>>From the Bellagio hotel in Las Vegas. It's the cube covering UI path forward for brought to you by UI path. >>Good morning. Welcome to the cubes coverage of UI path forward for day two. Live from the Bellagio in Las Vegas. I'm Lisa Martin with Dave Velante, Dave. We had a great action packed day yesterday. We're going to have another action packed day today. We've got the CEO coming on. We've got customers coming on, but there's been a lot in the news last 24 hours. Facebook, what are your thoughts? >>Yeah, so wall street journal today, headline Facebook hearing fuels call for rain in on big tech. All right, everybody's going after big tech. Uh, for those of you who missed it, 60 minutes had a, uh, an interview with the whistleblower. Her name is, uh, Francis Haugen. She's very credible, just a little background. I'll give you my take. I mean, she was hired to help set Facebook straight and protect privacy of individuals, of children. And I really feel like, again, she, she didn't come across as, as bitter or antagonistic, but, but I feel as though she feels betrayed, right, I think she was hired to do a job. They lured her in to say, Hey, this is again, just my take to say, Hey, we want your help in earnest to protect the privacy of our users, our citizens, et cetera. And I think she feels betrayed because she's now saying, listen, this is not cool. >>You hired us to do a job. We in earnest, went in and tried to solve this problem. And you guys kind of ignored it and you put profit ahead of safety. And I think that is the fundamental crux of this. Now she made a number of really good points in her hearing yesterday and I'll, and we'll try to summarize, I mean, there's a lot of putting advertising revenue ahead of children's safety and, and, and others. The examples they're using are during the 2020 election, they shut down any sort of negative conversations. They would be really proactive about that, but after the election, they turned it back on and you know, we all know what happened on January 6th. So there's sort of, you know, the senators are trying that night. Um, the second thing is she talked about Facebook as a wall garden, and she made the point yesterday at the congressional hearings that Google actually, you can data scientists, anybody can go download all the data that Google has on you. >>You and I can do that. Right? There's that website that we've gone to and you look at all the data Google has and you kind of freak out. Yeah, you can't do that with Facebook, right? It's all hidden. So it's kind of this big black box. I will say this it's interesting. The calls for breaking up big tech, Bernie Sanders tweeted something out yesterday said that, uh, mark Zuckerberg was worth, I don't know. I think 9 billion in 2007 or eight or nine, whatever it was. And he's worth 122 billion today, which of course is mostly tied up in Facebook stock, but still he's got incredible wealth. And then Bernie went on his red it's time to break up big tech. It's time to get people to pay their fair share, et cetera. I'm intrigued that the senators don't have as much vigilance around other industries, whether it's big pharma, food companies addicting children to sugar and the like, but that doesn't let Facebook. >>No, it doesn't, but, but you ha you bring up a good point. You and I were chatting about this yesterday. What the whistleblower is identifying is scary. It's dangerous. And the vast majority, I think of its users, don't understand it. They're not aware of it. Um, and why is big tech being maybe singled out and use as an example here, when, to your point, you know, the addiction to sugar and other things are, uh, have very serious implications. Why is big tech being singled out here as the poster child for what's going wrong? >>Well, and they're comparing it to big tobacco, which is the last thing you want to be compared to as big tobacco. But the, but the, but the comparison is, is valid in that her claim, the whistleblower's claim was that Facebook had data and research that it knew, it knows it's hurting, you know, you know, young people. And so what did it do? It created, you know, Instagram for kids, uh, or it had 600,000. She had another really interesting comment or maybe one of the senators did. Facebook said, look, we scan our records and you know, kids lie. And we, uh, we kicked 600,000 kids off the network recently who were underaged. And the point was made if you have 600,000 people on your network that are underage, you have to go kill. That's a problem. Right? So now the flip side of this, again, trying to be balanced is Facebook shut down Donald Trump and his nonsense, uh, and basically took him off the platform. >>They kind of thwarted all the hunter Biden stuff, right. So, you know, they did do some, they did. It's not like they didn't take any actions. Uh, and now they're up, you know, in front of the senators getting hammered. But I think the Zuckerberg brings a lot of this on himself because he put out an Instagram he's on his yacht, he's drinking, he's having fun. It's like he doesn't care. And he, you know, who knows, he probably doesn't. She also made the point that he owns an inordinate percentage and controls an inordinate percentage of the stock, I think 52% or 53%. So he can kind of do what he wants. And I guess, you know, coming back to public policy, there's a lot of narrative of, I get the billionaires and I get that, you know, the Mo I'm all for billionaires paying more taxes. >>But if you look at the tax policies that's coming out of the house of representatives, it really doesn't hit the billionaires the way billionaires can. We kind of know the way that they protect their wealth is they don't sell and they take out low interest loans that aren't taxed. And so if you look at the tax policies that are coming out, they're really not going after the billionaires. It's a lot of rhetoric. I like to deal in facts. And so I think, I think there's, there's a lot of disingenuous discourse going on right now at the same time, you know, Facebook, they gotta, they gotta figure it out. They have to really do a better job and become more transparent, or they are going to get broken up. And I think that's a big risk to the, to their franchise and maybe Zuckerberg doesn't care. Maybe he just wants to give it a, give it to the government, say, Hey, are you guys are on? It >>Happens. What do you think would happen with Amazon, Google, apple, some of the other big giants. >>That's a really good question. And I think if you look at the history of the us government, in terms of ant anti monopolistic practices, it spent decade plus going after IBM, you know, at the end of the day and at the same thing with Microsoft at the end of the day, and those are pretty big, you know, high profiles. And then you look at, at T and T the breakup of at T and T if you take IBM, IBM and Microsoft, they were slowed down by the U S government. No question I've in particular had his hands shackled, but it was ultimately their own mistakes that caused their problems. IBM misunderstood. The PC market. It gave its monopoly to Intel and Microsoft, Microsoft for its part. You know, it was hugging windows. They tried to do the windows phone to try to jam windows into everything. >>And then, you know, open source came and, you know, the world woke up and said, oh, there's this internet that's built on Linux. You know, that kind of moderated by at T and T was broken up. And then they were the baby bells, and then they all got absorbed. And now you have, you know, all this big, giant telcos and cable companies. So the history of the U S government in terms of adjudicating monopolistic behavior has not been great at the same time. You know, if companies are breaking the law, they have to be held accountable. I think in the case of Amazon and Google and apple, they, a lot of lawyers and they'll fight it. You look at what China's doing. They just cut right to the chase and they say, don't go to the, they don't litigate. They just say, this is what we're doing. >>Big tech, you can't do a, B and C. We're going to fund a bunch of small startups to go compete. So that's an interesting model. I was talking to John Chambers about this and he said, you know, he was flat out that the Western way is the right way. And I believe in, you know, democracy and so forth. But I think if, to answer your question, I think they'll, they'll slow it down in courts. And I think at some point somebody's going to figure out a way to disrupt these big companies. They always do, you know, >>You're right. They always do >>Right. I mean, you know, the other thing John Chambers points out is that he used to be at 1 28, working for Wang. There is no guarantee that the past is prologue that because you succeeded in the past, you're going to succeed in the future. So, so that's kind of the Facebook break up big tech. I'd like to see a little bit more discussion around, you know, things like food companies and the, like >>You bring up a great point about that, that they're equally harmful in different ways. And yet they're not getting the visibility that a Facebook is getting. And maybe that's because of the number of users that it has worldwide and how many people depend on it for communication, especially in the last 18 months when it was one of the few channels we had to connect and engage >>Well. And, and the whistleblower's point, Facebook puts out this marketing narrative that, Hey, look at all this good we're doing in reality. They're all about the, the, the advertising profits. But you know, I'm not sure what laws they're breaking. They're a public company. They're, they're, they have a responsibility to shareholders. So that's, you know, to be continued. The other big news is, and the headline is banks challenge, apple pay over fees for transactions, right? In 2014, when apple came up with apple pay, all the banks lined up, oh, they had FOMO. They didn't want to miss out on this. So they signed up. Now. They don't like the fact that they have to pay apple fees. They don't like the fact that apple introduced its own credit card. They don't like the fact that they have to pay fees on monthly recurring charges on your, you know, your iTunes. >>And so we talked about this and we talk about it a lot on the cube is that, that in, in, in, in his book, seeing digital David, Michelle, or the author talked about Silicon valley broadly defined. So he's including Seattle, Microsoft, but more so Amazon, et cetera, has a dual disruption agenda. They're not only trying to disrupt horizontally the technology industry, but they're also disrupting industry. We talked about this yesterday, apple and finances. The example here, Amazon, who was a bookseller got into cloud and is in grocery and is doing content. And you're seeing these a large companies, traverse industry value chains, which have historically been very insulated right from that type of competition. And it's all because of digital and data. So it's a very, pretty fascinating trends going on. >>Well, from a financial services perspective, we've been seeing the unbundling of the banks for a while. You know, the big guys with B of A's, those folks are clearly concerned about the smaller, well, I'll say the smaller FinTech disruptors for one, but, but the non FinTech folks, the apples of the world, for example, who aren't in that industry who are now to your point, disrupting horizontally and now going after individual specific industries, ultimately I think as consumers we want, whatever is going to make our lives easier. Um, do you ever, ever, I always kind of scratch my nose when somebody doesn't take apple pay, I'm like, you don't take apple pay so easy. It's so easy to make this easy for me. >>Yeah. Yeah. So it's, it's going to be really interesting to see how this plays out. I, I do think, um, you know, it begs the question when will banks or Willbanks lose control of the payment systems. They seem to be doing that already with, with alternative forms of payment, uh, whether it's PayPal or Stripe or apple pay. And then crypto is, uh, with, with, with decentralized finance is a whole nother topic of disruption and innovation, >>Right? Well, these big legacy institutions, these organizations, and we've spoke with some of them yesterday, we're going to be speaking with some of them today. They need to be able to be agile, to transform. They have to have the right culture in order to do that. That's the big one. They have to be willing. I think an open to partner with the broader ecosystem to unlock more opportunities. If they want to be competitive and retain the trust of the clients that they've had for so long. >>I think every industry has a digital disruption scenario. We used to always use the, don't get Uber prized example Uber's coming on today, right? And, and there isn't an industry, whether it's manufacturing or retail or healthcare or, or government that isn't going to get disrupted by digital. And I think the unique piece of this is it's it's data, data, putting data at the core. That's what the big internet giants have done. That's what we're hearing. All these incumbents try to do is to put data. We heard this from Coca-Cola yesterday, we're putting data at the core of our company and what we're enabling through automation and other activities, uh, digital, you know, a company. And so, you know, can these, can these giants, these hundred plus year old giants compete? I think they can because they don't have to invent AI. They can work with companies like UI path and embed AI into their business and focused on, on what they do best. Now, of course, Google and Amazon and Facebook and Microsoft there may be going to have the best AI in the world. But I think ultimately all these companies are on a giant collision course, but the market is so huge that I think there's a lot of, >>There's a tremendous amount of opportunity. I think one of the things that was exciting about talking to one, the female CIO of Coca-Cola yesterday, a hundred plus old organization, and she came in with a very transformative, very different mindset. So when you see these, I always appreciate when I say legacy institutions like Coca-Cola or Merck who was on yesterday, blue cross blue shield who's on today, embracing change, cultural change going. We can't do things the way we used to do, because there are competitors in that review mirror who are smaller, they're more nimble, they're faster. They're going to be, they're going to take our customers away from us. We have to deliver this exceptional customer and employee experience. And Coca-Cola is a great example of one that really came in with CA brought in a disruptor in order to align digital with the CEO's thoughts and processes and organization. These are >>Highly capable companies. We heard from the head of finance at, at applied materials today. He was also coming on. I was quite, I mean, this is a applied materials is really strong company. They're talking about a 20 plus billion dollar company with $120 billion market cap. They supply semiconductor equipment and they're a critical component of the semiconductor supply chain. And we all know what's going on in semiconductors today with a huge shortage. So they're a really important company, but I was impressed with, uh, their finance leaders vision on how they're transforming the company. And it was not like, you know, 10 years out, these were not like aspirational goals. This is like 20, 19, 20, 22. Right. And, and really taking costs out of the business, driving new innovation. And, and it's, it was it's, it's refreshing to me Lisa, to see CFOs, you know, typically just bottom line finance focused on these industry transformations. Now, of course, at the end of the day, it's all about the bottom line, but they see technology as a way to get there. In fact, he put technology right in the middle of his stack. I want to ask him about that too. I actually want to challenge him a little bit on it because he had that big Hadoop elephant in the middle and this as an elephant in the room. And that picture, >>The strategy though, that applied materials had, it was very well thought out, but it was also to your point designed to create outcomes year upon year upon year. And I was looking at some of the notes. I took that in year one, alone, 274 automations in production. That's a lot, 150,000 in annual work hours automated 124 use cases they tackled in one year. >>So I want to, I want to poke at that a little bit too. And I, and I did yesterday with some guests. I feel like, well, let's see. So, um, I believe it was, uh, I forget what guests it was, but she said we don't put anything forward that doesn't hit the income statement. Do you remember that? Yes, it was Chevron because that was pushing her. I'm like, well, you're not firing people. Right. And we saw from IDC data today, only 13% of organizations are saying, or, or, or the organizations at 13% of the value was from reduction in force. And a lot of that was probably in plan anyway, and they just maybe accelerated it. So they're not getting rid of headcount, but they're counting hours saved. So that says to me, there's gotta be an normally or often CFOs say, well, it's that soft dollars because we're redeploying folks. But she said, no, it hits the income statement. So I don't, I want to push a little bit and see how they connect the dots, because if you're going to save hours, you're going to apply people to new work. And so either they're generating revenue or cutting costs somewhere. So, so there's another layer that I want to appeal to understand how that hits the income state. >>Let's talk about some of that IDC data. They announced a new white paper this morning sponsored by UI path. And I want to get your perspectives on some of the stats that they talked about. They were painting a positive picture, an optimistic picture. You know, we can't talk about automation without talking about the fear of job loss. They've been in a very optimistic picture for the actual gains over a few year period. What are your thoughts about that? Especially when we saw that stat 41% slowed hiring. >>Yeah. So, well, first of all, it's a sponsored study. So, you know, and of course the conferences, so it's going to be, be positive, but I will say this about IDC. IDC is a company I would put, you know, forest they're similar. They do sponsored research and they're credible. They don't, they, they have the answer to their audience, so they can't just out garbage. And so it has to be defensible. So I give them credit there that they won't just take whatever the vendor wants them to write and then write it. I've used to work there. And I, and I know the culture and there's a great deal of pride in being able to defend what you do. And if the answer doesn't come out, right, sorry, this is the answer. You know, you could pay a kill fee or I dunno how they handle it today. >>But, but, so my point is I think, and I know the people who did that study, many of them, and I think they're pretty credible. I, I thought by the way, you, to your 41% point. So the, the stat was 13% are gonna reduce head count, right? And then there were two in the middle and then 41% are gonna reduce or defer hiring in the future. And this to me, ties into the Erik Brynjolfsson and, and, and, uh, and, and McAfee work. Andy McAfee work from MIT who said, look, initially actually made back up. They said, look at machines, have always replaced humans. Historically this was in their book, the second machine age and what they said was, but for the first time in history, machines are replacing humans with cognitive functions. And this is sort of, we've never seen this before. It's okay. That's cool. >>And their, their research suggests that near term, this is going to be a negative economic impact, sorry, negative impact on jobs and salaries. And we've, we've generally seen this, the average salary, uh, up until recently has been flat in the United States for years and somewhere in the mid fifties. But longterm, their research shows that, and this is consistent. I think with IDC that it's going to help hiring, right? There's going to be a boost buddy, a net job creator. And there's a, there's a, there's a chasm you've got across, which is education training and skill skillsets, which Brynjolfsson and McAfee focused on things that humans can do that machines can't. And you have this long list and they revisited every year. Like they used to be robots. Couldn't walk upstairs. Well, you see robots upstairs all the time now, but it's empathy, it's creativity. It's things like that. >>Contact that humans are, are much better at than machines, uh, even, even negotiations. And, and so, so that's, those are skills. I don't know where you get those skills. Do you teach those and, you know, MBA class or, you know, there's these. So their point is there needs to be a new thought process around education, public policy, and the like, and, and look at it. You can't protect the past from the future, right? This is inevitable. And we've seen this in terms of economic activity around the world countries that try to protect, you know, a hundred percent employment and don't let competition, they tend to fall behind competitively. You know, the U S is, is not of that category. It's an open market. So I think this is inevitable. >>So a lot about upskilling yesterday, and the number of we talked with PWC about, for example, about what they're doing and a big focus on upscaling. And that was part of the IDC data that was shared this morning. For example, I'll share a stat. This was a survey of 518 people. 68% of upscaled workers had higher salaries than before. They also shared 57% of upskilled workers had higher roles and their enterprises then before. So some, again, two point it's a sponsored study, so it's going to be positive, but there, there was a lot of discussion of upskilling yesterday and the importance on that education, because to your point, we can't have one without the other. You can't give these people access to these tools and not educate them on how to use it and help them help themselves become more relevant to the organization. Get rid of the mundane tasks and be able to start focusing on more strategic business outcome, impacting processes. >>We talked yesterday about, um, I use the example of, of SAP. You, you couldn't have predicted SAP would have won the ERP wars in the early to mid 1990s, but if you could have figured out who was going to apply ERP to their businesses, you know what, you know, manufacturing companies and these global firms, you could have made a lot of money in the stock market by, by identifying those that were going to do that. And we used to say the same thing about big data, and the reason I'm bringing all this up is, you know, the conversations with PWC, Deloitte and others. This is a huge automation, a huge services opportunity. Now, I think the difference between this and the big data era, which is really driven by Hadoop is it was big data was so complicated and you had a lack of data scientists. >>So you had to hire these services firms to come in and fill those gaps. I think this is an enormous services opportunity with automation, but it's not because the software is hard to get to work. It's all around the organizational processes, rethinking those as people process technology, it's about the people in the process, whereas Hadoop and the big data era, it was all about the tech and they would celebrate, Hey, this stuff works great. There are very few companies really made it through that knothole to dominate as we've seen with the big internet giants. So you're seeing all these big services companies playing in this market because as I often say, they like to eat at the trough. I know it's kind of a pejorative, but it's true. So it's huge, huge market, but I'm more optimistic about the outcomes for a broader audience with automation than I was with, you know, big data slash Hadoop, because I think the software as much, as much more adoptable, easier to use, and you've got the cloud and it's just a whole different ball game. >>That's certainly what we heard yesterday from Chevron about the ease of use and that you should be able to see results and returns very quickly. And that's something too that UI path talks about. And a lot of their marketing materials, they have a 96, 90 7% retention rate. They've done a great job building their existing customers land and expand as we talked about yesterday, a great use case for that, but they've done so by making things easy, but hearing that articulated through the voice of their customers, fantastic validation. >>So, you know, the cube is like a little, it's like a interesting tip of the spirits, like a probe. And I will tell you when I, when we first started doing the cube and the early part of the last decade, there were three companies that stood out. It was Splunk service now and Tableau. And the reason they stood out is because they were able to get customers to talk about how great they were. And the light bulb went off for us. We were like, wow, these are three companies to watch. You know, I would tell all my wall street friends, Hey, watch these companies. Yeah. And now you see, you know, with Frank Slootman at snowflake, the war, the cat's out of the bag, everybody knows it's there. And they're expecting, you know, great things. The stock is so priced to perfection. You could argue, it's overpriced. >>The reason I'm bringing this up is in terms of customer loyalty and affinity and customer love. You're getting it here. Absolutely this ecosystem. And the reason I bring that up is because there's a lot of questions in the, in the event last night, it was walking around. I saw a couple of wall street guys who came up to me and said, Hey, I read your stuff. It was good. Let's, let's chat. And there's a lot of skepticism on, on wall street right now about this company. Right? And to me, that's, that's good news for you. Investors who want to do some research, because the words may be not out. You know, they, they, they gotta prove themselves here. And to me, the proof is in the customer and the lifetime value of that customer. So, you know, again, we don't give stock advice. We, we kind of give fundamental observations, but this stock, I think it's trading just about 50. >>Now. I don't think it's going to go to 30, unless the market just tanks. It could have some, you know, if that happens, okay, everything will go down. But I actually think, even though this is a richly priced stock, I think the future of this company is very bright. Obviously, if they continue to execute and we're going to hear from the CEO, right? People don't know Daniel, Denise, right? They're like, who is this guy? You know, he started this company and he's from Eastern Europe. And we know he's never have run a public company before, so they're not diving all in, you know? And so that to me is something that really pay attention to, >>And we can unpack that with him later today. And we've got some great customers on the program. You mentioned Uber's here. Spotify is here, applied materials. I feel like I'm announcing something on Saturday night. Live Uber's here. Spotify is here. All right, Dave, looking forward to a great action packed today. We're going to dig more into this and let's get going. Shall we let's do it. All right. For David Dante, I'm Lisa Martin. This is the cube live in Las Vegas. At the Bellagio. We are coming to you presenting UI path forward for come back right away. Our first guest comes up in just a second.

>> Announcer: Live from San Francisco, it's theCUBE. Covering Google Cloud Next '19. Brought to you by Google Cloud and its ecosystem partners. >> Hey welcome back everyone. It's theCUBE's live coverage here in San Francisco in Moscone South. We're on the ground floor here at Google Next, Google's Cloud conference. I'm chatting with Stu Miniman; Dave Vellante's also hosting. He's out there getting stories. Our next two guests: Dana Berg, Chief Operating Officer of SADA and Chris Lehman, Head of Engineering for SADA. Guys, welcome to theCUBE. Thanks for joining us. We're here on the ground floor. >> Thank you. >> Thank you. >> This is exciting. I feel like a movie star right here. >> It's game day here. All the tech athletes are out, Dave. If you look at the show, look at the demographics, hardcore developers, lot of IT, leaders also here, cloud architects, a lot of people trying to figure it out. We heard the keynote. Google is bringing a lot to the table. So what's new with you guys? You guys recently sold your Microsoft business, going all-in on Google. Talk about that relationship. >> We are. This is a brand new day for SADA. The energy around this place, where we are in the market, and where we are with the expanded attendance here has actually reaffirmed our business strategy to go all-in with Google. I don't know if you are aware but SADA has been around for almost 20 years. Historically have always been leaders in bringing people to the cloud even before there was really much of a cloud. We were a you know a pilot partner within Microsoft and Google and had a great thriving Microsoft business but an even bigger Google business and you know, we looked at the tea leaves, we looked at where we wanted to be, and aligned with a company that shared our mission and values and it was a clear choice. We chose Google. We made a very specific and deliberate act to sell off our Microsoft business so that we could take the horsepower of all of our engineering staff and apply them to Google. >> It's interesting you know, we've been around for 10 years doing theCUBE, go to a lot of events, I mean Dave Vellante, Stu, and I have been around for 30 years covering the IT, you guys 20 years. You guys have seen many ways of innovation come and go. Now you're going all in on Google. What is it about this wave right now that made that decision? What do you guys see? You're seeing something early here. Expand on that. Give us some color commentary because there's a wave here, right? A lot of people try. It's a combination of things. I mean, we saw the client-server thing. We saw that movement. Also the internet, we saw the web, mobile, now it's cloud. What's the big wave? What are you guys riding? >> I think there's a couple of things and I think it's unique to, philosophically, how we think of our real special relationship with Google. There is a momentum, right, and not to quote like a Bernie Sanders, but, seems like there's a revolution going on here, right, and, you know, I think, you know, what we see when we look around and we hear conversations and even with our customers, the way that we're all winning together is because we're winning the hearts and minds of the people inside of our customer base that are actually the ones responsible for inventing and the ones responsible for building, so when we're in board rooms and we're selling and along with Google, we're talking with developers, we're talking with designers, we're talking about people that are actually driving the vision for these business applications. We're not always talking to the CIO down like some of our other competitors seems to have only been able to sell that way. We're talking about the people responsible for not only constructing it but maintaining it. So that revolution is there. These folks are bubbling that up and they're seeing the real value inside of Google and what is that value from our point of view, and why did we make such a bold statement just to stick with Google is, and we saw Thomas today echo this, I think there's very few cloud providers that are bold enough to actually lead with the fact that we want our customers to have full choice whether you're using GCP or not. We want to build, architect, and manufacture a product offering that allows you to keep your stuff in your data centers, move your stuff to AWS. That power of choice is really not like what we've never heard anywhere else. >> And then on top of that, too, you got an application renaissance, right? A whole new way of coding, infrastructure that's programmable and going away, I mean if you think about what that does to the existing infrastructures, they can now mix and match and rearchitect everything from scratch and accelerate the app movement. >> Well, that's absolutely true, and a lot of that has to do with the fact that there are managed services in the cloud which makes it dramatically easier to build applications of course, so there's no question about that. Some of the offerings on GCP are particularly attractive for our clients, particularly the managed Kubernetes service. That's where we're seeing perhaps most of the interest that we're seeing, like that's a very common theme. Also the ML stack is an area that our customers are very interested in. >> Chris, can you bring us in some of those customer environments, you know, one of the things you hear, you know, most customers, it's, "I've got my application portfolio." Modernizing that is pretty challenging. There are some things that are kind of easy, some things that take a lot more work, but, you know, migration is one of those things that makes most people that have been in IT a while cringe because there's always the devil in the details and something goes wrong once you've got 95 percent done. What are you seeing, what's working, what's not working, how's the role of data changing, and all of that? >> I think migrations are usually more complex than they at first appear and so even with best intentions thinking that customers can just move their workloads seamlessly to the cloud have actually in practice been more challenging. So some of the areas that we find challenges are around data migration, especially in the context of zero downtime. That's always more difficult than with applications. So that's definitely an area that were we're spending a lot of time working with our customers to deliver. >> Just to add to that, I have to keep reminding myself of the name, but obviously the Anthos announcement today sounds incredibly intriguing as a lower barrier of effort to actually migrate. Our customers have been trying to really absorb and take a hold of Kubernetes and can it containerize methods for a long time. Some are having a harder time doing it than others. I think Anthos promises to make that endeavor much, much easier, and I think about as we leave here this week and we go back and we reeducate our own engineering teams as well as our customers, I think we might see some highly accelerated project timelines go from here down to here. >> And the demo that Jennifer Lynn did was pretty impressive. I mean, running inside of containers, whether it's VMs, and then having service patches on the horizon coming to the table is going to change the implementation delivery piece too in a massive way. I mean, you've got-- >> Oh, absolutely. >> Code, build, run on the cloud side, but this this kind of changes the equation on your end. Can you guys share the insight into that equation, because Google's clearly posturing to be partner friendly. You guys are a big partner now. You're going all-in. This is an interesting dynamic because you can focus on solving customers' problems. All this heavy lifting kind of goes away. Talk about the impact to you as a partner when you look at Anthem, Anthem migrate in particular, some of these migration challenges with containers and Kubernetes seems like it's a perfect storm right now to kind of jump in and do more, faster. >> Yeah. >> Well, it's certainly very interesting. Well, we'll want to take a really hard look at it. I mean, a very, very cool announcement. Moving to containers in the source prior to the migration obviously solves a lot of challenges so for that reason, it's definitely a move forward. >> And I think... You know, we always talk about, in this industry, the acceleration for consumption, but really that's a poor way of saying... Probably what we should be saying is an acceleration of value. So we're constantly in this battle to try and deliver value to our customers faster. That's what our customers want, right, and in essence we see Anthos as being potentially a big game-changer there so that, you know, our CIOs that we're talking with can show to their various stakeholders that they are making very good proactive moves into the cloud at lower-caught barriers of entry, right? >> Yeah. So, you brought up the the ML piece of Google. Wondering if you could help share a little bit on that. When I think back two years ago, you know, data was really at the core of what a lot of what Google was talking about. I was actually surprised not to hear a lot of it on the main stage this morning, but you know, AI, ML, what are you doing, what are your customers doing, does Google have leadership in the space? >> Google certainly has leadership in the space. Our customers, I think, relatively universally, think that their ML stack is the strongest among the competitors, but I think in practice what we're finding is there's a lot more urgency as far as just literal data migrations off of their data centers into the cloud, and I foresee a lot more AI and ML work as more move in. >> John: Yeah. >> So you might, in our booth here, not to give a plug, but we've got a booth down at the end with a full-fledged racing car, just to talk about the art of the possible with AI and ML. Our engineering teams in the race teams that we sponsor, they're there, the driver's there, you should go down and talk to 'em. We've taken all the race telemetry data for the last six months and all of his races and practices, we've aggregated that data all into GCP, run AI and ML algorithms on it to provide his racing team some very predictive ways that he can get better and that team can get better, and so I'd invite just anybody that wants to go there and take a look at, even if you're in banking, or if you're in retail, or if you're in health care, take a look at some of how that was done, because it's a very, very powerful way, to answer your question, head and shoulders down why Google is actually accelerating and exceeding in AI. >> And one of the things that Thomas Kurian showed onstage was the recent Hack-a-Thon they had with the college students with the NCAA data of the game that just finished, and throughout that experience, this is a core theme of GCP, and now Anthos, which is getting data in and using it easily, and scaling at a scale level that seems unprecedented. So this team seems to be the application... The new differentiator. >> I think it is. I think that announcement, obviously the big three takeaways for us, certainly, scale, unmatched. Certainly speed and migration with Anthos. If I could highlight one other, I was incredibly pleased with, well I've been pleased since Thomas' arrival in general by bringing an enterprise class strategy within sight of Google that I think are going to respond well to our enterprise customers, and part of enterprise class is also making sure that their partner community has amazing enhancement programs that really incentivize those partners that are actually in the full managed services space from cradle to grave, lifetime customer value. So we're very excited about even further announcements this week that no doubt have been inspired by Thomas to try and really take advantage of their partner community that are in the business of cradle to grave support of customers. >> You feel comfortable with Thomas. He's taught a lot of customers, he knows the enterprise. >> We've had an opportunity to meet with him. We've had some shared customers that have had a great privilege of getting to know him and support us and collectively them. >> John: He knows the partner equation pretty well, and the enterprise. >> Without a doubt. >> It's about partnering, because there's a monetization, the shared go to markets together. Talk about the importance of that and what's it like to be a partner. >> Yeah, without a doubt, again, you know, his embrace of the open-source community that you saw today, really taking advantage of highlighting partner value is wonderful, but I think Thomas, above anything else, knows that Google needs to scale. They need to scale, and then they have to have breadth and they have to have depth, and, you know, to get to where Google needs to be over the course of the next two, three years, it's wonderful, it's refreshing, it's 100% accurate that Google knows and Thomas knows that the path to do that is via partners; partners that share in Google's vision, that are 100% aligned to the same things that Google is aligned with, and I think that's why I'm so thankful to be at SADA, large in part, because all of the things that we care about in terms of our customer success as well as Google's success, we all share that, so it's a great trifecta. >> It's a ground-floor opportunity. Congratulations. Guys, talk about your business. What's going on? You've got some new offices I heard you opened up. What's going on in the state of the business? Obviously the Google focus you're excited about obviously. >> Yeah, yeah, yeah. >> There, at the beginning, I called Google the dark horse. I think with the tech that they have and the renewed focus on the enterprise, building on what Diane Greene had put foundationally, Thomas is meeting with hundreds of customers. He's so busy he doesn't have time to come on theCUBE, but he'll come on soon, but he's focused. This is now a great opportunity. Talk about your business. What's the state of the union there? Give an update. >> I can take that one if you don't mind. >> Go ahead. >> You can add poetic color if you want. (laughing) Yeah, so as I said, we're entering a new journey for SADA in light of renewed focus, renewed conviction to Google. We are investing more than we ever have into the common belief that Google is the one to beat in terms of momentum, drive, and ultimately winning the hearts and the minds of who we've talked about. So, over the last four months, we've opened five new offices in New York, Austin, Chicago, Denver. Our headquarters is in Los Angeles, and just recently, we just opened a brand new office in Toronto, so we can really help our Canadian customers really see the the same type of white-glove treatment we provide those customers in the States and so that's why, well, I wasn't earlier, but I'm walking around with a Canadian flag. We're very excited about the presence that we're going to have in Canada >> Its "Toronno." I always blow and I call it "Toron-to," being the American that I am. It's "Toronno." >> Dana: Glad you said it right. Good. >> Now, on the engineering side, so you guys are on the front lines as also a sales, development, there's also customer relationship, engineering side, so I'm sure you guys are hiring. There's some hard problems to solve out there. Can you guys share some color commentary on the type of solutions you guys are doing? What's the heavy? What solutions are you solving, problems that you're solving for customers, what are the key things that you got going on? >> Yeah. >> Well, a lot of cloud migrations, a lot of web and application development, custom development, and data pipelines. I'd say those are really the three key focus areas that we're working on at the moment. >> One other thing, too: so... we believe that we want 100% customer retention, always, and that goes above and beyond an implementation. So the other big area of investments that we're making is in a whole revamped technical account management team, so for those of our GCP customers that have had the privilege, we've had the privilege of working with and for, we are building out a team of individuals that will, well beyond the project, stay with that customer, work with them weekly, monthly, quarterly, and try to always find ways to expand and move workloads into the cloud. We think that provides stickiness. We think that provides ultimate value to try and help our customers identify where else they can take full advantage of the cloud, and it's a fairly new program, and large in part I just want to thank Thomas and the partner team for new programs that are coming out to help us so that we can actually reinvest in things that go you know throughout the lifecycle of the customer. So, very, very good stuff. >> Dana, Chris, thanks for coming on. Appreciate it. We'll check out your booth, the car's there, with the data. Bring that data exhaust to the table, pun intended. >> Yes. >> Analyzing with Google Cloud, Anthos. Good commentary. Thanks for sharing. >> Really appreciate being on board. Thanks for having us. >> Alright, great. CUBE coverage here live on the floor in San Francisco. Google Next 2019. This is Google's cloud conference. Customers are here. A lot of developers. More action, live on the day one of three days of coverage after this short break. Stay with us. (theCUBE Theme)

>> Narrator: Live from Nice, France. Its the Cube, covering .Next Conference 2017, Europe. Brought to you by Nutanix. >> Welcome back, I'm Stu Miniman and you're watching, Silicon Angle Medias production of the Cube. World Wide leader in live tech coverage. Happy to welcome to the program, first time guest, Anja Manuel, who's a Co-founder and partner at, Rice Hadley Gates. Thank you so much for joining us. >> Anja: Thank you for having me, Stu. >> So, I've attended all five of the Nutanix conferences. And definitely, when we get a speaker at the Key Note from R.H.G. is one of the highlights. So, Condoleezza Rice, everybody's like, how does Nutanix get Condie Rice to come in? Robert Gates, we've actually had the pleasure of having him on the Cube. We've had Stephen Hadley on in D.C. also. And a little bit different conversation than some of the, kind of, in the weeds technical discussion. So, Anja for our audience that's not familiar, give us a little bit about your background, what you led you in to be one of the founders. >> Absolutely. Well, I've done a bit of everything. I've been an investment banker, a lawyer doing international cases. I have worked at the State Department for Condie Rice, mostly on Asia issues. And, then at the very end of 2008, Condie, Steve and I founded this firm. And we feel very lucky to be working with each other and some of the great, young and already, some already large, some fast growing tech companies in the Valley. And helping them expand around the world. And it's been a particular pleasure to work with Dheeraj and his team at Nutanix. When we started with them, they were a couple hundred people. And now look around, you've got 2,000 people at this conference. So, we're very proud of them. >> Yeah, absolutely. Great growth for Nutanix, their eco-system's blossoming. One of the jokes I always have here on the Cube is, when I talk to any end user customers, its like, well your industry's not changing that much, right? And of course, it doesn't matter what industry you're in. Digital disruption is more than just what it's affecting. Globalization is just a fact of life. It brings, especially for a lot our audiences, USA based, we reach a global audience. But when we come to some of these international events, it really puts a point on some of the things going on globally. What're you talking to, when you speak to the CIOs and you're talking to Nutanix customers and partners, what are some of the big challenges? What are the things that they need to be looking at? >> Sure, globalization is happening and of course, it's more pronounced in tech. This is the first industry that really shows no sectoral boundaries. The big platform companies can basically go into any industry sector and no geographic boundaries. It's very easy to expand internationally. So, what I'm going to be talking about today on the main stage is just globalization and its backlash. As you know we've seen, after decades of evermore, open boarders, increase trade, easier immigration, and the last year or two, you've seen really the West in sort of, what I would call a defensive crouch. And there are real reasons for it in the US where you and I both live. If you are a white male, who has a high school education or less, you live on average, 10 years less than all of the very highly educated people in this room. And there is a real issue of people being left behind. And you can see that impact politically. You see it in the US, with Trump, and I would also argue on the left with Bernie Sanders. You see it with Brexit. You see it in the impact that Marine Le Pen and Aten a Tiva for Deutschland and others have had on European politics. And I would say that impact is strong, even though those right wing parties in Europe didn't win, they're setting the agenda much more than you would've seen 10 years ago. So it's something for the tech companies to consider as they keep expanding. >> Yeah, it's a trade. On the one hand, you said that there's no boundaries for tech, but one of the things a lot of the tech community, we look at, is some of those fragments that are happening. So, like, the internet. Is the internet a global internet or does China have their own internet? Will Germany just create their own internet? And how much is governance, and having data something we look and Nutanix looks at a lot, require that you have it within those boarders, and the boundaries between government and corporations now? There's certain countries where governments are heavily involved and certain ones where it almost feels that they're fighting. In the US, it's, is the government actually helping business or stopping business? >> That's right. >> Is something that we ask a lot. So I'm curious, your thoughts. >> Well, right now, we still have one global interoperable internet and that has been a huge boon to economies all around the world. Not just the American one. And it's this little known organization called ICANN, which was started in the 1990s. It has a convoluted thing called the multi stake holder model, where they say, we're going to get people, the technologists who are working on this and GOs and governments and everyone talking about how do we actually manage this thing and make sure that it stays interoperable and global. And I'm quite happy that that system of internet governance still stands and that it hasn't been taken over by individual governments or by the United Nations. You talked about data localization. It's a real issue. We see this with a lot of the tech companies that we work with out in California. More and more. You see the Russians doing it. You see the Chinese doing it. And I worry that if that trend really continues, you will have less interaction, for example, between Chinese and Americans, which is something we so dramatically need, now that our governments seem to be more and more at odds with each other. It's more important than ever that the companies and the people are talking to each other. >> Yeah, I actually, we interviewed the former president of ICANN, Fadi Chehade, a couple of years ago and he was raising red flags as to concern about would the US step back. Cause really, it put that in place, and had a very strong connection there. So would the US, kind of, advocate from some of this or how would that be involved? So you're happy with the way ICANN's going and kind of the global discussion? >> I was very happy to see that the United States allowed it to be privatized. Which is something that'd been planned for a long time. So we're quite happy that it happened the way it did. And that even the new Trump administration didn't stop that from going through, yeah. >> All right, you've written a lot about India, some of the others. How do companies, even in the global market place? Do they have to specialize in what they're doing? Certain regionalizations, that they need to do or how do they, global company, interact in some of the more emerging markets? >> Yeah, they do have to specialize. And I think sometimes, in Silicon Valley, we're so confident in our own abilities that sometimes we think, well if it's invented here, naturally the world will love it. That worked for Facebook. It worked for Google. It doesn't necessarily work for every technology company. And so, yes, of course you have to tailor it to the local market. And there are some innovations coming out of China and India that are, frankly, really impressive and we should adopt some of them. And China, the web payments infrastructure is much more advanced than what you see in the US. Lots of people do everything through their WeChat account. They pay, they interact, they talk. It's not just texting. It's a whole echo system in a way that we haven't really seen as much in the US and Europe. So we can learn from them as well. >> Yeah so another interesting topic is, Silicon Valley prides itself on being the center of innovation. What're you seeing globally, are there certain areas or pockets? Can there be other Silicon Valleys for different technologies or is Silicon Valley going to be the Silicon Valley for all of these waves? >> Well, we are the biggest Silicon Valley. And it is a very unique eco-system. I'm lucky enough to teach at Stanford and to work with some of these tech companies. The idea that a university and a venture capital eco-system and entrepreneurs all work together in something that isn't directed by the state is very very important. And you do see these springing up everywhere. You have it in Bangalore. You have it in Boston, where you're from. You have it outside of London. You're seeing a little bit in Berlin happening. You're seeing it in China in a much bigger way than I think people appreciate. I'll give you one story. I was at the Chinese World Internet Forums, sort of their vision of the world internet, a year and a half ago. And I get back to my hotel at midnight, ready to just go to bed, and there are a thousand people in the lobby. All with their phones out. And I'm wondering, who's coming? Is it Xi Xin Ping? Is it some rock star? In walks Jack Ma and the CEO of Xiaomi phones. And a huge shout goes up as if it's the Beatles. So if you're a young millennial Chinese person, you want to be Jack Ma. So innovation fever has captured them as well. >> Yeah, what about companies being global versus being based in a country? What advice do you give to how they balance that headquarters versus being a global company? >> Yeah, this is one of the ironies and all the protectionist talk you see from governments because I think the cat is out of the bag. So to speak. Every company we work with, even the very young ones, they're global from the very beginning. Even if you think your headquarters are in New York or in California, you're supply chain most likely, incorporates 10 different countries. Your customers are somewhere else. Maybe you don't advertise it because you try to be an all American company or all European company, but there's actually no such thing as a domestic company anymore. >> I want to give you the final word. Nutanix, you give some advice. I'm sure there's things we can't talk about. But how are they doing as being a global company? What are some of the things a company like Nutanix that they'll face as they expand globally? >> Yeah, Nutanix is very impressive. First of all, if you look at Dheeraj and Sudheesh and their senior management team, what I love about working with them, is that they are good technically, they're great at the people to people skills and they are instantly global just like we just talked about. If you look at their management team, they're from all over the world. And they very quickly got people out into all the different regions. I think they try to be sensitive to how their product would be used in different places around the world. So I'm quite optimistic about what they're going to be able to achieve. >> Okay, I do have one last question for you. I was just thinking about that globalization. One of the concerns we have these days is getting enough women in tech and with your global viewpoint, just women in the workforce is still something that we're challenged with in many parts of the globe. What's your take? >> Yeah, strangely, women in the workforce are doing better in China, for example, than in the US, Europe, India, other places. I love living and working in Silicon Valley. We really have a problem. And we need to do more. And it's on the stem side. It's on the investor side. You've seen all of the news coming out about how it's so much harder for a woman entrepreneurs to get funded. There's no reason. There's actually a recent study done saying that women who get funded, their companies do, on average, far better than companies founded by men. So clearly there's some problem going on here and I'm happy that Silicon Valley's finally paying attention. >> Well Anju Manuel, really appreciate you joining us for this segment. I'm Stu Miniman and we will be back with more coverage here from Nutanix .Next in Nice, France. You're watching the Cube.