>> Narrator: From the Computer History Museum in the heart of Silicon Valley, it's theCUBE, covering food IT: Fork to Farm, brought to you by Western Digital. >> Hey, welcome back here and ready, Jeffrey Frick with theCUBE. We are in Silicon Valley at the Computer History Museum at a really unique event. It's food IT: Fork to farm, not the other way around, which you might think, "Hm, that doesn't make sense," but actually it does, really by the consumer-driven world that's hitting everything including the food and agriculture and we're really excited to have the guys running this show, representing The Mixing Bowl. Rob Trice is the founder and Michael Rose, partner, of The Mixing Bowl. Gentlemen, welcome. >> Thank you for having us. >> Thank you. >> So, first off, a little history on this event, it's the first time we've been here. I think you said there's about 350 people, really a broad spectrum: academe, technology, farmers, from New Zealand, I think was the one I heard from the furthest place. What's kind of the genesis of this show? >> So, my background is 15 years in mobile internet, telecom venture capital and my wife, actually, a couple of years ago, started running a cattle ranch out on the Pacific Coast and through that I saw how little technology was being used on the ranch and amongst local food producers. I came back to Silicon Valley and none of the big food or ag. players were here then, four years ago. Monsanto just had up a venture group, Unilever and Nestle had one person each here, but by and large, Silicon Valley's IT innovation ecosystem was not focused on food and agriculture. So I started The Mixing Bowl as a little bit more than just a Meetup group and we did it a couple of times and then somebody said, "You know, we should do a conference on this topic." So the first year we did it at Stanford with a partner of ours, and we thought might have 150 people come. We had over 300 people come and it was this kind of audience, kind of cross-section of technologists, food and agriculturalists. So that's when I said, "You know, I'm done with telecom. I want to go ride this food tech, ag. tech wave and see where the heck this comes to roost." So, it's been four years now and I'm pleased to be working not only with Michael, but then our colleagues Seana and Brita, and having a blast, learning a lot. >> Okay, so that's the conference. What about for The Mixing Bowl specifically, what is your charter as an organization? >> Well we've got three aspects of our business, so the first one is information sharing, so doing events like this. We do themed events, we did a water-tech for agricultural event down in Fresno. And then we also are contributing writers for Forbes. We also have an advisory business where we work with large corporates who are seeking innovation and trying to bring innovation to the food and ag. Sector, trying to bring technology and innovation. And then we have an investment side of our business, out of the brand Better Food Ventures. So we invest in the space as well, we have about 12 companies in our portfolio. >> That's interesting that you said there wasn't a lot of tech in ag. here and yet, we talked to Paul from Ford, we talked about their conference that they have at Salinas and of course, Sacramento Valley, San Fernando Valley, or not San Fernando Valley, San Joaquin Valley is a huge producer of food. So why do you think it was so late to come here? >> Well, I think that there have been other opportunities and I think that there's a misperception that agriculture doesn't need IT and I think what we've now realized is there's a huge opportunity, whether it is Internet of Things or looking at tracking and transparency, there's a lot of inefficiencies in our food production system and there also are a lot of societal challenges that we have. Everyone talks about feeding nine billion people by 2050, but then also we look at food safety, we look at what the consumer wants, which is why we're here today, talking about the fork to the farm. Consumers want change in food. They want different kinds of food. They want it delivered to them in different ways. All of these are opportunities for tech to be applied to food and agriculture. >> So we love being here. Go ahead, Michael. >> No, I was just going to say, I think it's like any other vertical in any other sector that starts to adopt technology over time. And even in the ag. sector, you've seen in the commodity crops in the Midwest with the automation that they adopted technology early but you've got other sectors, whether it's the specialty crops down in Salinas or people who are doing almonds, etc. Those people are starting to adopt technology, they're just a little further behind than you are with commodity crops. >> Right. It's funny, we interviewed the guy from Caterpillar a few weeks ago, and they are already running huge fleets of autonomous vehicles in mining. Obviously they have a lot of equipment involved in agriculture as well, so it seems kind of start and stop depending on the vendors that you're talking about. But one of the big themes we talk about, we go to a lot of platform shows, right? It's Cloud, it's edge, it's connectivity, it's big data, drones, I mean, as you look at some of these big classifications of technology that are now being applied in ag. are there any particular ones that kind of jump out as either the catalyst or the leading edge of adoption that's really helping drive this revolution? >> I guess, if you think about the fact that we're kind of looking at this staircase of adoption. One thing that we need to do is actually digitize information and that's one of the challenges that we have. Once we digitize, then we can start to manage operations based on that data, then we can start to optimize, and then we can automate. So it's a four-step staircase that we look at and I think in a lot of cases, even at restaurants, a lot of them are still placing orders via fax and telephone. We need to get off of that and start getting them to order online through online platforms and so forth. So, at any rate, one area that I'm particularly excited about is aerial imaging for agriculture because I think you are instantaneously, by just doing a flyover, providing farmers with more information than they've ever had. In some cases, I think you could actually argue, you're going from a data desert to a data flood. Now the challenge is moving up that staircase to go make sense of that data and then ultimately be able to give prescriptive machine-learning or artificial intelligence-based recommendations to that farmer on how to do a better job, whether that is increasing sustainability, maximizing yield, looking at pricing, any of those kind of things. >> Right, one of the things you hear real often in every industry, is kind of the old guy using intuition versus becoming really a data-driven organization. Are you seeing that classic conflict, or do people get it pretty quickly when you can provide the data to show them things that they could never really see before? >> I was going to say, one of the biggest challenges that's also dictating the market timing is the fact that average American farmer is about 65, so we now are having this turn as the kids are coming back who are tech-enabled back to the production point, back to the farm and starting to take over farms from their parents. And their parents, of course, have just been maybe a little slower to adopt new technology. So it's just a timing issue. I think the other thing is, there are all the different pieces, whether it's the sensors or whether it's the connectivity of data or whether it's the storage of data, there needs to be a solution and they need to be integrated. And so we see this on the farm, getting that data off and then getting it stored and then how to use it. But then you also see this in restaurants. In restaurants, you have all of the delivery services coming in, so a restaurant can have seven different delivery services picking up from the restaurant. And they have seven different iPads that they have to manage with their point of sales system and very few of them currently will integrate with a POS, right? >> Right. And I think whether it's in a restaurant or on a farm, this lack of integration, API integration, making it a usable solution as opposed to a number of features, is where we're probably going to see a lot more tech innovation. I think unfortunately what you're probably also going to see is a lot of consolidation because you've had venture capital-backed companies with solutions for food and agriculture that have their own proprietary solution, their own OS. And we know that, from other tech sectors, that's not a long-term viable strategy. Ultimately, the data will be free, it will open up, it will interconnect, and we just need to happen in food and in agriculture. >> And are they getting that? Because the classic farmer dilemma that you learn in economics 101 is they have a great crop, crap prices go in the toilet. They have a crappy crop, price is up but they don't have enough quantity to share and gaming the system, and who's going to plant what? Do they start to see the value of sharing some level of data aggregation for the benefit of all? >> I think there's a misperception out there that farmers won't share their data. The reality is they're willing to share their data, if it's providing some value to them. A lot of people want to charge these farmers for their data without any demonstrable benefit to using that data. And I think where you can find a solution, I think the farmers are, speaking generally here, I think the other thing is, farmers know, if you're not paying for the data, you probably are the product, right? And they're smart enough to figure that out, so they don't want people misusing their data for reasons that aren't clear to them. And they've had bad experiences with that in the past. >> It's not any different than any other sector. I mean, go back seven years ago when people said, "Well, we're going to mix your data up with somebody else's data, but it's not a problem, right? Zeros and ones, it's bits." And they were both like, "Nooo," and they got over it, right? >> Right, but the other thing I'll say is I think that the challenges are changing and this is not just standard commodity ups and downs, particularly if you look at here in California, the specialty crops. We have lost access to what has been a cheap labor pool historically and we need to automate. So now we need to go where northern Europe has already gone, in terms of automating production for specialty crops and then things like climate change are causing different crops to grow in different seasons and we need to be able to predict that, we need to take more of it indoors as a nice complement to outdoor growing. So there's a lot of different things that farmers are dealing with now that they really haven't had to deal with in the future. And I think the same is true on the restaurant side. >> Yeah, and the predictability of understanding what your needs are going to be is going to be so important here, particularly because we need to see more automation, both on the farm and production and the restaurants. I know a lot of people talk about being concerned about losing their jobs to automation or robotics, but the reality is, the National Restaurant Association says in the next 10 years, we have a shortage of 200,000 line cooks. >> Jeff: Just line cooks? >> Just line cooks, right. So when you see someone like Chowbotics who's here showing the automated customized salad maker, there's clearly a need in the market place for these kind of approaches. >> The other thing too is you touch on such big, global societal issues. Obviously we're in California here, water. We had a really wet winter, but you know, I'm looking for the water track, I mean that's got to be a huge piece of this whole thing. You have the environmental concern, again, in California, there's always the fight between the farmers that want the water in the rivers and the environmentalists who want to keep the salmon swimming upstream. These are not simple problems that have an obvious solution, and as I think somebody said in they keynote, there's no free trade-off. You've got to make decisions based on values and they're not simple problems. So you guys are right in the middle of a lot of big society changes. >> Yeah, and I think that's one of the things. This is not just a US or a California thing. Globally, things are changing. And whether it is China having more disposable income available to eat more meat and what the ramifications of that are versus other societies with more environmental challenges moving front and center to them, the labor challenge. There's a lot of different things that are happening globally and we don't really have that connectivity layer globally to share this innovation to find the right solutions and get them addressing these market challenges. >> Right. >> Yeah, I would say the thing is, it is complex, so they're going to be talking about tomato growth later on today, and the example somebody was giving is we went to precision watering instead of spray, well, when you go to drip irrigation, you actually have to pressurize an entire system so you actually use more energy. So we use less water but we burn more coal, more oil, whatever it may be, to pressurize the system. And then if it produces a product that has more water content, you spend more energy drying it on the backend. So there's trade-offs. I would say the other thing that we found is really interesting is people ask us if we're social impact investors and we aren't but we have a social impact consideration about what we do, but pretty much everything that you see in this space right now from an innovative side is moving the ball forward, either it's better nutrition, it's less input, it's less chemicals, less water. So this innovation in food and ag. is just by its nature having a very positive impact. >> Right, two years ago, we called food IT macro to micro, and fundamentally what we believe at The Mixing Bowl is, as Michael said, at Better Food Ventures, we don't consider ourselves social impact investors, first and foremost, we want to keep financial grounding. However, I think at a core level, we all believe that harnessing IT to go address these societal challenges in food and agriculture is the biggest thing that we can make. So the reality is we're not going to be able to do much more with the chemical era, we've maximized the yield that we can get there. So now we are going to be looking at IT and how can we actually apply IT to these different challenges and I'm going to cough now. (Jeff laughs) (Rob coughs) >> Well, even something, people think IT and they think highly technical and they think of Cloud, they think of data connections, well look at food waste. The bulk of food waste that happens in our society happens at the home to the restaurant. So even if it's an iPhone app that's teaching our children how to deal with food waste in their home, it's a technical approach, it's hugely impactful. And it's those kind of touch points that will make a difference. >> Right, right. Well, Rob, Michael, thanks for inviting us, it's really fun to come to more of an application-centered show than an infrastructure show and see how the impact of Cloud and big data and sensors and IOT and drones and all of these things are having material impact on us day by day. So congratulations on the event and we'll let you go back to the keynote stage, they're waiting for you. >> Thank you. >> Thank you. >> All right, I'm Jeff Frick, you're watching theCUBE. We are at the Food IT show in Mountain View, California. We'll be right back with the next guest after this short break. Thanks for watching. (electronic music)

>> Announcer: From the Computer History Museum, in the heart of Silicon Valley, it's theCUBE. Covering Food IT: Fork to Farm, brought to you by Western Digital. >> Hey welcome back everybody Jeff Frick here with theCUBE. We're at the Food IT show at the Computer History Museum here in Mountain View, California. Really an amazing show, 350 people, all kind of pieces of the spectrum from academia to technology, to start-ups to Yamaha. Who thought Yamaha was into food tech, I didn't think that. To start-ups and we're really excited to have two of the partners form the Mixing Bowl and the Better Food Ventures, Brita Rosenheim and Seana Day welcome. >> Thank you. >> Thanks Jeff. >> So first off, congratulations on the event, what are your impressions? you guys been doing this for a couple years now I think. Bigger, badder, better? >> No I think this is great. We've has a fantastic turn out and the content's always very interesting and the interaction between the audience and the speakers is fantastic. >> Yeah, we just finished up a panel, IoT, Internet of Tomatoes, so there's always some great conversations really going. >> I think we're talking about that later this afternoon. >> Oh fantastic. >> It is interesting right, because all the big megatrends of cloud and we cover these in tech infrastructure all the time and big data and sensors and IoT and drones and these things. Really, all being brought to bare in agriculture from everything from producing the food to eating the food to the scraps that we don't eat I guess. >> No, you're spot on, some of the big macro challenges are what's driving a lot of the innovation. As you said food scraps, but waste is a major challenge. Labor, certainly here in California is something that we've seen a lot of innovation around solving some of those labor pain points. Certainly sort of environmental sustainability and resource management, you know, how are we using water, how are we using our inputs. Those are a lot of big themes that are driving interest in this sector and driving investment. >> Right so you guys are talking about some of the investments, like you guys put on a show, but you also have an investment arm, so you're looking for new technologies that play in this space correct? >> Yeah, Better Food Ventures makes early stage, seed investments so really kind of, not ideation stage, but pretty close after that. So working with entrepreneurs and really helping them, nurture them, and grow into hopefully successful companies. We've made 12 investments so far, I think seven of them have stepped up to priced equity so. >> Excellent, and you guys have brought this architecture landscape of the innovation. We won't share this on camera because it's way too many names for you to see, but obviously you can go online. >> Seana: It's available for download on our website MixingBowlHub.com. >> It's fascinating, there are literally what, a dozen categories and many firms within each category per side, so I wonder if you can give us a little bit more color on this landscape. I had no idea, the level of innovation that's happening in the food tech space, you just don't think about it probably if you're not in the industry. >> I'll let Seana kick off, between Seana and I, we cover Fork to Farm, so Seana covers from the farm, all the way through distribution and the area that I focus on, distribution all the way to consumer consumption. So we have a nice harmony there. We'll start at the beginning with Seana. >> Looking at over 3,000 companies. >> Jeff: 3,000? >> 3,000 between the two of our sort of database's. My coverage area is really infield technologies, hardware, software, applications. So anything from sensors, drones, soil moisture, weather, crop management, farm management software, all the way through as Brita said, distribution. So looking at supply chain management, logistics, trading platforms, collaboration platforms, so there's a lot going on. Every time, I roll out one of these technology landscapes. I'm always adding categories, which is sort of representative of the way that the market is evolving. I think that there is a lot of interesting stuff happening now in the post-harvest part of this market that more investors are starting to pay attention to. We've heard of that more today's even as well. Technologies that are focused on minimizing waste in the supply chain, making things more efficient helping shorten that supply chain so that we've got fresher food. More local options for consumers. >> I've been tracking the space for the last six or seven years, and to echo Seana's point on every time you put a new map out, you know we're thinking about different categories I mean every single year you've looked at it, the ecosystem has changed so much in terms of even how you categorize or even think of the different innovations that are shaping the space. I focus on, the way I look at my map is from in-home media consumption, discovery, so media, marketing, advertising, all the way through eCommerce, so both the B2B and B2C eCommerce platforms, all the way through restaurant and retail. So grocery, delivery, hyper-local marketing and the like. >> So can you explain the crazy success of these little, event handling, short food videos that are just taking the internet by storm? It's fascinating right? >> Yeah, BuzzFeed's tasty. >> Media consumption is really something to see. >> Yeah, I think BuzzFeed really took the traditional food media category by surprise. They really created the new, literally, video content for consumption that is extremely addicting, short, it makes everything seem approachable. It's kind of the bite-size version of the Food Network and I find myself. >> Off the chart right? >> You can't stop. Whether I'll make it or not you know, like the twirling potato and. (Brita chuckling) >> So the other, the sub-theme for this years conference is Fork to Farm and I'm just curious right. Because we've seen consumerization of IT impact all the different industries that we cover. It is really the end user at the end point that's driving the innovation back upstream. I wonder if you could speak to kind of the acceleration of that trend over time. Or is it relatively recent or you know there's some specific catalyst that you've seen as you've studied the market that has really driven an acceleration of that? >> Seana: Do you want to start with consumer and then we'll get back into the grower side of that? >> Yeah, I mean, I think you've seen kind of the long evolution since my web grocer cosmos of 10, 15 years ago and you know, people thinking, I'm never going to buy food online really don't have that trust level and you know kind of eCommerce in general, mobile technology in general has changed the consumers expectation and purchase and consumption patterns, period, for all other goods, so we've gotten to a point where there is a level of trust of if something is going to come to you in the mail there's just an expected level of trust or you can send it back. So that's kind of lent itself to this food category. I think in one way, that's been an overall industry shift in terms of the changing expectations of the consumer. You want to push a button, you've got your shoes, your lipstick you know your dog toys at the push of a button, why not your food. So the problem with that is food is very different it's has to be hot or cold, you have the cold chain speed, the manual labor involved. Just kind of the cost infrastructure is totally different than sending a box of lipstick and makeup to a consumer so I think you've seen a tremendous amount of funding in this on-demand delivery category a ton of different Uber for this, Uber for that, around the food space. Meal kits, but I think the reality of running those businesses have proven to be very difficult in terms of making the costs work out in terms of a business model so. >> Don't they all know why Van failed? They all probably too young to miss the Webvan and AT&T. >> Yeah, that being said, there's some opportunity there it's just about getting to the right scale. So obviously Amazon just bought Whole Foods last week I think there is room for a brick and mortar approach here but there, I think on-demand delivery's not going away in the food category, so who can actually deliver that because the consumer's not going to say, oh the business model doesn't make sense, I don't want this anymore. They just don't want to pay for it. Somebody has to figure out a way to. >> Oh that other pesky little detail About. And Seana it used to be if we make it they will eat right? I guess that doesn't hold true anymore. >> Well, you know it's a different adoption dynamic in the grower part of the technology adoption curve the consumers tend to pick things up more quickly than the traditional Ag player, Ag stake holder, the growers have been a little bit more tentative in terms of trying to figure out what kinds of technologies actually work. They're all of a sudden confronted with this idea of data overload. All of a sudden, you go from having no data to more data than you know what to do with. That's driving some of these adoption dynamics. People really trying to figure out what works, what business models are sustainable in agriculture and I know unsustainable from a resource standpoint. But just, will that business be around in six to nine to 12 months to support the technology that's in the field. So it's been a little slower I would say, on the production agriculture and grower side in terms of that uptake, but you know the other challenge that I think we face in terms of those models is really the flow of data. The flow of information is still very silo'd and in order to get the kind of decision support tools and the supply chain efficiencies that we're looking for in the food system, we really need to figure out how to integrate those data sources better. What's coming out of the field, what's happening in the mid-stream processing, and then what's happening on the supply chain and logistics side before you get to that consumer who's demanding it. But there's a lot of stages of information that need to harmonize before we can really have a more optimized system. >> Right, and are you seeing within the data side specifically some of the traditional players, like Tableau and clearly there's been a lot of activity in big data for awhile we've been going to Hadoop Summit and Hadoop World for ever and ever, are those people building Ag specific solutions or are there new players that really see the specific opportunity and better position to build you know the analytics to enable the use of that data? >> I think the big IT incumbents are looking at this very, very carefully. But there's are a lot of nuances to agriculture that are different from some of the other vertical industries and there's been a lot of observing from the sidelines down there, less from the deployment of actual technologies. Until people really understand how this market is starting to shake out. I think IBM and some of those big tech players are definitely on the fringes here, but I think again, we've got this challenge of how do you actually deliver value to growers. So, you've got all this data and you can crunch all this data how do you present that in a way that a grower can make a better decision about their operation. And oh, by the way, does the grower trust that data. That sort of is the challenge that I think we're still in the early innings in terms of of how that. It will come, but we're still in the early innings. >> Which is always the case right, to go from kind of an intuition, we've always done it this way, you know, like three generations of grandfathers that have worked this land too, you know here's the data, you can micro-optimize for this, that and the other and really take a different approach. >> I's say one of the challenges both on the Ag side, but also even on the food side, that there's a lot of start-ups that you meet with that are all about big data, big data, but big data really needs to be big data. So the incumbents are really the only ones that are in the position to crunch that amount of data. You can't actually get the insights when you don't have scale so there's a tremendous amount of companies that have a really interesting, innovative, approach to collecting data, to how you can use it and all they need is scale. That's virtually impossible unless they're acquired by or have a partnership with, which isn't going to happen a larger incumbent so big data, you really need a tremendous amount of data points to actually get to something that's useful. >> Alright, well, Seana and Brita thanks for taking a few min utes again, where can people go to get the pretty download it's a lot of data on this thing. >> It's MixingBowlHub.com so that's available both the AdTech landscape and the Food Tech landscape. >> Alright great, well again thanks, for inviting us to the show, really great show and congrats to you both for pulling it off. >> Thank you very much. >> Thanks very much. >> Alright, Brita, Seana, I'm Jeff you're watching theCUBE we're at FoodIT in the Computer Science Museum in Mountain View, California. We'll be back after the short break. Thanks for watching.

(soft music) >> Announcer: TheCUBE's live coverage is made possible by funding from Dell Technologies. Creating technologies that drive human progress. (upbeat music) >> Welcome back to Spain, everybody. We're here at the Fira in MWC23. Is just an amazing day. This place is packed. They said 80,000 people. I think it might even be a few more walk-ins. I'm Dave Vellante, Lisa Martin is here, David Nicholson. But right now we have the Analyst Hot Takes with three friends of theCUBE. Chris Lewis is back again with me in the co-host seat. Zeus Kerravala, analyst extraordinaire. Great to see you, Z. and Sarbjeet SJ Johal. Good to see you again, theCUBE contributor. And that's my new name for him. He says that is his nickname. Guys, thanks for coming back on. We got the all male panel, sorry, but it is what it is. So Z, is this the first time you've been on it at MWC. Take aways from the show, Hot Takes. What are you seeing? Same wine, new bottle? >> In a lot of ways, yeah. I mean, I was talking to somebody this earlier that if you had come from like MWC five years ago to this year, a lot of the themes are the same. Telco transformation, cloud. I mean, 5G is a little new. Sustainability is certainly a newer theme here. But I think it highlights just the difficulty I think the telcos have in making this transformation. And I think, in some ways, I've been unfair to them in some degree 'cause I've picked on them in the past for not moving fast enough. These are, you know, I think these kind of big transformations almost take like a perfect storm of things that come together to happen, right? And so, in the past, we had technologies that maybe might have lowered opex, but they're hard to deploy. They're vertically integrated. We didn't have the software stacks. But it appears today that between the cloudification of, you know, going to cloud native, the software stacks, the APIs, the ecosystems, I think we're actually in a position to see this industry finally move forward. >> Yeah, and Chris, I mean, you have served this industry for a long time. And you know, when you, when you do that, you get briefed as an analyst, you actually realize, wow, there's a lot of really smart people here, and they're actually, they have challenges, they're working through it. So Zeus was saying he's been tough on the industry. You know, what do you think about how the telcos have evolved in the last five years? >> I think they've changed enormously. I think the problem we have is we're always looking for the great change, the big step change, and there is no big step change in a way. What telcos deliver to us as individuals, businesses, society, the connectivity piece, that's changed. We get better and better and more reliable connectivity. We're shunting a load more capacity through. What I think has really changed is their attitude to their suppliers, their attitude to their partners, and their attitude to the ecosystem in which they play. Understanding that connectivity is not the end game. Connectivity is part of the emerging end game where it will include storage, compute, connect, and analytics and everything else. So I think the realization that they are not playing their own game anymore, it's a much more open game. And some things they will continue to do, some things they'll stop doing. We've seen them withdraw from moving into adjacent markets as much as we used to see. So a lot of them in the past went off to try and do movies, media, and a lot went way way into business IT stuff. They've mainly pulled back from that, and they're focusing on, and let's face it, it's not just a 5G show. The fixed environment is unbelievably important. We saw that during the pandemic. Having that fixed broadband connection using wifi, combining with cellular. We love it. But the problem as an industry is that the users often don't even know the connectivity's there. They only know when it doesn't work, right? >> If it's not media and it's not business services, what is it? >> Well, in my view, it will be enabling third parties to deliver the services that will include media, that will include business services. So embedding the connectivity all the way into the application that gets delivered or embedding it so the quality mechanism deliver the gaming much more accurately or, I'm not a gamer, so I can't comment on that. But no, the video quality if you want to have a high quality video will come through better. >> And those cohorts will pay for that value? >> Somebody will pay somewhere along the line. >> Seems fuzzy to me. >> Me too. >> I do think it's use case dependent. Like you look at all the work Verizon did at the Super Bowl this year, that's a perfect case where they could have upsold. >> Explain that. I'm not familiar with it. >> So Verizon provided all the 5G in the Super Bowl. They provided a lot of, they provided private connectivity for the coaches to talk to the sidelines. And that's a mission critical application, right? In the NFL, if one side can't talk, the other side gets shut down. You can't communicate with the quarterback or the coaches. There's a lot of risk at that. So, but you know, there's a case there, though, I think where they could have even made that fan facing. Right? And if you're paying 2000 bucks to go to a game, would you pay 50 bucks more to have a higher tier of bandwidth so you can post things on social? People that go there, they want people to know they were there. >> Every football game you go to, you can't use your cell. >> Analyst: Yeah, I know, right? >> All right, let's talk about developers because we saw the eight APIs come out. I think ISVs are going to be a big part of this. But it's like Dee Arthur said. Hey, eight's better than zero, I guess. Okay, so, but so the innovation is going to come from ISVs and developers, but what are your hot takes from this show and now day two, we're a day and a half in, almost two days in. >> Yeah, yeah. There's a thing that we have talked, I mentioned many times is skills gravity, right? Skills have gravity, and also, to outcompete, you have to also educate. That's another theme actually of my talks is, or my research is that to puts your technology out there to the practitioners, you have to educate them. And that's the only way to democratize your technology. What telcos have been doing is they have been stuck to the proprietary software and proprietary hardware for too long, from Nokia's of the world and other vendors like that. So now with the open sourcing of some of the components and a few others, right? And they're open source space and antenna, you know? Antennas are becoming software now. So with the invent of these things, which is open source, it helps us democratize that to the other sort of skirts of the practitioners, if you will. And that will bring in more applications first into the IOT space, and then maybe into the core sort of California, if you will. >> So what does a telco developer look like? I mean, all the blockchain developers and crypto developers are moving into generative AI, right? So maybe those worlds come together. >> You'd like to think though that the developers would understand everything's network centric today. So you'd like to think they'd understand that how the network responds, you know, you'd take a simple app like Zoom or something. If it notices the bandwidth changes, it should knock down the resolution. If it goes up it, then you can add different features and things and you can make apps a lot smarter that way. >> Well, G2 was saying today that they did a deal with Mercedes, you know this probably better than I do, where they're going to embed WebEx in the car. And if you're driving, it'll shut off the camera. >> Of course. >> I'm like, okay. >> I'll give you a better example though. >> But that's my point. Like, isn't there more that we can do? >> You noticed down on the SKT stand the little helicopter. That's a vertical lift helicopter. So it's an electric vertical lift helicopter. Just think of that for a second. And then think of the connectivity to control that, to securely control that. And then I was recently at an event with Zeus actually where we saw an air traffic control system where there was no people manning the tower. It was managed by someone remotely with all the cameras around them. So managing all of those different elements, we call it IOT, but actually it's way more than what we thought of as IOT. All those components connecting, communicating securely and safely. 'Cause I don't want that helicopter to come down on my head, do you? (men laugh) >> Especially if you're in there. (men laugh) >> Okay, so you mentioned sustainability. Everybody's talking about power. I don't know if you guys have a lot of experience around TCO, but I'm trying to get to, well, is this just because energy costs are so high, and then when the energy becomes cheap again, nobody's going to pay any attention to it? Or is this the real deal? >> So one of the issues around the, if we want to experience all that connectivity locally or that helicopter wants to have that connectivity, we have to ultimately build denser, more reliable networks. So there's a CapEx, we're going to put more base stations in place. We need more fiber in the ground to support them. Therefore, the energy consumption will go up. So we need to be more efficient in the use of energy. Simple as that. >> How much of the operating expense is energy? Like what percent of it? Is it 10%? Is it 20%? Is it, does anybody know? >> It depends who you ask and it depends on the- >> I can't get an answer to that. I mean, in the enterprise- >> Analyst: The data centers? >> Yeah, the data centers. >> We have the numbers. I think 10 to 15%. >> It's 10 to 12%, something like that. Is it much higher? >> I've got feeling it's 30%. >> Okay, so if it's 30%, that's pretty good. >> I do think we have to get better at understanding how to measure too. You know, like I was talking with John Davidson at Sysco about this that every rev of silicon they come out with uses more power, but it's a lot more dense. So at the surface, you go, well, that's using a lot more power. But you can consolidate 10 switches down to two switches. >> Well, Intel was on early and talking about how they can intelligently control the cores. >> But it's based off workload, right? That's the thing. So what are you running over it? You know, and so, I don't think our industry measures that very well. I think we look at things kind of boxed by box versus look at total consumption. >> Well, somebody else in theCUBE was saying they go full throttle. That the networks just say just full throttle everything. And that obviously has to change from the power consumption standpoint. >> Obviously sustainability and sensory or sensors from IOT side, they go hand in hand. Just simple examples like, you know, lights in the restrooms, like in public areas. Somebody goes in there and just only then turns. The same concept is being applied to servers and compute and storage and every aspects and to networks as well. >> Cell tower. >> Yeah. >> Cut 'em off, right? >> Like the serverless telco? (crosstalk) >> Cell towers. >> Well, no, I'm saying, right, but like serverless, you're not paying for the compute when you're not using it, you know? >> It is serverless from the economics point of view. Yes, it's like that, you know? It goes to the lowest level almost like sleep on our laptops, sleep level when you need more power, more compute. >> I mean, some of that stuff's been in networking equipment for a long time, it just never really got turned on. >> I want to ask you about private networks. You wrote a piece, Athenet was acquired by HPE right after Dell announced a relationship with Athenet, which was kind of, that was kind of funny. And so a good move, good judo move by by HP. I asked Dell about it, and they said, look, we're open. They said the right things. We'll see, but I think it's up to HP. >> Well, and the network inside Dell is. >> Yeah, okay, so. Okay, cool. So, but you said something in that article you wrote on Silicon Angle that a lot of people feel like P5G is going to basically replace wireless or cannibalize wireless. You said you didn't agree with that. Explain why? >> Analyst: Wifi. >> Wifi, sorry, I said wireless. >> No, that's, I mean that's ridiculous. Pat Gelsinger said that in his last VMware, which I thought was completely irresponsible. >> That it was going to cannibalize? >> Cannibalize wifi globally is what he said, right? Now he had Verizon on stage with him, so. >> Analyst: Wifi's too inexpensive and flexible. >> Wifi's cheap- >> Analyst: It's going to embed really well. Embedded in that. >> It's reached near ubiquity. It's unlicensed. So a lot of businesses don't want to manage their own spectrum, right? And it's great for this, right? >> Analyst: It does the job. >> For casual connectivity. >> Not today. >> Well, it does for the most part. Right now- >> For the most part. But never at these events. >> If it's engineered correctly, it will. Right? Where you need private 5G is when reliability is an absolute must. So, Chris, you and I visited the Port of Rotterdam, right? So they're putting 5G, private 5G there, but there's metal containers everywhere, right? And that's going to disrupt it. And so there are certain use cases where it makes sense. >> I've been in your basement, and you got some pretty intense equipment in there. You have private 5G in there. >> But for carpeted offices, it does not make sense to bring private. The economics don't make any sense. And you know, it runs hot. >> So where's it going to be used? Give us some examples of where we should be looking for. >> The early ones are obviously in mining, and you say in ports, in airports. It broadens cities because you've got so many moving parts in there, and always think about it, very expensive moving parts. The cranes in the port are normally expensive piece of kits. You're moving that, all that logistics around. So managing that over a distance where the wifi won't work over the distance. And in mining, we're going to see enormous expensive trucks moving around trying to- >> I think a great new use case though, so the Cleveland Browns actually the first NFL team to use it for facial recognition to enter the stadium. So instead of having to even pull your phone out, it says, hey Dave Vellante. You've got four tickets, can we check you all in? And you just walk through. You could apply that to airports. You could do put that in a hotel. You could walk up and check in. >> Analyst: Retail. >> Yeah, retail. And so I think video, realtime video analytics, I think it's a perfect use case for that. >> But you don't need 5G to do that. You could do that through another mechanism, couldn't you? >> You could do wire depending on how mobile you want to do it. Like in a stadium, you're pulling those things in and out all the time. You're moving 'em around and things, so. >> Yeah, but you're coming in at a static point. >> I'll take the contrary view here. >> See, we can't even agree on that. (men laugh) >> Yeah, I love it. Let's go. >> I believe the reliability of connection is very important, right? And the moving parts. What are the moving parts in wifi? We have the NIC card, you know, the wifi card in these suckers, right? In a machine, you know? They're bigger in size, and the radios for 5G are smaller in size. So neutralization is important part of the whole sort of progress to future, right? >> I think 5G costs as well. Yes, cost as well. But cost, we know that it goes down with time, right? We're already talking about 60, and the 5G stuff will be good. >> Actually, sorry, so one of the big boom areas at the moment is 4G LTE because the component price has come down so much, so it is affordable, you can afford to bring it all together. People don't, because we're still on 5G, if 5G standalone everywhere, you're not going to get a consistent service. So those components are unbelievably important. The skillsets of the people doing integration to bring them all together, unbelievably important. And the business case within the business. So I was talking to one of the heads of one of the big retail outlets in the UK, and I said, when are you going to do 5G in the stores? He said, well, why would I tear out all the wifi? I've got perfectly functioning wifi. >> Yeah, that's true. It's already there. But I think the technology which disappears in front of you, that's the best technology. Like you don't worry about it. You don't think it's there. Wifi, we think we think about that like it's there. >> And I do think wifi 5G switching's got to get easier too. Like for most users, you don't know which is better. You don't even know how to test it. And to your point, it does need to be invisible where the user doesn't need to think about it, right? >> Invisible. See, we came back to invisible. We talked about that yesterday. Telecom should be invisible. >> And it should be, you know? You don't want to be thinking about telecom, but at the same time, telecoms want to be more visible. They want to be visible like Netflix, don't they? I still don't see the path. It's fuzzy to me the path of how they're not going to repeat what happened with the over the top providers if they're invisible. >> Well, if you think about what telcos delivers to consumers, to businesses, then extending that connectivity into your home to help you support secure and extend your connection into Zeus's basement, whatever it is. Obviously that's- >> His awesome setup down there. >> And then in the business environment, there's a big change going on from the old NPLS networks, the old rigid structures of networks to SD1 where the control point is moved outside, which can be under control of the telco, could be under the control of a third party integrator. So there's a lot changing. I think we obsess about the relative role of the telco. The demand is phenomenal for connectivity. So address that, fulfill that. And if they do that, then they'll start to build trust in other areas. >> But don't you think they're going to address that and fulfill that? I mean, they're good at it. That's their wheelhouse. >> And it's a 1.6 trillion market, right? So it's not to be sniffed at. That's fixed on mobile together, obviously. But no, it's a big market. And do we keep changing? As long as the service is good, we don't move away from it. >> So back to the APIs, the eight APIs, right? >> I mean- >> Eight APIs is a joke actually almost. I think they released it too early. The release release on the main stage, you know? Like, what? What is this, right? But of course they will grow into hundreds and thousands of APIs. But they have to spend a lot of time and effort in that sort of context. >> I'd actually like to see the GSMA work with like AWS and Microsoft and VMware and software companies and create some standardization across their APIs. >> Yeah. >> I spoke to them yes- >> We're trying to reinvent them. >> Is that not what they're doing? >> No, they said we are not in the business of a defining standards. And they used a different term, not standard. I mean, seriously. I was like, are you kidding me? >> Let's face it, there aren't just eight APIs out there. There's so many of them. The TM forum's been defining when it's open data architecture. You know, the telcos themselves are defining them. The standards we talked about too earlier with Danielle. There's a lot of APIs out there, but the consistency of APIs, so we can bring them together, to bring all the different services together that will support us in our different lives is really important. I think telcos will do it, it's in their interest to do it. >> All right, guys, we got to wrap. Let's go around the horn here, starting with Chris, Zeus, and then Sarbjeet, just bring us home. Number one hot take from Mobile World Congress MWC23 day two. >> My favorite hot take is the willingness of all the participants who have been traditional telco players who looked inwardly at the industry looking outside for help for partnerships, and to build an ecosystem, a more open ecosystem, which will address our requirements. >> Zeus? >> Yeah, I was going to talk about ecosystem. I think for the first time ever, when I've met with the telcos here, I think they're actually, I don't think they know how to get there yet, but they're at least aware of the fact that they need to understand how to build a big ecosystem around them. So if you think back like 50 years ago, IBM and compute was the center of everything in your company, and then the ecosystem surrounded it. I think today with digital transformation being network centric, the telcos actually have the opportunity to be that center of excellence, and then build an ecosystem around them. I think the SIs are actually in a really interesting place to help them do that 'cause they understand everything top to bottom that I, you know, pre pandemic, I'm not sure the telcos were really understand. I think they understand it today, I'm just not sure they know how to get there. . >> Sarbjeet? >> I've seen the lot of RN demos and testing companies and I'm amazed by it. Everything is turning into software, almost everything. The parts which are not turned into software. I mean every, they will soon. But everybody says that we need the hardware to run something, right? But that hardware, in my view, is getting miniaturized, and it's becoming smaller and smaller. The antennas are becoming smaller. The equipment is getting smaller. That means the cost on the physicality of the assets is going down. But the cost on the software side will go up for telcos in future. And telco is a messy business. Not everybody can do it. So only few will survive, I believe. So that's what- >> Software defined telco. So I'm on a mission. I'm looking for the monetization path. And what I haven't seen yet is, you know, you want to follow the money, follow the data, I say. So next two days, I'm going to be looking for that data play, that potential, the way in which this industry is going to break down the data silos I think there's potential goldmine there, but I haven't figured out yet. >> That's a subject for another day. >> Guys, thanks so much for coming on. You guys are extraordinary partners of theCUBE friends, and great analysts and congratulations and thank you for all you do. Really appreciate it. >> Analyst: Thank you. >> Thanks a lot. >> All right, this is a wrap on day two MWC 23. Go to siliconangle.com for all the news. Where Rob Hope and team are just covering all the news. John Furrier is in the Palo Alto studio. We're rocking all that news, taking all that news and putting it on video. Go to theCUBE.net, you'll see everything on demand. Thanks for watching. This is a wrap on day two. We'll see you tomorrow. (soft music)

>> TheCUBE presents Ignite 22 brought to you by Palo Alto Networks. >> Welcome back to Las Vegas, everyone. We're glad you're with us. This is theCUBE live at Palo Alto Ignite 22 at the MGM Grant in Las Vegas. Lisa Martin here with Dave Vellante, day one of our coverage. We've had great conversations. The cybersecurity landscape is so interesting Dave, it's such a challenging problem to solve but it's so diverse and dynamic at the same time. >> You know, Lisa theCUBE started in May of 2010 in Boston. We called it the chowder event, chowder and Lobster. It was a EMC world, 2010. BJ Jenkins, who's here, of course, was a longtime friend of theCUBE and made the, made the transition into from, well, it's still data, data to, to cyber. So >> True. And BJ is back with us. BJ Jenkins, president Palo Alto Networks great to have you back on theCUBE. >> It is great to be here in person on theCube >> Isn't it great? >> In Vegas. It's awesome. >> And we can tell by your voice will be, will be gentle. You, you've been in Vegas typical Vegas occupational hazard of losing the voice. >> Yeah. It was one of the benefits of Covid. I didn't lose my voice at home sitting talking to a TV. You lose it when you come to Vegas. >> Exactly. >> But it's a small price to pay. >> So things kick off yesterday with the partner summit. You had a keynote then, you had a customer, a CISO on stage. You had a keynote today, which we didn't get to see. But talk to us a little bit about the lay of the land. What are you hearing from CISOs, from CIOs as we know security is a board level conversation. >> Yeah, I, you know it's been an interesting three or four months here. Let me start with that. I think, cybersecurity in general is still front and center on CIOs and CISO's minds. It has to be, if you saw Wendy's presentation today and the threats out there companies have to have it front and center. I do think it's been interesting though with the macro uncertainty. We've taken to calling this year the revenge of the CFO and you know these deals in cybersecurity are still a top priority but they're getting finance and procurements, scrutiny which I think in this environment is a necessity but it's still a, you know, number one number two imperative no matter who you talked to, in my mind >> It was interesting what Nikesh was saying in the last conference call that, hey we just have to get more approvals. We know this. We're, we're bringing more go-to-market people on board. We, we have, we're filling the pipeline 'cause we know they're going to split up deals big deals go into smaller chunks. So the question I have for you is is how are you able to successfully integrate those people so that you can get ahead of that sort of macro transition? >> Yeah I, you know, I think there's two things I'd say about uncertain macro situations and Dave, you know how old I am. I'm pretty old. I've been through a lot of cycles. And in those cycles I've always found stronger companies with stronger value proposition separate themselves actually in uncertain, economic times. And so I think there's actually an opportunity here. The message tilts a little bit though where it's been about innovation and new threat vectors to one of you have 20, 30, 40 vendors you can consolidate become more effective in your security posture and save money on your TCOs. So one of the things as we bring people on board it's training them on that business value proposition. How do you take a customer who's got 20 or 30 tools take 'em down to 5 or 10 where Palo is more central and strategic and be able to demonstrate that value. So we do that through, we're making a huge investment in our people but macroeconomic times also puts some stronger people back on the market and we're able to incorporate them into the business. >> What are the conditions that are necessary for that consolidation? Like I would imagine if you're, if you're a big customer of a big, you know, competitor of yours that that migration is going to be harder than if you're dealing with lots of little point tools. Do those, do those point tools, are they sort of is it the end of the subscription? Is it just stuff that's off the books now? What's, the condition that is ripe for that kind of consolidation? >> Look, I think the challenge coming into this year was skills. And so customers had all of these point products. It required a lot more human intervention as Nikesh was talking about to integrate them or make them work. And as all of us know finding people with cybersecurity skills over the last 12 months has been incredibly hard. That drove, if you know, if you think about that a CIO and a CISO sitting there going, I have all all this investment in tools. I don't have the people to operate 'em. What do I need to do? What we tried to do is elevate that conversation because in a customer, everybody who's bought one of those, they they bought it to solve a problem. And there's people with affinity for that tool. They're not just going to say I want to get consolidated and give up my tool. They're going to wrap their arms around it. And so what we needed to do and this changed our ecosystem strategy too how we leverage partners. We needed to get into the CIO and CISO and say look at this chaos you have here and the challenges around people that it's, it's presenting you. We can help solve that by, by standardizing, consolidating taking that integration away from you as Nikesh talked about, and making it easier for your your high skill people to work on high skill, you know high challenges in there. >> Let chaos reign, and then reign in the chaos. >> Yes. >> Andy Grove. >> I was looking at some stats that there's 26 million developers but less than 3 million cybersecurity professionals. >> Talked about that skills gap and what CISOs and CIOs are facing is do you consider from a value prop perspective Palo Alto Networks to be a, a facilitator of helping organizations deal with that skills gap? >> I think there's a short term and a long term. I think Nikesh today talked about the long term that we'll never win this battle with human beings. We're going to have to win it with automation. That, that's the long term the short term right here and now is that people need people with cybersecurity skills. Now what we're trying to do, you know, is multifaceted. We work with universities to standardize programs to develop skills that people can come into the marketplace with. We run our own programs inside the company. We have a cloud academy program now where we take people high aptitude for sales and technical aptitude and we will put them through a six month boot camp on cloud and they'll come out of that ready to really work with the leading experts in cloud security. The third angle is partners, right, there are partners in the marketplace who want to drive their business into high services areas. They have people, they know how to train. We give them, we partner with them to give them training. Hopefully that helps solve some of the short-term gaps that are out there today. >> So you made the jump from data storage to security and >> Yeah. >> You know, network security, all kinds of security. What was that like? What you must have learned a lot in the last better part of a decade? >> Yeah. >> Take us through that. >> You know, so the first jump was from EMC. I was 15 years there to be CEO of Barracuda. And you know, it was interesting because EMC was, you know large enterprise for the most part. At Barracuda we had, you know 250,000 small and mid-size enterprises. And it was, it's interesting to get into security in small and mid-size businesses because, you know Wendy today was talking about nation states. For small and mid-size business, it's common thievery right? It's ransomware, it's, and, those customers don't have, you know, the human and financial resources to keep up with the threat factor. So, you know, Nikesh talked about how it's taken 'em four and a half years to get into cybersecurity. I remember my first week at Barracuda, I was talking with a customer who had, you know, breached data shut down. There wasn't much bitcoin back then so it was just a pure ransom. And I'm like, wow, this is, you know, incredible industry. So it's been a good, you know, transition for me. I still think data is at the heart of all of this. Right? And I have always believed there's a strong connection between the things I learned growing up at EMC and what I put into practice today at Palo Alto Networks. >> And how about a culture because I, you know I know have observed the EMC culture >> Yeah. >> And you were there in really the heyday. >> Yeah. >> Right? Which was an awesome place. And it seems like Palo Alto obviously, different times but you know, similar like laser focus on solving problems, you know, obviously great, you know value sellers, you know, you guys aren't the commodity >> Yeah. For Product. But there seemed to be some similarities from afar. I don't know Palo Alto as well as I know EMC. >> I think there's a lot. When I joined EMC, it was about, it was 2 billion in in revenue and I think when I left it was over 20, 20, 21. And, you know, we're at, you know hopefully 5, 5 5 in revenue. I feel like it's this very similar, there's a sense of urgency, there's an incredible focus on the customer. you know, Near and Moche are definitely different individuals but the both same kind of disruptive, Israeli force out there driving the business. There are a lot of similarities. I, you know, the passion, I feel privileged as a, you know go to market person that I have this incredible portfolio to go, you know, work with customers on. It's a lucky position to be in, but very I feel like it is a movie I've seen before. >> Yeah. And but, and the course, the challenges from the, the target that you're disrupting is different. It was, you know, EMC had a lot of big, you know IBM obviously was, you know, bigger target whereas you got thousands of, you know, smaller companies. >> Yes. >> And, and so that's a different dynamic but that's why the consolidation play is so important. >> Look at, that's why I joined Palo Alto Networks when I was at Barracuda for nine years. It just fascinated me, that there was 3000 plus players in security and why didn't security evolve like the storage market did or the server market or network where working >> Yeah, right. >> You know, two or three big gorillas came to, to dominate those markets. And it's, I think it's what Nikesh talked about today. There was a new problem in best of breed. It was always best of breed. You can never in security go in and, you know, say, Hey it's good I saved us some money but I got the third best product in the marketplace. And there was that kind of gap between products. I, believe in why I joined here I think this is my last gig is we have a chance to change that. And this is the first company as I look from the outside in that had best of breed as, you know Nikesh said 13 categories. >> Yeah. >> And you know, we're in the leaders quadrant and it's a conversation I have with customers. You don't have to sacrifice best of breed but get the benefits of a platform. And I, think that resonates today. I think we have a chance to change the industry from that viewpoint. >> Give us a little view of the voice of the customer. You had, was it Sabre? >> Yeah. >> That was on >> Scott Moser, The CISO from Sabre. >> Give us a view, what are you hearing from the voice of the customer? Obviously they're quite a successful customer but challenges, concerns, the partnership. >> Yeah. Look, I think security is similar to industries where we come up with magic marketing phrases and, you know, things to you know, make you want to procure our solutions. You know, zero trust is one. And you know, you'll talk to customers and they're like, okay, yes. And you know, the government, right? Joe, Joe Biden's putting out zero trust executive orders. And the, the problem is if you talk to customers, it's a journey. They have legacy infrastructure they have business drivers that you know they just don't deal with us. They've got to deal with the business side who's trying to make the money that keeps the, the company going. it's really helped them draw a map from where they're at today to zero trust or to a better security architecture. Or, you know, they're moving their apps into the cloud. How am I going to migrate? Right? Again, that discussion three years ago was around lift and shift, right? Today it's about, well, no I need cloud native developed apps to service the business the way I want to, I want to service it. How do I, so I, I think there's this element of a trusted partner and relationship. And again, I think this is why you can't have 40 or 50 of those. You got to start narrowing it down if you want to be able to meet and beat the threats that are out there for you. So I, you know, the customers, I see a lot of 'em. It's, here's where I'm at help me get here to a better position. And they know it's, you know Scott said in our keynote today, you don't just, you know have layer three firewall policies and decide, okay tomorrow I'm going to go to layer seven. That, that's not how it works. Right? There's, and, and by the way these things are a mission critical type areas. So there's got to be a game plan that you help customers go through to get there. >> Definitely. Last question, my last question for you is, is security being a board level conversation I was reading some stats from a survey I think it was the what's new in Cypress survey that that Palo Alto released today that showed that while significant numbers of organizations think they've got a cyber resiliency playbook, there's a lot of disconnect or lack of alignment at the boardroom. Are you in those conversations? How can you help facilitate that alignment between the executive team and the board when it comes to security being so foundational to any business? >> Yeah, it's, I've been on three, four public company boards. I'm on, I'm on two today. I would say four years ago, this was a almost a taboo topic. It was a, put your head in the sand and pray to God nothing happened. And you know, the world has changed significantly. And because of the number of breaches the impact it's had on brand, boards have to think about this in duty of care and their fiduciary duty. Okay. So then you start with a board that may not have the technical skills. The first problem the security industry had is how do I explain your risk profile in a way you can understand it. I'm, I'm on the board of Generac that makes home generators. It's a manufacturing, you know, company but they put Wifi modules in their boxes so that the dealers could help do the maintenance on 'em. And all of a sudden these things were getting attacked. Right? And they're being used for bot attacks. >> Yeah. >> Everybody on their board had a manufacturing background. >> Ah. >> So how do you help that board understand the risk they have that's what's changed over the last four years. It's a constant discussion. It's one I have with CISOs where they're like help us put it in layman's terms so they understand they know what we're doing and they feel confident but at the same time understand the marketplace better. And that's a journey for us. >> That Generac example is a great one because, you know, think about IOT Technologies. They've historically been air gaped >> Yes. >> By design. And all of a sudden the business comes in and says, "Hey we can put wifi in there", you know >> Connect it to a home Wifi system that >> Make our lives so much easier. Next thing you know, it's being used to attack. >> Yeah. >> So that's why, as you go around the world are you discerning, I know you were just in Japan are you discerning significant differences in sort of attitudes toward, towards cyber? Whether it's public policy, you know things like regulation where you, they don't want you sharing data, but as as a cyber company, you want to share that data with you know, public and private? >> Look it, I, I think around the world we see incredible government activity first of all. And I think given the position we're in we get to have some unique conversations there. I would say worldwide security is an imperative. I, no matter where I go, you know it's in front of everybody's mind. The, on the, the governance side, it's really what do we need to adapt to make sure we meet local regulations. And I, and I would just tell you Dave there's ways when you do that, and we talk with governments that because of how they want to do it reduce our ability to give them full insight into all the threats and how we can help them. And I do think over time governments understand that we can anonymize the data. There's, but that, that's a work in process. Definitely there is a balance. We need to have privacy, we need to have, you know personal security for people. But there's ways to collect that data in an anonymous way and give better security insight back into the architectures that are out there. >> All right. A little shift the gears here. A little sports question. We've had some great Boston's sports guests on theCUBE right? I mean, Randy Seidel, we were talking about him. Peter McKay, Snyk, I guess he's a competitor now but you know, there's no question got >> He got a little funding today. I saw that. >> Down round. But they still got a lot of money. Not of a down round, but they were, but yeah, but actually, you know, he was on several years ago and it was around the time they were talking about trading Brady. He said Never trade Brady. And he got that right. We, I think we can agree Brady's the goat. >> Yes. >> The big question I have for you is, Belichick. Do you ever question Has your belief in him as the greatest coach of all time wavered, you know, now that- No. Okay. >> Never. >> Weigh in on that. >> Never, he says >> Still the Goat. >> I'll give you my best. You know, never In Bill we trust. >> Okay. Still. >> All right >> I, you know, the NFL is a unique property that's designed for parody and is designed, I mean actively designed to not let Mr. Craft and Bill Belichick do what they do every year. I feel privileged as a Boston sports fan that in our worst years we're in the seventh playoff spot. And I have a lot of family in Chicago who would kill for that position, by the way. And you know, they're in perpetual rebuilding. And so look, and I think he, you know the way he's been able to manage the cap and the skill levels, I think we have a top five defense. There's different ways to win titles. And if I, you know, remember in Brady's last title with Boston, the defense won us that Super Bowl. >> Well thanks for weighing in on that because there's a lot of crazy talk going on. Like, 'Hey, if he doesn't beat Arizona, he's got to go.' I'm like, what? So, okay, I'm sometimes it takes a good good loyal fan who's maybe, you know, has >> The good news in Boston is we're emotional fans too so I understand you got to keep the long term long term in mind. And we're, we're in a privileged position in Boston. We've got Celtics, we've got Bruins we've got the Patriots right on the edge of the playoffs and we need the Red Sox to get to work. >> Yeah, no, you know they were last, last year so maybe they're going to win it all like they usually do. So >> Fingers crossed. >> Crazy worst to first. >> Exactly. Well you said, in Bill we trust it sounds like from our conversation in BJ we trust from the customers, the partners. >> I hope so. >> Thank you so much BJ, for coming back on theCUBE giving us the lay of the land, what's new, the voice of the customer and how Palo Alto was really differentiated in the market. We always appreciate your, coming on the show you >> Honor and privilege seeing you here. Thanks. >> You may be thinking that you were watching ESPN just now but you know, we call ourselves the ESPN at Tech News. This is Lisa Martin for Dave Vellante and our guest. You're watching theCUBE, the Leader and live emerging in enterprise tech coverage. (upbeat music)

hi everybody welcome back to re invent 2022. this is thecube's exclusive coverage we're here at the satellite set it's up on the fifth floor of the Venetian Conference Center and this is part of the global startup program the AWS startup showcase series that we've been running all through last year and and into this year with AWS and featuring some of its its Global Partners Ed wallson series the CEO of chaos search many times Cube Alum and Kevin Miller there's also a cube Alum vice president GM of S3 at AWS guys good to see you again yeah great to see you Dave hi Kevin this is we call this our Super Bowl so this must be like your I don't know uh World Cup it's a pretty big event yeah it's the World Cup for sure yeah so a lot of S3 talk you know I mean that's what got us all started in 2006 so absolutely what's new in S3 yeah it's been a great show we've had a number of really interesting launches over the last few weeks and a few at the show as well so you know we've been really focused on helping customers that are running Mass scale data Lakes including you know whether it's structured or unstructured data we actually announced just a few just an hour ago I think it was a new capability to give customers cross-account access points for sharing data securely with other parts of the organization and that's something that we'd heard from customers is as they are growing and have more data sets and they're looking to to get more out of their data they are increasingly looking to enable multiple teams across their businesses to access those data sets securely and that's what we provide with cross-count access points we also launched yesterday our multi-region access point failover capabilities and so again this is where customers have data sets and they're using multiple regions for certain critical workloads they're now able to to use that to fail to control the failover between different regions in AWS and then one other launch I would just highlight is some improvements we made to storage lens which is our really a very novel and you need capability to help customers really understand what storage they have where who's accessing it when it's being accessed and we added a bunch of new metrics storage lens has been pretty exciting for a lot of customers in fact we looked at the data and saw that customers who have adopted storage lens typically within six months they saved more than six times what they had invested in turning storage lens on and certainly in this environment right now we have a lot of customers who are it's pretty top of mind they're looking for ways to optimize their their costs in the cloud and take some of those savings and be able to reinvest them in new innovation so pretty exciting with the storage lens launch I think what's interesting about S3 is that you know pre-cloud Object Store was this kind of a niche right and then of course you guys announced you know S3 in 2006 as I said and okay great you know cheap and deep storage simple get put now the conversations about how to enable value from from data absolutely analytics and it's just a whole new world and Ed you've talked many times I love the term yeah we built chaos search on the on the shoulders of giants right and so the under underlying that is S3 but the value that you can build on top of that has been key and I don't think we've talked about his shoulders and Giants but we've talked about how we literally you know we have a big Vision right so hard to kind of solve the challenge to analytics at scale we really focus on the you know the you know Big Data coming environment get analytics so we talk about the on the shoulders Giants obviously Isaac Newton's you know metaphor of I learned from everything before and we layer on top so really when you talk about all the things come from S3 like I just smile because like we picked it up naturally we went all in an S3 and this is where I think you're going Dave but everyone is so let's just cut the chase like so any of the data platforms you're using S3 is what you're building but we did it a little bit differently so at first people using a cold storage like you said and then they ETL it up into a different platforms for analytics of different sorts now people are using it closer they're doing caching layers and cashing out and they're that's where but that's where the attributes of a scale or reliability are what we did is we actually make S3 a database so literally we have no persistence outside that three and that kind of comes in so it's working really well with clients because most of the thing is we pick up all these attributes of scale reliability and it shows up in the clients environments and so when you launch all these new scalable things we just see it like our clients constantly comment like one of our biggest customers fintech in uh Europe they go to Black Friday again black Friday's not one days and they lose scale from what is it 58 terabytes a day and they're going up to 187 terabytes a day and we don't Flinch they say how do you do that well we built our platform on S3 as long as you can stream it to S3 so they're saying I can't overrun S3 and it's a natural play so it's it's really nice that but we take out those attributes but same thing that's why we're able to you know help clients get you know really you know Equifax is a good example maybe they're able to consolidate 12 their divisions on one platform we couldn't have done that without the scale and the performance of what you can get S3 but also they saved 90 I'm able to do that but that's really because the only persistence is S3 and what you guys are delivering but and then we really for focus on shoulders Giants we're doing on top of that innovating on top of your platforms and bringing that out so things like you know we have a unique data representation that makes it easy to ingest this data because it's kind of coming at you four v's of big data we allow you to do that make it performant on s3h so now you're doing hot analytics on S3 as if it's just a native database in memory but there's no memory SSC caching and then multi-model once you get it there don't move it leverage it in place so you know elasticsearch access you know Cabana grafana access or SQL access with your tools so we're seeing that constantly but we always talk about on the shoulders of giants but even this week I get comments from our customers like how did you do that and most of it is because we built on top of what you guys provided so it's really working out pretty well and you know we talk a lot about digital transformation of course we had the pleasure sitting down with Adam solipski prior John Furrier flew to Seattle sits down his annual one-on-one with the AWS CEO which is kind of cool yeah it was it's good it's like study for the test you know and uh and so but but one of the interesting things he said was you know we're one of our challenges going forward is is how do we go Beyond digital transformation into business transformation like okay well that's that's interesting I was talking to a customer today AWS customer and obviously others because they're 100 year old company and they're basically their business was they call them like the Uber for for servicing appliances when your Appliance breaks you got to get a person to serve it a service if it's out of warranty you know these guys do that so they got to basically have a you know a network of technicians yeah and they gotta deal with the customers no phone right so they had a completely you know that was a business transformation right they're becoming you know everybody says they're coming a software company but they're building it of course yeah right on the cloud so wonder if you guys could each talk about what's what you're seeing in terms of changing not only in the sort of I.T and the digital transformation but also the business transformation yeah I know I I 100 agree that I think business transformation is probably that one of the top themes I'm hearing from customers of all sizes right now even in this environment I think customers are looking for what can I do to drive top line or you know improve bottom line or just improve my customer experience and really you know sort of have that effect where I'm helping customers get more done and you know it is it is very tricky because to do that successfully the customers that are doing that successfully I think are really getting into the lines of businesses and figuring out you know it's probably a different skill set possibly a different culture different norms and practices and process and so it's it's a lot more than just a like you said a lot more than just the technology involved but when it you know we sort of liquidate it down into the data that's where absolutely we see that as a critical function for lines of businesses to become more comfortable first off knowing what data sets they have what data they they could access but possibly aren't today and then starting to tap into those data sources and then as as that progresses figuring out how to share and collaborate with data sets across a company to you know to correlate across those data sets and and drive more insights and then as all that's being done of course it's important to measure the results and be able to really see is this what what effect is this having and proving that effect and certainly I've seen plenty of customers be able to show you know this is a percentage increase in top or bottom line and uh so that pattern is playing out a lot and actually a lot of how we think about where we're going with S3 is related to how do we make it easier for customers to to do everything that I just described to have to understand what data they have to make it accessible and you know it's great to have such a great ecosystem of partners that are then building on top of that and innovating to help customers connect really directly with the businesses that they're running and driving those insights well and customers are hours today one of the things I loved that Adam said he said where Amazon is strategically very very patient but tactically we're really impatient and the customers out there like how are you going to help me increase Revenue how are you going to help me cut costs you know we were talking about how off off camera how you know software can actually help do that yeah it's deflationary I love the quote right so software's deflationary as costs come up how do you go drive it also free up the team and you nail it it's like okay everyone wants to save money but they're not putting off these projects in fact the digital transformation or the business it's actually moving forward but they're getting a little bit bigger but everyone's looking for creative ways to look at their architecture and it becomes larger larger we talked about a couple of those examples but like even like uh things like observability they want to give this tool set this data to all the developers all their sres same data to all the security team and then to do that they need to find a way an architect should do that scale and save money simultaneously so we see constantly people who are pairing us up with some of these larger firms like uh or like keep your data dog keep your Splunk use us to reduce the cost that one and one is actually cheaper than what you have but then they use it either to save money we're saving 50 to 80 hard dollars but more importantly to free up your team from the toil and then they they turn around and make that budget neutral and then allowed to get the same tools to more people across the org because they're sometimes constrained of getting the access to everyone explain that a little bit more let's say I got a Splunk or data dog I'm sifting through you know logs how exactly do you help so it's pretty simple I'll use dad dog example so let's say using data dog preservability so it's just your developers your sres managing environments all these platforms are really good at being a monitoring alerting type of tool what they're not necessarily great at is keeping the data for longer periods like the log data the bigger data that's where we're strong what you see is like a data dog let's say you're using it for a minister for to keep 30 days of logs which is not enough like let's say you're running environment you're finding that performance issue you kind of want to look to last quarter in last month in or maybe last Black Friday so 30 days is not enough but will charge you two eighty two dollars and eighty cents a gigabyte don't focus on just 280 and then if you just turn the knob and keep seven days but keep two years of data on us which is on S3 it goes down to 22 cents plus our list price of 80 cents goes to a dollar two compared to 280. so here's the thing what they're able to do is just turn a knob get more data we do an integration so you can go right from data dog or grafana directly into our platform so the user doesn't see it but they save money A lot of times they don't just save the money now they use that to go fund and get data dog to a lot more people make sense so it's a creativity they're looking at it and they're looking at tools we see the same thing with a grafana if you look at the whole grafana play which is hey you can't put it in one place but put Prometheus for metrics or traces we fit well with logs but they're using that to bring down their costs because a lot of this data just really bogs down these applications the alerting monitoring are good at small data they're not good at the big data which is what we're really good at and then the one and one is actually less than you paid for the one so it and it works pretty well so things are really unpredictable right now in the economy you know during the pandemic we've sort of lockdown and then the stock market went crazy we're like okay it's going to end it's going to end and then it looked like it was going to end and then it you know but last year it reinvented just just in that sweet spot before Omicron so we we tucked it in which which was awesome right it was a great great event we really really missed one physical reinvent you know which was very rare so that's cool but I've called it the slingshot economy it feels like you know you're driving down the highway and you got to hit the brakes and then all of a sudden you're going okay we're through it Oh no you're gonna hit the brakes again yeah so it's very very hard to predict and I was listening to jassy this morning he was talking about yeah consumers they're still spending but what they're doing is they're they're shopping for more features they might be you know buying a TV that's less expensive you know more value for the money so okay so hopefully the consumer spending will get us out of this but you don't really know you know and I don't yeah you know we don't seem to have the algorithms we've never been through something like this before so what are you guys seeing in terms of customer Behavior given that uncertainty well one thing I would highlight that I think particularly going back to what we were just talking about as far as business and digital transformation I think some customers are still appreciating the fact that where you know yesterday you may have had to to buy some Capital put out some capital and commit to something for a large upfront expenditure is that you know today the value of being able to experiment and scale up and then most importantly scale down and dynamically based on is the experiment working out am I seeing real value from it and doing that on a time scale of a day or a week or a few months that is so important right now because again it gets to I am looking for a ways to innovate and to drive Top Line growth but I I can't commit to a multi-year sort of uh set of costs to to do that so and I think plenty of customers are finding that even a few months of experimentation gives them some really valuable insight as far as is this going to be successful or not and so I think that again just of course with S3 and storage from day one we've been elastic pay for what you use if you're not using the storage you don't get charged for it and I think that particularly right now having the applications and the rest of the ecosystem around the storage and the data be able to scale up and scale down is is just ever more important and when people see that like typically they're looking to do more with it so if they find you usually find these little Department projects but they see a way to actually move faster and save money I think it is a mix of those two they're looking to expand it which can be a nightmare for sales Cycles because they take longer but people are looking well why don't you leverage this and go across division so we do see people trying to leverage it because they're still I don't think digital transformation is slowing down but a lot more to be honest a lot more approvals at this point for everything it is you know Adam and another great quote in his in his keynote he said if you want to save money the Cloud's a place to do it absolutely and I read an article recently and I was looking through and I said this is the first time you know AWS has ever seen a downturn because the cloud was too early back then I'm like you weren't paying attention in 2008 because that was the first major inflection point for cloud adoption where CFO said okay stop the capex we're going to Opex and you saw the cloud take off and then 2010 started this you know amazing cycle that we really haven't seen anything like it where they were doubling down in Investments and they were real hardcore investment it wasn't like 1998 99 was all just going out the door for no clear reason yeah so that Foundation is now in place and I think it makes a lot of sense and it could be here for for a while where people are saying Hey I want to optimize and I'm going to do that on the cloud yeah no I mean I've obviously I certainly agree with Adam's quote I think really that's been in aws's DNA from from day one right is that ability to scale costs with with the actual consumption and paying for what you use and I think that you know certainly moments like now are ones that can really motivate change in an organization in a way that might not have been as palatable when it just it didn't feel like it was as necessary yeah all right we got to go give you a last word uh I think it's been a great event I love all your announcements I think this is wonderful uh it's been a great show I love uh in fact how many people are here at reinvent north of 50 000. yeah I mean I feel like it was it's as big if not bigger than 2019. people have said ah 2019 was a record when you count out all the professors I don't know it feels it feels as big if not bigger so there's great energy yeah it's quite amazing and uh and we're thrilled to be part of it guys thanks for coming on thecube again really appreciate it face to face all right thank you for watching this is Dave vellante for the cube your leader in Enterprise and emerging Tech coverage we'll be right back foreign

(upbeat music) >> Good morning everybody. Welcome back to Las Vegas. This is day four of theCUBE's wall-to-wall coverage of our Super Bowl, aka AWS re:Invent 2022. I'm here with my co-host, Paul Gillin. My name is Dave Vellante. Sanjay Poonen is in the house, CEO and president of Cohesity. He's sitting in as our guest market watcher, market analyst, you know, deep expertise, new to the job at Cohesity. He was kind enough to sit in, and help us break down what's happening at re:Invent. But Paul, first thing, this morning we heard from Werner Vogels. He was basically given a masterclass on system design. It reminded me of mainframes years ago. When we used to, you know, bury through those IBM blue books and red books. You remember those Sanjay? That's how we- learned back then. >> Oh God, I remember those, Yeah. >> But it made me think, wow, now you know IBM's more of a systems design, nobody talks about IBM anymore. Everybody talks about Amazon. So you wonder, 20 years from now, you know what it's going to be. But >> Well- >> Werner's amazing. >> He pulled out a 24 year old document. >> Yup. >> That he had written early in Amazon's evolution about synchronous design or about essentially distributed architectures that turned out to be prophetic. >> His big thing was nature is asynchronous. So systems are asynchronous. Synchronous is an illusion. It's an abstraction. It's kind of interesting. But, you know- >> Yeah, I mean I've had synonyms for things. Timeless architecture. Werner's an absolute legend. I mean, when you think about folks who've had, you know, impact on technology, you think of people like Jony Ive in design. >> Dave: Yeah. >> You got to think about people like Werner in architecture and just the fact that Andy and the team have been able to keep him engaged that long... I pay attention to his keynote. Peter DeSantis has obviously been very, very influential. And then of course, you know, Adam did a good job, you know, watching from, you know, having watched since I was at the first AWS re:Invent conference, at time was President SAP and there was only a thousand people at this event, okay? Andy had me on stage. I think I was one of the first guest of any tech company in 2011. And to see now this become like, it's a mecca. It's a mother of all IT events, and watch sort of even the transition from Andy to Adam is very special. I got to catch some of Ruba's keynote. So while there's some new people in the mix here, this has become a force of nature. And the last time I was here was 2019, before Covid, watched the last two ones online. But it feels like, I don't know 'about what you guys think, it feels like it's back to 2019 levels. >> I was here in 2019. I feel like this was bigger than 2019 but some people have said that it's about the same. >> I think it was 60,000 versus 50,000. >> Yes. So close. >> It was a little bigger in 2019. But it feels like it's more active. >> And then last year, Sanjay, you weren't here but it was 25,000, which was amazing 'cause it was right in that little space between Omicron, before Omicron hit. But you know, let me ask you a question and this is really more of a question about Amazon's maturity and I know you've been following them since early days. But the way I get the question, number one question I get from people is how is Amazon AWS going to be different under Adam than it was under Andy? What do you think? >> I mean, Adam's not new because he was here before. In some senses he knows the Amazon culture from prior, when he was running sales and marketing prior. But then he took the time off and came back. I mean, this will always be, I think, somewhat Andy's baby, right? Because he was the... I, you know, sent him a text, "You should be really proud of what you accomplished", but you know, I think he also, I asked him when I saw him a few weeks ago "Are you going to come to re:Invent?" And he says, "No, I want to leave this to be Adam's show." And Adam's going to have a slightly different view. His keynotes are probably half the time. It's a little bit more vision. There was a lot more customer stories at the beginning of it. Taking you back to the inspirational pieces of it. I think you're going to see them probably pulling up the stack and not just focused in infrastructure. Many of their platform services are evolved. Many of their, even application services. I'm surprised when I talk to customers. Like Amazon Connect, their sort of call center type technologies, an app layer. It's getting a lot. I mean, I've talked to a couple of Fortune 500 companies that are moving off Ayer to Connect. I mean, it's happening and I did not know that. So it's, you know, I think as they move up the stack, the platform's gotten more... The data centric stack has gotten, and you know, in the area we're working with Cohesity, security, data protection, they're an investor in our company. So this is an important, you know, both... I think tech player and a partner for many companies like us. >> I wonder the, you know, the marketplace... there's been a big push on the marketplace by all the cloud companies last couple of years. Do you see that disrupting the way softwares, enterprise software is sold? >> Oh, for sure. I mean, you have to be a ostrich with your head in the sand to not see this wave happening. I mean, what's it? $150 billion worth of revenue. Even though the growth rates dipped a little bit the last quarter or so, it's still aggregatively between Amazon and Azure and Google, you know, 30% growth. And I think we're still in the second or third inning off a grand 1 trillion or 2 trillion of IT, shifting not all of it to the cloud, but significantly faster. So if you add up all of the big things of the on-premise world, they're, you know, they got to a certain size, their growth is stable, but stalling. These guys are growing significantly faster. And then if you add on top of them, platform companies the data companies, Snowflake, MongoDB, Databricks, you know, Datadog, and then apps companies on top of that. I think the move to the Cloud is inevitable. In SaaS companies, I don't know why you would ever implement a CRM solution on-prem. It's all gone to the Cloud. >> Oh, it is. >> That happened 15 years ago. I mean, begin within three, five years of the advent of Salesforce. And the same thing in HR. Why would you deploy a HR solution now? You've got Workday, you've got, you know, others that are so some of those apps markets are are just never coming back to an on-prem capability. >> Sanjay, I want to ask you, you built a reputation for being able to, you know, forecast accurately, hit your plan, you know, you hit your numbers, you're awesome operator. Even though you have a, you know, technology degree, which you know, that's a two-tool star, multi-tool star. But I call it the slingshot economy. This is like, I mean I've seen probably more downturns than anybody in here, you know, given... Well maybe, maybe- >> Maybe me. >> You and I both. I've never seen anything like this, where where visibility is so unpredictable. The economy is sling-shotting. It's like, oh, hurry up, go Covid, go, go go build, build, build supply, then pull back. And now going forward, now pulling back. Slootman said, you know, on the call, "Hey the guide, is the guide." He said, "we put it out there, We do our best to hit it." But you had CrowdStrike had issues you know, mid-market, ServiceNow. I saw McDermott on the other day on the, on the TV. I just want to pay, you know, buy from the guy. He's so (indistinct) >> But mixed, mixed results, Salesforce, you know, Octa now pre-announcing, hey, they're going to be, or announcing, you know, better visibility, forward guide. Elastic kind of got hit really hard. HPE and Dell actually doing really well in the enterprise. >> Yep. >> 'Course Dell getting killed in the client. But so what are you seeing out there? How, as an executive, do you deal with such poor visibility? >> I think, listen, what the last two or three years have taught us is, you know, with the supply chain crisis, with the surge that people thought you may need of, you know, spending potentially in the pandemic, you have to start off with your tech platform being 10 x better than everybody else. And differentiate, differentiate. 'Cause in a crowded market, but even in a market that's getting tougher, if you're not differentiating constantly through technology innovation, you're going to get left behind. So you named a few places, they're all technology innovators, but even if some of them are having challenges, and then I think you're constantly asking yourselves, how do you move from being a point product to a platform with more and more services where you're getting, you know, many of them moving really fast. In the case of Roe, I like him a lot. He's probably one of the most savvy operators, also that I respect. He calls these speedboats, and you know, his core platform started off with the firewall network security. But he's built now a very credible cloud security, cloud AI security business. And I think that's how you need to be thinking as a tech executive. I mean, if you got core, your core beachhead 10 x better than everybody else. And as you move to adjacencies in these new platforms, have you got now speedboats that are getting to a point where they are competitive advantage? Then as you think of the go-to-market perspective, it really depends on where you are as a company. For a company like our size, we need partners a lot more. Because if we're going to, you know, stand on the shoulders of giants like Isaac Newton said, "I see clearly because I stand on the shoulders giants." I need to really go and cultivate Amazon so they become our lead partner in cloud. And then appropriately Microsoft and Google where I need to. And security. Part of what we announced last week was, last month, yeah, last couple of weeks ago, was the data security alliance with the biggest security players. What was I trying to do with that? First time ever done in my industry was get Palo Alto, CrowdStrike, Wallace, Tenable, CyberArk, Splunk, all to build an alliance with me so I could stand on their shoulders with them helping me. If you're a bigger company, you're constantly asking yourself "how do you make sure you're getting your, like Amazon, their top hundred customers spending more with that?" So I think the the playbook evolves, and I'm watching some of these best companies through this time navigate through this. And I think leadership is going to be tested in enormously interesting ways. >> I'll say. I mean, Snowflake is really interesting because they... 67% growth, which is, I mean, that's best in class for a company that's $2 billion. And, but their guide was still, you know, pretty aggressive. You know, so it's like, do you, you know, when it when it's good times you go, "hey, we can we can guide conservatively and know we can beat it." But when you're not certain, you can't dial down too far 'cause your investors start to bail on you. It's a really tricky- >> But Dave, I think listen, at the end of the day, I mean every CEO should not be worried about the short term up and down in the stock price. You're building a long-term multi-billion dollar company. In the case of Frank, he has, I think I shot to a $10 billion, you know, analytics data warehousing data management company on the back of that platform, because he's eyeing the market that, not just Teradata occupies today, but now Oracle occupies or other databases, right? So his tam as it grows bigger, you're going to have some of these things, but that market's big. I think same with Palo Alto. I mean Datadog's another company, 75% growth. >> Yeah. >> At 20% margins, like almost rule of 95. >> Amazing. >> When they're going after, not just the observability market, they're eating up the sim market, security analytics, the APM market. So I think, you know, that's, you look at these case studies of companies who are going from point product to platforms and are steadily able to grow into new tams. You know, to me that's very inspiring. >> I get it. >> Sanjay: That's what I seek to do at our com. >> I get that it's a marathon, but you know, when you're at VMware, weren't you looking at the stock price every day just out of curiosity? I mean listen, you weren't micromanaging it. >> You do, but at the end of the day, and you certainly look at the days of earnings and so on so forth. >> Yeah. >> Because you want to create shareholder value. >> Yeah. >> I'm not saying that you should not but I think in obsession with that, you know, in a short term, >> Going to kill ya. >> Makes you, you know, sort of myopically focused on what may not be the right thing in the long term. Now in the long arc of time, if you're not creating shareholder value... Look at what happened to Steve Bomber. You needed Satya to come in to change things and he's created a lot of value. >> Dave: Yeah, big time. >> But I think in the short term, my comments were really on the quarter to quarter, but over a four a 12 quarter, if companies are growing and creating profitable growth, they're going to get the valuation they deserve. >> Dave: Yeah. >> Do you the... I want to ask you about something Arvind Krishna said in the previous IBM earnings call, that IT is deflationary and therefore it is resistant to the macroeconomic headwinds. So IT spending should actually thrive in a deflation, in a adverse economic climate. Do you think that's true? >> Not all forms of IT. I pay very close attention to surveys from, whether it's the industry analysts or the Morgan Stanleys, or Goldman Sachs. The financial analysts. And I think there's a gluc in certain sectors that will get pulled back. Traditional view is when the economies are growing people spend on the top line, front office stuff, sales, marketing. If you go and look at just the cloud 100 companies, which are the hottest private companies, and maybe with the public market companies, there's way too many companies focused on sales and marketing. Way too many. I think during a downsizing and recession, that's going to probably shrink some, because they were all built for the 2009 to 2021 era, where it was all about the top line. Okay, maybe there's now a proposition for companies who are focused on cost optimization, supply chain visibility. Security's been intangible, that I think is going to continue to an investment. So I tell, listen, if you are a tech investor or if you're an operator, pay attention to CIO priorities. And right now, in our business at Cohesity, part of the reason we've embraced things like ransomware protection, there is a big focus on security. And you know, by intelligently being a management and a security company around data, I do believe we'll continue to be extremely relevant to CIO budgets. There's a ransomware, 20 ransomware attempts every second. So things of that kind make you relevant in a bank. You have to stay relevant to a buying pattern or else you lose momentum. >> But I think what's happening now is actually IT spending's pretty good. I mean, I track this stuff pretty closely. It's just that expectations were so high and now you're seeing earnings estimates come down and so, okay, and then you, yeah, you've got the, you know the inflationary factors and your discounted cash flows but the market's actually pretty good. >> Yeah. >> You know, relative to other downturns that if this is not a... We're not actually not in a downturn. >> Yeah. >> Not yet anyway. It may be. >> There's a valuation there. >> You have to prepare. >> Not sales. >> Yeah, that's right. >> When I was on CNBC, I said "listen, it's a little bit like that story of Joseph. Seven years of feast, seven years of famine." You have to prepare for potentially your worst. And if it's not the worst, you're in good shape. So will it be a recession 2023? Maybe. You know, high interest rates, inflation, war in Russia, Ukraine, maybe things do get bad. But if you belt tightening, if you're focused in operational excellence, if it's not a recession, you're pleasantly surprised. If it is one, you're prepared for it. >> All right. I'm going to put you in the spot and ask you for predictions. Expert analysis on the World Cup. What do you think? Give us the breakdown. (group laughs) >> As my... I wish India was in the World Cup, but you can't get enough Indians at all to play soccer well enough, but we're not, >> You play cricket, though. >> I'm a US man first. I would love to see one of Brazil, or Argentina. And as a Messi person, I don't know if you'll get that, but it would be really special for Messi to lead, to end his career like Maradonna winning a World Cup. I don't know if that'll happen. I'm probably going to go one of the Latin American countries, if the US doesn't make it far enough. But first loyalty to the US team, and then after one of the Latin American countries. >> And you think one of the Latin American countries is best bet to win or? >> I don't know. It's hard to tell. They're all... What happens now at this stage >> So close, right? >> is anybody could win. >> Yeah. You just have lots of shots of gold. I'm a big soccer fan. It could, I mean, I don't know if the US is favored to win, but if they get far enough, you get to the finals, anybody could win. >> I think they get Netherlands next, right? >> That's tough. >> Really tough. >> But... The European teams are good too, but I would like to see US go far enough, and then I'd like to see Latin America with team one of Argentina, or Brazil. That's my prediction. >> I know you're a big Cricket fan. Are you able to follow Cricket the way you like? >> At god unearthly times the night because they're in Australia, right? >> Oh yeah. >> Yeah. >> I watched the T-20 World Cup, select games of it. Yeah, you know, I'm not rapidly following every single game but the World Cup games, I catch you. >> Yeah, it's good. >> It's good. I mean, I love every sport. American football, soccer. >> That's great. >> You get into basketball now, I mean, I hope the Warriors come back strong. Hey, how about the Warriors Celtics? What do we think? We do it again? >> Well- >> This year. >> I'll tell you what- >> As a Boston Celtics- >> I would love that. I actually still, I have to pay off some folks from Palo Alto office with some bets still. We are seeing unprecedented NBA performance this year. >> Yeah. >> It's amazing. You look at the stats, it's like nothing. I know it's early. Like nothing we've ever seen before. So it's exciting. >> Well, always a pleasure talking to you guys. >> Great to have you on. >> Thanks for having me. >> Thank you. Love the expert analysis. >> Sanjay Poonen. Dave Vellante. Keep it right there. re:Invent 2022, day four. We're winding up in Las Vegas. We'll be right back. You're watching theCUBE, the leader in enterprise and emerging tech coverage. (lighthearted soft music)

>>Hey everyone, and welcome back to The Cube's live coverage of AWS Reinvented 2022 Live from the Venetian Expo in Las Vegas. We're happy to be back. This is first full day of coverage over here last night. We've got three full days of coverage in addition to last night, and there's about 50,000 people here. This event is ready, people are ready to be back, which is so exciting. Lisa Martin here with Paul Gill and Paul, it's great to be back in person. Great to be hosting with you >>And likewise with you, Lisa. I think the first time we hosted again, >>It is our first time exactly. >>And we come here to the biggest event that the cube ever does during the year. >>It's the Super Bowl of the >>Cube. It's it's elbow to elbow out there. It's, it's, it's full tackle football, totally on the, on the floor of reinvent. And very exciting. This, you know, I've been to a lot of conferences going back 40 years, long as I can remember. Been going to tech conferences. This one, the, the intensity, the excitement around this is really unusual. People are jazzed, they're excited to be here, and that's great to see, particularly coming back from two years of isolation. >>Absolutely. The energy is so palpable. Even yesterday, evening, afternoon when I was walking in, you just feel it with all the people here. You know, we talk to so many different companies on the Q Paul. Every company these days has to be a data company. The most important thing about data is making sure that it's backed up and it's protected, that it's secure, that it can be recovered if anything happens. So we're gonna be having a great conversation next about data resiliency with one of our alumni. >>And that would be Rick Scott, Rick, excuse me, Rick Scott, >>Rick Clark. Rick Clark, say Rick Scott, cloud sales Veritas. Rick, welcome back >>To the program. Thank you. Thank you so much. It's a pleasure being here, you know, thank you so much. You're definitely very excited to myself and 40,000 of my closest cousins and friends all in one place. Yep. Or I could possibly go wrong, right? So >>Yeah, absolutely nothing. So, Rick, so Veritas has made some exciting announcements. Talk to us about some of the new things that you've >>Unveiled. Yeah, we've been, we've been incredibly busy and, you know, the journey that we've been on, one of the big announcement that we made about three or four weeks ago is the introduction, really, of a brand new cloud native data management platform that we call Veritas Alta. And this is a journey that we've been on for the better part of seven years. We actually started it with our, our flex appliances. We continued, that was a containerization of our traditional net backup business in, into a highly secured appliance that was loved by our customers. And we continued that theme and that investment into what we call a scale out and scale up form factor appliance as well, what we called flex scale. And then we continued on that investment theme, basically spending over a billion dollars over that seven year journey in our cloud native. And we call that basically the Veritas altar platform with our cloud native platform. And I think if you really look at what that is, it truly is a data management platform. And I emphasize the term cloud native. And so our traditional technologies around data protection, obviously application resiliency and digital compliance or data compliance and governance. We are the only, the first and only company in the world to provide really a cloud optimized, cloud native platform, really, that addresses that. So it's been fun, it's been a fun journey. >>Talk a little bit about the customer experience. I see over 85% of the Fortune 100 trust Veritas with their data management. That's >>A big number. Yeah. Yeah. It's, it is incredible actually. And it really comes back to the Veritas older platform. We sort of built that with, with four tenants in mind, all driving back to this very similar to AWS's customer obsession. Everything we do each and every day of our waiting moments is a Veritas employee is really surrounds the customer. So it starts with the customer experience on how do they find us to, how do they procure our solutions through things like AWS marketplace and how do they deploy it? And the second thing is around really cost optimization, as we know, you know, to, to say that companies are going through a digital transformation and moving workloads to the cloud. I mean, I've got customers that literally were 20% in cloud a year ago and 80% a year later, we've never seen that kind of velocity. >>And so we've doubled down on this notion of cost optimization. You can only do that with these huge investments that I talked about. And so we're a very profitable company. We've been around, got a great heritage of over 30 years, and we've really taken those investments in r and d to provide that sort of cloud native technology to ultimately make it elastic. And so everything from will spin up and spin down services to optimize the cloud bill for our customers, but we'll also provide the greatest workload support. You know, obviously on-prem workloads are very different from cloud workloads and it's almost like turning the clock back 20 years to see all of those new systems. There's no standard API like s and MP on the network. And so we have to talk to every single PAs service, every single DB PAs, and we capture that information and protect it. So it's really has been a phenomenal journey. It's been great. >>You said this, that that al represents a shift from clouds from flex scale to cloud native. What is the difference there? >>The, the main difference really is we took, you know, obviously our traditional product that you've known for many media years, net backup. It's got, you know, tens of millions of lines of code in that. And we knew if we lifted and shifted it up into the cloud, into an I AEs infrastructure, it's just not, it obviously would perform extremely well, but it wasn't cost optimized for our customer. It was too expensive to to run. And so what we did is we rewrote with microservices and containerization, Kubernetes huge parts of that particular product to really optimize it for the cloud. And not only have we done it for that technology, what we now call alter data protection, but we've done it across our entire port portfolio. That was really the main change that we made as part of this particular transition. And >>What have you done to prepare customers for that shift? Is this gonna be a, a drop in simple upgrade for them? >>Absolutely. Yeah. In fact, one of the things that we introduced is we, we invest still very heavily with regards to our OnPrem solutions. We're certainly not abandoning, we're still innovating. There's a lot of data still OnPrem that needs to move to the cloud. And so we have a unique advantage of all of the different workload supports that we provide OnPrem. We continue that expansion into the cloud. So we, we create it as part of the Veritas AL Vision, a technology, we call it AL view. So it's a single painter glass across both OnPrem and cloud for our customers. And so now they can actually see all of their data protection, all our application availability, single collect, all through that single unified interface, which is really game changing in the industry for us. >>It's game changing for customers too, because customers have what generally six to seven different backup technologies in their environment that they're having to individually manage and provision. So the, the workforce productivity improvements I can imagine are, are huge with Veritas. >>Yeah. You you nailed it, right? You must have seen my script, but Absolutely. I mean, I look at the analogy of, you think about the airlines, what's one of the first things airlines do with efficiency? South Southwest Airlines was the best example, a standardized on the 7 37, right? And so all of their pilots, all of their mechanics, all know how to operate the 7 37. So we are doing the same thing with enterprise data protection. So whether you're OnPrem at the edge or in the cloud or even multi-cloud, we can provide that single painter glass. We've done it for our customers for 30 plus years. We'll continue to do it for another 30 something years. And so it's really the first time with Veritas altar that, that we're, we're coming out with something that we've invested for so long and put, put such a huge investment on that can create those changes and that compelling solution for our customers. So as you can see, we're pretty pumped and excited about it. >>Yes, I can >>Use the term data management to describe Alta, and I want to ask about that term because I hear it a lot these days. Data management used to be database, now data management is being applied to all kinds of different functions across the spectrum. How do you define data management in Veritas >>Perspective? Yeah, there's a, we, we see it as really three main pillars across the environment. So one is protection, and we'll talk a little bit about this notion of ransomware is probably the number one use case. So the ability to take the most complex and the biggest, most vast applications. SAP is an example with hundreds of different moving parts to it and being able to protect that. The second is application resiliency. If, if you look at the cloud, there's this notion of, of responsibility, shared responsibility in the cloud. You've heard it, right? Yep. Every single one of the cloud service providers, certainly AWS has up on their website, this is what we protect, here's the demarcation line, the line in the sand, and you, the customer are responsible for that other level. And so we've had a technology, you previously knew it as InfoScale, we now call it alter application resiliency. >>And it can provide availability zone to availability zone, real time replication, high availability of your mission critical applications, right? So not only do we do the traditional backups, but we can also provide application resiliency for mission critical. And then the third thing really from a data management standpoint is all around governance and compliance. You know, ac a lot of our customers need to keep data for five, 10 years or forever. They're audited. There's regulations and different geographies around the world. And, and those regulations require them to be able to really take control of their cloud, take control of their data. And so we have a whole portfolio of solutions under that data compliance, data government. So back to your, your question Paul, it's really the integration and the intersection of those three main pillars. We're not a one trick pony. We've been at this for a long time, and they're not just new products that we invented a couple of months ago and brought to market. They're tried and tested with eight 80,000 customers and the most complex early solutions on the planet that we've been supporting. >>I gotta ask you, you know, we talked about those three pillars and you talked about the shared responsibility model. And think of that where you mentioned aws, Salesforce, Microsoft 365, Google workspace, whatnot. Are you finding that most customers aren't aware of that and haven't been protecting those workloads and then come to you and saying, Hey guys, guess what, this is what this is what they're responsible for. The data is >>You Yeah, I, it's, it's our probably biggest challenge is, is one of awareness, you know, with the cloud, I mean, how many times have you spoken to someone? You just put it in the cloud. Your applications, like the cloud providers like aws, they'll protect everything. Nothing will ever go down. And it's kind like if you, unless your house was ever broken into, you're probably not gonna install that burglar alarm or that fire alarm, right? Hopefully that won't be an event that you guys have to suffer through. So yeah, it's definitely, it wasn't till the last year or so the cloud service providers really published jointly as to where is their responsibility, right? So a great example is an attack vector for a lot of corporations is their SAS applications. So, you know, whether it it's your traditional SA applications that is available that's available on the web to their customers as a sas. >>And so it's certainly available to the bad actors. They're gonna, where there's, there's gonna be a point they're gonna try to get in. And so no matter what your resiliency plan is, at the end of the day, you really need to protect it. And protection isn't just, for example, with M 365 having a snapshot or a recycle bin, that's just not good enough. And so we actually have some pretty compelling technology, what we call ALTA SAS protection, which covers the, pretty much the, the gamut of the major SAS technologies to protect those and make it available for our customers. So yeah, certainly it's a big part of it is awareness. Yeah. >>Well, I understand that the shared responsibility model, I, I realize there's a lot of confusion about that still, but in the SaaS world that's somewhat different. The responsibility of the SaaS provider for protecting data is somewhat different. How, how should, what should customers know about that? >>I think, you know, the, the related to that, if, if you look at OnPrem, you know, approximately 35 to 40% of OnPrem enterprise data is protected. It's kind of in a long traditional problem. Everyone's aware of it. You know, I remember going to a presentation from IBM 20 something years ago, and someone held their push hand up in the room about the dis drives and says, you need to back it up. And the IBM sales guy said, no, IBM dis drives never crash. Right? And so fast forward to here we are today, things have changed. So we're going through almost a similar sort of changes and culture in the cloud. 8% of the data in the cloud is protected today, 8%. That's incredible. Meaning >>That there is independent backup devoted >>To that data in some cases, not at all. And something many cases, the customer just assumes that it's in the cloud, therefore it's always available. I never have to worry about protecting it, right? And so that's a big problem that we're obviously trying to, trying to solve. And we do that all under the umbrella of ransomware. That's a huge theme, huge investment that, that Veritas does with regards to providing that resiliency for our >>Customers. Ransomware is scary. It is becoming so prolific. The bad actors have access to technologies. Obviously companies are fighting them, but now ransomware has evolved into, no longer are we gonna get hit, it's when, yeah, it's how often it's what's the damage going to be. So the ability to help customers recover from ransomware, that resiliency is table stakes for businesses in any industry these days. Does that, that one of the primary pain points that your customers are coming to you with? >>It's the number one pain point. Yeah, it's, it's incredible. I mean, there's not a single briefing that our teams are doing customer meetings where that term ransomware doesn't come up as, as their number one use case. Just to give you something, a couple of statistics. There's a ransomware attack attack that happens 11 times a second right around the globe. And this isn't just, you know, minor stuff, right? I've got friends that are, you know, executives of large company that have been hit that have that some, you know, multimillion dollar ransom attack. So our, our play on this is, when you think about it, is data protection is the last line of defense. Yes. And so if they break through, it's not a case, Lisa, as you mentioned, if it's a case of when Yeah. And so it's gonna happen. So one of the most important things is knowing how do you know you have a gold copy, a clean copy, and you can recover at speed in some cases. >>We're talking about tens of thousands of systems to do that at speed. That's in our dna. We've been doing it for many, many years. And we spoke through a lot of the cyber insurance companies on this particular topic as well. And what really came back from that is that they're actually now demanding things like immutable storage, malware detection, air gaping, right? Anomaly detection is sort of core technologies tick the box that they literally won't ensure you unless you have those core components. And so what we've done is we've doubled down on that investment. We use AI in ML technologies, particularly around the anomaly detection. One of the, the, the unique and ne differentiators that Verto provides is a ransomware resiliency scorecard. Imagine the ability to save uran a corporation. We can come in and run our analytics on your environment and kind of give you a grade, right? Wouldn't you prefer that than waiting for the event to take place to see where your vulnerability really is? And so these are some of the advantages that we can actually provide for our customers, really, really >>To help. Just a final quick question. There is a, a common perception, I believe that ransomware is an on premise problem. In fact, it is also a cloud problem. Is that not right? >>Oh, absolutely. I I think that probably the biggest attack vector is in the cloud. If it's, if it's OnPrem, you've certainly got a certain line of defense that's trying to break through. But, you know, you're in the open world there. Obviously with SAS applications in the cloud, it's not a case of if, but when, and it's, and it's gonna continue to get, you know, more and more prevalent within corporations. There's always gonna be those attack factors that they find the, the flash wounds that they can attack to break through. What we are concentrating on is that resiliency, that ability for customers to recover at speed. We've done that with our traditional appliances from our heritage OnPrem. We continue to do that with regard to resiliency at speed with our customers in the cloud, with partners like aws >>For sure. Almost done. Give me your 30 seconds on AWS and Veritas. >>We've had a partnership for the better part of 10 years. It's incredible when you think about aws, where they released the elastic compute back in 2006, right? We've been delivering data protection, a data management solutions for, for the better part of 30 years, right? So, so we're, we're Junos in our space. We're the leader in, in data protection and enterprise data protection. We were on-prem. We, we continue to be in the cloud as AWS was with the cloud service provided. So the synergies are incredible. About 80 to 85% of our, our joint customers are the same. We take core unique superpowers of aws, like AWS outposts and AWS Glacier Instant retrieval, for example, those core technologies and incorporate them into our products as we go to Mark. And so we released a core technology a few months ago, we call it ultra recovery vault. And it's an air gap, a mutable storage, worm storage, right Once, right? You can't change it even when the bad actors try to get in. They're independent from the customer's tenant and aws. So we manage it as a managed backup service for our customers. Got it. And so our customers are using that to really help them with their ransomware. So it's been a tremendous partnership with AWS >>Standing 10 years of accounting. Last question for you, Rick. You got a billboard on the 1 0 1 in Santa Clara, right? By the fancy Verto >>1 0 1? >>Yeah. Right. Well, there's no traffic. What does that billboard say? What's that bumper sticker about? Vertus, >>I think, I think the billboard would say, welcome to the new Veritas. This is not your grandfather's old mobile. We've done a phenomenal job in, in the last, particularly the last three or four years, to really reinvent ourselves in the cloud and the investments that we made are really paying off for our customers today. So I'm excited to be part of this journey and excited to talk to you guys today. >>Love it. Not your grandfather's Veritas. Rick, thank you so much for joining Paula, me on the forgot talking about what you guys are doing, how you're helping customers, really established that cyber of resiliency, which is absolutely critical these days. We appreciate your >>Time. My pleasure. Thank you so much. >>All right, for our guest and Paul Gilland, I'm Lisa Martin, you're watching the Queue, which as you know is the leader in live enterprise and emerging check coverage.

from the cube studios in Palo Alto in Boston bringing you data-driven insights from the cube and ETR this is breaking analysis with Dave vellante the ascendancy of AWS under the leadership of Andy jassy was marked by a tsunami of data and corresponding cloud services to leverage that data now those Services they mainly came in the form of Primitives I.E basic building blocks that were used by developers to create more sophisticated capabilities AWS in the 2020s being led by CEO Adam solipski will be marked by four high-level Trends in our opinion one A Rush of data that will dwarf anything we've previously seen two a doubling or even tripling down on the basic elements of cloud compute storage database security Etc three a greater emphasis on end-to-end integration of AWS services to simplify and accelerate customer adoption of cloud and four significantly deeper business integration of cloud Beyond it as an underlying element of organizational operations hello and welcome to this week's wikibon Cube insights powered by ETR in this breaking analysis we extract and analyze nuggets from John furrier's annual sit-down with the CEO of AWS we'll share data from ETR and other sources to set the context for the market and competition in cloud and we'll give you our glimpse of what to expect at re invent in 2022. now before we get into the core of our analysis Alibaba has announced earnings they always announced after the big three you know a month later and we've updated our Q3 slash November hyperscale Computing forecast for the year as seen here and we're going to spend a lot of time on this as most of you have seen the bulk of it already but suffice to say alibaba's cloud business is hitting that same macro Trend that we're seeing across the board but a more substantial slowdown than we expected and more substantial than its peers they're facing China headwinds they've been restructuring its Cloud business and it's led to significantly slower growth uh in in the you know low double digits as opposed to where we had it at 15 this puts our year-end estimates for 2022 Revenue at 161 billion still a healthy 34 growth with AWS surpassing 80 billion in 2022 Revenue now on a related note one of the big themes in Cloud that we've been reporting on is how customers are optimizing their Cloud spend it's a technique that they use and when the economy looks a little shaky and here's a graphic that we pulled from aws's website which shows the various pricing plans at a high level as you know they're much more granular than that and more sophisticated but Simplicity we'll just keep it here basically there are four levels first one here is on demand I.E pay by the drink now we're going to jump down to what we've labeled as number two spot instances that's like the right place at the right time I can use that extra capacity in the moment the third is reserved instances or RIS where I pay up front to get a discount and the fourth is sort of optimized savings plans where customers commit to a one or three year term and for a better price now you'll notice we labeled the choices in a different order than AWS presented them on its website and that's because we believe that the order that we chose is the natural progression for customers this started on demand they maybe experiment with spot instances they move to reserve instances when the cloud bill becomes too onerous and if you're large enough you lock in for one or three years okay the interesting thing is the order in which AWS presents them we believe that on-demand accounts for the majority of AWS customer spending now if you think about it those on-demand customers they're also at risk customers yeah sure there's some switching costs like egress and learning curve but many customers they have multiple clouds and they've got experience and so they're kind of already up to a learning curve and if you're not married to AWS with a longer term commitment there's less friction to switch now AWS here presents the most attractive plan from a financial perspective second after on demand and it's also the plan that makes the greatest commitment from a lock-in standpoint now In fairness to AWS it's also true that there is a trend towards subscription-based pricing and we have some data on that this chart is from an ETR drill down survey the end is 300. pay attention to the bars on the right the left side is sort of busy but the pink is subscription and you can see the trend upward the light blue is consumption based or on demand based pricing and you can see there's a steady Trend toward subscription now we'll dig into this in a later episode of Breaking analysis but we'll share with you a little some tidbits with the data that ETR provides you can select which segment is and pass or you can go up the stack Etc but so when you choose is and paths 44 of customers either prefer or are required to use on-demand pricing whereas around 40 percent of customers say they either prefer or are required to use subscription pricing again that's for is so now the further mu you move up the stack the more prominent subscription pricing becomes often with sixty percent or more for the software-based offerings that require or prefer subscription and interestingly cyber security tracks along with software at around 60 percent that that prefer subscription it's likely because as with software you're not shutting down your cyber protection on demand all right let's get into the expectations for reinvent and we're going to start with an observation in data in this 2018 book seeing digital author David michella made the point that whereas most companies apply data on the periphery of their business kind of as an add-on function successful data companies like Google and Amazon and Facebook have placed data at the core of their operations they've operationalized data and they apply machine intelligence to that foundational element why is this the fact is it's not easy to do what the internet Giants have done very very sophisticated engineering and and and cultural discipline and this brings us to reinvent 2022 in the future of cloud machine learning and AI will increasingly be infused into applications we believe the data stack and the application stack are coming together as organizations build data apps and data products data expertise is moving from the domain of Highly specialized individuals to Everyday business people and we are just at the cusp of this trend this will in our view be a massive theme of not only re invent 22 but of cloud in the 2020s the vision of data mesh We Believe jamachtagani's principles will be realized in this decade now what we'd like to do now is share with you a glimpse of the thinking of Adam solipsky from his sit down with John Furrier each year John has a one-on-one conversation with the CEO of AWS AWS he's been doing this for years and the outcome is a better understanding of the directional thinking of the leader of the number one Cloud platform so we're now going to share some direct quotes I'm going to run through them with some commentary and then bring in some ETR data to analyze the market implications here we go this is from solipsky quote I.T in general and data are moving from departments into becoming intrinsic parts of how businesses function okay we're talking here about deeper business integration let's go on to the next one quote in time we'll stop talking about people who have the word analyst we inserted data he meant data data analyst in their title rather will have hundreds of millions of people who analyze data as part of their day-to-day job most of whom will not have the word analyst anywhere in their title we're talking about graphic designers and pizza shop owners and product managers and data scientists as well he threw that in I'm going to come back to that very interesting so he's talking about here about democratizing data operationalizing data next quote customers need to be able to take an end-to-end integrated view of their entire data Journey from ingestion to storage to harmonizing the data to being able to query it doing business Intelligence and human-based Analysis and being able to collaborate and share data and we've been putting together we being Amazon together a broad Suite of tools from database to analytics to business intelligence to help customers with that and this last statement it's true Amazon has a lot of tools and you know they're beginning to become more and more integrated but again under jassy there was not a lot of emphasis on that end-to-end integrated view we believe it's clear from these statements that solipsky's customer interactions are leading him to underscore that the time has come for this capability okay continuing quote if you have data in one place you shouldn't have to move it every time you want to analyze that data couldn't agree more it would be much better if you could leave that data in place avoid all the ETL which has become a nasty three-letter word more and more we're building capabilities where you can query that data in place end quote okay this we see a lot in the marketplace Oracle with mySQL Heatwave the entire Trend toward converge database snowflake [ __ ] extending their platforms into transaction and analytics respectively and so forth a lot of the partners are are doing things as well in that vein let's go into the next quote the other phenomenon is infusing machine learning into all those capabilities yes the comments from the michelleographic come into play here infusing Ai and machine intelligence everywhere next one quote it's not a data Cloud it's not a separate Cloud it's a series of broad but integrated capabilities to help you manage the end-to-end life cycle of your data there you go we AWS are the cloud we're going to come back to that in a moment as well next set of comments around data very interesting here quote data governance is a huge issue really what customers need is to find the right balance of their organization between access to data and control and if you provide too much access then you're nervous that your data is going to end up in places that it shouldn't shouldn't be viewed by people who shouldn't be viewing it and you feel like you lack security around that data and by the way what happens then is people overreact and they lock it down so that almost nobody can see it it's those handcuffs there's data and asset are reliability we've talked about that for years okay very well put by solipsky but this is a gap in our in our view within AWS today and we're we're hoping that they close it at reinvent it's not easy to share data in a safe way within AWS today outside of your organization so we're going to look for that at re invent 2022. now all this leads to the following statement by solipsky quote data clean room is a really interesting area and I think there's a lot of different Industries in which clean rooms are applicable I think that clean rooms are an interesting way of enabling multiple parties to share and collaborate on the data while completely respecting each party's rights and their privacy mandate okay again this is a gap currently within AWS today in our view and we know snowflake is well down this path and databricks with Delta sharing is also on this curve so AWS has to address this and demonstrate this end-to-end data integration and the ability to safely share data in our view now let's bring in some ETR spending data to put some context around these comments with reference points in the form of AWS itself and its competitors and partners here's a chart from ETR that shows Net score or spending momentum on the x-axis an overlap or pervasiveness in the survey um sorry let me go back up the net scores on the y-axis and overlap or pervasiveness in the survey is on the x-axis so spending momentum by pervasiveness okay or should have share within the data set the table that's inserted there with the Reds and the greens that informs us to how the dots are positioned so it's Net score and then the shared ends are how the plots are determined now we've filtered the data on the three big data segments analytics database and machine learning slash Ai and we've only selected one company with fewer than 100 ends in the survey and that's databricks you'll see why in a moment the red dotted line indicates highly elevated customer spend at 40 percent now as usual snowflake outperforms all players on the y-axis with a Net score of 63 percent off the charts all three big U.S cloud players are above that line with Microsoft and AWS dominating the x-axis so very impressive that they have such spending momentum and they're so large and you see a number of other emerging data players like rafana and datadog mongodbs there in the mix and then more established players data players like Splunk and Tableau now you got Cisco who's gonna you know it's a it's a it's a adjacent to their core networking business but they're definitely into you know the analytics business then the really established players in data like Informatica IBM and Oracle all with strong presence but you'll notice in the red from the momentum standpoint now what you're going to see in a moment is we put red highlights around databricks Snowflake and AWS why let's bring that back up and we'll explain so there's no way let's bring that back up Alex if you would there's no way AWS is going to hit the brakes on innovating at the base service level what we call Primitives earlier solipsky told Furrier as much in their sit down that AWS will serve the technical user and data science Community the traditional domain of data bricks and at the same time address the end-to-end integration data sharing and business line requirements that snowflake is positioned to serve now people often ask Snowflake and databricks how will you compete with the likes of AWS and we know the answer focus on data exclusively they have their multi-cloud plays perhaps the more interesting question is how will AWS compete with the likes of Specialists like Snowflake and data bricks and the answer is depicted here in this chart AWS is going to serve both the technical and developer communities and the data science audience and through end-to-end Integrations and future services that simplify the data Journey they're going to serve the business lines as well but the Nuance is in all the other dots in the hundreds or hundreds of thousands that are not shown here and that's the AWS ecosystem you can see AWS has earned the status of the number one Cloud platform that everyone wants to partner with as they say it has over a hundred thousand partners and that ecosystem combined with these capabilities that we're discussing well perhaps behind in areas like data sharing and integrated governance can wildly succeed by offering the capabilities and leveraging its ecosystem now for their part the snowflakes of the world have to stay focused on the mission build the best products possible and develop their own ecosystems to compete and attract the Mind share of both developers and business users and that's why it's so interesting to hear solipski basically say it's not a separate Cloud it's a set of integrated Services well snowflake is in our view building a super cloud on top of AWS Azure and Google when great products meet great sales and marketing good things can happen so this will be really fun to watch what AWS announces in this area at re invent all right one other topic that solipsky talked about was the correlation between serverless and container adoption and you know I don't know if this gets into there certainly their hybrid place maybe it starts to get into their multi-cloud we'll see but we have some data on this so again we're talking about the correlation between serverless and container adoption but before we get into that let's go back to 2017 and listen to what Andy jassy said on the cube about serverless play the clip very very earliest days of AWS Jeff used to say a lot if I were starting Amazon today I'd have built it on top of AWS we didn't have all the capability and all the functionality at that very moment but he knew what was coming and he saw what people were still able to accomplish even with where the services were at that point I think the same thing is true here with Lambda which is I think if Amazon were starting today it's a given they would build it on the cloud and I think we with a lot of the applications that comprise Amazon's consumer business we would build those on on our serverless capabilities now we still have plenty of capabilities and features and functionality we need to add to to Lambda and our various serverless services so that may not be true from the get-go right now but I think if you look at the hundreds of thousands of customers who are building on top of Lambda and lots of real applications you know finra has built a good chunk of their market watch application on top of Lambda and Thompson Reuters has built you know one of their key analytics apps like people are building real serious things on top of Lambda and the pace of iteration you'll see there will increase as well and I really believe that to be true over the next year or two so years ago when Jesse gave a road map that serverless was going to be a key developer platform going forward and so lipsky referenced the correlation between serverless and containers in the Furrier sit down so we wanted to test that within the ETR data set now here's a screen grab of The View across 1300 respondents from the October ETR survey and what we've done here is we've isolated on the cloud computing segment okay so you can see right there cloud computing segment now we've taken the functions from Google AWS Lambda and Microsoft Azure functions all the serverless offerings and we've got Net score on the vertical axis we've got presence in the data set oh by the way 440 by the way is highly elevated remember that and then we've got on the horizontal axis we have the presence in the data center overlap okay that's relative to each other so remember 40 all these guys are above that 40 mark okay so you see that now what we're going to do this is just for serverless and what we're going to do is we're going to turn on containers to see the correlation and see what happens so watch what happens when we click on container boom everything moves to the right you can see all three move to the right Google drops a little bit but all the others now the the filtered end drops as well so you don't have as many people that are aggressively leaning into both but all three move to the right so watch again containers off and then containers on containers off containers on so you can see a really major correlation between containers and serverless okay so to get a better understanding of what that means I call my friend and former Cube co-host Stu miniman what he said was people generally used to think of VMS containers and serverless as distinctly different architectures but the lines are beginning to blur serverless makes things simpler for developers who don't want to worry about underlying infrastructure as solipsky and the data from ETR indicate serverless and containers are coming together but as Stu and I discussed there's a spectrum where on the left you have kind of native Cloud VMS in the middle you got AWS fargate and in the rightmost anchor is Lambda AWS Lambda now traditionally in the cloud if you wanted to use containers developers would have to build a container image they have to select and deploy the ec2 images that they or instances that they wanted to use they have to allocate a certain amount of memory and then fence off the apps in a virtual machine and then run the ec2 instances against the apps and then pay for all those ec2 resources now with AWS fargate you can run containerized apps with less infrastructure management but you still have some you know things that you can you can you can do with the with the infrastructure so with fargate what you do is you'd build the container images then you'd allocate your memory and compute resources then run the app and pay for the resources only when they're used so fargate lets you control the runtime environment while at the same time simplifying the infrastructure management you gotta you don't have to worry about isolating the app and other stuff like choosing server types and patching AWS does all that for you then there's Lambda with Lambda you don't have to worry about any of the underlying server infrastructure you're just running code AS functions so the developer spends their time worrying about the applications and the functions that you're calling the point is there's a movement and we saw in the data towards simplifying the development environment and allowing the cloud vendor AWS in this case to do more of the underlying management now some folks will still want to turn knobs and dials but increasingly we're going to see more higher level service adoption now re invent is always a fire hose of content so let's do a rapid rundown of what to expect we talked about operate optimizing data and the organization we talked about Cloud optimization there'll be a lot of talk on the show floor about best practices and customer sharing data solipsky is leading AWS into the next phase of growth and that means moving beyond I.T transformation into deeper business integration and organizational transformation not just digital transformation organizational transformation so he's leading a multi-vector strategy serving the traditional peeps who want fine-grained access to core services so we'll see continued Innovation compute storage AI Etc and simplification through integration and horizontal apps further up to stack Amazon connect is an example that's often cited now as we've reported many times databricks is moving from its stronghold realm of data science into business intelligence and analytics where snowflake is coming from its data analytics stronghold and moving into the world of data science AWS is going down a path of snowflake meet data bricks with an underlying cloud is and pass layer that puts these three companies on a very interesting trajectory and you can expect AWS to go right after the data sharing opportunity and in doing so it will have to address data governance they go hand in hand okay price performance that is a topic that will never go away and it's something that we haven't mentioned today silicon it's a it's an area we've covered extensively on breaking analysis from Nitro to graviton to the AWS acquisition of Annapurna its secret weapon new special specialized capabilities like inferential and trainium we'd expect something more at re invent maybe new graviton instances David floyer our colleague said he's expecting at some point a complete system on a chip SOC from AWS and maybe an arm-based server to eventually include high-speed cxl connections to devices and memories all to address next-gen applications data intensive applications with low power requirements and lower cost overall now of course every year Swami gives his usual update on machine learning and AI building on Amazon's years of sagemaker innovation perhaps a focus on conversational AI or a better support for vision and maybe better integration across Amazon's portfolio of you know large language models uh neural networks generative AI really infusing AI everywhere of course security always high on the list that reinvent and and Amazon even has reinforce a conference dedicated to it uh to security now here we'd like to see more on supply chain security and perhaps how AWS can help there as well as tooling to make the cio's life easier but the key so far is AWS is much more partner friendly in the security space than say for instance Microsoft traditionally so firms like OCTA and crowdstrike in Palo Alto have plenty of room to play in the AWS ecosystem we'd expect of course to hear something about ESG it's an important topic and hopefully how not only AWS is helping the environment that's important but also how they help customers save money and drive inclusion and diversity again very important topics and finally come back to it reinvent is an ecosystem event it's the Super Bowl of tech events and the ecosystem will be out in full force every tech company on the planet will have a presence and the cube will be featuring many of the partners from the serial floor as well as AWS execs and of course our own independent analysis so you'll definitely want to tune into thecube.net and check out our re invent coverage we start Monday evening and then we go wall to wall through Thursday hopefully my voice will come back we have three sets at the show and our entire team will be there so please reach out or stop by and say hello all right we're going to leave it there for today many thanks to Stu miniman and David floyer for the input to today's episode of course John Furrier for extracting the signal from the noise and a sit down with Adam solipski thanks to Alex Meyerson who was on production and manages the podcast Ken schiffman as well Kristen Martin and Cheryl Knight helped get the word out on social and of course in our newsletters Rob hoef is our editor-in-chief over at siliconangle does some great editing thank thanks to all of you remember all these episodes are available as podcasts wherever you listen you can pop in the headphones go for a walk just search breaking analysis podcast I published each week on wikibon.com at siliconangle.com or you can email me at david.valante at siliconangle.com or DM me at di vallante or please comment on our LinkedIn posts and do check out etr.ai for the best survey data in the Enterprise Tech business this is Dave vellante for the cube insights powered by ETR thanks for watching we'll see it reinvent or we'll see you next time on breaking 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(upbeat electronic music) >> Hello, and welcome to this Cube Conversation. My name is Dave Vellante, and we're here with Raj Gossain, who's the Chief Product Officer at Alation. We have some news. Hello, Raj. Thanks for coming on. >> Dave, it's great to be with you on theCUBE again. >> Yeah, good to see you. So, okay, we're going to talk about Alation Connected Sheets. You know, what is that? Talk to us about what it is, what it does, what it brings to customers. >> So we recognize, spreadsheets are really the dark matter of the data universe. And they're used by, over 78 million people use spreadsheets on a regular basis to drive critical business analysis. But there's a lot of challenges with spreadsheet usage. It brings risk to the organization. There's no visibility into where data comes from. And so we wanted to bring the power of the Alation Data Intelligence Platform to business users where they spend most of their time. And that's in a tool that they love, and that's spreadsheets. And so we're launching a brand new product next week called Alation Connected Sheets. >> So talk more about that. So yes, I get the lineage issue, like where did-- who did this, where's this data come from? I got different data. But talk more about the problems that Alation Connected Sheets solves, specifically for customers. >> Yeah, so the big challenges that we see when we talk to data organizations is how do they understand where the data came from? Is it trusted? Is it reusable? Should it be used in this format? And if you look at where most users that use spreadsheets get the data to power their spreadsheets, maybe it's a CSV download from a database, and then you have no idea where the data came from and where it's going. Or even worse, it's copying and pasting data from other spreadsheets. And so if you take those problems, how can we bring trusted data from governed sources like Snowflake and Redshift and put it in the hands of spreadsheet users, and give them the power and flexibility of Google Sheets or Microsoft Excel, but use trusted, reliable, well-governed data so that the data office feels great about them using spreadsheets and the end users, the business users, can take advantage of the tool that they know and love and do the work that they need to do quickly. >> So, okay. So I'm inferring from your comments there that you've got the ability to take data from you mentioned a couple, Snowflake and Redshift, other popular data warehouses. >> Yep. >> So talk about the key capabilities that you have, any specific features that we should know about. >> Sure. So, we built the leading data intelligence platform and the leading data catalog. And one of the benefits of that catalog is where you have visibility into all of the trusted, governed data sources that a data organization cares about, whether it's enterprise warehouses like Snowflake or Redshift, databases like SQL Server, Google BigQuery, what have you. So what we've done is we've brought the power of that data catalog directly into both Google Sheets as well as Excel. And the idea there is a user can log into their application, authenticate to Alation using the Alation Connected Sheets plugin into their spreadsheet tool, and browse those trusted data sets that are surfaced in the Alation catalog. They get trust signals, they get visibility into where this data came from. So lineage, insights, descriptive information. And then with one or two clicks, they can choose a data set from their warehouse, basically apply filtering conditions. So let's say I'm looking for customer data in Snowflake. I can find the right customer table. If I only want it for say, 2022, I can apply some filter conditions, I can reorder columns, push one button, authenticate to that data source. We want to maintain and ensure security is being applied, so only those users that have access to the warehouse can actually download that data set. But once they've authenticated, that data gets downloaded into their spreadsheet and there's a live connection that's maintained to that spreadsheet. So anytime you need to refresh the data, one push of a button and that data set gets updated. I can schedule the updates. So, you know, if I have to produce a report every Monday morning, I could have that data set refreshed at 8:00 a.m. Monday morning, or whatever schedule the user wants. And so it gives the user the data set they need, but the data organization, they can see where that data came from and they understand the lineage of the data as it is used in analysis in those spreadsheets themselves. >> So Raj, I know you're at the Super Bowl this week, a.k.a. re:Invent. >> Yes. >> And I know you got very close relationships with Snowflake, you've mentioned them a couple times with the data summit last spring. And I know you've done some integration work with those platforms and I'm sure others. So should we think of this as you're extending that sort of trust and governance out to spreadsheets, is that right? And stretching that out? >> That's exactly right. The way we talk about it is how do we bring data intelligence to business users in the tool that they know and love, which is the spreadsheet. And so, the data catalog and data intelligence platforms in general have really primarily been focused on servicing the needs of data users: data analysts, data scientists, data engineers. But you know, our vision, our aspiration at Alation is to really bring data intelligence to any business user. And so it's a big part of our strategy to make sure that the insights from the Alation catalog and platform can find their way into tools like Excel and Google Sheets. And so that's, what you highlighted, Dave, is exactly correct. We want to maximize the likelihood that a business user can have self-service access to trusted, governed data, do the work that they need to do, and ensure that the organization has a set of data assets in spreadsheets, frankly as opposed to liabilities, which is the way most data organizations look at spreadsheets is it's almost like a risk factor. We want to convert that risk, that liability, into an asset so that people can reuse data sets and they understand where this analysis is actually coming from. >> It's something that we've talked about for well over a decade on theCUBE. Is data an asset or is it a liability? >> Yeah, yeah. >> You obviously want to get value out of it, but if you can't share it, it's not trusted. So what people do is they lock it down and then that constricts value creation. >> Exactly. >> My understanding is this tech came out of an acquisition from a company, Kloudio. >> That's correct. >> Tell us about Kloudio. Why Kloudio? What's the fit there? >> Yeah, so Kloudio is a company, it's about five years old. We closed the acquisition of the company in March of this past year. And they had about 20 customers, 10 engineers. And we saw an opportunity with the spreadsheet tool that they'd created to really compliment our data intelligence strategy. And as you said, Dave, extend the value of data intelligence to business users. And so, we brought the Kloudio team into the fold. The thing I'm most excited about as a product guy, is within seven months of them joining Alation, we're actually shipping a brand new product that's going to drive revenue and meet the needs of tens of millions of users, ultimately. Like that's really our aspiration. And so, the tech they had was extremely modern. It reinforces the platform position that we have. You know, this microservices architecture that we've built Alation around, made it easy for that new team to come in and leverage existing APIs and capabilities from our platform and the tech that they brought into Alation to essentially connect the dots and deliver a brand new set of capabilities to an entirely new audience, to help our customers achieve their business objectives, which is really creating a data culture across their entire organization, inclusive of business users, not just, like I said, the data X users that are already taking advantage of solutions like Alation and cloud warehouses, et cetera. >> So I have two questions, follow up questions by me, and I think you might have answered the second one. The first one is what's the secret sauce behind Kloudio? How does the tech work? The second question is how does it fit into the Alation portfolio? How were you able to integrate it so quickly? Maybe that's the microservices architecture. But start with the secret sauce. What is it, what can you share with me? >> I think the thing that we saw with Kloudio that got us excited, and the fact that they, even though it was a small company, they had 20 customers, they were generating revenue, and they were delivering real value to business users, by really enabling business users to tap into the value of trusted, governed data, and frankly, get IT out of the way. You know, we almost refer to it as like smart self-service, which is, they could find a data asset and connect to that source, and just with a couple quick clicks, almost a low-code, no-code type of an experience, bring that sort of data into their spreadsheet so they could do the work that they needed to do. That opportunity, that tech that the Kloudio team had built out, the big gap that they had is, my goodness, what does it take to actually be aware of all the data sources that exist across an organization and connect to them? And that's what Alation does, right? That's why we built the platform that we built, so that we can basically understand all of a customer's data assets, whether they're on-prem or in the cloud. And so it was a little bit of, you know, that Reese's Peanut Butter Cup analogy. The chocolate and the peanut butter coming together. The Alation platform, the Alation catalog, coupled with the technology that Kloudio brought to us really was sort of a match made in heaven. And it's allowed us to bring this new capability to market that really is value-add on top of the platform and catalog investments that our customers have already made. >> Yeah, so they had this magic pixie dust, but it was sort of isolated, and then you've integrated it into your catalog. And that's the second part of my question. How were you able to do that so quickly? >> So, we've been on this evolution, enhancing the the Alation data intelligence platform. We've moved to a microservices architecture, we're fully multi-tenant in the cloud. And the fact that we'd made those investments over the past few years gave us the opportunity to make it easy for an acquired business like Kloudio, or you know, perhaps a future acquisition, or third party developers leveraging APIs that we expose to make it easy for them to integrate into the Alation platform. And so, I think it's a bit of foresight. We recognize that in starting with the catalog, the opportunity was much bigger than just providing a data catalog. We've added data governance, we've built out this platform and we recognize that more and more users can and should be benefiting from data intelligence. And so I think those platform investments have paid significant dividends and accelerated our ability to deliver Alation Connected Sheets as quickly as we have. >> Sounds like a great acquisition, like a diamond in the rough. I mean, I love big these big mega acquisitions 'cause the media company can write about 'em, but I really love the high, high return. You know, low denominator, high value. So, congratulations. >> Thank you. >> Where can people learn more about this? Maybe play around a little bit with it? >> Yeah, so we're going to be demoing Alation Connected Sheets at AWS re:Invent next week. And it's going to be available starting next week, so the 28th of November. And obviously you'll see it online, on social media, on our website as well. But folks that are going to be in Las Vegas next week, come to the Alation booth and you'll get a chance to see it directly. >> Awesome. Okay, Raj. Hey, thanks for spending some time with us today. Really appreciate it. >> Great, thanks so much, Dave. Great to see you. >> Hey, you're very welcome. And thank you for watching. This is Dave Vellante for theCUBE, your leader in enterprise and emerging tech coverage.

>>The Cube Presents UI Path Forward five. Brought to you by UI Path. >>Welcome back to the Cube's Coverage of Forward five UI Path Customer event. This is the fourth forward that we've been at. We started in Miami, had some great events. It's all about the customer stories. Dave Valante with Dave Nicholson, Flow Yees here. She's the director of engineering and development at dsu and Kate Hall is to her right. And Kate is the director of Automation Solutions at dsu. Ladies, welcome to the Cube. Thanks so much. Thanks >>You to >>Be here. Tell us about dsu. You guys are huge company, but but give us the focus. >>Yeah, absolutely. Dentsu, it's one of the largest advertising networks out there. One of the largest in the world with over 66,000 employees and we're operating in a hundred plus countries. We're really proud to serve 95% of the Fortune 100 companies. Household names like Microsoft Factor and Gamble. If you seen the Super Bowls ads last year, Larry, Larry Davids ads for the crypto brand. That's a hilarious one for anyone who haven't seen it. So we're just really proud to be here and we really respect the creatives of our company. >>That was the best commercial, the Super Bowl by far. For sure. I, I said at the top of saying that Dave and I were talking UI pass, a cool company. You guys kinda look like cool people. You got cool jobs. Tell, tell us about your respective roles. What do you guys do? Yeah, >>Absolutely, absolutely. Well, I'm the director of engineering and automation, so what I really do is to implement the automation operating model and connecting developers across five continents together, making sure that we're delivering and deploying automation projects up to our best standards setting by the operating model. So it's a really, really great job. And when we get to see all these brilliant minds across the world >>And, And Kate, what's your role? Yeah, >>And the Automation Solutions vertical that I head up, the focus is really on converting business requirements into technical designs for flows, developers to deliver. So making sure that we are managing our pipeline, sourcing the right ideas, prioritizing them according to the business businesses objectives and making sure that we route them to the right place. So is it, does it need to be an automation first? Do we need to optimize the process? Does this make sense for citizen developers or do we need to bring in the professional resources on flow's >>Team? So you're bilingual, you speak, you're like the translator, you speak geek and wall, right? Is that fair? Okay. So take me back to the, let's, let's do a little mini case study here. How did you guys get started? I'm always interested, was this a top down? Is, is is top down required to be successful? Cuz it does feel like you can have bottom up bottoms up with rpa, but, but how did you guys get started? What was the journey like? >>Yeah, we started back in 2017, very traditional top down approach. So we delivered a couple POCs working directly with UiPath. You know, going back those five years, delivered those really highly scalable top down solutions that drove hundreds of thousands of hours of ROI for the business. However, as people kind of began to embrace automation and they learned that this is something that they could, that could help them, it's not something that they should be afraid of to take away their jobs. You know, DSU is a young company with a lot of young, young creatives. They wanna make their lives better. So we were absolutely inundated with all of these use cases of, hey I, I need a bot to do this. I need a bot to do that i's gonna save me, you know, 10 hours a week. It's gonna save my team a hundred hours a month, et cetera, et cetera. All of these smaller use cases that were gonna be hugely impactful for the individuals, their teams, even in entire department, but didn't have that scalable ROI for us to put professional development resources against it. So starting in 2020 we really introduced the citizen development program to put the power into those people's hands so that they could create their own solutions. And that was really just a snowball effect to tackle it from the bottom up as well as the top down. >>So a lot of young people, Dave, they not not threatened by robots that racing it. So >>They've grown up with the technology, they know that they can order an Uber from their phone, right? Why am I, you know, sitting here at MITs typing data from Excel into a program that might be older than some of our youngest employees. >>Yeah. Now, now the way you described it, correct me if I'm wrong, the way you described it, it sounds like there's sort of a gating function though. You're not just putting these tools in the hands of people sitting, especially creatives who are there to create. You're not saying, Oh you want things automated, here are the tools. Go ahead. Automated. We'll we, for those of you who want to learn how to use the tools, we'll have you automate that there. Did I hear that right? You're, you're sort of making decisions about what things will be developed even by citizen developers. >>Let me, Do you wanna talk to them about governance? Yeah, absolutely. >>Yeah, so I think we started out with assistant development program, obviously the huge success, right? Last year we're also here at the Cubes. We're very happy to be back again. But I think a lot, a lot had changed and we've grown a lot since last year. One, I have the joy being a part of this team. And then the other thing is that we really expanded and implemented an automation operating model that I mentioned briefly just earlier. So what that enabled us to do is to unite developers from five continents together organically and we're now able to tap into their talent at a global scale. So we are really using this operating model to grow our automation practice in a scalable and also controlled manner. Okay. What I mean by that is that these developer originally were sitting in 18 plus markets, right? There's not much communication collaboration between them. >>And then we went in and bridged them together. What happened is that originally they were only delivering projects and use cases within their region and sometimes these use cases could be very, very much, you know, small scale and not really maximizing their talent. What we are now able to do is tap into a global automation pipeline. So we connecting these highly skilled people to the pipeline elsewhere, the use cases elsewhere that might not be within their regions because one of our focus, a lot of change I mentioned, right? One thing that will never change with our team, it's used automation to elevate people's potential. Now it's really a win-win situation cuz we are connecting the use cases from different pipelines. So the business is happy cuz we are delivering these high scalable solutions. We also utilizing these developers and they're happy because their skills are being maximized and then at the same time growing our automation program. So then that way the citizen development program so that the lower complexities projects are being delivered at a local level and we are able to innovate at a local level. >>I, I have so many questions flow based on what you just said. It's blowing my mind >>Here. It's a whole cycle. >>So let me start with how do you, you know, one of the, one of the concerns I had initially with RPA, cuz just you're talking about some very narrow use cases and your goal is to expand that to realize the potential of each individual, right? But early days I saw a lot of what I call paving the cow path, taking a process that was not a great process and then automating it, right? And that was limiting the potential. So how do you guys prioritize which processes to focus on and maybe which processes should be rethought, >>Right? Exactly. A lot of time when we do automation, right, we talk about innovations and all that stuff, but innovation doesn't happen with the same people sitting in the same room doing the same thing. So what we are doing now, able to connect all these people, different developers from different groups, we really bring the diversity together. That's diversity D diverse diversity in the mindset, diversity in the skill. So what are we really able to do and we see how we tackle this problem is to, and that's a problem for a lot of business out there is the short-termism. So there's something, what we do is that we take two approaches. One, before we, you know, for example, when we used to receive a use case, right? Maybe it's for the China market involving a specific tool and we just go right into development and start coding and all that good stuff, which is great. >>But what we do with this automation framework, which we think it's a really great service for any company out there that want to grow and mature their automation practice, it's to take a step back, think about, okay, so the China market would be beneficial from this automation. Can we also look at the Philippine market? Can we also look at the Thailand market? Because we also know that they have similar processes and similar auto tools that they use. So we are really able to make our automation in a more meaningful way by scaling a project just beyond one market. Now it's impacting the entire region and benefiting people in the entire region. That is what we say, you know, putting automation for good and then that's what we talked about at dsu, Teaming without limits. And that's a, so >>By taking, we wanna make sure that we're really like taking a step back, connecting all of the dots, building the one thing the right way, the first time. Exactly. And what's really integral into being able to have that transparency, that visibility is that now we're all working on the same platform. So you know, Brian spoke to you last year about our migration into automation cloud, having everything that single pipeline in the cloud. Anybody at DSU can often join the automation community and get access to automation hub, see what's out there, submit their own ideas, use the launchpad to go and take training. Yeah. And get started on their own automation journey as a citizen developer and you know, see the different paths that are available to them from that one central space. >>So by taking us a breath, stepping back, pausing just a bit, the business impact at the tail end is much, much higher. Now you start in 2017 really before you UI path made it's big enterprise play, it acquired process gold, you know, cloud elements now most recently referenced some others. How much of what you guys are, are, are doing is platform versus kind of the initial sort of robot installation? Yeah, >>I mean platforms power people and that's what we're here to do as the global automation team. Whether it's powering the citizen developers, the professional developers, anybody who's interacting with our automations at dsu, we wanna make sure that we're connecting the docs for them on a platform basis so that developers can develop and they don't need to develop those simple use cases that could be done by a citizen developer. You know, they're super smart technical people, they wanna do the cool shit with the new stuff. They wanna branch into, you know, using AI center and doing document understanding. That's, you know, the nature of human curiosity. Citizen developers, they're thrilled that we're making an investment to upscale them, to give them a new capability so that they can automate their own work. And they don't, they, they're the process experts. They don't need to spend a month talking to us when they could spend that time taking the training, learning how to create something themselves. >>How, how much sort of use case runway when you guys step back and look at your business, do you see a limit to the use cases? I mean where are you, if you had on a spectrum of, you know, maturity, how much more opportunity is there for DSU to automate? >>There's so much I think the, you feel >>Like it's limitless? >>No, I absolutely feel like it's limitless because there one thing, it's, there's the use cases and I think it's all about connecting the talent and making sure that something we do really, you know, making sure that we deliver these use cases, invest the time in our people so we make sure our professional developers part of our team spending 10 to 20% of the time to do learning and development because only limitless if our people are getting the latest and the greatest technology and we want to invest the time and we see this as an investment in the people making sure that we deliver the promise of putting people first. And the second thing, it's also investment in our company's growth. And that's a long term goal. And overcoming just focusing on things our short term. So that is something we really focus to do. And not only the use cases we are doing what we are doing as an operating model for automation. That is also something that we really value because then this is a kind of a playbook and a success model for many companies out there to grow their automation practice. So that's another angle that we are also focusing >>On. Well that, that's a relief because you guys are both seem really cool and, and I'm sitting here thinking they don't realize they're working themselves out of a job once they get everything automated, what are they gonna do? Right? But, but so, so it sounds like it's a never ending process, but because you guys are, are such a large global organization, it seems like you might have a luxury of being able to benchmark automations from one region and then benchmark them against other regions that aren't using that automation to be able to see very, very quickly not only realize ROI really quickly from the region where it's been implemented, but to be able to compare it to almost a control. Is that, is that part of your process? Yeah, >>Absolutely. Because we are such a global brand and with the automation, automation operating model, what we are able to do, not only focusing on the talent and the people, but also focusing on the infrastructure. So for example, right, maybe there's a first use case developing in Argentina and they have never done these automation before. And when they go to their security team and asking for an Okta bypass service account and the security team Argentina, like we never heard of automation, we don't know what UiPath is, why would I give you a service account for good reason, right? They're doing their job right. But what we able to do with automation model, it's to establish trust between the developers and the security team. So now we have a set up standing infrastructure that we are ready to go whenever an automation's ready to deploy and we're able to get the set up standing infrastructure because we have the governance to make sure the quality would delivered and making sure anything that we deployed, automation that we deploy are developed and governed by the best practice. So that's how we able to kind of get this automation expand globally in a very control and scalable manner because the people that we have build a relationship with. What are >>The governors to how fast you can adopt? Is it just expertise or bandwidth of that expertise or what's the bottleneck? >>Yeah, >>If >>You wanna talk more about, >>So in terms of the pipeline, we really wanna make sure that we are taking that step back and instead of just going, let's develop, develop, develop, here are the requirements like get started and go, we've prove the value of automation at Densu. We wanna make sure we are taking that step back and observing the pipeline. And it's, it's up to us to work with the business to really establish their priorities and the priorities. It's a, it's a big global organization. There might be different priorities in APAC than there are in EM for a good reason. APAC may not be adopted on the same, you know, e r P system for example. So they might have those smaller scale ROI use cases, but that's where we wanna work with them to identify, you know, maybe this is a legitimate need, the ROI is not there, let's upscale some citizen developers so that they can start, you know, working for themselves and get those results faster for those simpler use cases. >>Does, does the funding come from the line of business or IT or a combination? I mean there are obviously budget constraints are very concerned about the macro and the recession. You guys have some global brands, you know, as, as things ebb and flow in the economy, you're competing with other budgets. But where are the budgets coming from inside of dsu? Is it the business, is it the tech >>Group? Yeah, we really consider our automation group is the cause of doing business because we are here connecting people with bridging people together and really elevating. And the reason why we structure it that way, it's people, we do automation at dsu not to reduce head count, not to, you know, not, not just those matrix number that we measure, but really it's to giving time back to the people, giving time back to our business. So then that way they can focus on their wellbeing and that way they can focus on the work-life balance, right? So that's what we say. We are forced for good and by using automation for good as one really great example. So I think because of this agenda and because DSU do prioritize people, you know, so that's why we're getting the funding, we're getting the budget and we are seeing as a cause of doing business. So then we can get these time back using innovation to make people more fulfilling and applying automation in meaningful ways. >>Kate and Flo, congratulations. Your energy is palpable and really great success, wonderful story. Really appreciate you sharing. Thank you so >>Much for having us today. >>You're very welcome. All keep it right there. Dave Nicholson and Dave Ante. We're live from UI path forward at five from Las Vegas. We're in the Venetian Consent Convention Center. Will be right back, right for the short break.

hi everybody this is dave vellante and this is day two of the cube's coverage of falcon 2022 we're live from the aria in las vegas everybody was out last night at the brooklyn bowl awesome band customers were dancing a lot of fun a lot of business going on here todd crosley's here he's to my left he's the senior director of cloud partnerships at crowdstrike and patrick mcdowell is the global technical lead for security partners at aws these guys have been partnering for a long time and we're going to dig into that partnership gents welcome to the cube thanks for having us thanks happy birthday you're very welcome todd talk about the the history of the relationship you guys are kind of bet business on each other but take us back sure thing so you know yesterday or the day before the company turned 11 years old or so i think george talked a lot about that the other day but uh we've actually been working closely with the amazon team for more than five years at this point and it's really evolved into a strategic collaboration really so uh from an executive on down into field alignment channel alignment uh the marketing team and and the build team where we we work with patrick and his extended team on different service integrations and different uh you know effectively positive security outcomes for the customers together i mean patrick if you think about the history of aws it's like you guys realized you had lightning in a bottle and then also realized wow and ecosystem play is the way to go and when you go to re invent it's palpable the the ecosystem innovation and the the flywheel effect that you've created but what's aws's perspective on the partnership with crowdstrike yeah it's essential to us and our customers right so we've been doing deep integrations probably since i think the first big one of crowdstrike was with guard duty amazon guard duty which is our uh easy to use threat detection service in aws one click on and their threat intelligence actually build is built directly into that service so an aws customer turns on guard duty it's automatically uh being uh enhanced and enriched with falcon x threat intelligence uh by default yeah so the cloud has become the first line of defense for a lot of the csos that i talk to you know everybody's cloud first cloud first and it's like okay that's awesome because cloud has really good security but then it's okay but if there's some differences i got there's a shared security model that i have to understand and and so when you guys talk to customers i know it's you know one of the leadership principles is you got to be focused you know insanely focused on customers crowdstrike very customer focused as well that's how you sort of created this company that is doing such innovative things what are customers telling you um about how they want you to work together what kind of feedback are you getting any other examples that you might have in the future yeah sure thing i'll go first so that well so they they depend on uh the like you said this shared security model but there's ample opportunity where vendors like crowdstrike and we've worked with patrick's team extensively to to pinpoint areas where we can provide so examples of that would be like on the in compute so like you recently released the graviton processors we've had a recent success with a customer where uh they've walked down their digital transformation journey they had they were looking to switch over to the graviton processors and we work closely with patrick's team to say okay we're going to certify our sensor uh on that particular area of compute so the customer continue to enjoy crowdstrike in our single-platform cloud-first native platform to say okay you've got skill sets on the on-prem environment your endpoint environment and good news you're switching to graviton no problem we still support that and we've been able to do that by working closely with each other inclusive not just the architects but the product teams work closely together as well yeah in this customer case um you know uh crowdstrike already supported for amazon linux but this customer a very large customer of ours need to move 10 000 ec2 instances to graviton on red hat linux not amazon linux so we got crowdstrike engineering our engineering our architects and we were able to get this customer red hat support for graviton within two months right in production ready to go and unblock this migration so i love the graviton example so what i always default to when somebody says oh we're cloud native i'd say are you running on graviton uh because because graviton is is is uh amazon's custom silicon that complements what you're doing with intel what you're doing with amd and they're all kinds of different instant types but it's based on an arm system and it's delivering new levels of performance and and an energy reduction if i can use that term um and and it's on a new curve yeah and so tremendous cost savings as well right i think out of the box with no change in the application you're getting 20 and that's and i i don't even think you're really driving it as hard as you can is my assessment but you gotta be considerate of these days so but that's an example of of how you're using from a technology standpoint cloud native and then and then sort of partnering does this you know graviton one graviton true graviton three i'm sure there'll be graviton 10 someday no doubt i think it's a good example of us working closely together paying attention to the customer's needs and making sure they don't they don't miss a step and and still stop the breach and pay attention to their security needs so you're part of the apn the amazon partner network yep what do you got to do to be like certified at an elite level there you probably have to go through a lot of hoops and maybe you could describe what you guys do there and how you work together to ensure that a company is adequate and more than adequate for its customers yeah sure thing so we we've participated in and we're certified in for example the security competency area which elevates us amongst other security isvs we're one of the few that have that um we have the well we participate in the well architected program which means that we've demonstrated a common set of criteria and customer references i mean that's a example um another area where we've participated quite a bit is in in the land of digital supply chains notably aws marketplace where we've uh latched on to many of their features and capabilities and participated in strategic programs whether it be um you know including the channel partner or taking a look at traditional private offers or taking a look at like the looping in the entire ecosystem to make sure the customer gets what they need so how do you integrate with things like control tower where where are the seams and how do you make that as seamless as possible for customers or maybe you can explain what control power yeah so uh they have multiple integrations for control tower for their cspm horizon uh it automatically onboards new aws accounts so uh you know as you're vending accounts you're giving to more devops teams horizon is automatically deploying and being protected those accounts so it has those guard rails in place for customers in a nice easy to use deployment model that you don't have to think about right so control tower in general is uh it kind of gives customers guard rails an easy button if you're new to aws i'm migrating hey aws can you just tell me the best practices how should i set up my accounts i need a landing zone i'm doing migration so it's really like a wizard for getting started in aws and crowdstrike integrates that with falcon discover and as well as falcon horizon and your age so yeah you guys really don't compete um you know maybe there's some overlap overlap is better than than gaps but you know when you when you take something like you know network firewalls and things like that amazon brings that to the table and then crowdstrike will build on top of that is that correct yeah i'll take this one uh so george has said it crowdstrike is not a network security company right however they have an integration using their threat intelligence on on our amazon network firewall so aws amazon and crouchstrike coming together actually have a joint offering for customers in a space that crowdstrike has never been in before itself so i think that's very exciting so yeah yeah all those integrations that pat's talking about we've actually cataloged the whole thing on a github page where we find that's where customers go they took a look at the integration and the supporting documentation we're like okay yeah this makes sense this these two companies augment each other well and it turns out to be a good outcome and you check you'll take telemetry data from the aws cloud you can take it from you know any your agents can run anywhere right and then you bring that in to the or i guess you sort of you index it i in my term in in the aws cloud enables that because you've got virtually unlimited scaling capability and that's kind of where you guys started yeah cloud native dogma that's right yeah it's a competitive differentiator for us uh i we think it's nice we're a market leader in our space and amazon's a market leader in their space and and we've got a lot of synergy together where do you guys last question where do you guys respectively want to see the the relationship go if you had to put on your binoculars or even telescope where do you want to see this go well i think we're i think we're all in the business of accelerating positive security outcomes for the customer and the what we're doing is we're spending a lot of time educating our respective fields and respective customers to know that these these integrations do in fact exist uh they absolutely complement each other we were in a meeting uh you know maybe six ten months ago we're in a cio said i didn't know that the two that the two products work so well together speaking about the control tower and horizon particular example had i known that i would have bought it uh a lot quicker this is this is a great outcome and the fact that you're working with amazon together is a bit of a relief so that was nice yeah i'm gonna echo what george kirk said in his keynote yesterday that like security's a journey xdr is a journey and i think the work that we did on the open cyber security schema framework which is an open source common uh security language that all vendors can use including aws and crowdstrike i think that is where we're going to see uh the the industry rally around in the upcoming year there's so much security data there's a common uh now language that all products and clouds could talk to each other that's right tell tell me more about it ocsf is that right where did that come from and yeah so um it's it's a it's an open source framework and you know both crowdstrike aws and other uh you know players in the industry are like there's a common problem none of our products talk together it's all about customer benefit right so what can we do to democratize security data make things talk well play together everyone wants to do more analytics on lots of data lakes so this is where it's all coming together yeah better collaboration in industry obviously is is needed and then the other piece is education you guys both sort of refer to that that's what i when i come to conferences like this and reinforce as well as a lot of it i mean i remember the first reinforcement was like explaining the shared responsibility model now of course a lot of people understood it but a lot of people didn't when you fast forward to 2022 and reinvent it was a lot more focused on how to really exploit the capabilities that aws has and then here at crowdstrike it's like okay helping practitioners really understand how to take advantage of the full platform and and that's to your point patrick the journey all right guys hey we got to go thanks so much you for having us all right keep it right there fast and furious day two from crowdstrike's falcon 2022. you're watching thecube [Music] you

(calm electronic music) >> Okay, welcome back everyone to theCUBE's coverage here live in New York City for AWS Summit 2022. I'm John Furrier, host of theCUBE, but a great conversation here as the day winds down. First of all, 10,000 plus people, this is a big event, just New York City. So sign of the times that some headwinds are happening? I don't think so, not in the cloud enterprise innovation game. Lot going on, this innovation conversation we're going to have now is about the confluence of cloud scale integration data and the future of how FinTech and other markets are going to change with technology. We got Chris Thomas, the CTO of Slalom, and Rob Krugman, chief digital officer at Broadridge. Gentlemen, thanks for coming on theCUBE. >> Thanks for having us. >> So we had a talk before we came on camera about your firm, what you guys do, take a quick minute to just give the scope and size of your firm and what you guys work on. >> Yeah, so Broadridge is a global financial FinTech company. We work on, part of our business is capital markets and wealth, and that's about a third of our business, about $7 trillion a day clearing through our platforms. And then the other side of our business is communications where we help all different types of organizations communicate with their shareholders, communicate with their customers across a variety of different digital channels and capabilities. >> Yeah, and Slalom, give a quick one minute on Slalom. I know you guys, but for the folks that don't know you. >> Yeah, no problem. So Slalom is a modern consulting firm focused on strategy, technology, and business transformation. And me personally, I'm part of the element lab, which is focused on forward thinking technology and disruptive technology in the next five to 10 years. >> Awesome, and that's the scope of this conversation. The next five to 10 years, you guys are working on a project together, you're kind of customer partners. You're building something. What are you guys working on? I can't wait to jump into it, explain. >> Sure, so similar to Chris, at Broadridge, we've created innovation capability, innovation incubation capability, and one of the first areas we're experimenting in is digital assets. So what we're looking to do is we're looking at a variety of different areas where we think consolidation network effects that we could bring can add a significant amount of value. And so the area we're working on is this concept of a wallet of wallets. How do we actually consolidate assets that are held across a variety of different wallets, maybe traditional locations- >> Digital wallets. >> Digital wallets, but maybe even traditional accounts, bring that together and then give control back to the consumer of who they want to share that information with, how they want their transactions to be able to control. So the idea of, people talk about Web 3 being the internet of value. I often think about it as the internet of control. How do you return control back to the individual so that they can make decisions about how and who has access to their information and assets? >> It's interesting, I totally like the value angle, but your point is what's the chicken and the egg here, the cart before the horse, you can look at it both ways and say, okay, control is going to drive the value. This is an interesting nuance, right? >> Yes, absolutely. >> So in this architectural world, they thought about the data plane and the control plane. Everyone's trying to go old school, middleware thinking. Let's own the data plane, we'll win everything. Not going to happen if it goes decentralized, right, Chris? >> Yeah, yeah. I mean, we're building a decentralized application, but it really is built on top of AWS. We have a serverless architecture that scales as our business scales built on top of things like S3, Lambda, DynamoDB, and of course using those security principles like Cognito and AWS Gateway, API Gateway. So we're really building an architecture of Web 3 on top of the Web 2 basics in the cloud. >> I mean, all evolutions are abstractions on top of each other, IG, DNS, Key, it goes the whole nine yards. In digital, at least, that's the way. Question about serverless real quick. I saw that Redshift just launched general availability of serverless in Redshift? >> Yes. >> You're starting to see the serverless now part of almost all the services in AWS. Is that enabling that abstraction, because most people don't see it that way. They go, oh, well, Amazon's not Web 3. They got databases, you could use that stuff. So how do you connect the dots and cross the bridge to the future with the idea that I might not think Web 2 or cloud is Web 3? >> I'll jump in quick. I mean, I think it's the decentralize. If you think about decentralization. serverless and decentralization, you could argue are the same way of, they're saying the same thing in different ways. One is thinking about it from a technology perspective. One is thinking about it from an ecosystem perspective and how things come together. You need serverless components that can talk to each other and communicate with each other to actually really reach the promise of what Web 3 is supposed to be. >> So digital bits or digital assets, I call it digital bits, 'cause I think zero ones. If you digitize everything and everything has value or now control drives the value. I could be a soccer team. I have apparel, I have value in my logos, I have photos, I have CUBE videos. I mean some say that this should be an NFT. Yeah, right, maybe, but digital assets have to be protected, but owned. So ownership drives it too, right? >> Absolutely. >> So how does that fit in, how do you explain that? 'Cause I'm trying to tie the dots here, connect the dots and tie it together. What do I get if I go down this road that you guys are building? >> So I think one of the challenges of digital assets right now is that it's a closed community. And I think the people that play in it, they're really into it. And so you look at things like NFTs and you look at some of the other activities that are happening and there are certain naysayers that look at it and say, this stuff is not based upon value. It's a bunch of artwork, it can't be worth this. Well, how about we do a time out there and we actually look at the underlying technology that's supporting this, the blockchain, and the potential ramifications of that across the entire financial ecosystem, and frankly, all different types of ecosystems of having this immutable record, where information gets stored and gets sent and the ability to go back to it at all times, that's where the real power is. So I think we're starting to see. We've hit a bit of a hiccup, if you will, in the cryptocurrencies. They're going to continue to be there. They won't all be there. A lot of them will probably disappear, but they'll be a finite number. >> What percentage of stuff do you think is vapor BS? If you had to pick an order of magnitude number. >> (laughs) I would say at least 75% of it. (John laughs) >> I mean, there's quite a few projects that are failing right now, but it's interesting in that in the crypto markets, they're failing gracefully. Because it's on the blockchain and it's all very transparent. Things are checked, you know immediately which companies are insolvent and which opportunities are still working. So it's very, very interesting in my opinion. >> Well, and I think the ones that don't have valid premises are the ones that are failing. Like Terra and some of these other ones, if you actually really looked at it, the entire industry knew these things were no good. But then you look at stable coins. And you look at what's going on with CBDCs. These are backed by real underlying assets that people can be comfortable with. And there's not a question of, is this going to happen? The question is, how quickly is it going to happen and how quickly are we going to be using digital currencies? >> It's interesting, we always talk about software, software as money now, money is software and gold and oil's moving over to that crypto. How do you guys see software? 'Cause we were just arguing in the queue, Dave Vellante and I, before you guys came on that the software industry pretty much does not exist anymore, it's open source. So everything's open source as an industry, but the value is integration, innovation. So it's not just software, it's the free. So you got to, it's integration. So how do you guys see this software driving crypto? Because it is software defined money at the end of the day. It's a token. >> No, I think that's absolutely one of the strengths of the crypto markets and the Web 3 market is it's governed by software. And because of that, you can build a trust framework. Everybody knows it's on the public blockchain. Everybody's aware of the software that's driving the rules and the rules of engagement in this blockchain. And it creates that trust network that says, hey, I can transact with you even though I don't know anything about you and I don't need a middleman to tell me I can trust you. Because this software drives that trust framework. >> Lot of disruption, lot of companies go out of business as a middleman in these markets. >> Listen, the intermediaries either have to disrupt themselves or they will be disrupted. I think that's what we're going to learn here. And it's going to start in financial services, but it's going to go to a lot of different places. I think the interesting thing that's happening now is for the first time, you're starting to see the regulators start to get involved. Which is actually a really good thing for the market. Because to Chris's point, transparency is here, how do you actually present that transparency and that trust back to consumers so they feel comfortable once that problem is solved. And I think everyone in the industry welcomes it. All of a sudden you have this ecosystem that people can play in, they can build and they can start to actually create real value. >> Every structural change that I've been involved in my 30 plus year career has been around inflection points. There was always some sort of underbelly. So I'm not going to judge crypto. It's been in the market for a while, but it's a good sign there's innovation happening. So as now, clarity comes into what's real. I think you guys are talking a conversation I think is refreshing because you're saying, okay, cloud is real, Lambda, serverless, all these tools. So Web 3 is certainly real because it's a future architecture, but it's attracting the young, it's a cultural shift. And it's also cooler than boring Web 2 and cloud. So I think the cultural shift, the fact that it's got data involved, there's some disruption around middleman and intermediaries, makes it very attractive to tech geeks. You look at, I read a stat, I heard a stat from a friend in the Bay Area that 30% of Cal computer science students are dropping out and jumping into crypto. So it's attracting the technical nerds, alpha geeks. It's a cultural revolution and there's some cool stuff going on from a business model standpoint. >> There's one thing missing. The thing that's missing, it's what we're trying to work on, I think is experience. I think if you're being honest about the entire marketplace, what you would agree is that this stuff is not easy to use today, and that's got to be satisfied. You need to do something that if it's the 85 year old grandma that wants to actually participate in these markets that not only can they feel comfortable, but they actually know how to do it. You can't use these crazy tools where you use these terms. And I think the industry, as it grows up, will satisfy a lot of those issues. >> And I think this is why I want to tie back and get your reaction to this. I think that's why you guys talking about building on top of AWS is refreshing, 'cause it's not dogmatic. Well, we can't use Amazon, it's not really Web 3. Well, a database could be used when you need it. You don't need to write everything through the blockchain. Databases are a very valuable capability, you get serverless. So all these things now can work together. So what do you guys see for companies that want to be Web 3 for all the good reasons and how do they leverage cloud specifically to get there? What are some things that you guys have learned that you can point to and share, you want to start? >> Well, I think not everything has to be open and public to everybody. You're going to want to have some things that are secret. You're going to want to encrypt some things. You're going to want to put some things within your own walls. And that's where AWS really excels. I think you can have the best of both worlds. So that's my perspective on it. >> The only thing I would add to it, so my view is it's 2022. I actually was joking earlier. I think I was at the first re:Invent. And I remember walking in and this was a new industry. >> It was tiny. >> This is foundational. Like cloud is not a, I don't view like, we shouldn't be having that conversation anymore. Of course you should build this stuff on top of the cloud. Of course you should build it on top of AWS. It just makes sense. And we should, instead of worrying about those challenges, what we should be worrying about are how do we make these applications easier to use? How do we actually- >> Energy efficient. >> How do we enable the promise of what these things are going to bring, and actually make it real, because if it happens, think about traditional assets. There's projects going on globally that are looking at how do you take equity securities and actually move them to the blockchain. When that stuff happens, boom. >> And I like what you guys are doing, I saw the news out through this crypto winter, some major wallet exchanges that have been advertising are hurting. Take me through what you guys are thinking, what the vision is around the wallet of wallets. Is it to provide an experience for the user or the market industry itself? What's the target, is it both? Share the design goals for the wallet of wallets. >> My favorite thing about innovation and innovation labs is that we can experiment. So I'll go in saying we don't know what the final answer is going to be, but this is the premise that we have. In this disparate decentralized ecosystem, you need some mechanism to be able to control what's actually happening at the consumer level. So I think the key target is how do you create an experience where the consumer feels like they're in control of that value? How do they actually control the underlying assets? And then how does it actually get delivered to them? Is it something that comes from their bank, from their broker? Is it coming from an independent organization? How do they manage all of that information? And I think the last part of it are the assets. It's easy to think about cryptos and NFTs, but thinking about traditional assets, thinking about identity information and healthcare records, all of that stuff is going to become part of this ecosystem. And imagine being able to go someplace and saying, oh, you need my information. Well, I'm going to give it to you off my phone and I'm going to give it to you for the next 24 hours so you can use it, but after that you have no access to it. Or you're my financial advisor, here's a view of what I actually have, my underlying assets. What do you recommend I do? So I think we're going to see an evolution in the market. >> Like a data clean room. >> Yeah, but that you control. >> Yes! (laughs) >> Yes! >> I think about it very similarly as well. As my journey into the crypto market has gone through different pathways, different avenues. And I've come to a place where I'm really managing eight different wallets and it's difficult to figure exactly where all my assets are and having a tool like this will allow me to visualize and aggregate those assets and maybe even recombine them in unique ways, I think is hugely valuable. >> My biggest fear is losing my key. >> Well, and that's an experience problem that has to be solved, but let me give you, my favorite use case in this space is, 'cause NFTs, right? People are like, what does NFTs really mean? Title insurance, right? Anyone buy a house or refinance your mortgage? You go through this crazy process that costs seven or eight thousand dollars every single time you close on something to get title insurance so they could validate it. What if that title was actually sitting on the chain, you got an NFT that you put in your wallet and when it goes time to sell your house or to refinance, everything's there. Okay, I'm the owner of the house. I don't know, JP Morgan Chase has the actual mortgage. There's another lien, there's some taxes. >> It's like a link tree in the wallet. (laughs) >> Yeah, think about it, you got a smart contract. Boom, closing happens immediately. >> I think that's one of the most important things. I think people look at NFTs and they think, oh, this is art. And that's sort of how it started in the art and collectable space, but it's actually quickly moving towards utilities and tokenization and passes. And that's where I think the value is. >> And ownership and the token. >> Identity and ownership, especially. >> And the digital rights ownership and the economics behind it really have a lot of scale 'cause I appreciate the FinTech angle you are coming from because I can now see what's going on here with you. It's like, okay, we got to start somewhere. Let's start with the experience. The wallet's a tough nut to crack, 'cause that requires defacto participation in the industry as a defacto standard. So how are you guys doing there? Can you give an update and then how can people get, what's the project called and how do people get involved? >> Yeah, so we're still in the innovation, incubation stages. So we're not launching it yet. But what I will tell you is what a lot of our focus is, how do we make these transactional things that you do? How do we make it easy to pull all your assets together? How do we make it easy to move things from one location to the other location in ways that you're not using a weird cryptographic numeric value for your wallet, but you actually can use real nomenclature that you can renumber and it's easy to understand. Our expectation is that sometime in the fall, we'll actually be in a position to launch this. What we're going to do over the summer is we're going to start allowing people to play with it, get their feedback, and we're going to iterate. >> So sandbox in when, November? >> I think launch in the fall, sometime in the fall. >> Oh, this fall. >> But over the summer, what we're expecting is some type of friends and family type release where we can start to realize what people are doing and then fix the challenges, see if we're on the right track and make the appropriate corrections. >> So right now you guys are just together on this? >> Yep. >> The opening up friends and family or community is going to be controlled. >> It is, yeah. >> Yeah, as a group, I think one thing that's really important to highlight is that we're an innovation lab. We're working with Broadridge's innovation lab, that partnership across innovation labs has allowed us to move very, very quickly to build this. Actually, if you think about it, we were talking about this not too long ago and we're almost close to having an internal launch. So I think it's very rapid development. We follow a lot of the- >> There's buy-in across the board. >> Exactly, exactly, and we saw lot of very- >> So who's going to run this? A Dow, or your companies, is it going to be a separate company? >> So to be honest, we're not entirely sure yet. It's a new product that we're going to be creating. What we actually do with it. Our thought is within an innovation environment, there's three things you could do with something. You can make it a product within the existing infrastructure, you can create a new business unit or you can spin it off as something new. I do think this becomes a product within the organization based upon it's so aligned to what we do today, but we'll see. >> But you guys are financing it? >> Yes. >> As collective companies? >> Yeah, right. >> Got it, okay, cool. Well, let us know how we can help. If you guys want to do a remote in to theCUBE. I would love the mission you guys are on. I think this is the kind of work that every company should be doing in the new R and D. You got to jump in the deep end and swim as fast as possible. But I think you can do it. I think that is refreshing and that's smart. >> And you have to do it quick because this market, I think the one thing we would probably agree on is that it's moving faster than we could, every week there's something else that happens. >> Okay, so now you guys were at Consensus down in Austin when the winter hit and you've been in the business for a long time, you got to know the industries. You see where it's going. What was the big thing you guys learned, any scar tissue from the early data coming in from the collaboration? Was there some aha moments, was there some oh shoot moments? Oh, wow, I didn't think that was going to happen. Share some anecdotal stories from the experience. Good, bad, and if you want to be bold say ugly, too. >> Well, I think the first thing I want to say about the timing, it is the crypto winter, but I actually think now's a really great time to build something because everybody's continuing to build. Folks are focused on the future and that's what we are as well. In terms of some of the challenges, well, the Web 3 space is so new. And there's not a way to just go online and copy somebody else's work and rinse and repeat. We had to figure a lot of things on our own. We had to try different technologies, see which worked better and make sure that it was functioning the way we wanted it to function. Really, so it was not easy. >> They oversold that product out, that's good, like this team. >> But think about it, so the joke is that when winter is when real work happens. If you look at the companies that have not been affected by this it's the infrastructure companies and what it reminds me of, it's a little bit different, but 2001, we had the dot com bust. The entire industry blew up, but what came out of that? >> Everything that exists. >> Amazon, lots of companies grew up out of that environment. >> Everything that was promoted actually happened. >> Yes, but you know what didn't happen- >> Food delivery. >> But you know what's interesting that didn't happen- >> (laughs) Pet food, the soccer never happened. >> The whole Super Bowl, yes. (John laughs) In financial services we built on top of legacy. I think what Web 3 is doing, it's getting rid of that legacy infrastructure. And the banks are going to be involved. There's going to be new players and stuff. But what I'm seeing now is a doubling down of the infrastructure investment of saying okay, how do we actually make this stuff real so we can actually show the promise? >> One of the things I just shared, Rob, you'd appreciate this, is that the digital advertising market's changing because now banner ads and the old techniques are based on Web 2 infrastructure, basically DNS as we know it. And token problems are everywhere. Sites and silos are built because LinkedIn doesn't share information. And the sites want first party data. It's a hoarding exercise, so those practices are going to get decimated. So in comes token economics, that's going to get decimated. So you're already seeing the decline of media. And advertising, cookies are going away. >> I think it's going to change, it's going to be a flip, because I think right now you're not in control. Other people are in control. And I think with tokenomics and some of the other things that are going to happen, it gives back control to the individual. Think about it, right now you get advertising. Now you didn't say I wanted this advertising. Imagine the value of advertising when you say, you know what, I am interested in getting information about this particular type of product. The lead generation, the value of that advertising is significantly higher. >> Organic notifications. >> Yeah. >> Well, gentlemen, I'd love to follow up with you. I'm definitely going to ping in. Now I'm going to put CUBE coin back on the table. For our audience CUBE coin's coming. Really appreciate it, thanks for sharing your insights. Great conversation. >> Excellent, thank you for having us. >> Excellent, thank you so much. >> theCUBE's coverage here from New York City. I'm John Furrier, we'll be back with more live coverage to close out the day. Stay with us, we'll be right back. >> Excellent. (calm electronic music)

(upbeat music) >> Okay, welcome back everyone. The cube coverage of AWS re:Mars, 2022. I'm John Furrier, host of theCUBE. We got Eric Foellmer, vice president of marketing at Boston Dynamics. Famous for Spot. We all know, we've seen the videos, zillion views. Mega views all over the internet. The dog robotics, it's famous. Rolls over, bounces up and down. I mean, how many TikTok videos are out there? Probably a ton. >> Oh, Spot is- Spot is world famous (John laughs) at this point, right? So it's the dance videos, and all the application videos that we have out there. Spot is become has become world famous. >> Eric, thanks for joining us on theCUBE here at re:Mars. This show really is back. There was still a pandemic hiatus there. But it's not a part of the re's. It's re Mars, reinforcement of security, and then reinvent the flagship show for AWS. But this show is different. It brings together a lot of disciplines. But it's converging in on what we see as the next general- Industrial space is a big poster child for that. Obviously in space, it's highly industrial, highly secure. Machine learning's powering all the devices. You guys have been in this, I mean a leader, in a robotics area. What's this show about? I mean, what's really happening here. What if you had to boil the essence of the top story of what's happening here? What would it be? >> So the way that I look at this show is it really is a convergence of innovation. Like this is really just the cutting edge of the innovation that's really happening throughout robotics, but throughout technology in general. And you know, part of this cultural shift will be to adopt these types of technologies in our everyday life. And I think if you ask any technology specialist here or any innovator here or entrepreneur. They'll tell you that they want their technologies to become ubiquitous in society, right? I mean, that's really what everyone is sort of driving towards from the perspective of- >> And we, and we got some company behind it. Look at this. >> Oh, there we go. >> All right. >> There's a (Eric laughs) There's one of our Spots. >> It's got one of those back there. All right so sorry to interrupt, got a little distracted by the beautiful thing there. >> So they're literally walking around and literally engulfing the show. So when I look at the show, that's what I see. >> Let's see the picture of- >> I see the future of technology. >> Get a camera on our photo bomb here going on. Get a photo bomb action. (Eric chuckles) It's just super exciting because it really, it humanizes, it makes you- Everyone loves dogs. And, you know, I mean, people have more empathy if you kicked Spot than, you know, a human. Because there's so much empathy for just the innovation. But let's get into the innovation because let's- The IOT tech scene has been slow. Cloud computing Amazon web services, the leader hyper scaler. They dominated the back office you know, data centers, all the servers, digital transformation. Now that's coming to the edge. Where robotics is now in play. Space, material handling, devices for helping people who are sick or in healthcare. >> Eric: Mhm. >> So a whole surge of revolutionary or transitionary technologies coming. What's your take on that? >> So I think, you know, data has become the driving force behind technology innovation. And so robotics are an enabler for the tech, for the data collection that is going to drive IOT and manufacturing 4.0 and other important edge related and, you know, futuristic technology innovations, right? So the driver of all of that is data. And so robots like Spot are collectors of data. And so instead of trying to retrofit a manufacturing plant, you know, with 30, 40, 50 year old equipment in some cases. With IOT sensors and, you know, fixed sensors throughout the network. We're bringing the sensors to the equipment in the form of an agile mobile robot that brings that technology forward and is able to assess. >> So explain that a little slower for me. So the one method would be retrofitting all the devices. Or the hardware currently installed. >> Eric: Sure. >> Versus almost like having a mobile unit next to it, kind of thing. Or- >> Right. So, I mean, if you're looking at antiquated equipment which is what most, you know, manufacturing plants are running off of. It's not really practical or feasible to update them with fixed sensors. So sensors that specifically take measurements from that machine. So, we enable Spot with a variety of sensors from audio sensors to listen for audio anomalies. Thermal detectors, to look for thermal hotspots in equipment. Or visual detectors, where it's reading analog gauges, that sort of thing. So by doing that, we are bringing the sensors to the machines. >> Yeah. >> And to be able to walk anywhere where a human can walk throughout a manufacturing plant. To inspect the equipment, take that reading. And then most importantly upload that to the cloud, to the users >> It's a service dog. >> you can apply some- >> It's a service dog. >> It really is. And it serves data for the understanding of how that equipment is operated. >> This is big agility for the customer. Get that data, agile. Talk about the cost impact of that, just alone. What the alternative would be versus say, deploying that scenario. Because I'd imagine the time and cost would be huge. >> Well, if you think, you know, about how much manufacturing facilities put into the predictive maintenance and being able to forecast when their equipment needs maintenance. But also when pieces of equipment are going to fail. Unexpected downtime is one of the biggest money drains of any manufacturing facility. So the ability to be able to forecast and get some insight into when that equipment is starting to perform less than optimally and start to degrade. The ability to forecast that in advance is massive. >> Well I think you just win on just in retrofit cost alone, nevermind the downside scenarios of manufacturing problems. All right, let's zoom out. You guys have been pioneers for a long time. What's changed in your mind now versus just a few years ago. I mean, look at even 5, 10 years ago. The evolution, cost and capability. What's changed the most? >> Yeah, I think the accessibility of robots has really changed. And we're just on the beginning stages of that evolution. We really are. We're at the precipice right now of robots becoming much more ubiquitous in people's lives. And that's really our foundation as a company. Is we really want to bring robots to mankind for the good of humanity, right? So if you think about, you know, taking humans out of harm's way. Or, you know, putting robots in situations where, you know, where it's assessing damage for a building, for example, right. You're taking people out of the, out of that harm's way and really standardizing what you're able to do with technology. So we see it as really being on the very entry point of having not only robotics, but technology in general to become much more prevalent in people's lives. >> Yeah. >> I mean, what, you know. 30 years ago, did you ever think that you would have the power of a supercomputer in your pocket to, you know. Which also happens to allow you to talk to people but it is so much more, right? So the power of a cell phone has changed our lives forever. >> A computer that happens to be a phone. You know, it's like, come on. >> Right. >> What's going on with that. >> That's almost secondary at this point. (John laughing) It really is. So, I mean, when you think about that transition from you know, I think we're at the cusp of that right now. We're at the beginning stages of it. And it's really, it's an exciting time to be part of this. An entire industry. >> Before I get your views on integration and scale. Because that's the next level. We're seeing a lot of action and growth. Talk about the use case. You've mentioned a few of them, take people out of harms way. What have you guys seen as use cases within Boston Dynamics customer base and or your partner network around use cases. That either you knew would happen, or ones that might have surprised you? >> Yeah. One of the biggest use cases for us right now is what we're demonstrating here at re:MARS. Which is the ability to walk through a manufacturing plant and collect data off various pieces of equipment. Whether that's pump or a gauge or seeing whether a valve is open or closed. These are all simple mundane tasks that people are, that manufacturers are having difficulty finding people to be able to perform. So the ability for a robot to go over and do that and standardize that process is really valuable. As companies are trying to collect that data in a consistent way. So that's one of the most prevalent use cases that we're seeing right now. And certainly also in cases where, you know, Spot is going into buildings that have been structurally damaged. Or, you know, assessing situations where we don't want people to be in harm's way. >> John: Yeah. >> You know- >> Bomb scares, or any kind of situation with police or, you know, threatening or danger situations. >> Sure. And fire departments as well. I mean, fire departments are becoming a huge, you know, a huge user of the robots themselves. Fire department in New York recently just adopted some of our robots as well. For that purpose, for search and rescue applications. >> Yeah. Go in, go see what's in there. See what's around the corner. It gives a very tactical edge capability for say the firefighter or law enforcement. I see that- I see the military applications must be really insane. >> Sure. From a search and rescue perspective. Absolutely. I mean, Spot helps you put eyes on situations that will allow a human to be operating at a safe distance. So it's really a great value for protecting human life and making sure that people stay out of harm's way. >> Well Eric, I really appreciate you coming on theCUBE and sharing your insight. One other question I'd like to ask if you don't mind is, you know. The one of the things I see next to your booth is the university piece. And then you see the Amazon, you know, material management. I don't know what to call it, but it's pretty impressive. And then I saw some of the demos on the keynotes. Looking at the scale of synthetic data. Just it's mind blowing what's going on in manufacturing. Amazon is pretty state of the art. I'm sure there are a customer of yours already. But they look complex these manufacturing sites. I mean, it looks like a maze. So how do you... I mean, I could see the consequences of something breaking, to be catastrophic. Because it's almost like, it's so integrated. Is this where you guys see success and how do these manufacturers deal with this? What's the... Is it like one big OS? >> Yeah, so the robots, because the robots are able to act independently. They can traverse difficult terrain and collect data on their own. And then, you know, what happens to that data afterwards is really up to the manufacturing. It can be delivered from the cloud and you can, it can be delivered via the edge. You know, edge devices and really that's where some of the exciting work is being done right now. Because that's where data can scale. And that's where robot deployments can scale as well, right? So you've got instead of a single robot. Now you have an operator deploying multiple robots. Monitoring, controlling, and assessing the data from multiple robots throughout a facility. And it really helps to scale that investment. >> All right, final question for you. This is personal question. Okay, I know- Saw your booth over there. And you have a lot of fan base. Spot's got a huge fan base. What are some of the crazy things that these nerd fans do? I mean, everyone get selfies with the Spot. They want to- I jump over the fence. I see, "Don't touch the dog." signs everywhere. The fan base is off the charts. What are the crazy things that people do to get either access to it. There's probably, been probably some theft, probably. Attempts, or selfies. Share some funny stories. >> I'll say this. My team is responsible for fielding a lot of the inbound inquiries that we get. Much of which comes from the entertainment industry. And as you've seen Spot has been featured in some really prominent, you know, entertainment pieces. You know, we were in that Super Bowl ad with Sam Adams. We were on Jimmy Kimmel, you know, during the Super Bowl time period. So the amount of entertainment... >> Value >> Pitches. Or the amount of entertainment value is immeasurable. But the number of pitches that we turn down is staggering. And when you can think about how most companies would probably pull out all the stops to take, you know. To be able to execute half the things that we're just, from a time perspective, from a resource perspective >> Okay, so Spots an A- not always able to do. >> So Spots an A-lister, I get that. Is there a B-lister now? I mean, that sounds like there's a market developing for Spot two. Is there a Spot two? The B player coming in? Understudy? >> So, I mean, Spot is always evolving. I think, you know, the physical- the physical statue that you see of Spot right now, Is where we're going to be in terms of the hardware, but we continue to move the robot forward. It becomes more and more advanced and more and more capable to do more and more things for people. So. >> All right. Well, we'll roll some B roll on this, on theCUBE. Thanks for coming on theCUBE. Really appreciate it. Boston Dynamics here in theCUBE, famous for Spot. And then here, the show packed here in re:MARS featuring, you know, robotics. It's a big feature hall. It's a set piece here in the show floor. And of course theCUBE's covering it. Thanks for watching. More coverage. I'm John Furrier, your host. After the short break. (upbeat music)

>>Hey everyone. Welcome back to the Cube's live coverage of snowflake summit 22. We are live at Caesar's forum in Vegas, Lisa Martin, with Dave ante, excited to welcome a VIP fresh from the keynote stage, the SAP, a product at snowflake Christian C Claman Christian. Thank you so much for joining us on the queue today. >>Thank you for having me very exciting. >>And thanks for bringing your energy, loved your keynote. I thought, wow. He is really excited about all of the announcements jam packed. We, and we didn't even get to see the entire keynote talk to us about, and, and for the audience, some of the things going on the product revenue in Q1 fiscal 23, 390 4 million, 85% growth, lot of momentum at snowflake. No doubt. >>So I think that the, the punch line is our innovation is if anything, gaining speed. Uh, we were over the moon excited to share many of these projects with customers and partners, cuz some of these efforts have been going on for multiple years. So, um, lots of interesting announcements across the board from making the existing workloads faster, but also we announced some new workloads getting into cyber security, getting into more transactional workloads with uni store. Um, so we're very excited. >>Well first time being back, this is the fourth summit, but the first time being back since 2019 a tremendous amount has changed for snowflake in that time, the IPO, the massive growth in customers, the massive growth in growth in customers with over 1 million in ARR, you talked about one of the things that clearly did not slow down during the last two years is innovation at snowflake. >>Yeah, that, that, that for, for sure, like, um, even though we, we had a, um, highly in the office culture, we did not miss a beat the moment that we said, Hey, let's all start doing zoom based calls. We, we did. So, uh, I dunno if you saw the, the first five minute minutes of my section in the keynote. Yeah. We, we originally talked about summarizing it and no we're gonna spend 40 minutes here. So we did a one minute clip and whatever gets flashed there. So no, the, the pace of innovation, I think it's second to none and maybe I'll highlight the something that we're very proud of. Snowflake is a single product, a single engine. So if we're making a query performance enhancement, it will help the cyber security workload and the low high concurrency, low latency workload. And eventually we're starting to see some of those enhancements all the way to uni store. So, so we get a lot of leverage out of our investments. What's >>Your favorite announcement? >>That's like picking children. Of course. Um, I think the native applications is the one that looks like, eh, I don't know about it on the surface, but it has the biggest potential to change everything like create an entire ecosystem of solutions for within a company or across companies that I don't know that we know what's possible. >>Well, I I've been saying for a while now that you have this application development stack over here, the database is kind of here and then you have the analytics and data pipeline stack. Those are those separate worlds. We, we talk about bringing data and AI and machine intelligence into applications. The only way that that is actually gonna move forward is if you bring those worlds together is a good example of that happening, um, within a proprietary framework, uh, it's probably gonna happen open source organically and you can sort of roll your own. Is that by design or is it just sort of happening? Well, >>The, the, they bring it all into a single platform obviously by design, cuz there is so much friction today on making all the pieces work together, which database do I use for transactions and how do I move data to my analytics system? And how do I keep system, uh, reference data in sync between the two? So, so it's complicated and our mission was remove all of this friction from, from, from the equation. Uh, the open source versus not the way we think about it is opensourcing open formats or even open APIs it's does it help us deliver the solution that we want for our customer? Does it help us solve their problems? In certain instances, it has done in the past and we've opened source frameworks in, in others. We mentioned at the keynote today, the, the integration of iceberg tables, that's an strong embrace of open technologies, but that does not mean that we want to continue to innovate in our formats. A lot of what you see in the open formats is because snowflake proprietary, uh, innovation. So, uh, we have a very clear philosophy around this. Well >>Like any cloud player, you have to bring open source tools in and make them available for your application developers. But take us through an example of, of uni store and specifically how you're embracing transaction data. What's a customer gonna actually do take us paint a picture >>For us. I I'm gonna give you a very simple use case, but I love it because it, it shows the power of the scenario today. When people are ingesting data into snowflake, you wanna do some book capping associating with those loads. So imagine I have, I dunno, a million files. How many of those files have I loaded? Imagine that one of those loads fail, how do you keep in sync? Whether the data made or not with your bookkeeping today, if you had to do it with a separate transactional database for the bookkeeping and the loading in, in snowflake, it is a lot of complexity for you to know what's where with uni store, you can just say, I'm gonna do the bookkeeping with these new table. It's called hybrid tables. The lows are transactional and all of this is a single transaction. So for, for anyone that has dealt with inconsistencies in database world, this is like a godsend. >>Okay. So my interpretation of that's all about what happens when something goes wrong >><laugh> which is a lot of the, everything about transactions. Yeah. It's what happens when goes wrong and goes wrong. Doesn't mean failures like goes wrong is when you're debiting money from your bank account, not having enough balance that counts as go wrong and the transactions should be aborted. So yes, transactions are all about conflict management and we're simplifying that in a broader set of use cases >>And, and in recovery. So you're, you're in fast recovery. So you're, you're the, the business impact of what you're doing is to sort of simplify that process. Is that the easy way to >>Boil down? Pretty much everything we do is about simplification. Like we, we we've seen organizations are large focusing on wrestling infrastructure as opposed to what are the business problems for a Frank who reference something that, that, that I believe very much in like, which is mission alignment. We are working on helping our customers achieve what they're set out to achieve, not giving them more technology for them to their goal to become, to wrestle the infrastructure. So it's all about ease of use all about simplification removal, friction, >>Just so if I may, so mission alignment, you know, you always hear about technology companies that, you know, provide infrastructure or a service, and then the customer takes that and, and, you know, monetizes it pretty much on their own. What the big change that I'm discerning from these announcements is you're talking about directly monetizing and participating in that monetization as a technology partner, but also the marketplace as well. >>Correct. And I would say in some ways this is not new. This has been happening for the last couple of years with data. Like if you just saw our industry data cloud launches, the financial services cloud, it comes with data providers that help you achieve specific outcomes on a specific industry. Mm-hmm <affirmative> what we're doing now is saying, it's not just data. Maybe it's some business logic, maybe it's some machine learning, maybe it's some user interface. So I think we're just turning the knob on collaboration and it's a continuation of what we've been doing. >>Talk a little bit more about mission alignment. When I heard Frank, Sweetman talk about that this morning. I always love that when I hear cultural alignment with organizations, but as you just said, it's really about enabling our customers to deliver outcomes to their customers as the SVP product. Can you, uh, talk a little bit about how the customers are influencing the product roadmap, the innovations and the speed with which things are coming out at snowflake? >>Yeah, so great question. We have several organizations at snowflake that are organized by vertical by industry. So the, the major sales organization is part of ed that the marketplace business development team is organized like that. We have a separate team that provides top leadership by industry vertical, um, globally. And then even within our solution engineering, there is verticals. So we have a longitudinal view of all the different functions and what do we need to do to achieve a set of use cases in a vertical? And all of those functions are in con constant communication with us on this is where the product is, um, seeing an opportunity or could do better for that vertical. So yeah, I can tell you, and obviously we love when, when there's alignment between those, but that's not always the case. You heard us talk about clean rooms now for some time, clean rooms are applicable to almost any industry, but it's red hot for media and advertising, third party, cookie deprecation, and all of that. So we, we get to, to see that lens, that our innovation is informed by industries. >>So we, we're seeing, obviously the evolution of snowflake we talked about in the keynotes today, you guys talked about 2019 and, you know, pre 2019, even it was to me anyway, your first phase was, Hey, we got a simpler EDW. You know, we're gonna pick that off and put it in the cloud and make it elastic and separate compute from storage, all that kind of cool stuff. And then during the pandemic, it was really IPO, but also the data cloud concept, you sort of laid that vision out. And now you're talking about application development, monetization, what I call the super cloud that layer. Right. Okay. So I, are >>You determin it best? >>Yes. You talk about this, uh, these announcements, how they fit into that larger vision where you're >>Going. Great question. The, the, the notion of the data cloud has not changed one bit. The data cloud thesis is that we want to provide amazing technology for our customers, but also facilitate collaboration and content exchange VR platform. And all that we did today is expand what that content can be. It's not just data or little helper function, it's entire applications, entire experiences. That is the, the summing up the, the, the impact of our announcements today. That, that that's the end of it. So it's still about the data cloud. >>So what is impressive to me is that you guys wouldn't couldn't have a company without the hyperscalers, right? It would be a lot different, right? So you built on top of that and, and now you have your customers building their own super clouds. I call it, I get a lot of grief for that term it's but the, the, the big area of criticism I get is, ah, that's just SAS. And I'm like, no, it's not, no, uh, I, I is everybody public who's announcing stuff. I, I better be careful, but you have customers that are actually building services, taking their data, their tooling, their proprietary information, and putting it on the snowflake data cloud and building their own clouds. Yeah. That's different. Then that's not multi-cloud, which is I can run on a different cloud and it's not, is it sass? If it feels like it's something new from a, from your perspective, is, is it different? >>I, I, I love that you called out that running on all clouds is not what we do right. This days, everyone is multi-cloud, you, you run on a VM or a container, and I multi-cloud check, no, we have a single platform that does multi-region multi-cloud but also cross region cross cloud globally, that that is the essence of what we're doing. So it, it is enabling new capabilities. >>I've I've also said, you know, in many respects, the super cloud hides, the underlying complexity, you think about things like exploiting graviton and a developer. Doesn't need to worry about that. You're gonna worry about that. Uh, but at the same time, they, the, as you get into the develop, the world of application development, some of your developers may want access to some of those cloud primitives. Are you providing both? What's the strategy there? >>Generally not in some areas, we, we, we, I would say bleed through some details that are material, but think of the reality of someone that wants to build a solution, it's really difficult to build an awesome solution in one cloud, Hey, you need to do this. What's the latest instance, and is gravity tank gonna help you or not all of that. Now do it for another one and then do it for another one. And I can tell you it's really difficult because we go through that exercise. Snowflake pouring to a new cloud is somewhere between one and two years of effort and not, not a small number of people because you're looking at security models and storage models. So that's the value that we give to anyone know, wants to build a solution and target customers in all three clouds. I >>Mean, people are still gonna do it themselves, but they're gonna spend a lot more and they're gonna lose their focus on what their real business is. And there'll still be that. I think that D DIY market is enormous for you guys, huge >>Opportunity. And there's also the question on what is the cost of that analysis and that effort. And can we amortize it on behalf of all of our customers? Like we talk about graviton, we have not talked about the many things that we evaluated that were not better price performance for our customers. That evaluation happened. That value was delivered by not moving there. >>And when you do it yourself, the curve looks like, okay, Hey, we can do it ourselves. We can make it pretty Inex. And then, and then the costs are gonna decline, but what really happens, like developing a mobile app, you gotta maintain it. And then if you don't have the scale and you don't have the engineering resources, you're just, the, the costs are gonna continue to go through the roof. I, >>I, I love that you compare it to mobile apps. Like, yeah. I still don't understand why every company that wants to build an app has to build two <laugh>. They got it. Yeah. There is no super cloud for the phone. >>Right. >>That's sort of our, our, our broad vision. Not yet. Not, not the phone, but the super cloud. Yeah, >>Yeah, absolutely. >>You >>Get it. This is, and you look out the ecosystem here. I mean, what a difference that you've been pointing this out, Lisa from, from, from 2019, a lot of buzz, it's all about innovation. You see this at, at thing at the reinvent is like the super bowl obviously. And you see that and it used to be, oh, how is, how is AWS gonna compete with snowflake and separate compute with stores? That's I, I feel like in a large way, that's all gone. It's like, okay, how do we like rise the whole, the whole industry? And that's really where the innovation is. >>We have an amazing partnership with AWS and they benefit from what we do. Yes. There's some competitive elements, but we're changing so many things creating so much opportunity that we're more aligned than not. Yeah. >>Last question for you is continuing on the part AWS partnership front, how does a partner like AWS and other partners, how do they fit into the data cloud narrative that you're talking about to customers? >>I would say that other than the one or two teams that are directly competitive, the rest of their teams are part of in data cloud. Like, uh, our relationship with SageMaker as an example is amazing. And a lot of what we wanna deliver to our customers is choice around machine learning, frameworks and tools. And they're part of the data cloud. We're working with them on how do you push down computation to avoid getting data out, to reinforce governance? So I, I would say that and, and go look at it that they have a hundred and something teams. So if two teams out of hundreds, uh, are, are the competitive element, we are largely aligned. And they're part of data cloud. >>Yeah. I mean, you, your customers consume a lot of compute and storage for, >>For a lot. Yes. >>AWS and, and also, you know, increasingly Azure and, and Google. I mean, it's, um, pretty amazing times, uh, Christian, I want to ask you about, um, couple of terms. Uh, one term that came up a couple of times today in Frank's keynote, he said, I'm not gonna call it a data mesh out kind of out of respect for the purists, which is cool, I thought, but then you had a customer stand up Geico and said, we're building a data. Mesh JPMC is, is speaking at this event, building a data mesh. And I look at things through that prism and say, okay, data mesh is about, you know, decentralization. Some, I I'd be curious as to whether or not you tick that box, but it's about building data products. It's about, uh, uh, self-service infrastructure. And it's about automated computational governance. You are actually tipping a lot of the ticking, a lot of those boxes and, and Mike, I guess the big one is, are, are you building a bigger walled garden? But I, I think you would say, no, it's a, it's a giant distributed network, but, but what, what, what do you say to that? We, >>The latter, the latter, yeah, giant distributed, open cloud and open in the sense that we want anyone to plug in and, and someone can say, well, but I cannot read your file formats. Sure. You can with what we announced today, but it's not about that. Our APIs are open. We have rest APIs. We have JDC ODC, probably most popular interfaces ever. Um, and we want everyone to be part of it. If anything, there's lots of areas that we would not want to go into ourselves cause we want partners and customers to go in there. So, no, we we're looking at a very broad ecosystem. We win based on the value created on top of the platform. Yeah. >>And I makes total sense to me. I mean, I think the imaculate conception of data mesh might be a purely open source version of snowflake. I just don't see that happening anytime soon. And so I, I think you're gonna, you are, I wrote about this creating a defacto standard and >>Exactly, and, and I don't like to get into the terminology that, oh, is the data measure? Not, no go look at the concepts like people used to say, but snowflake is not a data lake. Okay. What is the data lake? It's just a pattern. And if you follow the pattern and you can do it, that's fine. Then there's the, uh, emotional quasi-religious overlay open versus not, I think that's a choice. Not necessarily the concept, >>It's a moving target. I mean, I Unix used to be open. You know, that was the, I agree. Now, the reason why I do think the data mesh conversation is important is because Shaak Dani, when she defined data mesh, she pointed out in my view. Anyway, the problems of getting value outta data is that you go through these hyper specialized teams and they're they're blockers in the organization. And I think you in many respects are attacking that. And it's an organizational issue. >>The, the insights in the pattern are a hundred percent value and aligned with what we do, which is they, you want some amount of centralization, some amount of decentralization living in harmony. Uh, yeah. I have no problem with, with terminology. >>And the governance piece is, is, is massive. Especially it's the, the picture's becoming much more clear. Um, whatever's in the data cloud is a first class citizen, right? And you give all these wonderful benefits. I mean, the interesting thing, what you're doing with Dell and, and pure, I, I asked you that on the analyst call, it's a start. You know, I, I, I mean, >>And I said it briefly in, in, in the keynote this morning, we're publishing a set of standard conformance tests. So any storage system can plug into data cloud. >>Yeah. >>And by the way, it's based on S three APIs, another defect of standard. Like it's not a standard, but everyone is emulating that. And we're plugging >>Into that. Yeah. Nobody's complaining against, against S3 API >>About it is a, oh, it's not a Apache project. We shouldn't, who cares. Everyone has standard horizon net. That's it? >>Well, we've seen the mistakes of the past with this. I mean, look at, look at Hadoop, right? There was this huge battle between, you know, Cloudera and Horton works and map, oh, map bar is proprietary. Oh, Horton works is purely open. Cloudera is open. They're, they're all gone now. I mean, not gone, but they're just, they didn't have it. Right. You know, they, they got unfocused. I go back to Frank's book. They were trying to do too much to, to too many of those, the, the, the zoo animals and you can't fund it all >>To be effective for us. It's very important. I can give you, I don't know, 20 announcements or 50 announcements from the conference, but they're all going a singular goal. And it's, this do not trade off governance of data with the ability to get value out of data. That's everything we do. >>And that's critical for every company in every industry these days that has to be a data company to be, to survive, to be competitive, to be able to extract value from data. If data's currency, how do I leverage a tool like snowflake to be able to extract insights from it that I can act on and create value for my organization, Geico was on stage this morning. Everyone knows Geico and their beloved, um, gecko. Yeah. Is there another customer that you had that you think really articulates the value of the data cloud and to Dave's point how snowflake is becoming that defacto standard data platform? >>Well, we had Goldman Goldman Sachs on stage as well today. And he, he, he, he mentioned it that people think of Goldman as investment banking and all of that, but no, at the heart of what they do, there's a lot of data. And how do they make better decisions? So I think we could run through 20 different examples cuz your premise is the most important. Everything is a data problem. If it is not a data problem, you're not collecting the right data and getting the sense that you could be getting. >>These guys are public, right. >>Adobe. >>Yeah. Right. Adobe's doing it. Yeah. I dunno if the other one is, I don't wanna say, I'll have to ask you off camera, but the other financial firm building a super cloud, right. <laugh> yeah. I call it super cloud. So let be taking advantage of uni store. Yeah. To bring different data types in and monetize it. That's to me, that's the future of data. That's that's been the holy grail, right. >>We, we tried to emphasize that this is, is not a, Hey six, six months ago. We decided to do this. No, this is years in the making mm-hmm <affirmative>, which is why we were so excited to finally share it. Cuz you don't wanna say three years from now, we're gonna have something. No, it was the, now we have it. We have it in preview and it's working at it is as close to the holy grail as it gets. >>Yeah. I mean, look, pressure's on Kristin. Let's face it. Enterprise data warehouse failed to live up to the promises. Uh, certainly the data lakes fail to deliver master data management, all that's a Hadoop, all that stuff. There was a lot of hype around that. And a lot of us got really excited. Me included and then customers spent and they were underwhelmed. Yeah. So you know, you, you, you gotta deliver, you say it, you gotta do it. >>And correct. And then the, the other thing is I would say all of those waves of technology, there was no real better choice. >>Right. They added value. I wouldn't >>Debate that. You have to give it a shot. Like when you've bought 20 different appliances and you have all these silos and someone sells you, Hey, Hadoop will unify it. It sounds good. Just didn't do it. >>Yeah. And no debate that it brought some value for those that were agree. Sophisticated enough to deploy it. And I agree. Yeah. But, but this is a whole different ball game. >>Oh, everything we want to do is democratize and simplify mm-hmm <affirmative> yeah. We could go build something that I don't know. 10 companies in the world could use. That's not the sweet spot. Like how do we advance like the, the state of value generation in the world? That's the scale that we're talking about is go make it easy, accessible for everyone. >>Governed >>Governance and imperative this these days it's law. Yes. So >>Yeah, you have to, but it's not, it's, that's a, that's a ch really difficult challenge to create what I'll call automated or computational governance in a federated manner. That's not trivial. >>And that's our thesis. Everything we're doing is snow park, big announcement today. Python. I I've had people tell me well, but Python should be easy to host the Python run time. Like you can do it. Like I think in a week it took us years. Why? Oh, secure. Oh, details a lot. And <inaudible> mentioned it like securing. That is no easy, uh, feed >>Christian. Thank you so much for joining Dave and me bringing your energy from the keynote stage to the cube, set, breaking down some of the major announcements that have come out today. There's no doubt that the flywheel of innovation at snowflake is alive well and moving quickly, >>Innovation is, uh, at an all time hat snowflake. Thank you for having me. All >>Right. Our pleasure Christian from our guest, Dave ante, Lisa Martin here live in Las Vegas at Caesar's forum covering snowflake summit 22. We right back with our next guest.