>>Yeah, yeah, yeah! >>Everybody, welcome back to the special digital presentation where we are tracking the transformation of Oracle consulting. And really, it's rebirth. Aaron Millstone is back. He's the senior vice president of consulting, joined by Jeff Davis. Who's ah, principal at Deloitte. He's the chief commercial officer for Oracle at Deloitte. Gentlemen, good to see you. Welcome. >>Thank you very much. >>Thanks for having me back. >>You're welcome, guys. Jeff, let me start with you. I've got the obvious question is why would Deloitte World Class? Yes, I well known why you partnering with Oracle Consultant? >>We're really It was a perfect match. The fact that we were looking to grow our oracle practice and really new and innovative ways around Oracle's cloud technology. Uh, in discussions with the oil, coal and specifically with Aaron Millstone, we discovered that we really had complementary capabilities and very little overlapping capabilities. So it was natural for us to find a way to work together. And specifically we found that there were strategic assets we had and there were tactical assets that Oracle had the mixture of two made a really unique and compelling value proposition for the customer base >>and Aaron. I mean, we've talked about the shift from from staff augmentation to much more strategic partnering with your customers. But you're not trying to compete with the big size of there's, there's it sounds like there's not a lot of overlap there. Where do you pick up and leave off for Deloitte? You describe that? >>Sure. I mean, we're You're right, right? We're not. We're not ever going to try to compete with the Deloitte. It's not our that's not in our DNA. It's not our intention. We exist to drive Oracle's to drive success for our customers on Oracle's cloud. That's that's our mantra. That's what we focus in on. So for us, right, we're deep technologists. We're We understand our cloud. We understand how cloud works within our various product suites that we migrate to the cloud. We understand how to manage it. We understand how to build paths extensions to it, but we don't have big program management. We don't understand non oracle components that well, you know, we've got some expertise here and there. But if we need to expand, you know, on Oracle solution to coexist with a Microsoft azure solution, we can't do that without going to a partner and as we bigger and the transformation that they're gonna have to change management and big, big transformation journey capabilities. Like again, That's not That's not expertise. >>Yeah, so Jeff will come back to you. So we see a lot of these deals. Sometimes we call them Barney deals. I love you. You love me. There's a press release, and that's it. But so one of the things we look for okay is their teeth behind this. You guys have come out with what you call elevate. What is elevate? How did it get started? And I have some follow up questions. >>Yeah, well, elevate really got started when Aaron and I started to look at the assets that each of the firms possessed on the Deloitte side, as Aaron suggested, We have deep capabilities and a broad range of technologies, some of them competing technologies with Oracle at the same time. Uh, we didn't have a great deal of depth in Oracle's technical products, Oracle Cloud Infrastructure and Oracle Autonomous. Our bench was not as big as Aaron's, and Aaron also had access to your local development at a level that we didn't have access to. So we really found ourselves in a situation where we could put those two capabilities together and we could offer something to our clients and a broad range of customers. Oracle customers in the field. They had access to all of the Lloyds capabilities, which includes great project management, great change management, real skill around the strategic aspects of cloud migration. And Aaron had tools on had resource is trained and developed around the late historical technology. They'd always be a step ahead of any s I So together we felt this was really a differentiation for marketplace, right, Erin? >>Yeah, absolutely right. And if I don't think I would add to it is that if you if you look at Deloitte approaches client conversation from, ah, business value perspective, you know, the work consulting teams tends to focus conversation. It tends to approach conversations with a focus on How do you want to do the technology? Um, both are helpful. But, you know, quite frankly, as we get into the bigger information in place, we need to lead with the Lloyd model of how do we How do we drive your business value and then begin from a technologist perspective, that's when we show up. So it really has been a very logical, very complimentary match. >>So you and I have talked about, you know, data centers and building data centers and investing. It's not just it's just not a good use of capital today. There's so many other things that organizations can do. You guys have identified data center. Consolidation is, is I'll call it Ah, you know, an initiative that you're seeing customers. I wonder if you could talk about that a little bit. Is that kind of a starting point for conversations? >>Yeah, well, it's definitely starting point, right? So we call it a referred to his infrastructure led transformation, Um, and appetite. The appetite for that is certainly high. We were seeing an increased focus on um, you know what customers need to do to take not just a workload here and there. But how do they get out of the data center business full? So it's a foregone conclusion, right? Like you just said, it's not. It's not really a question of should we invest in another data center? Where should we invest in up to in their data centers? The question has changed to Let's move the cloud. How do we get there and let's move in a big way? And that's why we're seeing that dialogue across all of our customers. And we find even for Oracle, it's been a learning for us, right? We started with on Oracle workload conversation, which is, Do you want to move this work? Work loads of oracle? But you want to move that Oracle workload works. And really, what we're finding is it's a wholesale transformation of everything in the data center, too. One or more clouds, right again, often often it's a multi cloud strategy, and that's okay. And we, you know, we were having more bigger conversations. The thing that has been really interesting is these conversations have evolved, and especially as we work with our partners at Deloitte, has been that, you know, we think that the combination of our our cloud technology, the consulting services that Oracle Consulting and Deloitte can bring to bear and then Oracle's ability to finance the whole deal makes the very compelling conversations for customers because you can walk in to a CEO to a CFO and say, Look on day one, you can actually have a lower spend that what you have today in your data center and get a cop transformation underway at the same time. >>So I want to come back to that business case and member Jeff, before we do, I want to ask you. So we heard Erin, you know, talking about the catalyst. You know, that sort of infrastructure transformation. But you're in the outcomes business, right in both. The bush has been deployed especially so So what is that North Star that you're seeing with customers? You know, it's not about the tech. They're not starting there. Um, that will often tell you that's kind of the easy part. But then we see tech coming and going, and it's the It's the business process. That's the people issues lining everybody. So what are you seeing is so the outcomes. What's that conversation like with your customers? >>Yeah, well, really, this conversation starts with business leadership. Um, if you think about it, there's a strong value proposition in infrastructure renewal. It's not at the top of mind, but once you start to understand the value that's created, it does raise two ah, high priority. Now, our experiences that virtually every board is looking for the C suite toe have a cloud strategy of some kind. People recognize the value of cloud in, uh in many of our clients and many of Oracle's customers, so the boards are pressing the C suite for a cloud strategy. Among those things are the value that cloud brings, including virtually unlimited scalability. Is is being tested real time now with a lot of current events. So when you see the scalability when you know you need a cloud strategy of some kind, your business advisors impressing you, the value proposition starts well, how do we get there? And what does it take to be successful? Our perspective is that it's it's fair to believe that the cloud will reduce infrastructure. Spend significantly. It's a great opportunity for consolidation. It also adds a layer of security, resiliency and scalability that you simply couldn't do on your own. So it addresses a lot of business needs Aziz well as a number of technical needs that need to be addressed. >>So let's talk a little bit more about that business cases that generally what you're seeing, where it starts is let's take some costs right out, and then Aaron, you and I talked about maybe investing that in the future of it. But is that really the starting point for the vast majority of customers? Let's let's let's cut some costs right away and get a payback immediately. >>So I'd like to share our perspective, which is, you know, nobody spends money for the sake of spending money on technology. It's got to have meaningful business value. So the conversation starts with really renewal and a path to the cloud. But there's a natural opportunity for savings in consolidation that we take advantage. We're not simply shifting from your hardware to the cloud we're actually modernizing, which will result in significant savings. But it also gives the business something that they don't have today at a level of security and scalability and ability to run a modern technology much faster, much better. Ah, and much more scalable. >>So a lot of people might again I go back to these deals. I think of this as a sales play. One of the things we look for is there. Is there any other integration? Are you doing co engineering in this case, maybe not, co engineering But are there tools that you're developing that you're taking to market, that you're actually leveraging? Eric, can you talk about that a little bit? Convinces. That's not just the sales play. >>Yeah, sure. And Jeff alluded to some of this earlier, too, right? So we definitely each had our respective tool. Angry Deloitte's investments in tools, what was built out of data that we have seen used quite a few times now we've been investing in something we call the Oracle soar. You know, our tools are, as you'd imagine, heavily Oracle focus. It's about moving Oracle technology to Oracle Cloud out of data and some of the tools that Deloitte's invested in our focus more comprehensively on holistically, looking at everything in a data center and everything that's across data centers and start to develop a set of facts around this stuff. But in both cases, we actually looked at these things and we said, You know what? If you combine these together, we get a very comprehensive view of what exactly it is, but we're looking at with a customer so we can tell everything from the types of traffic we see in the network to the specific versions of stuff you start to identify whether there's risk associated with having things, not aster on a supporter and get a very conference of you that's based on facts. And so, you know, we took those tools. We combined them together so that we can go into a customer and give a complete end and view from both on Oracle and Delight Perspective. And quite frankly, it doesn't matter whether the Lloyd leads or whether Oracle leads. We've developed these tools together. We're going to market together. And we've even got you know, the templates you'd expect consultancies tohave, right? So when you look at business cases, we've got joint business case templates that we've created together and that we're using actively with customers and therefore then we're refining them, improving them each time we do it. But, you know, we're at a point now where our tools are combined, templates are combined, and we even at this, you know, we're even Jeff in our poll earlier yesterday actually even got a joint Ah, war room that's constantly engaging with different account teams and making sure that we structurally approach things in a consistent way so that we're driving business value and using the tools appropriately. >>You know, I think, um, migration risk is probably one of the most significant factors in a business case. I mean, many don't understand it, but those in I t. And certainly hopefully in the executive office do you understand it? It sounds like that's a part of your tooling, anyway is designed to mitigate that's significant migration risk. When you talk about that a little bit, >>yeah, so we, you know, we approach migration from, you know, we start with the conversation. I'm almost always some type of log of what? The list of applications, what versions of things running they've been maintained by some might department somewhere, right? Or the collective? It's in varying degrees of accuracy is what we find. We don't rely on that. We go in and our our tools, our combined tooling across oracle, Deloitte interrogate the systems. We come back with actual information from the actual systems themselves. And then we started the plan. And so the funny thing is, with the migration, you know, probably 80% of the effort. 90% of the effort is in the planning stages and making sure that we understand exactly what we're moving exactly. When again, we're not. We're not dealing with the edge applications. Typically, we're dealing with the mission critical applications that are supporting the heart of a supply chain or a finance operation. And you can't. You just can't afford the down time that maybe you could afford on something that might be a consumer facing or a little less mission. Critical. So, yeah, we start finding very early and interrogate aggressively with actual data. >>Jeff, can you give us a sense as to how far you're into this elevate journey? May be thinking about a couple of customers either specifically or generically gonna where you're at with them. How far along? Maybe even some examples that you feel are representative. >>Sure. Um, you know, the the relationship has been probably about six Ah, close to seven months of maturity. In that time, we've had an opportunity to work on several key clients at scale. Uh, we've worked together in collaboration with one of the nation's largest retailers in the grocery business. We've worked collaboratively in aerospace and defense and also in the hospitality industry. In these cases, what we're finding and one is each one is in the various stage of maturity. One is done, one is in midstream on one is at the early stages and current economic conditions or driving a huge pipeline. Right now, I think our challenge right now is making sure that we identify those clients that can best take a value, take advantage of our services and our joint offering to deal with that pipeline. Right now, what we're finding is that the savings are at least as we projected. In some cases, we're finding even more. What people say they have and what people say they do isn't necessarily what you find when you get in there. But almost every case we're finding that there's unused equipment, unused capacity that they currently have redundancy, low utilization of their current assets. We can go a long way and streamlining that. Plus, I can't emphasize enough that ah, these days security is a major concern and we're adding a layer of security that they could never achieve themselves with soft. >>How do you guys on how the customers wanna approach the transaction? Is it a Bixby is a T and M. Is it a situation where you participate in some of the some of the savings of the game. How does the pricing work? >>So we have Go >>ahead. Um, I'll start off by saying each deal is really custom built around what a customer really needs, what they're trying to get out of it right now. As an example, Op X is very important. So we're engineering deals in a way that helps customers deal with their financial challenges, especially around op Ex. There are other structures that we can put in place. We have the backing of Oracle Finance, so we can be very innovative on deals they could be. When value was attained. They could be milestone based. There's just, uh, I think, a wide variety I don't want to say unlimited, but a wide variety of different options that we can offer our clients in order to be able to deal with whatever financial challenge or opportunity that may be looking at >>perfect, perfect. And you want >>to add to that >>and everything looking at other than you know, the there are. There are always things that are discovered during a personal project, and so, you know, we we also we do factor and things that allow some flexibility. Right? So even if we have a fixed price deal will include a bucket of ours to deal with, you know, unanticipated changes or even innovation. It doesn't have to be, You know, contingency could be Hey, we want to go out and spend and invest some money on artificial intelligence machine learning analytics over in this space since we've already moved these applications. All right, so we're approaching it again from a very flexible standpoint, and we're just point right. We can we can custom craft. Ah, deal to match what? The clients. Best business outcome. Okay. >>Yeah, that makes sense. That client might see some adjacent opportunity that they want to pursue, and they want that to be covered in the agreement I'm gonna end. Um, if you start with you, Aaron and then Jeff go to you. How? What do you guys see? A success? What does success look like? You know, when you were, you know, just less than a year in when you're 234 let's say five years and you look back, What does success look like? >>So, to me, successful success is gonna look like we've gotten a number of these big transformation deals in play. It's in motion, naturally between our organizations, not necessarily driven entirely by Jeff and I going out and driving the organization behave the right way. It's more in our DNA. But more importantly, I think we've gone into We've gone beyond the conversation of Let's Move workloads. We've gone into conversations off. Let's really talk about how to reimagine your business on top of Oracle's cloud and have an ongoing dialogue that looks at that transformation. Once we hit that 0.345 years from now, right, that will be a wild success, Jeff. >>But really, it's been around for 135 years. This is our birthday, uh, this year and in that time, what we've learned is there's no substitute for impact and value added to our clients. In our perspective, what this would success looks like his client success find success means improved scalability of their operations, uh, securing their technology and their data at a substantially lower cost, so that they can focus on what their core businesses and focus less on technology. That success to deploy >>right guys, thanks so much. Great session We're not only witnessing the rebirth of Oracle Consulting, but there's clearly a transformation going on. And it's cultural. Gentlemen, congratulations on your partnership. And thanks so much for coming on the Cube. >>Thank you so much >>for having us. >>You're welcome. Alright, Keep right there, everybody. We're back with our next guest covering Oracle Consulting North America. This is Dave Vellante with the Cube. Thanks for watching. >>Yeah, Yeah, yeah, yeah, yeah, >>yeah.

>> Announcer: Live from San Francisco it's TheCUBE covering Samsung Developer Conference 2017. Brought to you by Samsung. (digital music) >> Hey welcome back and we're live here in San Francisco this is TheCUBE's exclusive coverage Samsung Developer Conference #SDC2017, I'm John Furrier co-founder of SiliconANGLE Media Coast My next guest is Ken Yeoung tech reporter here inside TheCUBE. I've known Ken for almost 10 years now plus been in the Silicon Valley beat scene covering technology, communities, and all the cutting edge tech but also some of the old established companies. Great to see you. >> Likewise, thanks for having me. >> So tech reporter, let's have a little reporter session here because reporting here at Samsung, to me, is my first developer conference with Samsung. I stopped going to the Apple World Developer Conference when it became too much of a circus around, you know, close to a couple of years before Steve Jobs died. >> Right. >> Now this whole scene well we will have to talk to Steve Gall when we get down there but here, my first one, my reports an awakening I get the TV thing but I'm like IoT that's my world. >> Ken: Oh really? >> I want to see more IoT >> Ken: Yeah. >> So it's good to see Samsung coming into the cloud and owning that. So, that's exciting for me. What do you see as a report that you could file? >> You know, so it's funny because I actually did write a post this morning after watching the keynote yesterday. While I was at VentureBeat a few months ago I reported on Bixby's launch when it came out with the Galaxy S8 and when I heard about what that was it was kind of interesting. That was one of the biggest selling points for me to switch over from my iPhone. And when I tried it out it was interesting. I was kind of wondering how it would stand up against Google Assistant because both of them are installed on the same device. But now as you see with Bixby 2.0 and now with the SmartThings you start to see Samsung's vision. Right now it's on a mobile, it's just very piecemeal. But now when you tackle it on with the TVs, with the fridges, monitors, ovens and everything like that it becomes your entire home. It becomes your Jarvis. You don't actually have to spend 150 bucks or 200 bucks on an Alexa-enabled device or Google Home that most people may not be totally familiar with. But if you have a TV you're familiar with it. >> Obviously you mentioned Jarvis. That's reference to the old sitcom and when Mark Zuckerberg tried his Jarvis project which was, you know, wire his home from scratch. Although a science project, you talk about real utility. I mean so we're getting down to the consumerization so let's take that to the next level. >> Ken: Right. >> If you look at the trends in Silicon Valley it's certainly in the tech industry block, chain and ICOs are really hot. Mission point offerings. That's based on utility right? So, utility-based ICOs, so communities using gamification. Game apps, utility. Samsung, SmartThings. Using their intelligence to not just be the next Amazon. >> Right >> The commerce cloud company, they're just trying to be a better Samsung. >> Ken: Exactly. >> Which they've had some problems in the past and we've heard from analysts here Patrick Morgan was on, pointed out... Illustrated the point. They're a stovepipe company. And with Bixby 2.0 they're like breaking down the silos. We had the execs on here saying that's their goal. >> Ken: Exactly. Yeah if you look on here everything has been siloed. You look at a lot of tech companies now and you don't get to see their grand vision. Everyone has this proto-program when they start these companies and when they expand then you start to see everything come together. Like for example, whether it's Square, whether it's Apple, whether it's Google or Facebook, right? And Samsung, a storied history, right, they've been around for ages with a lot of great technology and they've got their hands in different parts. But from a consumer standpoint you're like likelihood of you having a Samsung device in your home is probably pretty good and so why not just expand that leverage that technology. Right now tech is all about AI. You start to see a lot of the AI stars get acquired or heavily funded and heavily invested. >> Really The Cube is AI, we're AI machine right here. Right here is the bot, analyst report. People are AI watching. But I mean what the hell is AI? AI is machine learning, using software, >> Data collection. >> Nailed it. >> And personalization. And you look at I interviewed a Samsung executive at CAS last year this January, and he was telling me about the three parts. It has to be personal, it has to be contextual and it has to be conversational in terms of AI. What you saw yesterday during the keynote and what executives and the companies have been repeatedly saying is that's what Bixby is. And you could kind of say that's similar to what Google has with Google Assistant you can see that with Alexa but it's still very... Those technologies are very silent. >> What were those three things again? Personal, >> Personable, contextual, and conversational. >> That is awesome, in fact, that connects with what Amy Joe Kim, CEO of ShuffleBrain. She took it from a different angle; she's building these game apps but she's becoming more of a product development. Because it's not just build a game like a Zynga game or you know, something on a mobile phone. She's bringing gaming systems. Her thesis was people are now part of the game. Now those are my words but, she's essentially saying the game system includes data from your friends. >> Right. >> The game might suck but my friends are still there. So there's still some social equity in there. You're bringing it over to the contextual personal, this is the new magic for app developers. Is this leading to AR? >> Oh absolutely. >> I mean we're talking about ... This is the convergence of the new formulas for successful app development. >> Right, I mean we were talking about earlier what is AI and I mentioned all about data and it's absolutely true. Your home is collecting so much data about you that it's going to offer that personal response. So you're talking about is this going to lead to AR? Absolutely, so whatever data it has about your home you might bring your phone out as you go shopping or whatnot. You might be out sight-seeing and have your camera out. And it might bring back some memories, right or might display a photo from your photo album or something. So there's a lot of interesting ties that could come into it and obviously Samsung's camera on their phones are one of the top ones on the market. So there's potential for it, yeah. >> Sorry Ken, I've got to ask you. So looking at the bigger picture now let's look outside of Samsung. We can look at some tell signs here Google on stage clearly not grand-standing but doing their thing. Android, you know, AR core, starting to see that Google DNA. Now they've got tensor flow and a lot of goodness happening in the cloud with Sam Ramji over there kicking ass at Google doing a great job. Okay, they're the big three, some people call it the big seven I call it the big three. It's Amazon, Microsoft, Google. Everyone else is fighting for four, five, six. Depending on who you want to talk to. But those are the three, what I call, native clouds. Ones that are going to be whole-saleing resource. Amazon is not Google, Amazon has no Android. They dropped their phones. Microsoft, Joe Belfiore said hey I'm done with phones they tapped out. So essentially Microsoft taps out of device. They've still got the Xbox. Amazon tapping out of phones. They've got commerce. They've got web service. They've got entertainment. This is going to be interesting. What's your take? >> Well interesting is an under-statement there. I mean, you look at what the ... Amazon, right now, is basically running the show when it comes to virtual assistant or voice-powered assistance. Alexa, Amazon launched a bunch of Alexa products recently and then soon after, I believe it was the last month, Google launches a whole bunch of Google home devices as well. But what's interesting is that both of those companies are targeting... Have a different approach to what Samsung is, right? Remember Samsung's with Bixby 2.0 is all about consolidating the home, right? In my post I coined that it was basically their fight to unite the internet of things kind of thing. But, you know, when it comes to Alexa with Amazon and Google they're targeting not only the smaller integrations with maybe like August or SmartLocks or thermostats and whatnot but they're also going after retailers and businesses. So how many skills can you have on Alexa? How many, what are they called, actions can you have on Google Home? They're going after businesses. >> Well this is the edge of the network so the reason why, again coming back full-circle, I was very critical on day one yesterday. I was kind of like, data IoT that's our wheelhouse in TheCUBE. Not a lot of messaging around that because I don't think Samsung is ready yet and nor should they be given their evolution. But in Amazon's world >> I think they're ... The way they played it yesterday was pretty good a little humble, like they didn't set that expectation like oh my god this is going to >> They didn't dismiss it but they were basically not highlighting it right. >> Well they did enough. They did enough to entice you to tease it but like, look, they have a long way to go to kind of unite it. SmartThings has been around for a while so they've been kind of building it behind the scenes. Now this is like hey now we're going to slap on AI. It's similar to ... >> What do you hear from developers? I've been hearing some chirping here about AI it's got to be standardized and not sure. >> Oh, absolutely. I think a lot of developers will probably want to see hey if I'm going to build... If I want to leverage AI and kind of consolidate I want to be able to have it to maximize my input maximize my reach. Like I don't want to have to build one action here one service skill here. Whatever Samsung's going to call for Bixby. You know I want to make it that one thing. But Samsung's whole modernization that's going to be interesting in terms of your marketplace. How does that play out? You know, Amazon has recently started to monetize or start to incentivize, as it were, developers. And Google if they're not already doing that will probably has plenty of experience in doing that. With Android and now they can do that with Google. >> So I've got to ask you about Facebook. Facebook has been rumored to have a phone coming but I mean Facebook's >> Ken: They tried that once. >> They're Licking their wounds right now. I mean the love on Facebook is not high. Fake news, platform inconsistencies. >> Ken: Ad issues. >> Moves fast, breaks stuff. Zuck is hurting. It's hurting Zuck. Certainly the Russian stuff. I think, first of all, it's really not Facebook's fault. They never claimed to be some original content machine. They just got taken advantage of through bad arbitrage. >> It's gets it to some scale. >> People are not happy with Facebook right now so it's hard for them to choose a phone. >> Well, you're right. There are rumors that they were going to introduce the phone again after... We all remember Facebook Home which was, you know, we won't talk about that anymore. But I think there was talk about them doing a speaker some sort of video thing. I think they were calling it... I believe it's called Project Aloha. I believe Business ETC. and TechCrunch have reported on that extensively. That is going to compete with what Amazon's going. So everyone is going after Amazon, right. So I think don't discount Samsung on this part I think they are going to be I don't want to call them the dark horse but you know, people are kind of ignoring them right now. >> Well if Samsung actually aligned with Amazon that would be very because they'd have their foot in both camps. Google and Amazon. Just play Switzerland and win on both sides. >> Samsung, I think Samsung >> That might be a vital strategy. Kinesis if the customers wanted to do that. Google can provide some cloud for them, don't know how they feel about that. >> Yeah I mean Samsung will definitely be... I think has the appeal with their history they can go after the bigger retailers. The bigger manufacturers to leverage them because there's some stability as opposed to well I'm not going to give access to my data to Amazon you look at Amazon now as Amazon's one of the probably the de facto leader in that space. You see people teaming up with Google to compete against them. You know, there's a anti-Amazony type of alliance out there. >> Well I would say there's a jealousy factor. >> Ken: True, true. >> But a lot of the fud going out there... I saw Matt Asay's article in InfoWorld... And it was over the top basically saying that Amazon's not giving back an open source. I challenged Andy Jesse two years ago on that and Matt's behind the times. Matt you've got to get with the program you're a little bit hardcore pushed there. But I think he's echoing the fear of the community. Amazon's definitely doing open source first of all but the same thing goes for Ali Baba. I asked the founder of Ali Baba cloud last week when I was in China. You guys are taking open source what are you giving back and it was off the record comment and he was like, you know, they want to give back. So, just all kinds of political and or incumbent positions on open source, that to me is going to be the game-changer. Linux foundation, Hipatchi is growing, exponential growth in open source over the next five to ten years. Just in terms of lines of code shipped. >> Right. >> Linux foundation's shown those numbers and 10% of that code is going to be new. 90% of the code's going to be re-used and so forth. >> Ken: Oh absolutely. I mean you're going to need to have a lot of open source in order for this eco-system to really flourish. To build it on your own and build it proprietary it basically locks it down. Didn't Sony deal with that when they were doing, like, they're own memory cards for cameras and stuff and now their cameras are using SD cards now. So you're starting to see, I think, a lot of companies will need to be supportive of open source. In tech you start to see people boasting that, you know, we are doing this in open source. Or you know, Facebook constantly announces hey we are releasing this into open source. LinkedIn will do that. Any company that you talk to will... >> Except Apple. Apple does some open source. >> Apple does some open source, yeah. >> But they're a closed system and they are cool about it. They're up front it. Okay final question, bottom line, Samsung Developer Conference 2017 what should people know that didn't make it or are watching this, what should they know about what they missed and what Samsung's doing, what they need to do better. >> You know I think what really took the two-day conference is basically Bixby. You look at all the sessions; all about Bixby. SmartThings, sure they consolidated everything into the SmartThings cloud, great. But you know SmartThings has been around for a while and I'm interested to see how well they've been doing. I wish they released a little bit more numbers on those. But Bixby it was kind of an interesting 10 million users on them after three months launching in the US which is very is a pretty good number but they still have a bit of a ways to go and they're constantly making improvements which is a very good, good, good thing as well. >> Ken Yeoung, a friend of TheCUBE, tech reporter formerly with VentureBeat now onto his next thing what are you going to do? Take some time off? >> Take some time off, continue writing about what I see and who knows where that takes me. >> Yeah and it's good to get decompressed, you know, log off for a week or so. I went to China I was kind of off Facebook for a week. It felt great. >> Yeah. (laughs) >> No more political posts. One more Colin Kaepernick kneeling down during the national anthem or one more anti-Trump post I'm going to... It was just disaster and then the whole #MeToo thing hit and oh my god it was just so much hate. A lot of good things happening though in the world and it's good to see you writing out there. It's TheCUBE, I'm John Furrier, live in San Francisco, Samsung Developer Conference exclusive Cube coverage live here we'll be right back with more day two coverage of two days. We'll be right back.

From San Francisco, it's the CUBE covering Samsung Developer Conference 2017 brought to you by Samsung. Okay welcome back everyone. Live here in San Francisco at Moscone West is the CUBE's exclusive coverage of Samsung Developer Conference. I'm John Furrier, the co-founder of Silicon Angle as well as the co-host of the CUBE. Our next guest is from PostMates, Prerak Trivedi, who is the senior Android developer at PostMates. So, mobile apps, got to have the food, you guys do the food delivery in any city; you're all over the place. How many cities are you guys in? >> I think it's more than 50 markets now. >> Really big time. Welcome to the CUBE. >> Thank you. >> So Android obviously, IOS versus Android, it's been the was since day one, I remember when Google had the first phone, had the first prototype. I saw this coming, and everyone saw it. Apple was owning it, Android has moved so fast. >> Prerak: Oh, definitely. >> What are the hot, cool things about Android right now that you're excited about, and that people should know about? >> Prerak: Oh yeah, sure. So Android, with the recent release, I think the all-year release, they have a lot of good technologies built in, especially if you see three years back, when the KitKat rolled out, it completely transformed Android, right? So today, if you'll see like ... In my opinion, it's surpassed Apple's IOS platform-- >> John: Why's that? What does it have? >> So, it has a lot of cool innovations, especially as an advanced phone user, if you want to multitask on your phone, right? So the split screen tabs, basically, so you can split your apps. So while writing an email, you want to reference the original content, something like that, or you want to listen to YouTube while navigating, right? So I don't know if you guys know, YouTube goes off if you put it in the background. With this new functionality, you can do both things at the same time, so that's why-- >> Yeah, well YouTube's got a lot of problems, certainly on Safari as well, I mean we've had big problems with that, so this is an interesting point. So how about multi-threading apps, I mean, what's some of the innovations, what is Android doing that you like, and what are the things that they need to do differently? 'Cause Samsung's going to give me more goodness with the bigger phone. So-- >> I mean, you have all the real estate in the bigger phones, and as you see, like earlier, three years back, it was like a 5 inch phone, now you have 6 to 6.5 inch phones, and then you have so much real estate, you can do so many things that are on it, like you have a good in-app gaming experience, like you know-- >> So what do you do on the app for PostMates? What are you responsible for? >> I work on the merchant facing Android applications. We provide them tablets, and they give them a platform for other management. >> They're the merchants. Those are the people who make the food. >> Exactly, the restaurants, basically. We partner with them, and we give them a platform to do order management. >> What do they care about that that might be different from the consumer, they care more about who the driver is, do they care about work flow? Is there any design considerations, you think, differently about the merchant versus, say, the end user, or is it the same? >> Oh, yeah, sure. So, when it goes to a merchant, we have to focus on their part, right, like, they don't care about the buyer, or the-- >> John: Or other restaurants. (laughs) >> I mean, basically, when they're preparing food, so we have to focus, and make them focus on the order, right, so we give them the tablet as a kiosk application, where they are focused on only one thing, doing the order management. Then once they are market ready to get it out of there too. >> And they want to make sure their menu >> Exactly. >> is in the right place, >> so there's not a lot of bad orders. 'Cause the worst thing that could happen is, I didn't order that. >> Exactly, yeah. We give them the platform for that as well, everything in one tablet, so yeah. >> Alright, so what's the coolest thing you're working on right now? >> Right now, the coolest thing I would say is providing ... Actually, I can't say much about that-- >> John: Come on, say it! >> (laughs) Yeah, nah. I mean, yeah, so one of the cool-- >> What's the coolest code you pushed? >> So, yeah...actually it's coming out... >> Notifications? >> Okay, so you... >> Notifications is all like... >> Come on! Share something! >> Maybe I can share at the end... >> Okay, share a best practice. >> A best practice? >> Yeah, best practice in the Android, for the Android developers watching. >> Android developers, yeah. If you want to build a scalable Android application, I would say, architecture is very important. Just follow Google IO's architecture components. Getting architecture, is very important because if you want to reuse your UI or if you want to build on top of your existing code it would be very helpful to give a good platform, build on a good platform. Then adding features to it would be extremely... >> John: Alright, so what's your take of this conference here? I mean this is kind of like an awesome conference. They're bringing that Apple Worldwide Developer conference to Samsung. It's their 4th year. It'd kind of clean. I like the messaging, clean in a way, not like being cleaned, like spotless clean, but clean messaging. I love the big screens. They're tying the smart TV. They've given developers what looks like a seamless fabric into the world. Now if I'm a developer, I'm going to raise my hand and say "Okay. I want real APIs that are documented. I don't want to have to go dig around in all the APIs." >> Prerak: Right, right, right. >> I mean, what's your take on Samsung? What are they doing good? What are they doing bad? >> I think I was really blown away with the whole connected SmartThings platform. They focused a lot on the connecting of people and I think feel like in the coming years, connected home, like home automation would be one very important aspect of everyone's life. Let's say if I'm traveling, I want to control my home from somewhere. I was excited about the whole connected home, the SmartThings platform. And with Bixby coming in as well, you know you can control home with your voice. Which excites me the most. >> It would be interesting too, I can see, almost putting my developer hat on... your business would be amazing if >> Prerak: Well yeah! >> the restaurants could learn about my orders. He's a repeat customer, that they send orders back, I'm gluten free, or whatever I do... >> Exactly. >> And that's kind of the AI you want. >> Yeah! >> You want Bixy to learn. >> Yep. >> Bixby to learn. >> Exactly. Learn from the past orders and... >> You guys working on that? >> Somewhat. Something like that. >> (laughs) Cagey! He won't give me any secrets. Okay! Bottom line: Android looking good right now? >> Very good right now, yeah. Android and Samsung doing good things. >> Alright, so what do you say to your IOS Apple friends? When you're arm wrestling over IOS and Android? >> I think IOS is also in very good shape. I mean, IOS gives a very good platform for everyone as well. Like basically it goes hand in hand. The competition is always... >> John: Global is key, right? Global has a big reach. >> Exactly. Global is key. Competition is good in terms of healthy innovation. So I feel like IOS does some innovation, Android does something else. >> Do you guys sit in the same lunch room, or different parts of the building than your IOS team? Do you guys co-mingle? >> We sit next to each other. >> You do? Do you throw stuff at each other? Is there peace? >> We always have healthy competition. Healthy jokes. >> That's always good. It's always fun. It's a religion. Apple versus Android. It's interesting. We look at all of our analytics and our web properties and it's source information. You can almost see the interests. More open source folks love Android. More global, more API-centric thinking, web services, micro services, docker containers, people who are thinking about kubernetes and cloud native. They love Android! Do you agree? >> Prerak: I agree, yeah. >> I won't say the lazy guys do IOS, but there's big money in Apple, too. Some nuances are there. >> Yep. Which one do you think is having better market share for you guys? >> I think IOS is better than Android, personally. In terms of I use both. But I think there is a lot more work Android has got to do. But what attracts me to Android, certainly Samsung and others, is that there are other platforms out there that need to be open and everything will be in API. >> Prerak: Exactly. >> Micro services trend in the cloud with kubernetes and containers, specifically kubernetes. The orchestration of work loads are going to be instrumental and that's going to win the game. So I think Android is tipped for the future to be open and better than Apple. Apple's closed. But Apple's the fine jewelry of the ave. It's for push button, get what I need. Less sophisticated user. >> Sure, makes sense. >> I guess I'm over-simplifying, over-generalizing. That's how I see it. I think, most people, that's the way that they see it. How about you? What do you think? Obviously, you're biased. You're Android. >> Nah! As I told you earlier, I'm all for innovation so as long as it's done by IOS or Android, we need to keep moving forward and that's... >> John: Alright, so message to your friends at home, other Android developers that didn't make this event, what are they missing? What should they know? >> Everyone should definitely check out SmartThings. I think that's the really cool thing because the whole ecosystem, like having your light bulb and those things controlled by you remotely. Definitely check out SmartThings. I'm excited about AR Core, Samsung and Google partnership as well. That could be one interesting thing coming out as well. >> John: AR kits out there too, what do you think about that? >> Oh yeah. >> Security. >> The AR kit? >> Yeah. >> I haven't really... >> It's got more security, stuff's more IOT based IR Core, AR Core certainly the other big key. Alright, Preket, thank you so much for coming on the CUBE. Android developer here shared his take on the CUBE. Talking a little smack with IOS, of course Samsung's got the bigger phone here. In the show here, love the Note 8. Going to give it a good run against my iPhone. It's the CUBE coverage here at Samsung Developer Conference. More after this short break. (music)

>> Narrator: From San Francisco, it's theCUBE. Covering Samsung Developer Conference 2017. Brought to you by Samsung. (cheerful music) >> Welcome back everyone, live here from San Fransisco, Moscone West, at the Samsung Developer Conference, 2017 #SDC2017. I'm John Furrier, cohost of theCUBE, co-founder of Silicon Angle Media. My next guest, Hilary Karls, Senior Software Engineer at Uber. Great to have you on, welcome to theCUBE. >> Thank you for having me. >> Great to have a female engineer for Uber, pun intended. In all seriousness, thanks for coming out, appreciate it. >> Oh, my pleasure. >> Love talking tech here; Samsung obviously is huge with Android, that's what you do. What do you do with Uber? Let's get that out on the table. What's your role at Uber as an engineer? >> I'm an Android engineer, I work on UberEATS, which is our food delivery product. I've been at Uber for about three years now. So I've gotten to see UberEATS grow from just a tiny operations experiment, in LA, all the way up to being in over 120 cities and having its own app. >> Uber's got that great culture; trying new things. Love the iteration and our family uses the competitor, DoorDash, and I can't wait for UberEATS to come to Palo Alto. Is it in Palo Alto yet? >> Yeah, it is. >> I better try it out. Bring me a discount, can you send me a little discount code? >> Yeah, I can definitely send you a discount code. >> Okay good, got that out of the way. Got my free phone here from Samsung, as well. Thank you Samsung for the free phone. So let's talk about Samsung, obviously this is a developer's conference, you're on the front line, building the app on the Android side. >> Yeah >> Google was on stage yesterday so there it is, it's all out there, Samsung innovating with the handset. Great reviews on the new 8, great screen. This is an Apple-esque going on here. They're there, they got an iOT strategy, so they're bringing together lifestyle. >> Yeah. >> Okay, this is the new user experience. Okay, so has Android gone up? They got Bixby. >> They got Bixby, yeah. >> What's your experience with Android and developing in the environment? >> Well I've been developing on Android for about four or five years now, and it's wonderful. It's open, it enables you to actually go and build. Using more of the APIs and having more ability to connect into the phone itself. To be honest, I love it. It's one of those where you actually get to take your ideas and ship it out to a much broader range of people. >> Build things that are still very very beautiful and very usable to people. >> I was talking with Sam Ramji, who's heading up Cloud product management at Google, as well as, developer programs across Google. We were talking at VM World, and I know their conference is more Cloud oriented. >> Hmm Hmm >> Talking about the user experience and Google is hyper-focused on building open-sourced libraries. >> Hmm Hmm >> So Google is going to be contributing all this goodness, you got the tensor flow, you got all this innovations going on at Google, that's translating to the edge of the network, we're seeing that with Samsung. House devices are great, you got TVs that are known for that, but connecting the smart things is really their strategy. As a developer, how do you look at that landscape, because you're looking at now tons of open source goodness coming in, from Google and then the communities, Android leveling up on capability. >> Hmm hmm >> And with the open APIs, where do you try to navigate, how do you extract the signal from the noise in the community? >> Well basically, you look for whatever libraries are actually used very heavily by people that have latest commands. If it comes from something like from Google, or from other really strong reputed open source players, like Square, you'll end up seeing adoption of that a lot more. When you then go into internet of things, it becomes also like how you see community - the chicken and egg thing. Is this the best opportunity to go for right now? Is the community there, can I monetize this? How do you integrate it? >> Yeah, that's the big question, what's the integration? So let me ask you a question on the Android. In your opinion, Android, Apple IOS, leveled up, in terms of capability? >> Pretty much, yeah. >> What's the difference between IOS and the Android, if you could explain to someone that's knocking on the door of both developer communities. >> Well basically, I would go for who you were trying to go for first. Are you trying to target the U.S, and trying to target that higher end of consumer? Or are you trying to have a mass appeal? For a lot of small start-ups, I'd actually say go IOS first, it makes sense. But when you want to bring it to the global market that's when you really, really, really need Android. When you want to bring it to places around the world where there are more Androids than IOS, that's definitely something that just needs that core experience. >> Is there anything that Android has, because it seems to me that Android has a lot more unique opportunities to customize. >> Yes. >> I think that seems to appeal to developers. When I look at our data, we look at our audience, I'll see the general purpose, I call general purpose Apple because Apple is like fine jewelry. Everyone wants to have the high-end suits, and the high-end code, whatever. But, you don't have the flexibility because it's kind of a walled garden from Java's standpoint. You have the open garden with the Android, that community, their playing more in open source, you're seeing block chain, you're seeing all these kinds of cool communities. What are some of the things that Android offers in this open approach that you like? Is there things that jump out at you? >> Well a lot of it's the ability to get customized, to have better security controls, to have widgets on your home screen. From a developer's standpoint, to have more flexibility about when you ask for permissions vs. when you don't. Also, the richness of the notifications, we've had that for a while on Android. It's like you can do actions and have things animate and keep things like progress bars on there for quite some time and IOS is finally catching up to that. >> And you're happy with Android? >> Oh, very much so. >> Alright, so what's your take on this show at Samsung? What's your vibe on the show, feeling, they got some good stuff? When do they need to work on things? >> Ummm. >> Give me the positive review and then give me the critical what they can do better? >> Yeah, I think actually bringing everything together in a connected cloud makes a lot of sense. Developers don't really like fragmented APIs. If you have to actually go talk to five or six different services to get something done, that's a lot more effort and a lot more overhead of understanding of how to connect to each one. So bringing it all together in one place, especially if that can have the overhead of, handle the overhead, making it secure, and doing data storage, and all that stuff, makes a lot of sense. >> Awesome. Hilary, final question for ya, personal question, put you on the spot here. What's the coolest thing you've built this past couple of years? That you coded, could be anything. >> Ohhh. >> What's the coolest thing that you feel >> Personally? >> Yeah. >> Alright, so I guess it was a year and a half now, there was a team of four of us that build the new Android Eats app. Built it from scratch in about three and a half months It was a team that was magical and never happens in Silicon Valley. It was three women and a latino dude, and we shipped it. >> No way. >> Yeah. >> Three months? >> Yeah, three and a half months. Starting in September, shipping early. >> We're talking, on the drawing board, on the design, >> Yeah. Literally, start to end. First line of code in early September, end of code writing, like wrapping and shipping it up right before Christmas. >> That's the new format, three women and a latino dude. (laughing) Congratulations, anything you'd like to share with the audience about the development scene here, what you're thinking about, what you're passionate about? >> I really really loved the piece of using technology to build more human connection, better humanity. I thought that was amazing; that piece was really inspiring to me. >> This is the new lifestyle tech is coming. The consumerization, blending analog, and digital together. This is the new normal from fashion tech, to UberEats. Congratulations, thanks for coming on theCUBE, Hilary Karls, Senior Software Engineer at Uber. This is theCUBE's live coverage of Samsung Developer Conference 2017, in San Francisco. I'm John Furrier, we'll be back with more after this short break. (cheerful music)

>> Narrator: Live from San Francisco, it's TheCUBE. Covering Samsung Developer Conference 2017 brought to you by Samsung. (techno music) >> Hello there and welcome to the special exclusive coverage of Samsung Developer Conference 2017 here at the Moscone West in San Francisco, TheCUBE's coverage. I'm John Furrier, the co-founder of SiliconANGLE Media and co-host of TheCUBE. We're here with Leah Hunter: author, thought leader, covers technology design, women in tech, a variety of things author at O'Reilly's Safari Books, Fast Company, Forbes, among a lot of other things you've done. Welcome to TheCUBE conversation here at the Samsung Developer Conference. >> Thank you. I appreciate it. >> So, Samsung obviously is tied with Google. We saw Google onstage. The story we're seeing here emerging is the edge of the network of mobile devices. That means the humans involved. That means the consumer and the technology are intersecting. This has been a big part of TheCUBE coverage, we've been looking at this for a while. We were just in China talking with Alibaba Cloud and the design ethos culture. Not just creating user experience, that's been out for a while, but it's not about speeds and feeds anymore. It's about enabling human interactions, we're seeing some bad stuff now. The fake news, all that bad behavior, but now, all the data's out there. This is a big part of the developer design now coming forward. What's your thoughts? >> Well, there are two ways that I see that playing out really powerfully and that it can play out powerfully. One, ethnography and social science is getting embedded into what people are creating now and I'm thrilled to see that, because we're at the beginning of a lot of new technologies, augmented reality is one of my specializations, and we're, you know, sure, it's been around for 60 years if you're counting that way, 15 really deeply, but we're just at the cusp of it really taking hold for consumers. And there's this opportunity for anyone developing AR specifically to build social science ethnography user research into their team to create things in a way that is, like, start as you mean to go on. We can be wise about what our future world looks like. And the second thing is around art. You know, when I came here and I sat down, you mentioned at Alibaba there had just been a conversation about art. Well, in my latest book I interviewed someone who is an artist. His name is Alex Mayhew, he did a bunch of work with Peter Gabriel, he's a digital artist who just happened to slide into technology. And because his background is in something entirely different, he approaches AR in a really different way. He just did something for an art museum in Ontario that's really fantastic and worth checking out. You can actually look up the exhibit. It's called ReBlink. I'm going to write about it, but it's there now. >> Well, you've been covering technology many ways, now you're onto AR, and also you're seeing the front range if you will of these new concepts. But before you get it there, define what ethnography is for the folks that might not know what it is. (laughs) >> Thank you. I forget, okay, so I define ethnography as kind of like seeing the world like a five year old. There's an author that I love, her name is Keri Smith. She writes children's books. I found the first copy of this at the Teat Museum. It's called How to be a Life Artist. But her books are all about close observation, collecting everything, paying attention to the world, and finding everything interesting. Being curious in the same way you do when you're a five year old. Well, that's essentially what an ethnographer does in a business context. They observe, they interview people, they go around and collect data the same way that anyone who's on the data side is doing it with numbers. They do it with quotes and observation and pictures and then aggregate that into a story. >> That brings up a great conversation we're seeing here at the Samsung conference as a trend, a mega trend if you will, and that is the blending of analog and digital. Or, they say, physical to digital. Whatever they want to call it. Internet of things is the tech buzzword, >> (Leah) Yeah >> Internet of things being the senses on devices, or wearables, or things of that nature. That is defined as the edge of the network. This is the big wave that's forcing things to be different at the tech level. So this is where this blending comes in. It's the consumerization of tech. This is a big part of these consumer companies who have to kind of get their act together on cloud computing, and a lot of tech detail. So it's coming down from the edge, the infrastructures being redefined, or replatformed as we say. How do you view that, and what does your data show for you around how companies are reacting, what are the consumer expectations? >> Well, I'm going to speak to what I'm seeing in the world because I approach the world like an ethnographer. I wander around, and I collect interesting bits of things, kind of like a magpie. >> (John) Yeah. >> One thing that I saw this week, or I saw two things that were very interesting. I was just in New York, and I walked past an area where it was branded Amazon, but it kind of looked like a carnival. And I was like, what is going on here? And basically, Amazon is doing pop-ups, I believe they said in 18 cities, they just started in New York, but it's a pop-up where you can text in, and you can buy an item on Amazon that you can't get anywhere else. In this instance it was a Nintendo. You go and you pick it up in this physical space that kind of operates like a carnival and has circusy lights and beautiful trucks and whatever. But I thought that that was the coolest blend, and they also gave me their marketing materials that kind of looked like a ticket to a carnival. But I liked that, because it was a new way a digital focused company is operating in the physical world, to your point. It's a new way of blending those. And Amazon doesn't necessarily have to do it. It's just smart marketing. But it also shows the way that companies are pushing from the internet into the physical world. Now that's also happening in reverse. There's a company I really like called Shimmy that basically uses Kinect sensors to measure your body and make custom-made swimsuits for women. They're using that digital information and they're sort of, like, pushing it, so, yeah. >> Yeah, this is a big thing, I mean, this is about reimagining the future. And I think developers, this is a developer conference, so they tried out all the shiny new toys, Bixby, which is personalization now, IOT, which is kind of a geeky message, but ultimately the developers and the ecosystem partners of Samsung have to create the future together. So the question for you is around how you see the ecosystems developing. I see developers learning more about the real world. Less being behind the wall, if you will. Being the super geeks coding away. You're seeing developers on the front lines. And I think that's super important. I do want to get it noted here that you got a book coming out. >> Yes. >> So tell us what you're working on, cause it's going to ship in December? >> Yeah, I... >> What is the book about? I mean, obviously it's chroniclizing this new wave. What is the book about? Tell us a little bit about the book you're writing. >> So I wrote a book, my last book was about industrial augmented reality specifically, and it was sponsored by PTC, so you can actually go and find it for free. They wanted something that would work around industrial AR, and I wrote it in editorial independence so it is truly my perspective, but what was interesting about that at the time I wrote it, I discovered industrial AR was the most powerful place to play, because there were real world examples of AR actually helping people. >> John: Yeah. >> Now, I've broadened that look to see okay, Goldman Sachs said that there's going to be all this growth. Are the areas that they're looking at, things like education, real estate, you know, construction, is there actually growth there? So it's a broad look at a AR. And it's on O'Reilly's Safari Books. >> John: Well, that's interesting. One of the things that's interesting, you know, I've seen many waves myself, I've been through a bunch of cycles. It used to be the consumers that would lead the trends. But you're bringing up an interesting point around AI, augmented reality, even virtual reality. The innovations coming from the enterprise side. So, industrial IOT is really hot right now cause people are connecting physical plant and equipment. You see drones and it's mostly about industrial, AR's industrial because the use cases are so obvious. >> That's right. >> Not necessarily the consumer side has it yet. So it's almost flipped the entire world around. >> But, with, you know, Pokemon Go, that did sort of give consumers the scent, a scent of, okay, this is what it is you know, with AR kit, it hasn't completely lived up to our expectations, but there has been a flurry of activity around people experimenting to see how it can be applied in a consumer way. And, frankly, you know, there are people like DHL who are starting to roll it out in a way that is somewhere between industrial use and consumer in a broad way. So it's moving there. It is nowhere near ready for it yet. >> Leah Hunter here. A thought leader, writer, author, and a new book coming out. I'll give you the final word. What are you up to? What are you going to do after this event? What's next for you? What's the next couple months look like? Obviously, you've got to jam hard on the book, get that done, what else you working on? >> (laughs) I'm an interesting person to ask that question. I produce a television show called Created Here. I'm flying to Austin after this to interview artists and musicians and shoot our next episode of the show. Then we're going to LA and then New York. >> And where are you based out of? >> Me? >> Yeah. >> San Francisco, New York, a little bit Paris, and some New Orleans. >> You're on the plane a lot. >> I am. I like my life. >> Well, you've got a great life, and obviously great work you're doing. Come by TheCUBE studio in Palo Alto, give us an update on what your findings are as you go get that new perspective of art, artistry, artisans are really going to be the craft, we believe that TheCUBE will be the future of intersecting with technology. More exclusive coverage here in Moscone West in San Francisco, this is the Cube's coverage of Samsung Developer Conference. We'll be right back with more coverage after this short break.

>> Narrator: Live from San Francisco, it's theCUBE covering Samsung Developer Conference 2017, brought to you by Samsung. >> Hello, everyone. Welcome back to theCUBE's live coverage, exclusive coverage of Samsung Developer Conference, SDC 2017. I'm John Furrier, the co-founder of SiliconANGLE Media. Next guest is Patrick Moorhead who is the president and principal analyst at Moor Insights and Strategy, friend of theCUBE. We see him everywhere we go. He's quoted in the Wall Street Journal, New York Times, all the top publications, and today, he was just on Power Lunch on CNBC. Here for our Power Cube segment, welcome to theCUBE. Good to see you again. >> Hey, thanks for being here, and I appreciate you putting up with me heckling you from outside of theCUBE. >> Always great to have you on. Hard hitting, you're one of the best analysts in the business. We know you work hard, we see you at all the events that we go to. I got to get your take, Samsung. Obviously now obviously you run in parallel, at some point on Amazon, obviously winning in the cloud. Samsung downplaying their cloud, but calling about smart things. I get that, the cloud is kind of fragmented, they're trying to hide the ball there, I get that. But they talk about IOT which you got to talk about cloud without IOT, what's your analysis of Samsung? >> Yeah so first off, Samsung is a collection of really really successful stovepiped companies, right? You have displays, you have semiconductors, you have mobile phones, you have all these different areas and they say a lot of times your strength is sometimes your weakness, and the divisions just don't talk a whole lot. But what they did, and this is the first time I've seen this in a long time, is they got on the same page and said you know, we have to work together because IOT and connected and intelligent connectedness can't be done in stovepipes, we can't all go do our thing. So they're agreeing on standards, they're doing some really good stuff. >> And obviously we know from the cloud game now go back to the enterprises, more consumer, backing in from the edge, obviously the edge being devices and other things, I get that. But now the horizontally scalable nature of the cloud is the holy grail, we've seen Amazon's success continue to boom, they do more compute than any other cloud out I think combined. Maybe outside Google with their internal cloud. That horizontal resource pool, serverless as example trend, IOT, you got to have, the stovepipes got to be decimated. However, you need specialism at the application level. >> That's exactly right, and a smartphone will act a little bit differently from a camera which would be different from a refrigerator as we saw, right? Samsung wants the new meeting area to be, well not the new meeting area, we all meet in the kitchen, but the connected meeting area. So they all act differently, so they have to have even though they're different devices they have to connect into that horizontal cloud to make it efficient enough and effective enough for good responsiveness. >> I like the message of smart things, I think that's phenomenal, and I like that 'cause it connects their things, which are consumer things, and people like 'em, like you said very successful stovepipes. The question that I ask here and I try to get the execs to talk about it but they weren't answering yet, and I think it's by design. They're not talking about the data. Because again at the end of the day what's different from Alibaba again last week when I was in China, they are very up front. We're all about data acquisition and using the data to fuel the user experience. >> Right. >> That has to traverse across stovepipes. So is Samsung baked in that area, they have things going on, what's your analysis of data traversal across, is Bixby 2.0 the answer? >> So companies have to take, particularly consumer companies related to the cloud, have to have one or two paths. The one that says, we're not going to mine personal data to either sell you products or run ads, so Facebook, AWS and even Google, that's their business model, and then the other side you have people like Apple who are only going to use the data to make the products and experiences better. I think, I'll just pontificate here, the reason you're not getting a straight answer is I don't think they know exactly what they want to do yet. Because look at the market cap of Facebook. Apple, and even Amazon is planning to start and expand their own ad network. So I just don't think they know yet. Now what I would recommend to them is- >> Or they might not have visibility on it product-wise. So there's knowing what to do, or how to do it, versus the product capability. >> Well they have access to a ton of data, so if you're using Samsung Mail, if you're using, they know every application gets deleted, usage models of those applications. So they know a lot more than I think people think. They have a lot more data than people probably give them credit for. >> So they're going to hide the ball, I think they said that they're buying more time, I would agree with you there. Alright, question on IOT. Do you think that hangs together, that strategy? Obviously security updates to chip-level, that's one thing, can they succeed with IOT in this emerging stovepipe collapse fabric that they're bringing out? >> So I need to do a little bit more research on the security and also their scalability. 'Cause if you're going to connect billions of devices you have to have scalability and we already saw what GE Predix did, right? They did an about-face and partnered up with AWS realizing they just couldn't handle the scale and the complexity. And the second thing is the security model and how things like RM Embed Cloud and the latest announcements from Intel which is how from a gateway perspective you secure this work. So I have to go do some research on this. >> And by the way it's a moving train, you mentioned the GE thing, great example, I mean let's take that example, I got to ask you about cloud, because let's talk about Amazon, Cloud Foundry. Cloud Foundry became this thing and Pivotal tried to take and shape it, now they're claiming huge success, some are questioning the numbers. They're claiming victory on one hand, and I hear record, record, record! But I just don't see any cloud on Cloud Foundry out there. >> Yeah and I think the reason is, PCF, Pivotal Cloud Foundry is a Fortune 500 thing. And if I compare Fortune 500 to startups and other people, there's not nearly as much activity in the Fortune 500 as there is with the startups and the cloud native companies. So I'm optimistic. >> So you're saying Pivotal Cloud is more Fortune 500, less cloud native? >> Exactly, exactly. >> How about Amazon, what's your take, I know you were on Power Lunch kind of, now you're on the Power Cube, our new segment that you just invented by being here. (laughing) What is the Amazon take, 'cause that Reinvent event's coming up, what's the preview? Obviously we're going to have some one on ones with Jassi and the team beforehand, theCUBE will be there with two sets to come on if you're going to be there I'd love to have you on. >> I'd love to. >> Again, what's the preview for AWS Reinvent? >> AWS right, they had a seven-year headstart on almost everybody and then Azure and GCP just recently jumped in, and if you notice over the past year they've been firing canons at each other. One vendor says hey, I do by the minute pricing, and then another one says, oh, I have the by-the-second pricing, right, and I'm going to accept VMWare, oh no I'm not doing VMWare, I'm doing SAP. So what you have now is a feature fest and a fistfight now. AWS is no longer the only man standing here. So what I'm expecting is they are going to come in and make the case that, okay, we still are the best choice not just for IAS but also for PAS, okay? Because they have a lot of competition. And also I think they're going to fill in gaps in some of the regional services where oh they don't have GPUs in a certain country. Oh, I don't have FPGAs over here. I think they're going to fill that in to look better against GCP and Azure. >> I know you cover Intel as well, I was just over there and saw some of the folks there, I saw some of the Linux Foundation folks, obviously you're seeing Intel be more a computing company, not a chip company anymore, they have that Five-G end to end UK Mind and Mobile World Congress, talked a little bit about Five-G. End-to-end is big message here at Samsung, how is Intel positioned in all this, what's your take on Intel? >> Yes so I think related to Intel, I think in some areas they're competitors, because they have their own gateway solutions, they don't have cloud solutions but they have the gateway solutions. Regarding to some of the endpoints, Intel has exited the small cork endpoints in watches, so I would say right now there's less overlap with Intel now. >> From Samsung perspective? >> Exactly, now on the back end it's more than likely there's a 99% chance that the back end doing the cloud processing is going to be Intel. >> If I'm Samsung, why wouldn't I want to partner within Samsung? 'Cause they make their own chips, is that the issue or is it more a...? >> No, I think Samsung up until this point hasn't taken a lot of responsibility for the cloud. So this is a first step, and I think it would make a good partnership. >> And Intel could get the home theater market, the home, how connected home is, but every CES going back 10 years has been a connected home theme. Finally they could get it here. >> That's right, and I have seen Intel get into things, a lot of Amazon's products with the cameras in the bedroom and in the bathroom, scary stuff. But Movidius, silicon that's doing object recognition, that is a place where I think they compete which frankly Samsung could develop the silicon but they just don't have it. Silicon doesn't have capability that a Movidius has. That can be used in any type of camera. >> Okay so final question I know we got to break here and I appreciate you coming on, making room for you, PowerCUBE segment here in San Francisco at SDC 2017. Ecosystem, we hear the host of SDC, Thomas Coe, come up and saying we're going to be honest and transparent to the community here at large in San Francisco and around the globe, kind of incurring that they've been kind of stovepiped and they're going to open up, they believe in open cloud, open IOT, and he talks about ecosystem, I'm not seeing a lot of ecosystem partners around here. What does Samsung need to do to, well first of all, what's your letter grade on the ecosystem and certainly they got an opportunity. What moves should they be making to build a robust healthy ecosystem, because we know you can't do it end to end without support in the white spaces. >> Yeah so I go to a lot of the developer conferences, whether it's Microsoft Build, Apple WWDC, and even the enterprise ones, and this is a smaller, low-key event and I think first and foremost, operating system drives a lot of the ecosystem. And other than Tizen they don't have an operating system. So what they're doing is they're working on the connectedness of it, which is a different kind of ecosystems, it's farther up in the stack, but I think what they can do is they have to be very clear and differentiated and I think back to our earlier, our first conversation, they're not going to mine the data, therefore they're the safe place for you, consumer and our smart things ecosystem, to put your data. And we're going to help you make money to do that, because I don't think Google is as interested in that and I don't think Amazon is as interested in that either. >> They were clear, they said permission-based and even if they don't know what their permission is offering we're going to take the conservative route and protect the data, but they still got to use the data. They got to get their cloud story together, if they want to do the data play, cloud has to be more clear at least in my mind. >> Well I think what they can do is they're sitting on and they will sit on a bigger treasure trove of data that can help their partners deliver better experiences and products, because if you're at the epicenter and you're at that smart things hub? You know everything that's going on in that home whether it's your stuff or your partner's stuff. >> Yeah and they got to be trusted, and they got to be transparent, okay. Patrick Moorhead from Moorhead Insights here on theCUBE, great analyst, follow him everywhere on Twitter, your Twitter handle is, let me just get the Twitter handle. >> It's @patrickmoorhead. >> Okay, @patrickmoorhead on Twitter. He travels the world, gets the data and so does theCUBE, traveling for you, this is John Furrier. More after this short break. (electronic beats)

>> Narrator: Live from San Francisco, it's the CUBE. Covering Samsung Developer Conference 2017, brought to you by Samsung. >> Okay, welcome back everyone. We are here live with the CUBE coverage where Cloud Native and the SmartThings Conference from Samsung Developer Conference. I'm John Furrier, the founder, the co-founder of SiliconANGLE Media. Co-host of the cube here with Redg Snodgrass, who's the chairman of ReadWrite and ReadWrite Labs. >> Hello everybody. >> Also been an entrepreneur, he's done the Wearable World events, done a lot of things in tech, riding the waves. You seen them, a lot of action going on, Redg. Want to get your the thoughts as we wrap up day one of two days of wall-to-wall coverage of the cubes, Samsung Developer Conference, a lot going on. You know Samsung, they're trying to play their best hand that possible. Obviously, they're not going to come out and say, We're not really ready for primetime, for the cloud. But the reality is, they're not ready for primetime for the cloud and IoT. However, huge strides in positioning, messaging, and the self awareness of their stove pipes. They are series of stove pipes that they've recognized, We've got to make this a 2.0 Bixby that crosses across all of Samsung, open up IoT. >> Redg: Which I thought was great. >> Open ecosystem, everything else, to me, is a work in progress, kind of, cover the, hide the ball, a little bit, I mean, what's your thoughts? Do you agree or what's your reaction? >> Oh man, I was on a panel earlier today. And somebody was like, oh, this is great. And I wanted to go back to, back when we did the open API service with Alcatel-Lucent, when we roll out all this stuff for the telcos. I mean, it's just, it's a lot of hype, initially. But what I do like about it is it seems like there's a dogged commitment to creating all the different documentations necessary and bringing that in, I mean, if they really put the full marketing weight behind it, this could get really interesting really fast. I mean, they own almost every device in your home already. >> Well, I said the word hide-the-ball. Maybe I should take a step back and not be too harsh. What I mean by that is, they're not hiding the ball on purpose, I think they're, by design, and I think Greg mentioned this earlier. Greg Narain said, they're doing it by design. And I think that that's a good call. SmarterThings is a good positioning because it highlights multiple devices and connecting it together. I think if they played the data card and the cloud too much, they would've overplayed their hand, and it's not needed. I mean, do you think it's needed? I mean, I don't think it's needed. >> Well, one of the biggest problems with IoT right now is that you have multiple different silos creating data. And then all those data silos have to figure out how to come together and talk about it. I mean, it seems like they're taking a step out, and saying, hey, we want to build that solution. Which is great, I'm more interested in the orchestration between different OSs, like, how are they really going to do that? Because it, we talked a lot about, when you build one of these ecosystems, you're really just building an economy. And the more open that you let your economy, right, the more business models come in, the more people that can be there. And so, if we were to start thinking about these OSs as real economies, like what do you need to have economy work? >> Well, I think this is why, we were talking earlier, I think that you had a good point. I think that validates what I'm thinking out loud here, which is, why play the data card. They don't need to because it's still open-book. They still got to figure it out, and that's not a bad thing. They play with their best hand, which is the consumer hand. >> Redg: It's consumerism is where they're at >> The devices are awesome, the screen on the phones are phenomenal, they got TVs. They got a little bit of a family hub going on with the living room, kitchen thing, with the refrigerators. That's IoT, they got healthcare because it's a device issue. So they're working their way from the consumer edge into the industrial edge. Now, if you're in the IT world, you have security problems. So most people that we talk to, at the humans, they say, hey John, my plate is full, I got to staff up my DevOps and my application developers. I got to unbolt security from my IT department, make that report to the board as a profit center now. And I got all this machine learning and Cloud Ops, and you want me to do what? Like, instrument my entire factory with this IoT thing? So people are holding the brakes. >> Well, I mean think about it. Every day, right, you're confronted with another executive that has like fallen on a sword of a major security hack, a major security issue. And so, as an executive of a major like business unit, with a technology group in front of you, you're sitting there making all these decisions every day. And it used to, you used to come and say, okay, we're going to make decisions every eight, nine months. And you have this big waterfall thing in front of you. And you know that, from your vendors, that. >> John: It's predictable >> Everything was predictable, and now it's like, oh man, I got to get into this Google Glass stuff, and I've got, no, now it's wearables, and wearables, that doesn't work, I need my IoT infrastructure stuff. And so we're moving the court, you know, away from all these CIO, CTOs consistently of what they need to think about next. >> It's interesting, if you look at the stack, go back to the old 80s OSI model, you got the lower level stack, middleware, and then application stacks. If you follow the data, and the networks, and the packets, how it moves, you can almost see the trends, batch versus real time. And I think what we've seen in the big data world, in data sciences, which can be analytics, obviously specialty industry. But the role of data and realtime, self-driving cars, really highlights this really huge wave coming, which is how that people dealt with data and software, the relationship between software and data was different. You store it in a database, build the database, call the database, get the data out, load it in, slow, monolithic, siloed. But now you have data that you need in really low latency at any given time, in any different app, from any different database, in less than a millisecond how do you do that. >> Well, think of it. >> John: That takes intelligence. >> About two years ago, I had a great conversation with a big packet moving company that managed most of the packet movement for most of the internet. And we were talking about, what does it look like per person in the US in the next like three or four years? And it could be up to a petabyte a day at a per person. Now that sounds awesome because if you look at all the different like videos we watch, it's like, oh, that's great, really cool flying car. You know, connecting windows, no one's really doing the math on that. And if it's a petabyte per day per person, like in the US a year even, or you know. I could see models where it could be a month. Think about what that does to the network load. We just don't have the math to be able, you know, possibility to handle that. >> This is why the decentralization with Blockchain is interesting. Even though Blockchain is hyped up, I think it's fundamental to the internet, as this Dr. Wong from Alibaba, who told me that last week. He said it was like a TCP/IP, I agree with him because you have distributed computers, which we know about. We've been there, done that, but now you got decentralized and distributed, two different concepts at the same time. That's a fundamental paradigm shift. >> Well, I mean it's just, so, I mean, you got to. >> It's intoxicating to think about what that disrupts. >> No, no, I love it, I mean, honestly, I've fallen in love with narrow band networks the last week. For some reason, I'm the weirdest person on the planet. Because it's such a solution for security. It's such a solution for a lot of this back calling and data that we're going to have. It'll be interesting to look at, but when you think about the pure math on this. >> John: Are you back calling data or are you back calling compute? >> Oh, well it's so. >> That's a different conversation. The trend is, don't move the data. Throw the compute at it because compute is, this is an architectural renaissance happening, people are re-imagining. >> How many, how many startup. >> In global infrastructure. >> Execs can even like draw architecture? Right, with all the lame startups, I mean, when was the last time you saw like somebody pitch. When they came to pitch, it's like, let me talk about my architecture. >> John: That should be the first slide. >> It should be the slide that you talk about as an executive and everything, I don't see. >> If he can't get on the whiteboard. >> Startups deliver architecture. >> If you can't get on the whiteboard and lay out an architecture on fundamentally the core engine of your technology, you shouldn't get funded. >> Well, so that is a major issue that's happening right now because I do think that we have this group think where we've disallowed a lot of R&D thinking. We don't do longterm R&D before we get a product to market. And now, like all. >> John: Sometimes you can't. Sometimes you have to sprint out and put a stake in the ground and iterate. >> Think about all of the connected device product. How do you test the connected device product to scale? Right, I mean the iPhone, you know Samsung, everybody has all these devices out there, they're getting this data, it's coming in they can actually iterate on that product and make decisions, right? >> Well, that brings up a good point. We saw this at the Cube at VMWorld. For the first time we heard people grumbling in the hallways like, you know, I love the ENC tries, but they just haven't tested this use case. And the use case was a new workload that had unique characteristics. In this case they needed low latency. It was an edge device, so it was mandatory to have no latency with all this was trickling data in. But in this case, they had set up their virtual SAN in a tiered basis. And they needed a certain hardware configuration with vSAN. And they've never tested the hardware stack with the software stack. So it's just one of those things that the hardware vendor just never imagined, you can't QA the unknown. So this is where I'd see Samsung doing things like in-chip and seeing what Intel's doing with some of their FPGA stuff. You can see that these infrastructure guys got to bring that DevOps concept to the consumer world. >> Redg: Oh, it's going to be so hard. >> Which is programming the. >> Redg: So hard. >> The hardware at will. >> Yeah, well. >> John: Like the cloud DevOps ethos. What do you think of that? >> Yeah, no, no, no, look, I mean, I'm such a big fan of being able to get your product in people's hands, to be able to see the use cases, develop them out and push that forward. You know, big corporations can do that. You have 10 iterations of almost every iPhone right now, with thousands of engineers iterating on it. So when you look at like the competitor, which is your device right now, versus every other piece of IoT technology that isn't been perfected or anything. Our biggest issue is we're driven by the success of the smartphone for every other piece of technology today. And that's, that makes it hard to drive adoption for any other devices. >> So I get your thoughts on this, 'cause we wrap up day one. Obviously, let's talk about the developers that they're targeting, okay. >> Okay. >> The Samsung developers that they're targeting is the same kind of developers that Apple's targeting. Let's just call it out, however, you see voice-activated touch, you're seeing the services tools, now they're bringing in an IoT. You're not hearing Apple talk about IoT. This is unique, you got Google onstage, wink, wink, hey, everybody we're here, we're Google, Android, coming together. What is in the mind of the developer in the Samsung ecosystem right now, what's your take on it, what's the psychology of that developer? >> I built an app at one point in time. It was dating app a long time ago, right, with some other guys, they built it, I was just the mouth. It's called Scout and we were on the Simian platform, and the iPhone, and we were on web, we were on mobile web. And in the iPhone app store, all with one engineer. And it was really hard because we had real-time chat. It was just so much crazy things. At the end of the day, what always matters is, again, you're building economies, you're not building fun playgrounds or anything else like that. And if your economy is, your platform is the easiest to use, it has the capabilities and advantages that are the norm, right, you'll win. Bass Diffusion is great it's this guy out here, he won a Nobel prize, but what Bass Diffusion says, in order for you to win in a market, you need two things, imitation and innovation. Imitation, for instance, in TVs, is your TV black and white, is it color. As things move up, innovation eventually overtakes, and always becomes innovation. So when you look at like what's needed in market, the platform that is the easiest to use, the platform that has the most capable imitative qualities, it's just very easy for you to push things to market universally from OS to OS, along with certain pieces of innovation around business models, certain API capabilities that may make it easier for them to deliver revenues. If those are the things that are delivered, that we see pushed out, a good blend of imitation and innovation, the win. It's that person that actually can deliver it. >> Well, we're seeing gaming in entertainment really driving change, Netflix earnings just came out. They blew it away again, you're seeing the cord cutters are clearly there. >> So much for Disney, right? >> E-commerce, yeah, I mean, Amazon's still got to make some moves too, even though they were still winning. No one's really falling out of the chair for Prime. I mean, no, I don't know a lot of people who rigorously turn on Prime, they shop on Prime, but not necessarily watching any entertainment. So I'm a little critical of Amazon on that. But, then again, but Amazon's doing the right thing. Netflix, Amazon, YouTube, you're seeing a culture of digital entertainment shifting. E-commerce is shifting, and now you got web services. I think Amazon encapsulates, in my mind, a great strategy, retail and services, but if you extend that out to the rest of the world, voice-activated apps, you can blend in commerce entertainment, you can replicate Amazon. I mean, they could replicate everything out there in the open. >> Amazon is so good at understanding where they fit in the stack and then, pushing the edge case further and further and further along. They're really brilliant, versus like VMware that's like, oh man, we can make apps, no problem. They went to make apps, and it didn't work out so well, they're great with VMs, so. >> John: They're great with operators in the enterprise, not so much with DevOps. >> No, no, no, no, and it's. >> They got pivotal for that now. Michael Dell bought everyone up. >> Yeah, exactly. It's understanding where you fit in the stack and being able to take advantage of it strategically. I mean, like I said, I think Samsung's positioned really well, I mean, I wouldn't have come and hung out with everybody if I was like, ah, I'm going to be bored all day. There's a lot of really exciting things. >> We got a lot of eye candy, no doubt about it. I love their TVs, love their screens. The new Samsung phone, is spectacular, you what I mean. >> I'm pretty ecstatic. >> It was the first phone that wanted me to get transferred off my iPhone. And I ended up getting the little junior Samsung here, but. >> Oh no, well it'll be interesting as they start to connect their platform together as all a lot of these other developers start pushing the pieces of their strategy together. Remember, it's like whenever you throw a strategy out here like this, it's like you have a big puzzle with a lot of empty pieces. >> I mean, the question I have for you is, let's just close out the segment. What do you think, what area should Samsung really be doubling down on or peddling faster, I should say. What should be developing faster? Is it the open APIs, is it the cloud? And they got to get the open ecosystem going, in my opinion. That's my take, what do you think they should be working on the most right now? >> Yeah, I mean like look, cloud is going to be really, really, there's a lot of competitors out in cloud. There's a lot of multiple, there's a lot of choices, right. Where I've seen them like really do well, I'll go back to the fact that I firmly believe that Google never really monetized the Android that Samsung did that a lot better. And so, by looking at the different points in the market, where they're good, I mean, their ecosystem is solid. I mean, yes, I mean it seems like the sexy thing is Apple, but I've talked to several developers, and I know where they make their money, and they do a strong amount of revenue, if not equivalent to where the iPhone is, at least from what I've heard so far. >> The android market share it's not shabby at all. >> Not, so. >> Damn good. >> So they've, they've been able to do this, like, from that, taken that Android stack, applying that imitation and innovation on top of it, fascinatingly so, I wouldn't count them out for this. And I'm pretty encouraged to see all the other aspects, but I like the ecosystem built out too. >> Redg Snodgrass, ReadWrite Labs, quick plug for you. What's going on in your world? Got some recent activities happening, please share update. >> So, yeah it's great, so we just launched our IOT revolution event series where we look at the atomic unit of different markets. And what that means is, we find the real buyers and sellers, a lot like what Debbie Lann, who I love, did. And we look at the buyers and sellers together, along with the top series A startups, all around newsworthy issues. And so, whatever it's like, is it hacking and Russia. You know, then we'll get cybersecurity experts up, and we'll talk about those issues from an executive point of view. And that's the thing that's making me most excited because I get to have all these conversations with people. It will be on video, onstage, November 13th, is the first one, it's a private event, but we'll work out anybody. >> Where's it going to be? >> It'll be in San Francisco, around 100 Broadway. So it's kind of a quiet thing, but I'd love for everybody to come if you're interested. >> It's a quiet thing but I want everyone to come. It was, not going there, too many people are going. >> It's like my parties, right? >> It's like a Yogi Berra. Well, thanks for coming out, appreciate, wrapping up day one of coverage The Cube. This is Samsung Developer Conference 2017. Hashtag SDC2017, that's what they're calling it. Lot of great guests today go to YouTube.com/siliconangle for all the great footage. And also check the Twitter sphere, lot of photos. And shout-out to Vanessa, out there has like helped us set everything up. Appreciate it and great to the team. That's day one wrap up, thanks for watching. (upbeat music)

>> Announcer: Live from San Fransisco, it's theCUBE covering Samsung Developer Conference 2017. Brought to you by Samsung. >> Hello everyone and welcome to theCUBE's exclusive coverage of Samsung Developer Conference live here in San Fransisco, California, Moscone West. I'm John Furrier, the co-founder of SiliconANGLE media and co-host here at theCUBE's exclusive coverage with Maribel Lopez, Founder and Principle Analyst at Lopez Research, good friend of theCUBE, Cube albumni. Great to see you. >> Great to see you, John. >> We see each other all the time at the industry events, usually enterprise and some cloud events. We've been seeing each other a lot at these, kind of consumer events. >> Yeah. >> Sounds like the consumerization of IT is happening. >> Big crossover. Yeah, I don't believe there is any consumer or enterprise, there's just degrees of, you know, how much security, how much management ya get, right? It's got to be a good consumer device to be used by anyone. >> What are some of the analyst reports you guys are putting out now? Obviously, you've been covering apps, to kind of set that up. As you know, we always talk in the past about IoT, >> Maribel: Yeah. >> The intelligent edge, cloud, and the role of app developers that are coming into the enterprise. Every CIO has got a mandate. More app development. Devops. Devops. It's hard. How is this helping? >> You know, I've previously come at this from the concept of mobile enablement in the enterprise, right? And now, it just seems like we're just looking at new applications, new experiences that cross boundaries, right? Is it at your home? Is it in a hotel? Is it on your corporate campus, right? I think the role of the app developer is changing to be more encompassing. I think the big news in all the shows we go to now is like AI and machine learning. That term is just everywhere. It's the IoT of 2017, right? Last year was IoT; this year it's AI and machine learning. So we're seeing a lot of that for the app dev community. >> And now you start to see Augmented Reality, also known as AR, in this space of Samsung and Apple and these new app developers. Augmented Reality core, obviously from a development standpoint, big news here at the Samsung conference. The other big news is ARCore and ARKit, ARKit is the IOT piece. [Maribel] - Mhm. >> So we've been seeing a lot of slowdown in Iot. For instance, everyone is kicking the tires on Iot, but it's industrial Iot that's getting the traction. >> Yeah, I think industrial IoT is getting the traction because they've been at it for years, right? It was M2M before that. If you look at what is happening in consumer IoT, it's still an absolute disaster. So, I think the big news of the day, for Samsung, I mean, obviously, we just talked about how AI was in there, we talked about how ARVR was in there. But, what we didn't talk about is the fact that now we're looking at the SmartThings Cloud. And this is the attempt to say, listen, we've got many different clouds; how do we unify clouds as Samsung? And then, also, how do we let other people participate in the cloud? 'Cause the real challenge is, everybody has their fiefdom right now. >> John: Yeah. >> You know, you're in the Apple fiefdom, you're in the Google fiefdom, you're in the Alexa Amazon fiefdom. How do we get to a point where I can just use my stuff? >> Yeah, this is classic breaking down the silos in the world we talk about in the enterprise. >> Yeah. >> And that's been like a two generation initiative. But you look at the guest I just had on theCUBE, Mary Min and Greg Harris before that. They're a different culture. They don't really give a crap about plumbing. >> Maribel: (laughs) No, no. >> They're producing AR games. they've got security challenges. So their development challenges are very DevOps native. They didn't sign up for DevOps, they just are DevOps cloud native. So, that world is one, then you got the IT guys going, wait a minute, I got to support this new edge device. >> Right. I've got to manage it, I've got to secure it. >> Those worlds are coming together. >> Maribel: Yes, absolutely. >> Your thoughts on Samsung's opportunity; are they poised, do they care about IT; IT care about Samsung? >> You know, Samsung's a big company, right? So it really depends on what division of Samsung you're looking at, whether or not they care about IT. What I would say though, is that they're trying to make moves that will can across the board now, right? Trying to make a cloud that can be secure for your consumer things, but can also be upleveled if you want to make it an enterprise of things cloud as well, right? The AI concept is really about just creating usability. And, I think when we think of DevOps, what we think about is creating better application experiences that can know you, that can respond to you. And this is the whole... we talked about Big Data a few years ago, remember everything was Big Data, right? Well Big Data is now machine learning and AI, which is the natural evolution of it. So, I'm starting to see a lot of things that can be used across Samsung. So, I do think in that regard, they're well positioned. They've got a lot of technology in the home. They've got a lot of presence for the enterprise mobile camp. The IoT camp, I think is a wild card for everybody right now. >> What do you think about Samsung's chances with the cloud they have? Because they sprinkle a little bit of cloud in there. >> Maribel: Yeah. >> They didn't talk about data at all, which I was surprised. They kind of inherently... I mean it's a privacy issue; a security thing. But I love the presentation about the kitchen. >> Maribel: Oh yeah, that was great. >> Because the kitchen is where... >> The family hub for the home, right? >> The family hub, that's where everyone hangs out at the parties, right? Everyone ends up in the kitchen. But it kind of highlights this consumerization trend. They kind of sprinkled cloud, but I'm not seeing cloud... I'm not seeing, like, we're bringing compute to you. So, is that just native for Samsung? Is it a missed opportunity? Are they strong there? What's your thoughts? >> I think you actually started with this whole dialogue of well, does anybody really care about what the background technology is, right? So I think we're definitely a little lighter on the terms and more about what the use cases were. Like, why do you use this? They have semiconductors, they have a cloud, they have security, they have devices. They've got a lot of things, so it's really not about the technology as much as it used to be, right? What I think some of the differences might be is a cloud for what? >> Yeah. >> And they are actually taking the approach of we've got a cloud for things and we know what these things are. So I think they're well positioned in that regard because they will have a specific cloud that's not just a generic cloud. >> I think they want to own the interface. To me, my take away, squithing through the hype is they want to own the interface edge. If you contrast say Samsung to say Alibaba group, which we were just covering them in China, compare them to Amazon, you'll see a contrast in strategies. Obviously, Amazon is just blowing everyone away on a massive scale. And they're not even in China. So, if they were actually in China the numbers would be off the charts. >> Maribel: Yeah, be a different thing, yeah. >> But, lets take Alibaba, for instance, and Samsung. Alibaba's an eCommerce company. But they don't want to be known as an eCommerce company. They're heavily invested in data. That's front and center of their message. Smart cities, they're talking about. They have a big cloud that they're pumping out, so that's much different, for them, they don't have an edge device, ya know? >> Yeah, well.. >> Samsung does, but we don't hear cloud, smart cities. We hear family hubs, smart TV, Bixby. >> But it is an experience world, right? And I think that's been the problem with technology adoption to date. You can't figure out how to use it, right? So the next big evolution of technology isn't necessarily about creating a new thing. It's about being able to use a thing. I think Enjon actually made a great comment when he said we use about 10% of the functionality in our cell phone. Why is that? You don't even know it's there. You don't know how to find it, you don't know how to turn it on and off. Like how do you just simplify what we have today? And if they can do that, that was, or used to be, the hallmark of Apple right? >> John: Right. >> And now people are like, well, even Apple products are kind of of complex compared to what they used to be. So how do we get this back to we can use the stuff that we already have built. >> You're nailing it, Maribel. I totally agree with you 100% because if you look at the big waves of innovation: web 1.0 '90's. Mid '90's, '95. Web 2.0 and then now Blockchain and cloud. >> Absolutely. >> All the winners simplified things, reduced the steps it takes to do something and made it easy to use. >> Yeah. >> That's the magical formula. >> Frictionless. >> FYI, entrepreneurs, simplify, make it easy to use and reduce the steps it takes to find stuff; to do stuff. >> Absolutely. >> That's the magical formula. Okay, so, with that in mind, critical analysis of Samsung and a positive analysis of Samsung, then. What did they do right here and what can they work on? >> Okay, so what they did right: I think they are finally trying to pull together all the different versions of Samsung and allow you to have a couple of things, Bixby and cloud, to go across devices; that's right. What I think they still need to work on is there's still boundaries there. It's not exactly clear like where things start, where things end. And they're a little cryptic on the details right now. >> John: You mean under the hood. >> Under hood, I mean I think devs are here to figure out what's going on. How do I make this happen? So there better be some real serious deep dives in these dev sessions so that they know exactly, when they leave, what they can build with Samsung. And how does it work with non-Samsung things. That's still a huge wild card. >> And obviously, cloud, multi-cloud enterprises, you need infrastructure. >> Yeah. >> I mean, smart cities, smart homes, you need plumbing. You need to have compute power, you need some storage. I'm not hearing any of that here. >> No, I don't think that that was a tone that they were trying to take. I think they've been looking much more high level at, if you're a developer, what experiences could you have. I'd also like to see more about how to help monetization. If you go to IO, you go to WWDC, there's always these big slides about how are we going to make money as developers by using this platform. And so that's something we need to see a little more of. >> I got my Samsung smaller phone. I'm going to have to get the Galaxy, the big one, looking good. The screens are great, the cameras are great. >> The Note 8 is really great. It's a good device. >> They're the one with the pen, that's on the Note. Okay, Maribel, thanks for coming on. Appreciate you sharing your analysis. Quick update, what are you doing now? What are you up to? What are they key research pillars? >> Yeah, everybody's trying to figure out what machine learning and AI mean for them. And then, what are the real use case behind IoT. So, we talked a lot about industrial Iots's, right? Anything else? Is there Iot for GENbiz? We'll have to find out. >> Maribel Lopez, been on theCUBE so many times, she's practically an analyst on theCUBE here. Great to have you come on, really appreciate your insight. Check her out, Lopez Research, the best in the business. Been covering the span of enterprise to IT, to consumerization. This is theCUBE bringing you all the action live here at Moscone West. Exclusive coverage of Samsung Developers Conference. Bringing Augmented reality, virtual reality, all this new user interface to the masses. >> Maribel: All the reality. Everywhere. >> All the reality. This is theCUBE, data reality here on theCUBE, a new TV show. Thanks for watching.