when this came up yesterday as well, Peter brought this up as part of the big data action going on with the AI and whatnot. Batch to real time is a shift, and this is clear here in the show that the batch is there, but still an older, but real time data in motion consumers in motion are out there, so the real time is now the key. Can you comment on that? >> I think it goes back to what Alistair was saying earlier about those micro-moments. I think transacting in new and unexpected places, ways, I think that's the key, and that's actually a huge challenge for our customers, because you have to be able to use that data in real time, because that customer is standing there with their phone, or in front of Alexa, or a speaker. >> John: It's an opportunity. >> It's a huge opportunity, and I think those opportunities are everywhere now. In a couple of years be the refrigerator, if you're re-ordering groceries, leveraging the screen, so I think that's going to be the challenge, but I think we've got time to help our customers figure out how to leverage that in real time. I think staying nimble and agile is going to be key and failing fast, and I guess a more positive way to say this-- >> The Agile Marketer, I think we had Roland Smart on yesterday, he literally wrote the book. But this is interesting, if you have the data, you can do these kinds of things. So the question is, certainly your point about the refrigerator and all these different things is going to create the omni-channel nightmare. It's not going to be, certainly multi-multi-omni. It's going to be too many challenges to deal with. >> Alistair: I think we prefer to see it as the omni-channel dream, than the nightmare. (group laughs) >> So many channels, there's no more channels, right? >> Well I think that's where things like Marketing Cloud, things like Integration Cloud help orchestrate that omni-channel journey, so that to your point on marketing and ad-spend, being able to analyze whether a benefit or promotion I showed during one micro-interaction affected something somewhere else, is so challenging but so important when you're moving this ad spend around. And I think where orchestrating and joining these micro-moments together, it's really where we're focusing a lot of our investment at the moment. >> One of the big things that's happening in the industry today is we're starting to develop techniques, and approaches, methods, for conceptualizing how a real thing is turned into a digital representation. IBM calls and not to mention them, or GE, perhaps more of a customer ... (group laughs) Yeah, I just did. >> That's all right. >> This notion of a digital twin. Commerce succeeds, where online electronic commerce succeeds as we are more successful at representing goods and services digitally. What's the relationship between IOT and some of these techniques for manifesting things digitally? And commerce, because commerce can expand its portfolio, things it can cover, as more of these things can be successfully digitally represented? >> I think that's key, and that's actually one of the predictions that we talked about in our keynote is how do you represent new ways of representing the physical store, the physical space with customers, so for me, I think something that probably Back to the Future or Judy Jetson, like a few years ago, augmented reality, or virtual reality, I think now we're going to see that more. We're starting to see it more with furniture sales, for example, you're on your iPad at home, and you can put the couch you've chosen in the space, right there with you, and see if it fits, but you're in your home, you don't have to go to the furniture store, and kind of guess with your tape measure whether the couch fits or not. And I think that's applicable in B to B as well, as 3D CAD drawings, you can kind of see them in VR, or AR. >> Amazon just announced Look, yesterday, which is the selfie tool that allows you to see what you're wearing. >> I think we're going to see a lot more of it in the coming years. >> Well, in many respects, it also, going back to this, we asked the question earlier about B to B, B to C, and the ability to represent that community. We're going to start seeing more of a household approach, as to just a consumer approach, and I think you just mentioned a great one. When we are successfully, or when we are willing to start capturing more data about our physical house or what's going on inside, so that we can make more informed decisions, with others, about how we want to do things, has an enormous impact on the quality of the experience, and where people are going to go to make their purchases. >> Alistair: Definitely, and I think that as we try and merge those experiences between B to B and B to C, what we know about someone as a consumer also directly affects their buying decisions, as a B to B employee buying for their brand. And that just increases the sheer volume of data that people are trying to manage and test and orchestrate. I think we're seeing a shift not only in people being prepared to surrender some degree of privacy for a increased experience, but we're also seeing people trusting in that virtual experience being a reality when they buy. So people have a much higher trust level in AR, if I visualize a couch and then buy it, I've got a degree of faith that when it turns up, it'll be like the one I looked at. And I think that increased trust is really making virtual experiences, digital commerce, so much easier. >> I think that's an interesting point, we had CMO of Time Warner on yesterday, Kristen O'Hara, and she was, we asked her, "Oh yeah, these transformations", big use case, she's on stage, but I asked her, "How was it like the old way? "What would you do before Oracle?", she goes, "Well, there was no old way", they never did. The point is, she said, the point was we became a direct to consumer company, so B to B and B to C are completely merging. So now the B to B's have to be a B to C, inherently because of the direct connect to the consumer. Not saying that their business model's changing, just that's the way the consumer is impacting. >> Peter: Or is it data connection to a consumer? >> A data connection, and where there's gesture data, or interaction data coming in, so this makes, the B to Bs now have to bolt on more stuff, like loyalty, you mentioned loyalty, things of that nature. >> Yeah, if you're a B to B company, you're selling to other businesses, but who are the people on the other business? There are people who shop every day in consumer applications, so their expectations are, "I'm going to have a great personalized experience, "I'm going to be able to leverage the same tools "that I see in my consumer shopping experiences "for my B to B experience, why would it be different?" So I think that's something that B to B is really learning from B to C as well. >> True, but although there seems to be something of a counter-veiling trend, but an increasing number of people are now working at home. So in many respects, where we're going to, is we're talking about experience, not just being online. One of my little heroes, when I was actually trying to do development, a million years ago, was Christopher Alexander. The Timeless Way of Building, which was one of the basic texts that people use for a lot of this customer experience stuff, and the observation that he made was, you talk about spaces, you talk about people moving into spaces to do things in context. And increasingly, the spaces that we have to worry about are not just what's on the screen, but the physical space that people move in, and operate in, an the idea is, I'm going somewhere to do something, and I'm bringing physical space with me. So all of these, the ability to represent space, time and interests and wants and needs, are going to have an enormous impact on experience. Wouldn't you agree? >> Massively, and I think the challenge using that same approach is that people are co-existing in multiple spaces concurrently. They no longer do one thing at the same time. >> Peter: They may be in the same physical place, but have two different contexts associated with it. Like working my home office, I'm both a father, as well as an employee. >> Alistair: Yes. >> And those two sometimes conflict. (Katrina laughs) >> Yeah, absolutely, and you're a consumer and an employee, and as a father, you're potentially affecting the decisions that the rest of your household is making, as well as the decisions that your business is making, all in slightly different ways. But those two experiences with the B to B and B to C, overlap one another. >> Peter: In fact, switching contexts from consumer to father is one of the primary reasons why I lose where I am in the journey. So these are very powerful, and the ability to have the data and then go to your customers, and say, "We will be able to provide that end to end for you, "so that you can provide a consistent "and coherent experience for your customers" is really crucial. Is that kind of where you're taking us? >> Yeah, I mean we've always commerce isn't kind of a standalone little thing, it really connects and glues together so many other types of experiences, so it connects to marketing, it connects to service, you need all of that, to be able to make the experience work. So we're really focused on making sure that it's easy to connect those applications together, that its easy to manage them behind the scenes, and that it appears seamless to the customer on the front end. >> One other thought that I have is, and in many respects, increasingly, because we're going to be able to represent more things digitally, which means we'll be able to move more stuff through commerce platforms. This is where the CX is going to meet the customer road, is in the commerce platforms. Do you guys agree with that? You're going to measure things all over the place, but I'm just curious-- >> John: It's their products, yeah. >> What do you think? Is it going to be increasingly the basis for honest CX? >> Well we're already seeing it become the basis, so I wouldn't say it's a future thing, I think it's been a reality for quite some time, where commerce is the hub that kind of connects, in retail, the store to marketing experiences. >> John: It's bonafide data is what it is too. >> Yeah. >> That's good data. >> Katrina: It holds so much product information, transaction information, customer information, and it just connects and leverages. I don't know if you would agree? >> Alistair: I would agree completely, and I think you look at the fact that most companies ultimately are selling a product, so that's commerce, and I think the transition is that rather than going into the commerce site or the commerce space, you see a lot of brands over the last 12 months have got rid of their store.brand.com thing and just merged their commerce experience into everything else, you're always selling. And we've customers deploy commerce without the cart, but as a product and communication marketing model, to get this tracking data moving around. >> We were talking about Jack earlier, yesterday, Berkowitz, who was talking data, we were talking about data, good data, dirty data, clean data, and data quality in general. >> Katrina: It's a tough problem. >> In context to value, and he said a quote, he said, "Good data makes things happen, "great data makes amazing things happen". And to your point, retail, commerce data, you can't, it's undisputed, it's a transaction. It's a capture in time, and that can be used in context to help other data sets become more robust. >> Well, in many respects it's the most important first person data that you have in your business. >> Katrina: Yeah, and I think from an Oracle perspective, what we're doing with the adaptive intelligent applications for commerce, and for the other applications as well, and particular for commerce is combing that first hand information you have about your products and your customers as an online business, but then the immense amount of data that the data cloud has behind the scenes that augments and allows you to automatically personalize, when a customer comes to your storefront, because they're coming already with all the context that they have elsewhere out in the world, and you can combine that with your own data, and I think really enhance the experience. >> John: Yeah it's funny, we were joking yesterday, Oracle went to bed a software company, woke up a data company. >> Katrina: Yeah (laughs). >> So the data cloud is pretty impressive, what's happened there and what that's doing. >> Katrina: It's amazing, it's a huge differentiator for us. >> Huge differentiator. Okay, final word, I'd like both you guys to just quickly comment to end this segment, awesome segment on commerce and data, which we love. But your reaction to the show, what's the bottom line, what's exciting you this week? Share with the folks, each of you, a quick soundbite of what's happening here and the impact people should know about. >> Sure from a commerce perspective, this is the first year where we've got a 50/50 split in our customer base, so we're seeing a lot of our un-premise customers move to cloud, which is great, and we're really growing our commerce cloud customer base. I'm very excited about that. >> And you're trying to get 100% now, it's never going to be a hundred. >> Katrina: (laughs) Yeah, we need to work with customers and what's right for them, but yeah, it's very exciting right now. >> Alistair, your take? >> I think for me, it's just the sheer pace of innovation, we're seeing brands go from un-premised stories that would take 12, 15, 18 months to add new features, make changes to small nimble brands rolling out incredible innovative features in 12, 18 week time frames, and we're seeing more people having more discussions around the art of the possible. >> John: All right, Katrina, Alistair, great comment, great insight, great conversation about data and commerce, of course cloud, it's the marketing clouds, all cloud world, it's commerce cloud, it's data cloud, it's just the cloud (laughs). I'm John Furrier, Peter Burris, move live coverage here from Las Vegas, Oracle Modern CX after this short break. (electronic music) >> Host: Robert--

>> Announcer: Live from Las Vegas, it's The Cube, covering Oracle Modern Customer Experience 2017, brought to you by Oracle. (dynamic music) >> John: Hey, welcome back everyone, we're here live. Day two coverage of Oracle's Modern CX Modern Customer Experience #ModernCX. Also check out all the great coverage here on The Cube, but also on the web, a lot of great stories and one of the people behind all that is Des Cahill, who's joining Peter Burris and myself. Kicking off day two, Des, great to see you, Head of Customer Experience Evangelist, involved in a lot of the formation and really the simplification of the messaging across Cloud, so it's really one story. >> Yeah, absolutely, so John, Peter, great to be here. You know, I think the real story is about our customers and businesses that are going through transformation. So everything that we're doing at Oracle, in our CX organizations, helping these organizations make their digital business transformation and the reason they're going through this transformative process is to meet the demands of their customers. I'd say it's the era of the empowered customer. They're empowered by social, mobile, Cloud technologies and all of us in our daily lives can relate to the fact that over the last five, 10 years, the way that we buy, our journey as we buy products, as we do research, is completely different, than it used to be, right. >> Talk about the evolution, talk about the evolution of what's happening this week, because I think this is kind of a mark in time, at least from our observation, covering Oracle, this is our eighth year and certainly second year with the modern marketing experience now, >> Des: Yeah. >> the modern customer experience, where the feedback in the floor, and this is noteworthy, is that the quality is great, people at the booth are highly qualified, but it's simple. It's one fabric of messaging, one fabric of product. It feels like a platform, >> Yeah. >> and is that by design (laughs) or is that kind of the next step in the evolution of, >> Des: Yeah, John. >> Marketing Cloud meets Real Cloud and? >> Yeah, yeah, so absolutely John. I mean that, that is by design and again, to support our customers and their needs on this digital business transformation journey, it starts obviously with fantastic marketing, we've just got fantastic capabilities within our Marketing Cloud, but then that extends to Sales Cloud. If you generate leads in marketing and you're not handing them over to sales effectively or of a good sales automation engine and that goes on to commerce, CPQ, social, and service. And all of this, if we bring this back down to again, this notion of the empowered customer, if you're not providing those customers with connected experiences across marketing, sales, service, commerce, you're not... you're going to, you might lose those customers. I mean, we expect connected experiences across our whole journey. If I'm calling my cell phone provider, 'cause I got a problem, I don't, and I don't want to call one person, get transferred to another person and then go to the website to chat with someone, have a disconnected experience. I want them to, when I call, I want them to understand my history, my status as a customer, I'm spending 500 dollars a month on them, the problems I've had before. I want them to have context and to know me in that moment and as Mark Hertz says, it's like a moment of truth with my cell phone provider. Are they going to delight me and turn me into a customer advocate, or am I going to leave and go to another cell phone provider? >> Well let's talk just for a second, and I want to get your comments on this and how it relates specifically to what we're saying here. Digital has two enormous impacts. One, as you said, that a customer can take their research activities with them, on their cell phone. >> Yeah. They have learned, because of commerce and electronic commerce, they've learn to expect and demand a certain style of engagement >> Des: Right. >> and that's not going to change, so if you are not doing those things-- >> We like to say Amazon is the new benchmark, either B to C or B to B, it doesn't matter, right. >> It is a benchmark, at least on the commerce side, so it's, so that's one change, is that customers are empowered. The second big change though, is that increasingly, digital allows people to render products more as services and that's in many respects, what the Cloud's all about. >> Des: Right. >> How do you take an asset, that is a machine and render it as a service to someone? Well now we can actually use digital technologies to render things more as services. The combination of those two things are incredibly powerful, because customers, who now have the power to evaluate and change decisions all the time are now constantly making decisions, because it's a pay-as-you-go service world now. >> Des: Right. >> So how do those two things come together and inform the role, that marketing is going to play inside a business, 'cause increasingly, it seems to us that marketing is going to have to own that continuous, ongoing engagement and deliver that consistent value, so a customer does not leave, 'cause you have more opportunities to leave now. >> Well, I, so I think that's a good observation, Peter. I do think that marketers can play, and do play, a leading role in being the advocate for the customer within the brand, within the company and as a marketer myself, I think about not just the marketing function, but I think about, well, what is the experience, that that lead or that prospect going to have when I hand over to sales? And what is the experience that they are going to have, when I hand them over to service? And in my past roles as a CMO, the challenge I always faced was that I couldn't get information out of the sales automation system or out of the service automation system, so as a marketer, I couldn't optimize my marketing mix and I didn't have visibility on which opportunities I passed, which leads I passed over turned into the best opportunities, turned into the best deals, turned into the customers, that were most loyal, that got cross-sold and up-sold and were the happiest. So I think, going back to Oracle's strategy in all of this, it's about having a connected, end-to-end suite of Cloud applications, so that there's a consistent set of data, that is enabling these consistent, personalized, and immediate experiences. >> I think that's interesting and I want to just validate that, because I think, that is to me, the big sign that I think you guys are on the right track and executing and by the way, some of the things you're talking about used to be the holy grail, they're actually real now. >> Des: Right. >> The dynamic is the silos are a symptom of a digital-analog relationship. >> Des: Right. >> So when you have all digital, the moment of truth starts here, it's all digital. So in that paradigm, end-to-end wins. And at Mobile World Congress this year, one of the main themes when they talk about 5G, and all these things, that were going on, was you know, autonomous vehicles, (laughs) media entertainment, smart cities, a smart home, you know, talk to things. To your point, that's an end-to-end, so the entire world wants-- >> Des: Throw IoT in there. >> Throw IoT, >> Right. >> So again, these digital connections are all connected, so therefore, it is essentially an end-to-end opportunity. So whoever can optimize that end-to-end, while being open, while having access to the data, >> Des: Right. >> will be the winning formula. >> Des: Right. >> And that is something that we see and you obviously have that. >> And then the other piece is how do you actualize that data? Right, and I know you spoke with Jack Berkowitz about adaptive intelligent apps, it's, we're taking approach to artificial intelligence of saying, how can we bring to bear the power of machine learning, dynamic decision science, so that all this data, that's being collected and enabled by all these digital touch points, these digital signals, how do you take that data and how do you actualize that, 'cause the reality is, 80% of data that's collected today is dark, it's untouched, it's just collected, right. >> Well, here is the hard question for you, you know I am going to ask this, so I am going to ask it, here's the hard question. >> Des: Yeah. >> It really comes down to the data, and if you don't, you, connected networks and all that good stuff is great fabric, end-to-end. >> Des: Absolutely, yeah. >> This is certainly the future, it's the new normal, it's coming fast. >> Right. >> But at the end of the day, the conversation we've been having here is about the data. >> Des: Yes. >> What is your position with Oracle on connecting that data, 'cause that ultimately is what needs to flow. >> Des: Right. >> How does that work? Can you just take a minute to >> Sure, sure. >> to address that, how the data flows? >> Yeah, I think it starts with our end-to-end connected applications, that are able, that are connected with each other natively and are sharing that same data set. We obviously recognize that customers have mixed environments, so in those cases, we can certainly use our technologies to connect to their existing data stores, to synchronize with their existing systems, so it all starts with the cleanliness and quality of that baseline customer data. The second piece I'd say, is that we've made a lot of investments over the last five years in Oracle Data Cloud and Oracle Data Cloud is a set of anonymized, third party data. We've got 5 billion consumer IDs, we've got a billion business IDs. We've got a tremendous amount of data sources. We just announced a recent acquisition of a company called Moat, last week at our Oracle Data Cloud Summit in New York City. So we've made a tremendous investment in third party data, that can augment anonymized third party data, that can augment first party data, to allow people to have not just a connected view of the customer, but more of a comprehensive view and understanding of their customers, so that they can better talk to them and get them better experiences. >> That's the key there, that we're hearing with this intelligent, adaptive intelligent app kind of environment, >> Yeah, yeah. >> where machine learning. The third party data integrating within the first party data, that seems to be the key. Is that right, >> Absolutely. >> did I get that right? >> Yeah, well I would say there's a number of points, so I would say that, that, you know, you can think of the Oracle Data Cloud combining with the BlueKai DMP and being a great ad-tech business for us and a great solution for digital marketers in and of itself. What we've done with adaptive intelligent apps is that we've combined that third party data with decision science machine learning AI and we've coupled that with the Oracle Cloud infrastructure and the scale and power of that. So we're able to deliver real-time, adaptive learning and dynamic offers and content at 130 millisecond clips. So this is real-time interaction, so we are getting signals every time someone clicks, it's not a batch mode, one-off kind of thing. The third piece is that we have designed these, designed these apps to just embed natively, to plug into our existing CX applications. So if you're a marketer, you're a service professional, you're a sales professional, you can get value out of this day one. You've got a tremendous data set. You've got real-time, adaptive artificial intelligence and it plugs right into your existing apps. It's a win-win. Take your first party data, take your third party data, combine it together, put some decision science on there, some high bandwidth, incredible scale infrastructure and you're getting, you're starting to get to one-to-one marketing. You're freeing your marketing teams from being data analysts and segmenting and trying to get insight and you're letting the machine do that work and you're freeing up, you're freeing up your human capital to be thinking about higher-level tasks, about offers and merchandising and creative and campaigns and channels. >> Well, the way we think about it, Des, and I'll test you on this, is we think ultimately the machines are going to offer options. So they're going to do triage on a lot of this data >> Des: Right, right. >> and offer options to human decision-makers. Some of the discretions, we see three levels of interaction, >> Des: Yeah. >> Automated interaction, which, quite frankly, we're doing a lot of that today in finance systems. >> Des: Yes. >> But then we get to autonomous vehicles, highly deterministic networks, highly deterministic behaviors, >> Des: Right. >> that's what's going to be required in autonomy. No uncertainty. Where we have environmental uncertainty, i.e. that temperature's going to change or I, some IoT things are going to change, that's where we see the idea of turning the data and actuating it in the context of that environmental uncertainty. >> Des: Right. >> We think that this is all going to have an impact on the human side, what we call systems of augmentation, >> Des: Right. >> where the system's going to provide options to a human decision-maker, the discretion stays with the human decision-maker, culpability stays with the human decision-maker, >> Des: Right. >> but the quality of the options determine the value of the systems. >> So the augmentation is-- >> The augmentation's great. >> So let me give you a great example of that with AIA. So, take for example, you're a pro photographer and you got a big shoot the next day and your camera, your main camera you bought three months ago, it breaks. And you buy all your stuff at photog.com and you call 'em up and what could happen today? "Hi, what's your account number? "Who are you? "Wait, let me look you up, OK. "I'm sorry, I'm not authorized to get you a return." You know, boom, and the person's like, "I'm never going to buy from them again." Right, it's that moment of truth. Contrast that with a, 'cause the person making that decision, if it was the CEO getting that call, the CEO would be like, "We're going to get you a camera immediately." But that person that they're talking to is five levels down in a call center, Bismarck, North Dakota. If that person had AI, adaptive intelligent apps helping them out, then the AI would do the work in the background of analyzing the customer's lifetime value, their social reach, so their indirect lifetime value. It would look at their customer health, how many other services issues, that they have. It would look at, are there any warranty issues or known service failure issues on that camera and then it would look at a list of stores, that were within a five mile radius of that customer, that had those cameras in stock. And it would authorize an immediate pickup and you're on your way. It would just inform that person and enable them to make that decision. >> Even more than that, and this is a crucially important point, that we think people don't get when they talk about a lot of this stuff. These systems have to deliver not only data, but also authority. >> Exactly. The authority has to flow with the data. >> Des: Right. >> That's one of the advantages-- >> On both sides, by the way, on the identity and-- >> On both sides. >> And I think that employee wants that empowerment. >> Absolutely. >> No one wants to take a call and not make the customer happy, right. >> Peter: Absolutely, >> Yeah. >> because that's a challenge with some of the bolt-on approaches to some of these big applications, is that, yeah, >> Exactly. >> you can deliver a result, but then how is the result >> How is it manifested? >> integrated into the process >> Right. >> that defines and affords authority to actually make the decision? >> OK, so let's see, where are we on the progress bar then. because we had a great interview yesterday with the CMO from Time Warner. >> Yeah. >> OK, Kristen O'Hara, she was amazing. But basically, there was no old way of doing data, they were Time Warner, (laughs) they're old school media and they set up a project, you guys came in, Oracle came in, and essentially got them up and running, and it's changed their business practice overnight. >> Des: Right, right. >> So, and the other thing we heard yesterday was a lot of the stuff that was holy grail-like capabilities is actually being delivered. So give us a slice-and-dice what's shipping today, that's, that's hot and where's the work area that's road-mapped for Oracle? >> Sure, well-- >> And were you guys helping customers? >> Sure, I'll talk about a couple of examples, where we're helping customers. So, Denon and Marantz, high end audio company, brand's been around 100 years. The way music is delivered, is consumed, has changed radically in the last 20 years, changed radically in the last 10 years, changed even more radically in the last five years, so they've had to change their business model to keep up with that. They are embedding Oracle IoT Cloud into every product they sell, except their headphones, so all their speakers, all their AV receivers and they are using IoT data and Oracle Service Cloud to inform, not only service issues, like for example, they are, they're detecting failures pro-actively and they're shipping out new speakers, before they fail or they're pushing firmware to fix the problem, before it happens. They're not only using it to inform their service, they're using it to inform their R&D and their sales and marketing. Great example, they ship wireless speakers, HEOS wireless speakers, highly recommend 'em, I bought 'em for my kids for Christmas, they're the bomb. But customers were starting to... They were getting a lot of failures in these wireless speakers. They looked up the customer data, then they looked up the IoT data. They found that 80% of the speaker failures, the products were labeled Bathroom as location in the configuration of their home network setup and what they realized was that customers were listening to music in the bathroom, which is a use case they never thought of and the speakers weren't made to be water or humidity-proof, so they went to the R&D department, 14 months later, they ship a line of waterproof HEOS speakers. The second thing is they found people, who were labeling their speakers, Patio, they were using it on the patio, they didn't even have a rechargeable battery on it, so they came out with a line with a rechargeable battery on it. So they're not only using IoT data, for a machine maintenance function, >> John: 'cause they were behaving-- >> they're using IoT data to inform, inform R&D and they're also doing incredible marketing and sales activities. We had Don Freeman, the CMO of Denon on the main stage yesterday, talking about this great, great stuff they're doing. >> And what's the coolest thing this week, that you're looking at, you're proud of or excited about? >> I'm excited about a lot of stuff, John. This week is realized, you alluded to this week has been really, really fun, really great, a lot of buzz, obviously a lot of buzz around adaptive, intelligent apps and we've talked about that. But I would say also beyond a doubt, that intelligent apps for CX, we've introduced some great things in our Service Cloud, the capability to have a video chat, so Pella Windows was also on one of our panels today and they were talking about the ability for, to solve a service issue, the ability to show a video of what's going on, just increases the speed with which something can be diagnosed so much faster. We're integrating on the Service Cloud, we're integrating with WeChat and we're integrating with Facebook Messenger. Now, why would you do that? Well again, it comes back to this era of the empowered consumer. It's not enough that a company just has a website or an 0800 number that you can go to for support. Consumers are spending more time in social messaging apps, than they are on social messaging sites, so if the consumer wants to be served on Facebook Messenger, 'cause they spend their time on it, the brand has to meet them there. >> John: Yeah. >> The third thing would be the ability for the Marketing Cloud and Service and Sales Cloud, we've got chat bots, voice-driven, text-driven, AI-driven, so mobile assistant for the sales professionals, so you can input data on the road, "Hey, open an account, here's the data "for the transaction here what's going on." >> John: Yeah. >> Incredible, incredible stuff going on all over the stack. >> I think the thing, that excites me, is I look at the videos from last year and the theme was, "Man, you guys have "all these awesome acquisitions," >> Des: Right. >> "But you have this opportunity with the data," and you guys knew that and you guys tightened that together and doubled down on the data >> Des: Yeah, with banking, yeah-- >> and so I thought that was a great job and I like the messenging's clean, I think but more importantly is that in any sea change, you know, we joke about this, as we're kind of like historians and we've seen a lot of waves, >> Des: Right, for sure. >> and all these major waves, when the user's expectations shift, that's the opportunity. I think what you guys nailed here is that, and Peter alluded to it as well, is that the users are expecting things differently, completely differently. >> Let me share a stat with you. 50% of the companies that were in the Fortune 500 in the year 2000, are either out of business, acquired, gone, 50% and those companies, >> Dab or die. >> Blockbuster, Borders, did they stay relevant? >> John: Yeah. I think changing business practice based on data is what's happening, it's awesome. Des Cahill, here on The Cube. More live coverage, day two of Modern CX, Modern Customer Experience, #ModernCX. This is The Cube, I'm John Furrier with Peter Burris, we'll be right back. (dynamic music)

(calm and uplifting music) (moves into soft and soothing music) >> Announcer: Live from Las Vegas, it's theCUBE. Covering Oracle Modern Customer Experience 2017. Brought to you by Oracle. (chill and calm electronic music) >> Hey, welcome back everyone. We are live here at the Mandalay Bay in Las Vegas for theCUBE's special coverage of Oracle's marketing clouds event called Modern CX for Modern Customer Experience. I'm John Furrier, founder of SiliconANGLE, with Peter Burris, head of research at wikibon.com. This is our wrap up of day one. We've got day two coverage tomorrow. Peter, we saw some great news from Oracle on stage. I'll say modernizing their platform, the positioning, certainly, how they're packaging the offering of a platform with the focus of apps, with the additive concept of adaptive intelligence, which gives the notion of moving from batch to realtime, data in motion, and then a series of other enhancements going on. And the guests we talked to have been phenomenal, but what's coming out of this, at least in my mind, I would love to get your reaction to today, is data. Data is the key, and it's clear that Oracle is differentiating with their data. They have a database. They're now bringing their Cloud Suite concept to marketing and extending that out. Interesting. AI is in there, they got some chatbots, so some sizzle, but the steak is the data. So you got the sizzle and you got the steak. >> Well, we heard, you're absolutely right, John. We heard today a lot, and I think this is a terminology that we're going to hear more frequently, is this notion of first person data versus third person data. Where first person data is the data that's being generated by the business and the business's applications and third person data being data that's generated by kind of the noise that's happening in a lot of other people's first person data. And I think that's going to be one of the biggest challenges in the industry. And Oracle has an inside track on a lot of that first person data because a lot of people are big time Oracle customers for big time operational acts, applications that are today delivering big time revenue into the business. >> In the spirit of marketing speak at these events you hear things, "It's outcomes, digital transmissions. "It's all about the outcomes." Agreed, that's standard, we hear that. But here we're seeing something for the first time. You identified it in one of our interviews with Jack Horowitz, which had 150 milliseconds, it's a speeds and feeds game. So Oracle's premise, you pointed out, I'd like to get deeper on this, because this is about not moving the data around if you don't have to. >> Yeah, yeah. >> This is interesting. >> This is a centerpiece of Wikibon's research right now, is that if you start with a proposition that we increasingly through digital transformation are now talking about how we're going to use data to differentiate business, then we need to think about what does it mean to design business, design business activities, design customer promises around the availability of data or the desire to get more data. And data has a physical element. Moving data around takes time and it generates cost, and we have to be very, very careful about what that means, let alone some of the legal and privacy issues. So we think that there's two things that all businesses are going to have to think about, the relationship between data and time. Number one, Can I serve up the right response, the right business action, faster than my competitors, which is going to matter, and number two is can I refine and improve the quality of my models that I'm using to serve things up faster than my competitors. So it's a cycle time on what the customer needs right now, but it's also a strategic cycle time in how I improve the quality of the models that I'm using to run my business. >> What's also interesting is some things that, again that you're doing on the research side, that I think plays into the conversations and the content and conversations here at Oracle's Modern CX event is the notion of the business value of digital. And I think, and I want to get your reaction to this because this is some insight that I saw this morning through my interviews, is that there are jump in points for companies starting this transformation. Some are more advanced than others, some are at the beginning, some are in kindergarten, some are in college, some are graduated, and so on and so forth. But the key is, you're seeing an Agile mindset. That was a term that was here, we had the Agile Marketer, the author of The Agile Marketer, here on our-- Roland Smart, who wrote the book The Agile Marketer. But Agile can be applied because technology's now everywhere. But with data and now software, you now have the ability to not only instrument, but also get value models from existing and new applications. >> Well let's bring it back to the fundamental point that you made up front, because it's the right one. None of this changes if you don't recognize these new sources of data, typically and increasingly, the customer being a new source, and what we can do with it. So go back to this notion of Agile. Agile works when you are, as we talked about in the interview, when you have three things going on. First off, the business has to be empirical, it has to acknowledge that these new sources of information are useful. You have to be willing to iterate. Which means you have to sometimes recognize you're going to fail, and not kill people who fail as long as they do it quickly. And then you have to be opportunistic. When you find a new way of doing things, you got to go after it as hard as you possibly can. >> And verify it, understand it, and then double down on it. >> Absolutely, absolutely. Yeah, customer-centric and all the other stuff. But if you don't have those three things in place, you are not going to succeed in this new world. You have to be empirical, you have to be iterative, and you have to be opportunistic. Now take that, tie that back to some of the points that you were making. At the end of the day, we heard a lot of practitioners as well as a lot of Oracle executives, I don't want to say, be challenged to talk about the transformation or the transition, but sometimes they use different language. But when we push them, it all boiled down to, for the first time, our business acknowledged the value of data, and specifically customer data, in making better decisions. The roadmap always started with an acknowledgement of the role that data's going to play. >> And the pilots that we heard from Time Warner's CMO, Kristen O'Hara, pointed it out really brilliantly that she did pilots as a way to get started, but she had to show the proof. But not instant gratification, it was, "Okay, we'll give you some running room, "three feet and a cloud of dust, go see what happens. "Here's enough rope to hang yourself or be successful." But getting those proof points, to your point of iteration. You don't need to hit the home run right out of the gate. >> Absolutely not. In fact, typically you're not. But the idea is, you know, people talk about how frequently product launches fail. Products, you know, the old adage is it fails 80% of the time. We heard a couple of people talk about how other research firms have done research that suggests that 83 or 84% of leads are useless to salespeople. We're talking about very, very high failure rates here and just little changes, little improvements in the productivity of those activities, have enormous implications for the revenue that the business is able to generate and the cost that the business has to consume to generate those revenues. >> John: I want to get your reaction to-- Oh, go ahead, sorry. >> No, all I was going to say, it all starts with that fundamental observation that data is an asset that can be utilized differently within business. And that's what we believe is the essence of digital business. >> The other reaction I'd like to get your thoughts on is a word that we've been using on theCUBE that you had brought up here first in the conversation, empathy to users. And then we hear the word empowerment, they're calling about heroes is their theme, but it's really empowerment, right? Enabling people in the organization to leverage the data, identify new insights, be opportunistic as you said, and jump on these new ways of doing things. So that's a key piece. So with empathy for the users, which is the customer experience, and the empowerment for the people to make those things happen, you have the convergence of ad tech and mar-tech, marketing tech. Advertising tech and marketing tech, known as ad tech and mar-tech, coming together. One was very good at understanding collective intelligence for which best ad to serve where. Now the infrastructure's changing. Mar-tech is an ever-evolving and consolidating ecosystem, with winners and losers coming together and changing so the blender of ad tech and mar-tech is now becoming re-platformed for the enterprise. How does a practitioner who's looking at sources like Oracle and others grock this concept? Because they know about ads and that someone buys the ads, but also they have marketing systems in place and sales clouds. >> Well, I think, and again, it's this notion of hero and empowerment and enablement, all of them boil down to are we making our people better? And I think, in many respects, a way of thinking about this is the first thing we have to acknowledge is the data is really valuable. The second thing we have to acknowledge is that when we use data better, we make our people more successful. We make our people more valuable. We talk about the customer experience, well employee experience also matters because at the end of the day, those employees, and how we empower them and how we turn them into heroes, is going to have an enormous impact on the attitude that they take when they speak with customers, their facility at working with customers, the competency that they bring to the table, and the degree to which the customer sees them as a valuable resource. So in many respects, the way it all comes together is, we can look at all these systems, but are these systems, in fact, making the people that are really generating the value within the business more or less successful? And I think that's got to be a second touchstone that we have to keep coming back to. >> Some great interviews here this morning on day one. Got some great ones tomorrow, but two notables. I already mentioned the CMO, Kristen O'Hara, who was at Time Warner, great executive, made great change in how they're changing their business practices, as well as the financial outcome. But the other one was Jack Berkowitz. And we had an old school moment, we felt like a bunch of old dogs and historians, talking about the OSI, Open Systems Interconnect Model, seven layers of openness, of which it only went half way, stopped at TCPIP, but you can argue some other stuff was standardized. But, really, if you look at the historical perspective, it was really fun, because you can also learn, what you can learn about history as it relates to what's happening today. It's not always going to be the same, but you can learn from it. And that moment was this grocking of what happened with TCPIP as a standardization, coalescing moment. And it's not yet known in this industry what that will be. We sense it to be data. It's not clear yet how that's going to manifest itself. Or is it to you? >> Well here's what I'd say, John. I think you're right, kind of the history moment was geez, wasn't it interesting that TCPIP, the OSI stack, and they're related, they're not the same, obviously, but that it defined how a message, standards for moving messages around, now messages are data, but it's a specialized kind of a data. And then what we talked about is when we get to layer seven, it's going to be interesting to see what kind of standards are introduced, in other words, the presentation layer, or the application layer. What kind of standards are going to be introduced so that we can enfranchise multiple sources of cloud services together in new ways. Now Oracle appears to have an advantage here. Why? Because Oracle's one of those companies that can talk about end to end. And what Jack was saying, it goes back again to one of the first things we mentioned in this wrap, is that it's nice to have that end to end capability so you can look at it and say "When do we not have to move the data?" And a very powerful concept that Jack introduced is that Oracle's going to, you know, he threw the gauntlet down, and he said "We are going to help our customers "serve their customers within 150 milliseconds. "On a worldwide basis, "anywhere that customer is in the world, any device, "we're going to help our customers serve their customers "in 150 milliseconds." >> That means pulling data from any database, anywhere, first party, third party, all unified into one. >> But you can do it if and only if you don't have to move the data that much. And that's going to be one of the big challenges. Oracle's starting from an end to end perspective that may not be obviously cloud baked. Other people are starting with the cloud native perspective, but don't have that end to end capability. Who's going to win is going to be really interesting. And that 150 millisecond test is, I think, going to emerge as a crucial test in the industry about who's going to win. >> And we will be watching who will win because we're going to be covering it on SiliconANGLE.com and wikibon.com, which has got great research. Check out wikibon.com, it's subscription only. Join the membership there, it's really valuable data headed up by Peter. And, of course, theCUBE at siliconangle.tv is bringing you all the action. I'm John Furrier with Peter Burris, Day one here at the Mandalay Bay at the Oracle Modern CX, #ModernCX. Tweet us @theCUBE. Glad to chat with you. Stay tuned for tomorrow. Thanks for watching. (chill and calm electronic music) >> Announcer: Robert Herjavec >> Interviewer: People obviously know you from Shark Tank but the Herjavec group has been--

>> Announcer: Live from Las Vegas, it's the Cube! Covering Oracle Modern Customer Experience 2017. Brought to you by Oracle. (light, upbeat music) >> Hey, welcome back everyone. We're here live in Las Vegas at the Mandalay Bay. This is the Cube. Silicon Angle's flagship program, where we go out to the events and extract the noise. I'm John Furrier with my co-host Peter Burris, Head of Research at Silicon Angle, Wikibon.com. And our next guest is Steve Krauss, Group Vice President of Product Management for Oracle Marketing Cloud. Great to see you again, welcome back to the cube. >> Thank you John. >> So a lot of great announcements today. I want to just jump into it. First of all, you've got a great job. You've got the product side. You've been busy this year, so congratulations. Some announcements I want to get your reaction to that we saw today. The Adaptive Intelligence, love that. I love how it speaks to the data in motion, real time needs of applications. >> Peter: 150 milliseconds >> 150 milliseconds boot shot. We got that on the queue, so it's on the record. It's going to be good, it's going to be good. And also the chat bot thing, which big fan of chat bots as an illustration of what's coming. Not so much as chat bots by themselves, but it does speak to the new user interactions, the new interfaces, new ways to notify and inform as part of that experience. This is some heavy tech, so I want, the first question is AI. Everyone seems to be washing thereselves. Oh, we've got A.I. >> Yeah, Yeah. >> Well that's just predictive analytics, that's been done before. >> Steve: M-Hmm. But Augmented Intelligence or Artificial Intelligence and Neural Networks have been around for a while. What are you guys doing specifically on the product side? Because this is super exciting announcements, to make Adaptive Intelligence work, what's the key tech? >> Steve: Yeah, Well there's a couple things. In fact, I think often when people talk about AI, they want to go immediately to the algorithms and think that somehow that is the only secret sauce. And the reality is, you know, like a lot of things in the world of computing, you put bad data into one of these things and you get bad results out. You put good data, you get good results. You put better data, that's when things start getting really interesting. And so one of the neat things about the marketing version of Adaptive Intelligence is called Adaptive Intelligence Offers, is that it has the ability to not just take the data that the marketer has, but it can reach into something called the Oracle Data Cloud and get additional data to drive better signal into the AI algorithms to make them run better. So we're bringing a data advantage to the table, and then probably as you've heard from the AI apps people, there's already a heritage at Oracle for building these real time decisioning systems. And so you've got these algorithms that are real time, that can adapt every click, update themselves, make the models go better. If you've tracked data mining for a long time, data mining contests, honestly the winner in second place is usually a very small margin. We think really that data piece is going to be the thing that's going to be the biggest differentiator. Because there's a lot of smart people with really great adaptive algorithms. So we're bringing both to the table. >> John: Okay, data or algorithms, there's always been the chicken in the egg syndrome. >> Yeah. >> Is it algorithms or the data, data or algorithms? A lot of people are voting in the crowd, that conversation we're involved in, data trumps algorithms. >> Steve: I would vote that way as well. I think there's far greater variance in what you can do with data if you collect it in a smart way. And in the case of Oracle, we've assembled this massive data cloud. It's not something someone else can casually do. The reality is with a lot of the algorithms, Google's open sourcing a lot of tents are slow, and so we'll see. I mean, it's not like we are chumps with the algorithms. We take that stuff very seriously, but the data itself just make everything more better. >> John: But the right tool for the right job is the same premise, you articulate for algorithms. Pick your tool, pick your algorithm, but if you don't have the data, you're SOL anyway. >> Peter: As you've mentioned John, the algorithms have been around a long time. What's new is that we now have so many more data sources, so we have data for the first time. >> John: And massive compute. >> And now we have massive compute that can be set up easily, so we actually do something with it. I want to point out, I want to test ya on this, we had Jack Berkowitz on honorly which is the source the 150 millisecond. Jack noted that Oracle aspires to be able to have the right answer anywhere in the world inside 150 milliseconds. Which is an amazing, amazing vision, and for most people who think of the cloud, they think of data flying all over the place. >> Steve: Yeah. For you guys, Jack said something very interesting, and I want to, as a proof point, Jack said, "Yeah but sometimes you don't have to move the data." >> Steve: Yes. >> And one of the advantages that you guys have, I think, which is what I want to test you on, is that by having a relatively complete, installed set of capabilities, you have that primary person data-first person data, and there is an advantage to not having to move it. Could you just articulate that a little bit? What does that... >> John: Is that true? >> First of all, is that true, and what kind of possibilities does that open up for Oracle and Oracle customers if it is true? >> Steve: Well yeah, I think you are onto something. Oracle obviously has the long heritage of having many enterprises and government's data in Oracle systems already in the first place. And those investments have been made. And so when you start talking about, "Let's add to that, let's add applications like Adaptive Intelligence offers." Well instead of saying we have to do these massive data transfers it may well be the case at this point that that data is resident an Oracle data center in the first place, and of course Oracle owns its own data centers. These are all world wide, so there's a bunch of advantages to the Oracle scale here. And one of them is that we don't have to move the mountain. Right? The mountain is already in the Oracle database, and we can go and put these services next to it that allow an ease of integration. And John, we were talking about this before we started here. It matters to make this stuff work fast when its a year long project to see if maybe its going to fly. That's no longer a reasonable thing, and so agility matters. Having the data where you already need it is great. >> John: Well and also the trend is system of record database and mountains of corpuses of stuff that you can tap into which you are pointing out, but also, I believe that the winner of all this will use a term that's used in the cloud industry: Standing Up Apps. >> Steve: Uh-huh. And I think that one of the things that's very clear to me if you look at the SAS marketplace where it's, and I think Mark Hurd said this, "There is no past, it's a SAS." So, in infrastructure, so and you kind of see in the separation, you have to have stuff done in weeks-apps. And I mean literally, not months, weeks. >> Steve: Yeah. >> And I would argue that minutes become it. So with that as a backdrop, how do you look at microservices? Because now, if look at, out of the move the data, so I might want to compose something and send it somewhere else, and move an app to the edge of the network or have a retail lab or do something in email. So now I can compose an app from data here and then move it so that brings up orchestration, microservices, and some of these cloud native concepts. How do you guys deal with that? >> Steve: Yeah, well let me give you the marketing part of this in terms of the Oracle Marketing Cloud. Because there are so many parts of Oracle, they have their own versions. For us, one of the big things we want is to have this concept called Orchestration that says if I'm a marketer, I should be able to reach my customer wherever he or she welcomes my messaging. These days, it no longer is just email. These are people who getting mobile messaging, they're potentially interacting with things like chat bots, it's become very fragmented. And so what Oracle wants to do is provide these Orchestration systems that allow apps plug in some that we build, but others that third parties build. So that as this complexity increases and there's more ways you can communicate, we can keep up with this in an agile way either ourselves or with others who do this really well. So that's one of the theories. >> John: It's the marketing cloud plus it's broader Oracle suite-cloud suite. >> Steve: Beautiful, yes. It's the Oracle Cloud suite which includes Oracle CX. It also includes something that we call the Oracle Marketing App Cloud, which is this third party ecosystem. Because we're Oracle, we have a lot of customers, we have hundreds of companies that say, "Yeah, I would love my stuff to get in the hands of Oracle's customer base." The way I'm going to do it is I'm going to make a turn key integration. So that when they buy it from me, they can just request turn it on for Oracle, and it will, again as you said, "Don't make it weeks, make it minutes." It's minutes when the integration is already done. >> So software business Larry Ellison, founder of Oracle, still around one of the legends of the industry. Larry, if you're watching, you're still hanging around, taking names and kicking butt. Started off with shrink wrap software, then download on the internet, then you SAS, now you have SAS plus coming on. Which is smarter apps, smarter customer experience. So it begs the question on this next journey for customers, it's going to be really cloud all the way right. >> Steve: Yeah. >> So you're going to have to have this cloud component, you guys have a strategy there. Isn't Oracle moving away from, a smarter CX's data by the way, so Oracle's no longer a software company. You're a data company. >> Steve: M-hmm. >> Data is eating the world. Yeah no, software is eating the world, which Marc Andreessen wrote, now data is eating software. >> Steve: Uh-huh. How do you view that because some people say that software is never going to go away. But data is becoming much more of a front burner issue, vis-a-vis just like software was in software development. >> Steve: Sure, well I think some of this is just semantics as where software leave off and data begin. But a great example is the thing you talked about earlier, Adaptive Intelligence, where part of the power of this, what makes it different from what you can get elsewhere is that it comes with data included that is different data then is available from anyone else. And so, in fact, you know Oracle, when it made the big investment in the data cloud, people I think thought, "What are you doing, you just set up a vending machine for data? Is that what Oracle's going to be about?". And the answer there is no. I mean there is a good data business, but where it gets profound is when that strategic asset, all that data, all of the sudden enables new products like Adaptive Intelligence Offers to be fundamentally different than came before. >> John: It's an enabling technology. >> It can be absolutely, yes. >> John: Data is enabling. It brings to life apps and then offers new apps opportunities. That's what you said. >> Steve: Yes, and marking data very much is the fuel for the marketing engine. So you get richer fuel, you will get richer results. >> John: Alright, so we're getting down the weeds here, so bottom line, let's up level it up for the person that's watching and saying, "Hey, I got the message." >> Steve: Yeah. >> "Data is super important." >> Steve: Yeah. Bottom line, what is happening this week here in Modern CX that's important for the person that has to scratch their head, isn't inside the ropes in the industry? What's going off of their world? What should they be thinking about? How should they be planning their life moving forward in this new modern era of marketing? >> Steve: Yeah, so I think the big things announced this week definitely involves things like a new level of being able to do recommendations of offers and products using the Oracle Data Cloud. It involves conversational user interfaces such as the new chat bot's platform. And in the case of the marketing cloud, we've got a series of products that have come out that allow a greater degree of self service for both marketers as well as their stakeholders like sales people. So how does the sales person get the output of a marketing automation system? Sales people aren't necessarily known for assiduously going and looking for marketing assets. We've got some new things around, for example, content portals. We've got some new things around features that let people be more autonomous in getting their own work done rather than needing to go to some other system somewhere. >> John: Awesome. And the customer we had on this morning from Royal Philips, really was the head of CRM. So customer relationship management is not a new concept obviously, you guys have a big chunk of business there in the software side of it. But customer relationship management, that is marketing cloud now >> Steve: M-Hmm. >> and customer experiences. So you're starting to see that really go to the next level. What's the big take away for the person at home? Watching in their businesses as they go on their journeys. How should they be thinking about the customer relationship? >> Peter: Well, that's a big question. I think for a CRM oriented person who maybe started out in something like database marketing, where you had a list, and you somehow try to learn about people on the list, that world has gotten a lot bigger now. Where it used to be you learned about someone once they became your customer. These days, though various advertising technologies, you can learn about people you don't yet know, but you know of their existence. And you can start creating that relationship, hoping to draw them in maybe with ads to the point where they do self identify. So there's this whole front end to CRM that is showing up in ad tech with things like DMP's-Data Management Platforms, that solve the same problem, but do it in these whole other realms. >> John: And new channels. Adaptive Intelligence, I think, is an awesome position. Love that Adaptive Intelligence Apps, Apps being stood up on a platform. You guys have it. >> Steve: Yes. >> Where's the next level? Take us through, you run the product rode map. You know, share with the folks, what's on the road maps? What should they be expecting more from Oracle, where are you going to be doubling down, where's the work you filling the white spaces, and what should they expect of the next year? >> Steve: Sure. Well, at least in my key note this morning which again focused on marketing, we had four themes. One was intelligence, we already talked about that one quite a bit. Another is mobile, and that's not just mobile like chat bots, but it's actually mobilizing the experience of our customers' customers for the marketing. So example of this, we have a product called the Eloqua which lots of email can be sent. They have a new email designer that inherently builds responsively designed emails. So those are the ones you open up on your phone that look good, you open on the desktop they look good. That's how it all should work. Unfortunately, it's not for a lot of folks today. So just having that be part of the tooling, big deal. So that's the mobile part. We talked a bit about self service, that's theme number three. And the fourth theme is actually a bit of a sleeper, it's about taking another pass through some of the core technologies we already have that people use the most, and being able to find... >> John: Like what? >> Maximizer a test and targeting a personalization tool. Used by a lot of our customers, the fundamental thing you do inside maximizer is you live in a campaign designer. And it allows you to adjust various parts of a webpage for testing, targeting, and personalization. We've got an entirely new way to do that that's based on an analysis of what do people do when they use this and how can we shave off some number of clicks per session? How can we make it less error prone when people are deciding what to do? How can we make more performant? You talked about 150 milliseconds, how about if we just eliminate the save button altogether so that anything you do automatically saves in the background. You don't have to reload anything. That kind of stuff comes from watching people use the product and realizing, wow, they're in there all day long. If we can just make all of those things a little better, over a course of a year, that's huge. >> John: So basically, we're looking at the core jewels and the platform and making it simpler, reducing the steps to do things, just end up being more efficient in some of the proven tools. >> Steve: Exactly, and in the speech this morning, we said, "Hey look, we don't talk about this enough." >> John: That's not a sleeper that's good. >> The tendency is to come out here, and we all want to talk about everything that's new like AI and the people who are our actual customers. They're seeing pearls rain from the sky when all of the sudden something that took them 12 minutes to do at a time now takes eight, and they do that 2000 times a year. >> John: I always say it's a great business model by, you know, making things simpler, reducing the time to do things and steps >> Steve: Yeah >> and making things intuitive and easy to use. Which it sounds like you're doing, but now let's talk about the glamor side of it. Because I think AI and chat bots speaks to the future, what other glam do you see happening out there right now? Obviously, AI is hot right now. >> Steve: Yeah, I think the other glam at this point is a little more speculative at least as it applies to my area with marketing like Augmented Reality, Virtual Reality, and so on. There's also internet of things. Certainly that world is changing. There are more devices of various types that can talk to the network. We've got a customer, you may be familiar with it, a sleep number bed company, the ones that have the bed where you can pick your number. That's actually a connected device, and so there's some interesting things that can be done there with careful discretion about what data you're collecting. But when we started thinking about, incidentally, so many things that in the past used to be a inert objects are generating data. That can feed into various applications whether it's marketing or other areas. >> John: And more data's coming in, it's just not stopping. >> And it's great for Oracle because if Oracle is good at anything it's good at dealing with very large scale data. That's been the business for a long time, and the trend won't change. There will continue to be larger and larger scale data. >> Steve, final point, what's the theme of the show this year besides the messaging that you have? What do you seeing that's happening here that's evolving? What's the top story here? >> Steve: Well, you know we did a customer advisory board meeting here for the marketing cloud, and I think if I were going to ask the customers what their top story is, I think their top story is they themselves want to continue becoming more customer centric. Everybody talks about it. Well of course, we should be that way. But so many companies grew up doing things like focusing on the thing we're selling, they're being offer centric. And so organizationally changing, using the technologies like we have so they can create the kinds of experiences, we call them the connected customer experience that they themselves want to have. It's a bit challenge, and so their permissions are to say transform ourselves to be from the tech down to the organizational incentives, truly customer centric. >> John: Steve Krauss, Group Vice President of Product Management Oracle Marketing Cloud. Great to see you. Thanks for sharing the insight of the real road map and all the exciting stuff happening here and your clean up this morning, congratulations. I'm John Furrier and Peter Burris. More live coverage coming up here at the Mandalay Bay in Las Vegas with the Cube after this short break. (live upbeat music)