>>On the ground presented by the cube. Here's your host, John furrier. >>Hello everyone. Welcome to the cube on the ground here in Seattle, Washington, the IBM open compute architecture. Some of the day after Docker con. I'm John furrier, the host of the cube. We're here with Renee foster, who's the vice president of technical cloud at IBM. So the customer journey. What is the customer journey because there are many paths to the cloud, certainly open source collaboration, kicking the tires. How is the engagement with customers now changed? What is, what's it like? Take us through an example. >>Okay, well first I want to say it all starts with where the customer is coming into as you said, into the journey. And we have at IBM a cloud capability maturity model and what we do is we actually work with our clients and see do they know anything about a cloud today? And if they do then we go on that path with them in order to explain the technology, understand their use case scenarios. Right? Because you want to come from a solution perspective and not from a product or technology perspective where they are. What their problems are and then all the way to the end of the spectrum where customers have been on the cloud journey for some time and now what they would like to do is they have a multicloud environment. How can they bring that all together in an integrated and our operable, >>so the bigger customers, more advanced have multiple clouds, but the early ones can need to understand the use cases that fit for their business, the application environment. That's cool. Now I've got to ask this kind of a different question. Kind of going back to the client server days, it used to be a very simple formula. You do an audit, you get, you get paid for that, you do a strategy session, you do a POC, and then you go to production over months, maybe a year, depending on how big it is, not the cloud. They want stuff fast. Is it the same concept, that process or is there happening differently, faster? >>Absolutely. It's different and the reason why it's different back to your point is we're now more in an agile environment. Back to your point that customers are leveraging methodologies like scrum and what they would like to do is, you know, back to understanding the use case scenario, be able to come to the market faster. You've heard the terminology disruptive innovation, right? So they want to be able to create new markets or serve markets that they don't currently serve today, so they can't do it the way we've been doing it in the past. But what we found out is design is key. And so what we have done at IBM is we have a Bloomex garage where we have a design methodology and the customers can come in and actually bring in their applications, their ideas, and then we helped them develop that. >>I'm got to ask you, is it, is it, is it chaotic for customers? Because I can only imagine the industry is chaotic. Cloud technology fabric is changing rapidly. The industry formation is changing rapidly. What are some of the patterns that you're seeing that are common amongst all customers? I mean, is it chaotic? Is it much more of their learning? Is it more advanced? What? Can you share any anecdotal color around the patterns that you're seeing in the customer environment? >>Right. I would say that customers are now learning, the lessons learned are now coming now, right? Because they've actually evolved. They're not at the exculpatory, it's exploit exploratory kind of a phase in cloud anymore. So now what they're doing is they're saying, what are the lessons learned that we have? And what we find out is that customers, the sand security infrastructure networking infrastructure, they are just as important as the cloud use cases that designed this. >>We just were at DockerCon for two days and we interviewed for two straight days, wall to wall coverage. And one of the most interesting comments that I heard was from Scott Johnson, the COO of Docker. And I'm like, Oh, this application craze and dev ops has gone mainstream. That's so amazing. Now that we have to operate it now. So now dev ops success has changed it operations, right? And he goes, well, what's your thoughts? He goes, well, certainly no one's going to change their service level agreements. So you see ops now accepting the dev ops ethos, but yet the standards are so high for security and operational, SLS and running the business. Do you see that area? What's your thoughts on this? Because this seems to be a common thread that we're hearing. Okay, I'm sold on dev ops agile and now I've got to run it. What are the customers doing in this area? >>Well, what customers are really doing is they're looking for frameworks and they want to make sure that we look at security, if you will, from, you know, doing everything on the glass, right? Making sure that we have single sign on capabilities all the way to um, identify and grow vulnerabilities within a cloud environment. What are some of the risks and threats? And so they truly come into IBM and saying, let's share with you our concerns. And then we know you have a framework that you can address that. And back to your point, from a dev ops perspective, I mean, it looks at the entire application life cycle and that's why operations now is so entrenched in understanding that we are here to remove the right waste, make it more secure, and have governance around it. >>So final question. What do think about this open cloud architecture summit? What's this all about? Customers like it, they embracing it. Are they interested? >>Yes, yes, yes. All of the above. And I would say because, and back to your point at the beginning with some multicloud environment and customers want to know, I don't want them to lock in. They want to make sure that they remain open open standards and they want to make sure that they have like cloud brokerage. Uh, they want to make sure that as they develop their architectures that you know, they can actually have a platform, uh, you know, environments where they can, um, have that interoperability and it's going to be become more and more better and more and more efficient over time. Open winds, as we say, open source mainstream. Renee, thank you for sharing your insight. I'm John. We here on the ground in Seattle, Washington at the IBM open cloud architecture summit. Thanks for watching.

>>Live from Las Vegas, Nevada. It's the queue at IBM interconnect 2015 brought to you by headline sponsor IBM. >>Hey, welcome back everyone. We are live in Las Vegas. This is the cube Silicon angle's flagship program. We go out to the events and extract the signal from the noise. I'm John furrier with Dave Alante host. Our next guest is Meg Swanson, director of marketing for IBM blue mix and with psyched to have her back on the cube last year we interviewed you one year ago in blue mix got kicked off. It was just a beta. Now it's blowing up huge and all the great success. Welcome back and congratulations. Right. >>Thank you. It's been a, it's been quite a year of Steve Robinson says if we kind of count these and joggers feels a bit like seven and it's been absolutely exciting. So we've in a span of a year, cause when we met at polls we were just at beta, you know we were, we were onboarding developers, getting feedback and now we have over 102 services on the platforms. They're rolling out rapidly and we have the deployment models with public, private and then we announced local at the show and it's just been, it's been tremendous. >>But before we get into some of the details, there's a lot of things to highlight. I want to just say congratulations because we cover a lot of companies you want to win when we meet people and they say they're going to do something and then they do it and do more and over and over achieve on the, on the mission. Cause you guys were very cautious at first you got Bloomix out there and then the wind was your back. The CEO says we need to win cloud. Right? And so you get the little reorg going on. Nancy Pearson was on yesterday, shows a little, a little bit of color on that and now you've got developers, you've got resources at your disposal. So take us through that. What happened? I mean I'll see blue mix hit a nerve obviously right out of the gate the signups were pretty strong, but we didn't hit that tipping point. When did you take us through the tipping point? When did it go? Oh my God, we've got a tiger by the tail. It was when the resources came in, was it before or after? >>It has a bit before that. So it's really your middle of, of last year. So as we, we had incredible adoption early on. So really building Bloomix from an open source perspective, building on cloud Foundry, strong partnerships with cloud Foundry and the team. And then just onboarding service after service. It truly owned reticent and all the different partners that we've had. And then around October was when we brought the Watson services on and we had been steadily growing, you know, the developer following and the babies that was pre yes. And uh, and the teams have always a mix is a platform that we're serving up. Um, you know, the IBM, uh, services plus our third party and open source. So we, even though we asked, we just reorganized, we've been working across the team since day one because we have the internet of things services, which are fantastic. Those are taking off really well. And we have the Watson teams, we have the mobile teams, the DevOps teams. So we're constantly working across and now we're reorganized into the cloud unit, which is fantastic because it just helps accelerate even more so >>you know, any, any agile business that has continuous integration like the cloud internally, you have to kind of think that way. And we're hearing that I internally at IBM does a transformation to be more agile, to go faster, which everyone's saying go fast. Everyone wants you to go fast. The CEOs, they said that yesterday, um, was, it was the tipping point that you had success and you doubled down on it was there, the proof point was Watson says, Hey look it, we can do this. Was that the key enabler? >>Yeah, the tipping point for us was really in the early stages, listening to developer feedback and making sure that we were re architecting and designing the product, that we have an incredible onboarding experience. So it developers where we know from marketing standpoint, we were getting the word out and really focusing on building community. So, you know, a few months into the year we started just very small grassroots meetup groups. Right now we have 71 countries every other week having meetups for their building applications on Bloomix. So for us it was, it was getting that community started and then having the community realize that we were taking their feedback on board and we would get, even on our Twitter handle, we'd get updates saying, Whoa, thanks Bloomix didn't, didn't realize you were listing to a, to the feedback and they, and they would mentioned what they had, you know, tweeted at us as far as um, input and how we'd made the change. And so every other day we're posting, you know, blog posts with updates on how we're working with developers. Just to make it a lot easier. >>Matt, can you talk about your open source strategy and how it's evolved as a company? I mean, IBM was, I think the first large enterprise company to get dive into open source and you went in big billion dollar investment way back when the Linux stories were now, but it's really evolved. Um, you use your, your muscle, your money and your vision and, and your open source of history, you know, in the community. How has it evolved? How is it changing? >>IBM for over 20 years we've been driving and fueling and having engineers really involved in open source community and helping to move that community along lifted up and and really anything that you're doing, especially from a hybrid cloud standpoint, you have to have open standards, you have to build an open architecture, you have to be embracing, you know, all the various open source technologies that are out there. You saw the work that we're doing and you spoke with the Docker team yesterday and, and so from our perspective is there's, there's no other way it is open by design. So all of our teams are very focused on making sure that we're working with the cloud Foundry foundation and getting input from all of the companies that are involved in that foundation. Because together we are going to create, you know, open standards and drive and momentum. Because if you're an independent developer or even if you're a large enterprise acting at the speed of an independent developer like we saw yesterday with city, you've got to be able to move and be portable. And if you're locked into proprietary standards, you're, you're just really, there's, there's nowhere you to go in this new world and this all the integration that you need. >>Okay. But there's another nuance there that I want to explore with you is that in the old days, it used to be you'd have a committee, right? Right. Everybody would maybe pay to get into the committee and they'd set a bunch of standards. Nine times out of 10 or 99 out of a hundred that it would flop. Right. And people, a lot of people said that would happen. For instance, with cloud Foundry, you guys came in and gave it a big lift. They're talking to that way around the open data platform now. So what's the difference? Is it just that there's an open source component to it? Is it that simple? >>Is the community, so, I mean, open source is successful because of the community. Listening to the community and sharing the community has a voice. And then the companies that are involved at, you know, at maybe more of a, you'll see that the table from a leadership perspective with the foundations, it's their, their role and their mission to be listening to the community and bring those forward. If any of those fail and you know, the companies involved aren't listening to the community or the community's not engaged and doesn't feel engaged and they're not innovating the platform, it's not going to work. So that's why we're very focused on building the sense of community, listening to what's out there and then enhancing. So you on the announcement with the Docker around enterprise grade containers, we were very specific with the way we approached that and named that. And you look at your, the secure gateway that needs to be added. You look at, um, the enhancements we've made from cloud Foundry on auto scaling. So really looking at what is the community looking for and then how do we then pay it back. >>So what's the message to developers? I mean, it sounds awesome. It's not easy. What you just described. Just Oh yeah, let's get the community. Well, it's hard to build community. So what's the message to developers? They have a lot of choices, a lot of options, and they spend time in various areas. What's the message to them from IBM, >>from an over an open source standpoint, just to be involved, be committed, be any, there are projects every day within the open source community where you can contribute code and you can be involved. And it's really about being very active and vocal and having, having a seat at the table. So I mean our teams, we're constantly looking through stack overflow in the feedback that we see their feedback on Reddit, feedback on get hub, you know, how, how often is the code being for blood? What kind of adoption metrics are we seeing? So from a developer standpoint, I would say, you know, it's time to lean in and be very involved because I mean not just IBM, but all the companies that we're working with across absolutely listening. And I mean this is such an era for developers where they, they have a seat at, at this big community table. It's not easy, but it's the right thing to do. The >>Docker and the register, this is modern stuff that developers want doctors. The hottest trend, you know, I was talking to dr folks, we interviewed Solomon years or couple of years ago in the cube before they changed their name even it was like, and we're so excited and all of a sudden they're now the bell of the ball. As you say, everyone wants to get married with Docker. Red is also is compelling node. These are cutting edge technologies that are part of the integrated stack. So how do you guys talk about that? In contrast to say Amazon, because Amazon and developers are used to these things. Elastic means stuff. They have auto-scaling. What do you guys have now that's direct, directly competitive with Amazon? >>Well, from a, from an application development standpoint, I see where we've gotten advantage is you look at the history of IBM around dev ops, right? So bringing together development operations in this continuous delivery life cycle and really looking at how are you going to quickly build an application and then that's, that's not the end of it, right? You now have to make sure from a security standpoint or you know, and you've heard from Mark Zonoff yesterday and the team on how are we providing strong security tools where you can do, you know in process application scanning and then you've got to deploy, you've got to auto scale, you've got to bring it back and you've got maybe an issue you've got to remediate and then redeploy. So for us it's really looking at at mobile app development and web development in that developer life cycle. And then in our conversations with our partners, the open source community, it's ensuring that we are helping to accelerate that every step of the way. >>I mean the announcement around API harmony, great example where we've got kind of the era of the impatient developer and we're all of us where you don't want to spend time writing a line of code if it's already been written. You don't want to spend time, you know, creating integration and creating API APIs if they're already out there. What you need are the tools at your fingertips where you can quickly build an application, search all the API APIs that are available and your private API APIs, you know, connect that into your mobile applications so you're to market faster. And then it's about you're enhancing and uh, you know, and, and really bringing different, yeah. >>So what do you say the developer out there that's watching this gives it the profile. Yeah, I'm comfortable. Amazon, I'm not sure I should go on blue mix. Maybe I should, maybe the best move was not to move or maybe they have something I want that I don't know about. So talk about those two scenarios. Cause like they're comfortable, they're like, okay, I, I'm fearful of moving over cause I'm comfortable over here with my tooling. Um, you know, developers are cause you work with them and then there's also the fear of missing out. Like, can I do better on Bloomex? So that's a common theme that we're hearing on developers. So how do you, how do you talk to those specifics? >>Yeah, and we, uh, we have those conversations, uh, quite a bit. And it's really about looking ahead at your strategy and at what point, especially for uh, developers within large enterprises. At what point do you need to connect with the backend systems? At what point do you need to ensure that you've got secure connectors? Our European clients are Latin American clients. They had concerns around data privacy, right? And so how are you sure that even the data centers that it's hosted in, you know, we have 40 data centers within software and growing every day and those are owned by IBM. Those are secured and it's really looking at where are you going to go as you expand your application. And do you have the right partner in place, the right steps along the way that you can, and more importantly, that you're not locked in. Because as much as, I mean, we have a lot of heart for Bloomex and what we're building, we want to ensure that we've built it to be open because we also want to have know low barrier exit. We want to make sure it's a great experience and it's our job to make sure that we've got the right services. The right time. >>So you don't, they don't feel locked in. So lock in is the lock in is a satisfaction >>yeah. Experience. It's not a, Oh I can't move because it's going to be too expensive to, you know. Right. And then there is a sense of, of expense that we're starting to see around the hidden cost of data. And as you may have walked into what you thought was a freemium model with some of the providers that are out there and you're scaling and now you have an ornament amount of data coming in and you're looking to store and provision that we are hearing, I mean the, there are hidden costs there that are also going to opening the door to other players that we've, we've, we know that we understand, uh, what you're gonna be facing down the road. So we've built the, the pricing, the application, the platform to allow for that. Whereas there are other platforms that haven't, because it is, you know, working at that kind of volume and scales a bit bit new to them and having to move that >>data is a problem too. So you mentioned 40 data centers, the more the merrier. I say here's some of the statistics. What's happening? How many services we did a little bit yesterday. Go a little deeper. What's exciting? What are the, the, the proud pieces of the, the platform that you can share with the developers? >>Yeah, it's been the integration. It's high integration between the design teams and in listening to developer feedback and then constantly designing the platform to have an amazing onboarding experience. So we announced yesterday the, uh, the Watson zones and the internet of things zone. And these are really designed to be, uh, a way to onboard into blue mix for developers that give you all the tools and resources and training that you need in order to start using cognitive applications like Watson. Because it is as exciting as the Watson services are, you do have a moment where you sit back and think, how am I going to use the power of Watson in my application? So we're creating these onboarding zones. So that's been huge advancement. Really excited about that. You're gonna see a lot more zones come out from us this year. And then the area of internet of things. So we have our, our IOT services. You had Nigel and Ian on yesterday from silver Hawk and power boat racing with internet things. They're fantastic. >>How about business outcomes? Get to finish the race and when you know the stories to the monitors, so you know if your heart rates going over right, >>that's pretty important data. And uh, so, so what we've seen to the exciting areas are really the zones and then the adoption and growth around internet of things space. And, uh, it's, it's a funny art. Our teams of developers that are out working with clients and out working with startups. If you open up their bags, they're probably gonna find a light bulb, a pebble watch. Um, but to connectors, I'm surprised anybody can get their report security nowadays that's on our team because we have all these demonstrations that we're doing with clients of, you know, imagine if you have, if you're trying to create a smart building for your employees and you have their mobile devices that are sensing and, and pinging the, um, the thermostat system, the lighting system. I'm the office. And as they're driving in and getting in proximity, things start turning on inside the office. So we do downloads with light bulbs and watches and, and really are starting to think through this smarter planet and smarter cities initiative with internet of things. And how are you using Bloomix and the power of cloud to now bring that to life within, uh, within cities and within enterprises? >>Go ahead. What's the developer persona look like these days when you're talking about the startup she talked to you? Think of the hoodies you think about the enterprise guys. So those two worlds coming together, >>they are in, in the fact that a lot of large enterprises are building innovation centers inside of themselves. And so they have, um, whether it's, if they have foundries or innovation centers or groups of developers, they're really looking to harness that, that speed and uh, an innovation that we've seen from, you know, some of the enterprise developers. And then also the big advancement that we've seen is the continual growth of the hackathons. So, you know, we know city we've been partnering with at and T as well on, on creating as many opportunities for their internal developers and external ecosystem of developers to be bringing forward new ideas to them. And then what we, we don't talk about as much publicly are the internal hackathons we do inside of large corporations. So we work with the CIO, his office, we go in 24 hour period and their developers are working on Bloomex within 24 hours. Well, depending on the number of, of it of developers they have, we'll have, you know, 50 75 a hundred mobile apps that are built. And then shark tank style, you know, they pitch the apps to their CIO and we vote on them together, you know, with the company. And then that's the roadmap for, you know, their 2015 plan and what applications they're going to bring tomorrow market. >>So talk about the geekiness of IBM and we were talking about this on the intro about what IBM should be doing, obviously where we're editorializing and pining, but um, it's known as kind of like the big company is slow old IBM, big blue, big iron and you guys are trying to be cool to see the keynotes out here. We may see that, but you guys actually have a geeky kind of community going out with this dev thing, which we've been following the past couple of years. It's pretty cool. Um, IBM is a geek culture. I mean it's got a lot of geeks that IBM, and that's a bad word we heard in New York, but a lot of computer science is um, technical people, very awesome bench of talent and patents. Right? So I'll ask, coming to bear, we're hearing, so share with the folks out there that are watching, what's it like at IBM? It's geeky. Is it? Is it, you said they carry gadgets around, I mean, is that the way people are at IBM? I mean, what's the culture like? Your group is, I think one of the ones that are kind of the edgiest. I think it's definitely not a mall culture. >>This multiple pockets. You've got a conservative customer base, but the average to be good, you gotta be, >>yeah, you gotta be kidding. It's about being authentic. So we're not trying to be anything. We're not. And when you look at me, you met, you know, the teams that I've gone through. We've got Jeff's lawyer and Marvin Goldman running around on our teams and, and we have massive development labs, you know, OBS, developers within, you know, high fund, our, our London facilities. And this is going on every day. So we're not putting on airs. You're not pretending. This is truly what our teams are doing. So we have, you know, Joshua Carr in the UK is constantly with, um, you know, with, with children in schools, showing them how to fly a drone with a banana, right where you do the device connectors. That wasn't because it was a stunt that we were trying to pull. It's just truly what they do. And we're very involved in the STEM initiatives for schools. >>I'm very involved in, you know, our distinguished engineers working through. So, but to attract developers and to get them in gray shade into your platform on board, you're judged by the company kids, they want to see themselves there. Right? So that's, there's a culture of developers now, I don't want to say brogrammers but like in this, the youngest guns are like, they've never loaded Linux on machines. They always say what bloats off where it's all cloud to them. So you're born in the cloud. So that's just a complete cultural shift, right, to talk about you guys have that mojo internally or, yes, it's about, it's about taking what we know inside the company and exposing that to developers and creating that developer to develop our connection. And you mentioned programmers. I mean we have Lauren Schaffer, we have a number of female developers on our teams and we are very much focused on ensuring that we're leading and making sure that we are creating a very balanced on environment of developers and leading in that area of making sure we have a lot of diversity. >>And so it's really about, from a marketing standpoint, it's, you know, you don't market to developers. Yeah, no, your technical chops or what's the market and you make sure that what they're interested in and what thereafter we're going to connect them with an IBM development team or is somebody else in the community through developer works that's working on it as well. And it's that local community. There's local connections headfake developers as we learned that. No, and my team, my marketing team, it's half developers, half data analysts. I mean we are, I mean EDC shifts inside of IBM marketing. I mean it's all data driven. I'm using the entire portfolio SAS portfolio we have with, you know, Unica, Coremetrics and, and then every day giving developers more trends and more technologies to play with your kid in the candy store. They ask you the, um, the question that's on my mind is what was the big learnings over the year that you guys walked away? >>What was magnified this year? Y'all see, you launched it a year ago, you have some growth, right? What's the learnings that was magnified for your team and the whole group? I'd say the speed. Um, so when you talked about, you know, agile development, agile delivery, you look at going from, you know, a few services to 102, you now have to re reinvent the way product development is done inside the company. So it's cloud versus mobile first. And it's really looking at across all the services we have, how long can they be a beta, how long, you know, are we going to do testing? What is the beta to general availability, onboarding for developers and migration path. Because a lot of companies will launch a beta, you're using the beta, you're embedded in it, and then all of a sudden it goes generally available and you have to rip and replace. Like that's horrible. And you know, experience. So we've, the biggest change I've seen is just the agile delivery and the speed at which internally to IBM we're working and learning from our partners that we're onboarding, bringing more and more partners every day. >>We got a break, but I want to ask you one final question. What's the coolest thing that you guys have done with Blumix internally? >>So internally it's been the Watson services and the Watson hackathons. So, uh, we are doing message resonance and sentiment analysis, so you can actually take a memos that are written or uh, or external documentation, run it through message resonance and, and start creating profiles of, of messaging. So it's been a, so you've got traditional writers, you know, geeking out of it and now they're uploading their content into the mobile applications and, uh, and you're then changing the way that, >>yeah, we had, we did a test, Adam sent us a link for the beta with the blue mix and we took all our chats and the social group has an amazing crowd chats, a zillion people on it and it's a huge transcript. I just cut and paste the transcript into the site and it spit out like the top things. And it was like, you know, openness cause it's a, it's a Twitter, Twitter, Twitter chat and they gave it a little, all the sentiment. I was like, wow, this is awesome so we could see where this going. So, um, that's cool. Thanks for coming. Thanks for coming on the cube again. Great to see you. Congratulations and keep us posted and we'll bull up. Keep checking in with you on the progress. This is the cube. We'll be right back live in Las Vegas after this short break.

>>The cube at IBM. Impact 2014 is brought to you by headline sponsor. IBM. Here are your hosts, John furrier and Paul Gillin. >>Hey, welcome back everyone. This is Silicon angle's the cube. It's our flagship program. We go out to the events district as soon from the noise. We're ending out day two of two days of wall to wall coverage with myself and Paul Galen. Uh, 10 to six 30 every day. I'm just, we'll take as much as we can just to get the data. Share that with you. Restrict the signal from the noise. I'm John furrier the bonus look at angle Miko is Paul Gilliam and our special guests, Holger Mueller, Mueller from constellation research analyst covering the space. Ray Wang was here earlier. You've been here for the duration. Um, we're going to break down the event. We'll do a wrap up here. Uh, we have huge impact event for 9,000 people. Uh, Paul, I want to go to you first and get your take on just the past two days. And we've got a lot of Kool-Aid injection attempts for Kool-Aid injection, but IBM people were very, very candid. I mean, I didn't find it, uh, very forceful at all from IBM. They're pragmatic. What's your thoughts on it? >>I think pragmatism is, is what I take away, John, if it gets a good, that's a good word for it. Uh, what I saw was a, uh, not a blockbuster. Uh, there was not a lot of, of, uh, of hype and overstatement about what the company was doing. I was impressed with Steve mills, but our interview with him yesterday, we asked about blockbuster acquisitions and he said basically, why, why, I mean, why should we take on a big acquisition that is going to create a headache, uh, for us in integrating into your organization? Let's focus on the spots where we have gaps and let's fill those. And that's really what they've, you know, they really have put their money where their mouth is and doing these 150 or more acquisitions over the last, uh, three or four years. Um, I think that the, the one question that I would have, I don't think there's any doubt about IBM's commitment to cloud as the future about their investment in big data analytics. They certainly have put their money where their mouth is. They're over $25 billion invested in big data analytics. One question I have coming out of this conference is about power and about the decision to exit the x86 market and really create confusion in a part of their business partners, their customers about about how they're going to fill that gap and where are they going to go for their actually needs and the power. Clearly power eight clearly is the future. It's the will fill that role in the IBM portfolio, but they've got to act fast. >>Do you think there's a ripple effect then so that that move I'll see cause a ripple effect in their ecosystem? >>Well, I was talking to a, I've talked to two IBM partners today, fairly large IBM partners and both of them have expressed that their customers are suffering some whiplash right now because all of a sudden the x86 option from IBM has gone away. And so it's frozen there. Their purchasing process and some of them are going to HP, some of them are looking at other providers. Um, I don't think IBM really has has told a coherent story to the markets yet about how >>and power's new. So they've got to prop that up. So you, so you're saying is okay, HP is going to get some new sales out of this, so frozen the for IBM and yet the power story's probably not clear. Is that what you're hearing? >>I don't think the power story is clear. I mean certainly it was news to me that IBM is taking on Intel at the, at this event and I was surprised that, that, >>that that was a surprise. Hold on, I've got to go to you because we've been sitting here the Cuban, we've been having all the execs come here and we've been getting briefed here in the cube. Shared that with the audience. You've been out on the ground, we've bumped into you guys, all, all the other analysts and all the briefings you've been in, the private sessions you've been in the rooms you've been, you've been, you've been out, out in the trenches there. What have you, what are you finding, what have you been hearing and what are the, some of the soundbites that you could share with the audience? It's not the classic God, Yemen, what are the differences? >>The Austin executives in cloud pedal, can you give me your body language? He had impact one year ago because they didn't have self layer at a time, didn't want to immediately actionable to do something involving what? A difference things. What in itself is fine, but I agree with what you said before is the messaging is they don't tell the customers, here's where we are right now. Take you by the hand. It's going to be from your door. And there's something called VMs. >>So it's very interesting. I mean I would consider IBM finalized the acquisition only last July. It's only been nine months since was acquired. Everything is software now. It leads me to think of who acquired who IBM acquired a software or did soflar actually acquire IBM because it seems to, SoftLayer is so strategic. IBM's cloud strategy going forward. >>Very strategic. I think it's probably why most transformative seemed like the Nexans agenda. And you've heard me say assault on a single thing. who makes it seven or eight weeks ago? It's moving very far. >>What do you think about the social business? Is that hanging together, that story? Hang on. It's obviously relevant direction. It's kind of a smarter planet positioning. Certainly businesses will be social. Are you seeing any meat on the bone there? On the collaboration side, >>one of the weakest parts, they have to be built again. Those again, they also have an additional for HR, which was this position, this stuff. It's definitely something which gives different change. >>I have to say, John, I was struck by the lack of discussion of social business in the opening keynote in particular a mobile mobile, big data. I mean that that came across very clear, but I've been accustomed to hearing that the social business rugby, they didn't, it didn't come out of this conference. >>Yeah. I mean my take on that was, is that >>I think it's pretty late. I don't think there's a lot of meat in the bone with the social, and I'll tell you why. I think it's like it's like the destination everyone wants to go to, but there's no really engine yet. Right. I think there's a lot of bicycle riding when they need a car. Right? So the infrastructure is just not is too embryonic, if you will. A lot of manual stuff going on. Even the analytics and you know you're seeing in the leaderboard here in the social media side and big data analytics. Certainly there are some core engine parts around IBM, but that social engine, I just don't see it happening. You risk requires a new kind of automation. It's got some real times, but I think that this is some, some nice bright spots. I love the streams. I love this zone's concept that we heard from Watson foundations. >>I think that is something that they need to pull out the war chest there and bring that front and center. I think the thinking about data as zones is really compelling and then I'll see mobile, they've got all the messaging on that and to give IBM to the benefit of the doubt. I mean they have a story now that they have a revenue generating story with cloud and with big data and social was never a revenue generating story. That's a software story. It's not big. It's not big dollars. And they've got something now that really they're really can drive. >>I'll tell you Chris Kristin from mobile first. She was very impressive and, and I'll tell you that social is being worked on. So I put the people are getting it. I mean IBM 100% gets social. I think the, the, it's not a gimmick to them. It's not like, Oh, we got some social media stuff. I think in the DNA of their soul, they, they come from that background of social. So I give them high marks on that. I just don't see the engine yet. I'm looking for analytics. I'm looking for a couple of eight cylinders. I just don't see it yet. You know, the engine, the engines, lupus and she wants to build the next generation of education. Big data, tons of mobile as the shoulder equivalent to social. I'm skeptical. I'm skeptical on Bloomix. I'll tell you why. I'm not skeptical. I shouldn't say that. >>It's going to get some plane mail for that. Okay. I'll say I'll see what's out there. I'll say it. I'm skeptical of Blumix because it could be a Wright brothers situation. Okay, look, I'm wrong guys building the wrong airplane. So the question is they might be on the wrong side of history if they don't watch the open source foundations because here's the problem. I have a blue mix, gets rushed to the market. Certainly IBM has got muscle solutions together. No doubt debting on cloud Foundry is really a risk and although people are pumping it up and it's got some momentum, they don't have a big community, they have a lot of marketing behind it and I know Jane's Wars over there is doing a great job and I'm Josh McKinsey over there with piston cloud. It'll behind it. It has all the elements of open collaboration and architecture or collaboration. However, if it's not a done deal yet in my mind, so that's a, that is a risk factor in my my mind. >>We've met a number of amazing, maybe you can help to do, to put these in order, a number of new concepts out there. We've got Bloomex the soft player, and we've got the marketplace, and these are all three concepts that approval, which is a subset of which, what's the hierarchy of these different platforms? >>That's hopefully, that's definitely at the bottom. The gives >>us visibility. You talk about the CIO and CSI all the time. Something you securities on every stupid LCO one on OCS and the marketplace. Basically naming the applications. Who would folded? IBM. IBM would have to meet opensource platform as a service. >>Well, it's not, even though it's not even open source and doing a deal with about foundries, so, so they've got, I think they're going in the middle. Where's their angle on that? But again, I like, again, the developer story's good, the people are solid. So I think it's not a fail of my, in my mind that all the messaging is great. But you know, we went to red hat summit, you know, they have a very active community, multiple generations in the data center, in the Indiana prize with Linux and, and open, you know, they're open, open shift is interesting. It's got traction and it's got legit traction. So that's one area. The other area I liked with Steve mills was he's very candid about this turf. They're staking out. Clearly the cloud game is up, is there is hardcore for them and in the IBM flavor enterprise cloud, they want to win the enterprise cloud. They clearly see Amazon, they see Amazon and its rhetoric and Grant's narrative and rhetoric against Amazon was interesting saying that there's more links on SoftLayer and Amazon. Now if you count links, then I think that number is skewed. So it's, you know, there's still a little bit of gamification going to have to dig into that. I didn't want to call him out on that, but know there's also a hosting business versus, you know, cloud parse the numbers. But what's your take on Amazon soft layer kind of comparison. >>It's, it's fundamentally different, right? Mustn't all shows everything. Why did see retailers moves is what to entirely use this software, gives them that visibility machine, this accommodation more conservatively knowing that I buy them, I can see that I can even go and physically touch that machine and I can only did the slowly into any cloud virtualization shed everything. >>Oh, Paul, I gotta say my favorite interview and I want to get your take on this. It was a Grady food. She was sat down with us and talk with us earlier today. IBM fell up, walks on water with an IBM Aussie legend in the computer industry. Just riveting conversation. I mean, it was really just getting started. I mean, it felt like we were like, you know, going into cruising altitude and then he just walked away. So they w what's your take on that conversation? >>Well, I mean, certainly he, uh, the gritty boujee interview, he gave us the best story of, of the two days, which is, uh, they're being in the hospital for open heart surgery, looking up, seeing the equipment, and it's going to be used to go into his chest and open his heart and knowing that he knows the people who program that, that equipment and they programmed it using a methodology that he invented. Uh, that, that, that's a remarkable story. But I think, uh, uh, the fact that that a great igloo can have a job at a company like IBM is a tribute to IBM. The fact that they can employ people like that who don't have a hard revenue responsibility. He's not a P. and. L, he's just, he's just a genius and he's a legend and he's an IBM to its crude, finds a place for people like that all throughout his organization. >>And that's why they never lost their soul in my opinion. You look at what HP and IBM, you know, IBM had a lot of reorganizations, a lot of pivots, so to speak, a lot of battleship that's turned this in way. But you know, for the most part they kept their R and D culture. >>But there's an interesting analogy too. Do you remember the case methodology was mutual support of them within the finance language that you mailed something because it was all about images, right? You would use this, this methodology, different vendors that were prior to the transport itself. Then I've yet to that credit, bring it together. bring and did a great service to all for software engineering. And maybe it's the same thing at the end, can play around diversity. >>You've got to give IBM process a great point. Earlier we, Steve mills made a similar reference around, it wasn't animosity, it was more of Hey, we've helped make Intel a big business, but the PC revolution, you know, where, what's in it for us? Right? You know, where's our, you know, help us out, throw us a bone. Or you know, you say you yell to Microsoft to go of course with the licensing fee with Gates, but this is the point, the unification story and with grays here, you know IBM has some real good cultural, you know industry Goodwill, you agree >>true North for IBM is the Antal quest customer. They'll do what's right where the money and the budget of the enterprise customers and press most want compatibility. They don't want to have staff, of course they want to have investment protection >>guys. I'd be able to do a good job of defining that as their cloud strategy that clearly are not going head to head with Amazon. It's a hybrid cloud strategy. They want to, they see the enterprise customers that legacy as as an asset and it's something they want to build on. Of course the risk of that is that Amazon right now is the pure play. It has all the momentum. It has all the buzz and and being tied to a legacy is not always the greatest thing in this industry, but from a practical revenue generating standpoint, it's pretty good. >>Hey guys, let's go down and wrap up here and get your final thoughts on the event. Um, and let's just go by the numbers, kind of the key things that IBM was promoting and then our kind of scorecard on kind of where they, where they kind of played out and new things that popped out of the woodwork that got your attention. You see the PO, the power systems thing was big on their messaging. Um, the big data story continues to be part of it. Blue mix central to the operations and the openness. You had a lot of open, open openness in their messaging and for the most part that's pretty much it. Um, well Watson, yeah, continue. Agents got up to Watson. >>Wow. A lot of news still to come out of Watson I think in many ways that is their, is their ACE in the hole and then that is their diamond. Any other thoughts? >>Well, what I missed is, which I think sets IBM apart from this vision, which is the idea of the API. Everybody else at that pure name stops the platform or says, I'm going to build like the org, I'm going to build you. That's a clear differentiator on the IBM side, which you still have to build part. They still have to figure out granularity surface that sets them apart that they have to give one. >>Yeah, and I think I give him an a plus on messaging. I think they're on all the right fault lines on the tectonic shifts that we're seeing. Everyone, I asked every every guest interview, what's the game changing moment? Why is it so important? And almost consistently the answers were, you know, we're living in a time of fast change data, you know, efficiency spare or you're going to be left behind. This is the confluence of all these trends, these fall lines. So I think IBM is sitting on these fall lines. Now the question is how fast can they cobbled together the tooling from the machineries that they have built over the years. Going back to the mainframe anniversary, it's out there. A lot of acquisitions, but, but so far the story and the story >>take the customer by the hand. That's the main challenge. I see. This wasn't often we do in Mexico, they want zero due to two times or they're chilling their conferences. It's the customer event and you know, and it's 9,000 people somehow have to do something to just show, right? So why is my wave from like distinguished so forth and so and so into? Well Lou mentioned, sure for the cloud, but how do we get there, right? What can we use, what am I SS and leverage? How do I call >>guys, really appreciate the commentary. Uh, this is going to be a wrap for us when just do a shout out to Matt, Greg and Patrick here doing a great job with the production here in the cube team and we have another cube team actually doing a simultaneous cube up in San Francisco service. Now you guys have done a great job here. And also shout out to Bert Latta Moore who's been doing a great job of live tweeting and help moderate the proud show, which was really a huge success and a great crowd chat this time. Hopefully we'll get some more influencers thought leaders in there for the next event and of course want to thank Paul Gillen for being an amazing cohost on this trip. Uh, I thought the questions and the and the cadence was fantastic. The guests were happy and hold there. Thank you for coming in on our wrap up. >>Really appreciate it. Constellation research. Uh, this is the cube. We are wrapping it up here at the IBM impact event here live in Las Vegas. It's the cube John furrier with Paul Gillen saying goodbye and see it. Our next event and stay tuned if it's look at angel dot DV cause we have continuous coverage of service now and tomorrow we will be broadcasting and commentating on the Facebook developer conference in San Francisco. We're running here, Mark Zuckerberg and all Facebook's developers and all their developer programs rolling out. So watch SiliconANGLE TV for that as well. Again, the cube is growing with thanks to you watching and thanks to all of our friends in the industry. Thanks for watching..