>>from Las Vegas. It's the Q covering a ws re invent 2019. Brought to you by Amazon Web service is and in along with its ecosystem partners. >>Hey, welcome back to the Cubes. Live coverage in Las Vegas for eight of his re invent 2019 R Seventh year out of the eight years I've had it, we've seen the rise and dominance of Amazon continued to thunder away at the competition span. Their lead printing money stew minimum in my coz right here next to me. I'm John, very extracting from noise. Our next guest, steam A lady who's the presidency of Aviatrix Cube alone was on Tuesdays part of our editorial segment. Who his company or one of his employees going to term. You take the tea at a cloud native cloud naive, which has been going viral. Welcome back to the Cube. Thank you. All right, so let's get into the aviatrix value. Probably wanna get digging more, but first explain what you guys do and what market you're targeting. >>So we do. I would say cloud native, not naive. Cloud native networking that embraces and extends the basic constructs the native constructs of the public clouds, not just a W s, but all the public clouds and builds a multi cloud architecture, networking in security architecture for enterprise customers that that delivers the simplicity and the automation that people want from cloud. That's why they want a cloud native but yet brings along the functionality, the performance and the visibility and control that they had on on Prem. So that kind of taste great less filling, not one of the other. Both. I want the simplicity and automation of anything that expect from the cloud. But I need that enterprise functionality that control the security, the performance that he used to have on Prem because I wasn't doing that for my own health. I need to bring that along. That's what we do. >>What main problem you solving for customers? What's the big pain point? So what are you enabling? >>The big pain point is the center of gravity, as Andy Joshi's talked is moving from on Prem into the cloud. So it's so it's no longer. I mean, data centers aren't going away. They're going to still be there. But the investment architecture is in the cloud and you're going to see the clouds start moving out with their their announcements. You see everything that outposts and on everything else they're doing is taking the architecture moving out. The problem we solve is A W S says to every enterprise customer. We will give you anything and everything you ever need from networking and security. You don't need anybody else. And so so what ends up happening is as enterprises. So for an SNB, that's great. If you've got a few, VP sees life is good. Use all the native stuff from AWS. What happens, though, is your Qualcomm or your USA or your new name it big 50 year old 100 year old enterprise. You have complex networking and security demands. You go to the cloud. There's so many limitations of what the native constructs of all the clouds could do. You start realizing, okay, I need Maur. And so we're very complimentary to AWS. We sit on top of that. We leverage those basic constructs. We program those contracts and then we extend that functionality to deliver the functionality that they need. >>That's awesome, stupid when I want to dig into that, but I want to first get to the hard news you guys have news here at reinvent? What's the big news story that you guys were putting out there? Two >>announcements and actually goes perfectly with the way the world's going and also with the embrace and extend of a W s. So the first is we introduced what we call aviatrix Cloud win. So they announced Transit Gateway Network manager with accelerated VPN leveraging global accelerator as just a way to bring in basically embraced branch offices into the cloud. So if you think of SD win in that market, if your if your center of gravity is on Prem in a data center on pls is horrible, you needed a better way to do branch office connectivity. SC wait is fantastic, and it's a great, optimal way to get back to that data center. Well, as the center of gravity moves into the cloud, their data centers in the cloud. I just need to get better optimal access performance in late and see into a W s because that's the center of gravity. So AWS with the global accelerator allows youto get on one of their 250 pops around the world as quickly as possible. So if you're in Singapore, get on that pop VPN in, and then you go across the global backbone of AWS all the way out to that BBC in Virginia. It's beautiful, because guess what? That is the most optimal way to get there instead of vpc to vpc across the Internet right on the AWS backbone. Well, Steve, it's fascinating stuff because if you look at the traditional network, it was I knew the knobs and how I need to get everything to work. But the big challenge for most network people is most of the network that they're responsible for. They can't touch it. That's right. They can adjust it. So are we recreating some of the environment? Or how? Because clubs supposed to be simple? Well, that's easy, but it needs to meet the enterprise requirements. Help that network administrator there there, sometimes going away to the cloud administrator. You still networkings tough and therefore, how do we make that? That's part of what we do is that's the other thing that we solve is people think they go to the cloud and they think, Oh, go build. I don't want to build anything. I want to consume. It's still difficult. We come in and abstract away a lot of the details for them such that we deliver that service on the cloud win. The other thing that we do again, back to embracing and extending. What do you What? What router is out in that branch office 87% of the time. Sisko, right? I mean, course it is. So the S D wearing guys will go in and say, We'll rip that box out and put in another little box like a 20,000 branches. I'm not ripping out anything, right? That's very painful. So with our cloud win, we can orchestrate and reconfigure the Sisko. All of our engineers came from Cisco. So any Cisco IOS router out there, we can orchestrate and reconfigure to set up the VPN automatically through our orchestrator so that when you don't rip and replace out that Roger that's existing there. So now AWS loves it because that's the last piece of friction. They want no friction, and it's always in that physical to cloud transition There. All the complexity is, and by enabling their network manager and an accelerated VPN and global accelerated to use the existing Cisco. Roger, that's out there. No one else does that Cisco doesn't do that. We're the only ones. So when you embrace a native construct, what's the native construct in the branch office? B, G P. And Cisco IOS. We embrace it and then and then enhance it and make it better. >>Are you only on Cisco about June 1st? >>Wait. Now it's just go. Francisco's 87% >>of every bridge your software abstraction software across. And you you basically change the game with SD. Win a little bit, you modernize >>It s t win is great for the old way of doing networking. When you look for the next five years, you're still gonna need SD went. It's a bubble market. It's like when optimization us riverbed. If when optimization is a great market, it was for a while, just like SC win. But that's kind of the old way. But Maur Maura, what you're gonna find is what Where my branches need to connect to is in the cloud. And if you do that, you don't need esti win. You just need better connectivity. Tate of us provide. >>I gotta ask you the question about the cloud naive because there's a lot of old school I t people who still think there's food in the data center. Still, action there on box makers are all in the vendor side supplying boxes. They're still want to supply boxes, right? So as those old guys and gals do their thing, they're stuck in their ways, right? That's friction. Total gas. He talks about the transformation as new leadership. What has to change in that old world? What should those C I ose and CEOs tell their their staff? And what should the staff do themselves? >>I actually think the customers air there. I think the vendors are that the vendors are the one that aren't They're the ones who are cloud naive. They actually don't even know what they don't know. The customers are the ones they say, Oh, no, And this is the whole shift that Josh was talking about business transformation. They understand. And they are bringing along all their people and they have some people that are probably further along and experts in AWS. But they absolutely number one requirement for them is we've got to bring along the people they don't want to leave them behind and say, You get to work on the old data center and these guys are gonna work in Cloud. They're bringing them all in. >>Talk about your customers who's buying from you? What's it look like? What kind of scope do you have? A customer base? >>It's funny. It's It's It's all the old networking guys. It is not. It's not developers signing that. It's it's It's old. I t. Now they don't want to do it the old way. They want to do it the new cloud way. But these guys understand BDP. They understand networking, and they're in charge now. And so it's like because it's gotten so serious for enterprises. This the networking team, the security team it is. It is I t that is running this, so that's a big company. Small companies, we get him. All right, Steve, I want to make sure I understand this because when I hear cod Native, I really think a lot about that application. Mind shift. Yeah, Micro Service is our protector, and that's on it for sure. Networking. Unfortunately, for the most part, it's nothing. Bites are going through the pipes, and I haven't really thought about that. So you know, it's not just because it's cloud but cloud native and therefore things like your container and doctors Dr. Rise thing. This is what this world is built for that your solution is solving for yes. So I'll give you a perfect example. So So we help. We actually helped a dhobi us come out with T g. W. Last year, Cheri, I found, was on stage with Day Brown and the networking keynote launching T g w whenever Great. Of course, before that, you were just doing bpc the vpc peering It was a horrible mess. So you need a transit architecture. So they came out with T g w Fantastic. So we embrace and extend T g w. So the problem is, they come out with T g. W. But guess what a Doris doesn't do. Don't propagate routes to spoke VP sees. Okay, so how did the routes get propagated? Well, you have a person. They need manual. If there's an update on the on from you manually update the routes. Well, that might work. If you've got three. VP sees again. You're an SNB. But I'm an enterprise. I got 3000 vpc That is not gonna work. So cloud native we are We are not just sitting on top of AWS. We are in the matrix we are in. We understand natively. So our central control, it will actually like we're not. There's no b g p running at that layer, but our central control it will push routes an update, routing tables everywhere. It needs to be learned. The routes from Amman Prem push it where it needs to be, and then everything automatically works. Yeah, it reminds me, you know, we had more than a decade ago. We went from all the north south traffic to the East west, propagated by VM. Yes, is an order of magnitude 8 12 and know that this cloud environment people can't do it. There's not enough people. I don't have enough man hours because the machine learning So here's devices need to be here. Another thing that's happened in guys is there is there is 100% of people in there in the universe that that that no cloud, that number's growing, but there's a fixed set. Everybody's going after all those people. You've got the big clock. They're all hiring like crazy. The vendors are probably hiring. You've got customers they're stealing from each other. It's very difficult to keep a staff. And so they look and they say I probably could figure this out, but there's no way I'm going to be able to operationalize it. There's just zero chance I could do that And there's just so much change. And honestly, they say it's a full time job just keeping up with what Amazon is announcing their get implementing. And so that's where they look and they come to Austin. They say there's zero chance that I can deploy networking architecturally without aviatrix >>on the network and guys because you and I always say the neighboring guys have the keys to the kingdom. They always have. I mean, people have tried to move the center of power away from the networking guys, But now, as the cloud gets the center of gravity, some of the power networking guys got to step up their game. But they don't want to rip and replace anything is as you went out earlier. It's complex, even pull one or two out. So the concern that I might have put the question to you is Steve. Great, great energy. But I'm really nervous that these routes are not gonna be. There's gonna be some coherency issues around updating routes because that's my number one concern. How do you guys solve that? >>Well, the one thing I've always seen, who's the worst? When? When? When most things happen, Who's the culprit? Human, right? It's always a human. Does something wrong. And so I would much rather trust some sort of automated software because at least if you program it correctly, it's going to do the right thing so way have not had. I mean, it's so >>you know what I'm sure is no issue there. >>Yeah, no, there's no issue, I mean, and what we do see, sometimes our people say, because there's a lot of people that are that are very smart, they get into the cloud and they are do it yourselfers and they love to go build, and they love the complexity, and they want all that they feel they feel like this job security and what we sometimes have to do is say you. But think about day to think about handing off the operations. You might get hit by a bus, and then your company is screwed, and you gotta almost get them enlightened to realize that they should be working on higher level things other than low level things. I'd say that's something that we kind of educate. People, >>houses Amazon there, one cloud of many 34 maybe one or two jazz. He said to me. You know, mostly primaries will be picked, probably Amazon. But in some cases, as you will be a primary less than that eight arrests. So multi cloud is the word that it was Something about an Amazon sees me loosening up a bit what it is, so they recognize it. What is multi cloud? I mean, what is really going on? I think >>I think if you're a small company, absolutely pick one cloud like for sure, right, like that doesn't make sense to go multiple clouds in your small medium business. If you're not that, if your needs are not that complex, pick one cloud right? And if it's a Toby asses the later stay with them. If it just happens to be, well, I got a bunch of credits and azure. Okay, maybe do them. I think. To date most people are picking eight of us There, there, there, there, The killer here. But when you talk to the enterprise, the real enterprise right that are just now moving into the cloud, they're all multi cloud Just had one today. Super large chip company down L a San Diego area. Guess what. Use it. All three clouds. I asked him why. Well, because we started in AWS. We got some things there we've got. We've got a bunch of stuff that runs and an azure with offers 3 65 other things that they dio and Google for ml and that kind of stuff. It runs better their enterprises. They're gonna pick where the workload run best, and they're big. And so they're gonna look and they're gonna They're gonna They're gonna elevate up building architecture that works across all of them. I don't think multi cloud means I'm gonna move this workload from here to here. That's never gonna happen. Maybe in 20 years. But I doubt it. It's just that the workloads heir destined, they run better on that and they're gonna focus on >>different park loads for the cloud that picked the right guy for the right workload. >>Yeah, and I'm so big and I require different companies and I get acquired. And and and And you got to think of the on Prem data centers eyes another cloud that's a multi. And then I go into Europe, and I have GDP are and I need another cloud. I mean, they're gonna have 45 clouds, and I don't think it's gonna be 20% across all >>that could be a power lot. They'll be more than 13 closets. Be specialty clouds a riff on this all the time. Well, Steve, I want to thank you for coming on the Q. Appreciate it. Give a quick blood for the company. How many employees you're gonna hire, some of your objectives >>growing fast. We've got over 400 customers and you ask one of our customers we've got customers spending millions of dollars a year with us all the way down the customer spending $5 a month. Why? Because of the wonderful thing of cloud they can consume. We've got 400 customers all over the world and even know who probably 300 of them are right. Why they go on the market place they go like this, they download. Maybe they come on drift. Ask one question. They launch and they spent $5 a month. I don't even know what they're doing. And eventually we watched their Amar are it just grows and grows and grows and grows. And eventually like, Whoa, Now you're spending 50 grand a year. We should talk. So it's kind of like how some companies used open source that ends up being our funnel a low friction zero friction High velocity Landon expand model. And then we have the traditional enterprises that you'd imagine every so everything in between >>your hiring, >>we're hiring like crazy, hiring a whole bunch of sales organization around the world. We just raised $40 million Siri see a month ago and we're going for >>fresh financing. Aviatrix see Mulaney, CEO of aviatrix here on the Cuba Reinvent 2019 Stay with us for more coverage. Day three of our three days of World War coverage Two sets here, thanks to Intel for the being our headline sponsor without their supporting our mission, which is bringing you the best confident possible. We want to thank Intel on. All of our sponsors were right back with more coverage after this short break

>>live from Las Vegas. It's the Q covering AWS executive. Something >>brought to you by extension. >>Welcome back, everyone to the cubes. Live coverage of the Ex Censure Executive Summit here in AWS. Reinvent I'm your host, Rebecca Knight. I'm joined by Tristan Moral Laur said. He is the managing director. North America Intelligence Cloud Infrastructure. Thank you so much for coming on the show. >>Thanks for having me, Rebecca. >>So I know that your primary focus is cloud management and optimization. Tell our viewers why. Why those air? Two critical things. >>They're two very important things. That cloud is wonderful. It's full of innovation. It's It involves all the time. It's wonderful for developers. They love to leverage this. There's broad implications for I T departments. I T departments are used to buy in Big, bold Guy T service is every three years they park it and then they renew that five years later. So from how do you constantly consume the clown an innovative way, and additionally, while the developers are enjoying the service is at the enterprise level, there's broad implications on the tools. The skill sets, the load that you're putting on the infrastructure on the network on the security. And so you really have to benefit of the clown to benefit of all the innovation. You have to take a step back and say, What does it mean to run in the clown and to manage and optimize it? And that's why we call it run different because you have to take it completely from the ground up and rethink it. >>Okay, so run different. Describe what this means. What? This what this is >>So we look at run different as five core pillars. First, you have to manage it, of course. And that doesn't go away because you put an application in the clown doesn't mean you don't manage it. So you have to manage it. The tools it, Sandra, you have to optimize it optimization if cloud is all about innovation. And every day in this morning, we heard all source of new innovations come out from quantum computing to contextualized. Aye, aye. Two new types of storage. You now have two on board this into your environment. How do you optimize it? The thirties? You have to consume it so you have to consume differently. It's completely changed. Procurement departments have to adapt to it, the security framework has to evolve. And finally, the governance across all of the cloud that you're consuming at the enterprise level has to change. And those five pillars are critical to what we mean by run different. >>So we're going to get into all of these in just a second. But I'm your premises that the old way of doing I t doesn't work anymore. So when you explain this this approach in this strategy of thinking in this new way, is there any pushback? I mean, so much of technology and new strategies and approaches is not necessarily the technology itself. It's the it's the change management. It's the people. So with the implication that your way is not gonna cut it anymore, it's wrong. How is it? How is it understood in the organization's? It's >>in many cases, not understood, because in many cases people look at the individual technology and how my using this individual technology. And this morning, as of this morning, a lot of clients we're looking at, how do I use these widgets? Better use? That's not the point. The point is, if I'm there, I am the belief of why I'm moving in the clown is not for one particular capability, but the belief that the kid buildings are going to get better over time, better operationally. So developers are going to get new features and, by the way, better financially, because if I'm using the right innovation financially, it gets better over time. So you're moving from very static environment applications that don't move to a very dynamic environment, and that is a complete shift in mindset. It's a shift in mindset for the developers, for the people managing applications for procurement departments who now have to buy something every day. And so the change management of the enterprise is very complex because, by the way, you can't completely over rotate. Just because you're moving A S a P application to the clown doesn't mean you don't manage it anymore. You still have to make sure that your piece system is operating properly. So that's what we mean by a multi mode operating model is across the spectrum. You still have to have the more traditional management, but you have to evolve it on an ongoing basis, and that is a complete shift. Your workforce has to change all the time this morning, Seo should have woken up and said, I'm gonna use ultra warm. I now need skills on that. I now need tools on that, and so that's a complete shift, which is very difficult for enterprise at a large scale to adapt to and embrace. But they have to. If they do not, they won't benefit from the clown. >>So let's let's go through these things. Let's start with Cloud Management Service is tell it. Tell us, Tell our viewers a little bit about that. So, clown >>management, The wonderful thing about the clown is you can automate it, and so you can now automate the resolution of incidents. Frankly, we don't care about incident management anymore. If something fails, we just spend something else up, and it resolves itself. So it's much more about how do you make sure that things are automated so that there's no human intervention from a When something goes really wrong and you need to do problem management, you now need different stead of skills. So instead of having the old network skill and storage skill and operating system skill, I need an AWS platform skill, somebody that can engineer the application from top to bottom, a full stack engineer on that platform. That's a completely different type of skill. Number one and number two has to evolve over time. So how are the engineers at any client or 90 department are going to learn about how to manage the new quantum computing that we heard about this morning or wavelength and enable five G's so those skills normally have to be different and platform enable. But they have to evolve over time and so managing the clown that it still requires skills and tools but that have to evolve and change over time. >>So, as you said, C I ose and CEOs air saying, Wow, I have a lot of work to do to make sure my work versus up to speed um, cloud optimization surfaces, yes, he said. So >>that, to me, is the fundamental shift. If management over time, hopefully if fully is automated and that function shrinks to almost zero, what now becomes his cloud is available to all the developers. The problem is, they're consuming it as much as they want, so you have to shift from fixing your problem to fixing the consumption um I'm making sure that I am I using the right type of service. So instead of having a e c two instance on it in a database, am I using RD s instead of R. D s? Am I using Lambda instead of Lambda? Am I using fargate? So am I using the right type of service for my application and for my business? And that is constant optimization to drive the right service. And when I'm consuming too much of my identifying that consumption event, um, very recent example. Ah, client of mine explained to me how at Christmas one of his developers left a key out in the open. Somebody used that key to spin up a bunch of aws instance to mine. Bitcoin. Now that's not a incident. The system's working fine as advertised, so it's not a incident. The rial idol term. It's an incident in the terms of its a consumption event that I have to catch and identify. That is the shift you have to manage the consumption in real time, not the incident in real time, and that's what optimization is all about. >>But but then there's another consumption element to it. too >>There is because procurement department's used to buy things on an annual basis. Sometimes if every five years, they would pain along with a bunch of hardware and leave it sitting in their data center. Now they're buying things every month. If you take X century, for example, every month we have 900 million lines of bills for our cloud providers like sell only processes. What, 64,000? You have toe have special tools. How do you reconcile this? How do you translate these bills back to the application owner so that they drive the right consumption? How'd you align it back to the business? All of those air new features of the procurement department that has to exist in the i T department to deal with a clown. >>So next is security. And this is, of course, on every ceos mind. Right now. How do you ensure security compliance clients, but also secure, Secure? >>So how is it secure and how do you ensure security compliance? Um, the great things about the clown new kid abilities have security embedded. Unfortunately, clients realize that they can't outsource security. That is always a responsibility. That's a board level responsibility the CEOs are accountable for. So how do you relate the security component that is in the cloud versus the security component that you're still responsible for us, the C. I O. And the default security features and configurations of the cloud service is may or may not be aligned to your own security policies. So as you using the cloud, you have to align their security to your your eye tea estates policies, and you have to monitor it in real time. So it becomes a monitoring of the security feature and how it's complimentary to your policies, as opposed to driving and insecurity individually for every widget it evolves over time. And as your developers consume, news service is you don't have control over that, but you have to monitor it so you can address any shortfalls as they as they calm and as you identify them. >>So the final element of this this approach is cloud governance. How do you define this? >>So cloud governance? What's what's fascinating and one of the big lesson learned from this morning actually is you are not going to go to AWS to be public club. You're going to AWS for the cloud. With outpost now being generally available, you may go to AWS for private or public and now, by the way, for quantum as well. So even if you have one primary cloud provider and let's say, state of us or or another, you have to manage multiple cloud platforms and you have to govern it across the platforms. Developers don't care where they're consuming it. They just want it available. And that governance across all the AWS clowns, in most cases multi clowns, is critical to get that total visibility of your entire estate. And so that's why that fifth pillar is critical in a foundation of all the others. >>So this is this is really interesting. Can you give us some examples of clients that you are already using this approach and and how it's having an impact on their businesses? >>So we're using this approach at all of our clients, so we fundamentally believe that is how you have to manage it. And it's no longer just a fixing the incidents. It truly is about automating and optimizing. I think the best example is Accenture. We've moved 95% of our estate in the cloud >>your own use case. >>We are. And I could name a lot of clients, but centuries our best example. Because we run the risk and being the cloud to completely over consume. And when we spend, you know hundreds of millions in the clown, you have to manage that very, very carefully. Are you using the related skit build these? Are you consuming it properly? And how are we dealing with the bills? In fact, this framework was built on the lessons learned from our clients. But really, from what we did internally to Accenture, >>So other than implementing run differently, stat, What is your best advice for organizations that are really looking to have a more organized and systematic approach to this? >>Yeah, I think clients will have to one every clients on a big clown journey. And I think what we're seeing is clients are accelerating their clown journey. They have to make a real decision. Run different is a framework which way advise client. Either they could do it themselves, and they have to adopt this this concept or they can use 1/3 party. Important concept is if you want to benefit from the cloud it evolves. If you are investing in your tools in your skill sets, we will absolutely support it and encourage it. But you have to understand that that is an ongoing investment. Every year you have to update your platform. Every year you have to update your skills. So some clients air fully committing to that our technology companies at the core and are making those investments. Other clients realize that that is something they would prefer to use 1/3 party for. And they come to a number providers, including ex center. >>Well, Tristan, thank you so much for coming on. The show are really interesting conversation. >>Thank you so much. Rebecca. >>I'm Rebecca. Night. Stay tuned for more of the cubes. Live coverage of the Accenture Executive Summit.

>>live from Miami, Florida It's the Q covering IBM is data in a I forum brought to you by IBM. >>Welcome back to Miami, Florida Everybody watching the Cube, the leader in live tech coverage. We go out to the events and extract the signal from the noise we're covering the IBM data and a I Forum Scott Hefner series The CMO on uh, sorry VP and CMO IBM Data. Yeah, right, I know. Here's the CMO of late again. So welcome. Welcome to the >>cake was great. Great >>event. Yeah, I've never attended one of these before. The sort of analytics University 1700 people that everybody's like. Sponges trying to learn more and more and more. >>60% higher attendance last year. Awesome. A lot of interest. >>So if we go back a couple of years ago, talks about digital transformation, people roll their eyes. They think it's a buzz word. When you talk to customers, it's really they're trying to transform their business, and data is at the center of that. So if you go back to like 2016 there's a lot of experimentation going on. Kind of throw everything against the wall, see what sticks. It seems Scott, based on the data that I see, that people are now narrowing their their bets on things like Ai ai automation machine learning containers. What are you seeing from customers? >>I think you framed it Well, I mean, if you kind of think about it, this digital transformations been going on for almost 20 years. With the advent of the Internet back around 2000 late 19 nineties, every started on the Internet doing business transactions, and slowly but surely, digital transformation was taken effect, right? And I think clients are now shifting to what we can call digital transformation two point. Oh, what's the next 20 years look like? And our view, our viewpoint from overlay from our clients is, if you think about it, it's data that fuels digital transformation. Right? Without data, there is no digital transformation is no digital. It's all data driven, evidence based decision making, using data to do things more efficiently and more effectively for your clients and your employees, and so on, so forth. But if you think about it, we've been using data as a way of looking to what has happened in the past or what is happening now in clients with digital transformation. To point out what a shift to a word of predictive data. How do you How do you predict in shape? Future outcomes, right? And if you think about it's a I that's gonna unlock predictive data. That's why we see such an intense focus on a I as a really the linchpin of digital transformation. Two point. Oh, and of course, all that data needs to be virtualized. It has to sit in a hybrid cloud environment. 94% of clients have multiple clouds. So if that unlocks the value or if a Iot of Mark's value the data and predictive ways the cloud in a multi cloud environment is that platform that has built upon, it's. That's why you see this enormous shift today. I in terms of investment priority along with hybrid multi cloud. >>So I like this this point of view, this digital transformation 2.0, because what's in their senior business in a digital business? That's how they used data. Yeah, and IBM is mission. Using your group is to help people better take advantage of data to five business outcomes. I mean, that's pretty clearly. What you guys are doing this to Dato To me. Three innovation cocktails, data plus machine intelligence or a I, and then you scale it with cloud. And so you talk about cloud to two point. Oh, really? Involves this predictive sort of a component of the equation that you're bringing into it, doesn't it? >>Yeah. When I think of this next phase, there's several things our clients trying to achieve. One is to predict and shape future outcomes, whether it be inventory, whether it be patient care, whatever it may be. Ah, customer service call. You want Toby to predict what the call's gonna be about what the client or what the customers has gone through before with the issue may be right. So this notion of predicted in shaping the outcome the second is empowering. People do higher value work. How do you make them better at what they're doing? The superpowers of being aided by a machine all right, or some kind of software, it's gonna help you be better what you do. And of course, this whole notion of automating task that people don't want to do automated experiences and intelligent ways. This all adds up to like new business models, right? And that's where a I comes in. That's what I does, and I do think it's a linchpin. What clients are looking to invest in is this notion that you need one unified platform to build upon for the future. That is, cloud service is data service is an aye aye. Service is all is one thing. One cloud native platform that runs on any cloud and completely opens up where all your data is. You run your APS wherever you want to run them secure to the core, and that's what they're looking to invest in. And >>so you guys use is the sort of tag line you can't have a I without. Ay, ay, ay, ay, ay, being information architecture. So for years on the q b been talking about bringing the cloud model to your data? Could you don't move data around? Now you're talking about bringing machine intelligence to your data wherever your data lives, to talk about why that's important and what IBM is doing both conceptually in from a product standpoint, to enable that. >>So the number one issue with the eye and actually a number one issue that sometimes results in failure with a I is didn't understand the data. Some 81% of clients do not understand the data that they're gonna need for the aye aye models. And if they do understand the doubt that they don't know how to make it simple, inaccessible, especially when its ever changing and then they have all the issues of compliance and quality. And is it a trusted set of data that you're using? And that's what you mentioned about? There is no way I without an aye aye, which is information architecture. So it starts there than two. To your point is, Dad is everywhere. There's thousands of sources of data, if not more than that. So how do you normalize all that? Virtual eyes it right. And that's where you get into one platform, any cloud, so that you can access the data wherever it sits. Don't spend the money moving things around the complexity of all that. And then, finally, the third thing we're looking to do is use a I to build. I use a I to actually manage the life cycle of how do you incorporate this into your business and That's what this one platform is gonna d'oh! Versus enabling customers to piece together all this stuff. It's just it's too much. >>So this is what cloudpack for data? Yeah, it is and does. Yes. So you say Aye, aye. Free. Are you talking about picking the functions and automating components? Prioritizing? Yeah. How you apply those those algorithms. Is that right? >>Yeah. So I think Way talk about data with three big things to really focus on his data. And that is the whole nursing. You need that information architecture that's that's ready for an aye aye multicolored world. It's all about the dad in the end, right? Two is about talent, right? Talent being skills. Are you able to acquire the skills you need? So we're trying to help our customers apply. I actually generate and build a I optimize eh? So they don't need is, you know, as much skill to do it. In other words, democratize the ability to build a I models for your business. And then finally, the dad is everywhere. You need to have completely open environment. That's the run on any cloud notion. And that's why the Red had open shift is such a big component of this. So think of clients are looking to climb the ladder >>today. I >>modernize their data states, make the data simple, inaccessible, create a trusted data foundation building scale new models and infuse it throughout their business. Cloudpack for data is essentially the foundational platform that gives you the latter >>day I >>that is in earnestly extensible with things that may be important to you or certain areas of additional capabilities. So Compaq for Dad essentially is the platform that I'm referring to hear when you say you know any cloud, right? >>So I feel like we're on the cusp of this enormous productivity boom. If you look at the data, productivity in the first quarter went up now and if you believe the Bureau of Labor Statistics, but over the long term productivity numbers right, you probably can't believe in them. I think for Q one was like 3% which is a huge uptick. And I feel like it's much, much higher than the anemic whatever it was one and 1/2 1.7%. All this ay, ay, all this automation is gonna drive productivity. It's gonna have an impact on organizations. So what's your perspective? Point of view on on the depending productivity boom boom? Do you believe that premise, How our job's going to be affected, What a client seeing in terms of how their retraining people, What should we expect? >>Yeah, I think a I's gonna give people superpowers. It's gonna make them better. What they do, it's gonna make you as a consumer better at how you choose what to buy. It's gonna make the automobile drive more efficiently and more more information that's relevant to you in the dashboard. It's gonna allow you call for service on your cable company. For them to already know your history, maybe already died. Knows what why you're calling and make it a more efficient call. It's gonna make everyone more productive. It's gonna result in higher quality output because you're able to predict things right. You automate things and intelligent ways, so I don't see it as anything that replaces jobs. It's just gonna make people better at what they do. Allow them to focus on higher value work and be more efficient when you are making decisions right in that will that will result in higher productivity per per worker, right? >>I mean, we've certainly heard examples today of customers that are doing that basically, and it's not like they're firing people. They're basically taking away mundane tasks or things that maybe humans would take so long to do and then re pointing that talent somewhere else. >>Toe higher value. >>So you're seeing that in your client base? Yeah, it's starting to hit today. It's gonna be interesting to see whether or not that affects jobs. I mean, we like to say That's not I ultimately think it's gonna create more jobs. There may be some kind of dip where we've got to retrain people, maybe have to change the way in which we do. Reading right bet Smith and I were talking, reading, writing arithmetic in coding, You know, maybe one of the skills that we have to bring in, but ultimately I think it is a positive, and I'm sanguine and I'm an optimist. Um, but you're seeing examples today of people refocusing their talent. What are they focusing that talent on more strategic things? Like what? >>Well, again, I think it's just getting people to be better at what they do by giving them that predictive power of super powers to be a to do their job better. It's gonna make people better not replace >>them. So it's consumers. We're probably gonna buy more. You're >>gonna buy more, you're gonna buy the right things more. And the right things are gonna be there for you to buy the right sales because everything is gonna be able to better understand patterns of what happens and predict right. And that's why you're seeing this enormous investment shift among among technologists companies. What was that? M. I. T. Sloane in the Boston Consulting Group just came out with a study. I think couple weeks ago, 92% of companies are looking to expand their investments in a I gardener came out with the study of C i ose and there in top investment areas, artificial intelligence was number one. Data and analytics was number two, which is the information architecture, right? One into as the first time it's been like that. So and I think it's for this reason of digital transformation, the predictive notion predictive enterprise, if you will, and just helping everyone be more efficient, more productive or what they do. That's really what it's about. It's not so much replacing people. They're thinking of robots and things like that. That's a small part of what we're talking about. >>Well, even when you talk to people about software robots, they love them because they don't have to do these Monday tests and dramatically impact the quality of what they're doing it again. It frees them up to do other things. >>Good, Good example. Legal Legal Nation is one of our clients that we've been working with, and they do case law for business clients. And sometimes it can take weeks, if not a month, to prepare case law documents. They're able to do that ours now because they have artificial intelligence. The background has done a lot of the case law, intelligence and finding the right dad in the right case law and helping to populate those documents where they don't have to do all the research themselves. So what does that do for the lawyer? Right? It makes them better what they do. They can shift a higher value work than just preparing the document. They could work on more cases that could spend more time on the subtleties of the case. Actually, that's a good example of what we mean here. He's not replacing the lawyer. >>Well, I'm seeing a lot of examples like this in legal fields. Also, auditing. I've talked enough. I've asked you think I'd be able to cut the auditing bill? And the answer is actually, No, because to the point you just made is they're shifting their activities to higher value. They might be charging Maur for activities that take less time. >>Customer service is is another great example. There's so many some examples of that. But it used to be. If you called, everyone treated equal right and you get onto a call. And then sometimes it's very rudimentary things. Sometimes there's gotta be a way to prioritize What are the most critical calls knowing that there's something already wrong and you know why they're calling? And if you can shift your human agents to focus on those and let let a I help with the more rudimentary ones you're making, the client's happier. But those people doing higher value work, we go on forever and ever on just different examples across different industries in different businesses, of how this is really helping people, and it all comes down to it. The three big words, which is prediction, automation and optimization. And that's what I was gonna do. And with digital transformation in just shift the whole the whole notion of using data for evidence based decision making what's happened in the past? What's happening now, too? I'm gonna I'm gonna understand its shape, the future. You could do so many things with that. >>It's amazing when you think about it. We've been at this computer industry 50 60 plus years, and you think everything's automated. It's not even close. All this technology has actually created so much more data so much on structured data. Actually, so many Maur inefficient processes in a lot of ways that now machine intelligence is beginning to attack in a big >>way. You won't find a survey because, ah, a survey of businesses where a eyes not a top aspiration trick, is how do you turn the aspirations of the outcomes? And that's what this latter day eyes all about. It's a very prescriptive approach that we've learned from our clients on howto take that journey to a I and a lot of things we talk about on this on this conversation or the real key linchpins, right? You gotta get the data right. You have to trust in the data that you're going to be used and you gotta get the talent and be able to simple find democratize how you build his models and deploy them. And then ultimately you got to get trust across your organization. And that means the models have to have explained ability, Understand? You have to help you understand how it is recommending these things, and then they're gonna buy into it. It's just gonna make them better. It's the whole notion of superpowers. >>Get that down and then you could scale. And that's really where the business and >>they all want to get there. Now the hard part is now we got to start doing it right. It's kind of like the Internet was 20 years ago. They know they want to do business transactions over the Internet and do commerce. But it didn't happen like overnight. It wasn't magic. It took. It was a journey. I think we're seeing that movie. We playing here? >>Yeah. And in fact, I think in some ways it could even happen faster now because you have the Internet because you have clouds. That's not predicting a very steep Pogue. I've s curve here. We'll have to leave it there. Scott, great to see you. Thanks >>for coming >>on. >>Any time. >>All right. Keep it right, everybody. We'll be back with our next guest right after this short break. You're watching the Cube from the IBM data and a I form in Miami. We'll be right back.

>> from Cambridge, Massachusetts. It's three Cube covering M I T. Chief data officer and information quality Symposium 2019. Brought to you by Silicon Angle Media. >> Welcome back. We're here to wrap up the M I T. Chief data officer officer, information quality. It's hashtag m i t CDO conference. You're watching the Cube. I'm David Dante, and Paul Gill is my co host. This is two days of coverage. We're wrapping up eyes. Our analysis of what's going on here, Paul, Let me let me kick it off. When we first started here, we talked about that are open. It was way saw the chief data officer role emerged from the back office, the information quality role. When in 2013 the CEO's that we talked to when we asked them what was their scope. We heard things like, Oh, it's very wide. Involves analytics, data science. Some CEOs even said Oh, yes, security is actually part of our purview because all the cyber data so very, very wide scope. Even in some cases, some of the digital initiatives were sort of being claimed. The studios were staking their claim. The reality was the CDO also emerged out of highly regulated industries financialservices healthcare government. And it really was this kind of wonky back office role. And so that's what my compliance, that's what it's become again. We're seeing that CEOs largely you're not involved in a lot of the emerging. Aye, aye initiatives. That's what we heard, sort of anecdotally talking to various folks At the same time. I feel as though the CDO role has been more fossilized than it was before. We used to ask, Is this role going to be around anymore? We had C I. Ose tell us that the CEO Rose was going to disappear, so you had both ends of the spectrum. But I feel as though that whatever it's called CDO Data's our chief analytics off officer, head of data, you know, analytics and governance. That role is here to stay, at least for for a fair amount of time and increasingly, issues of privacy and governance. And at least the periphery of security are gonna be supported by that CD a role. So that's kind of takeaway Number one. Let me get your thoughts. >> I think there's a maturity process going on here. What we saw really in 2016 through 2018 was, ah, sort of a celebration of the arrival of the CDO. And we're here, you know, we've got we've got power now we've got an agenda. And that was I mean, that was a natural outcome of all this growth and 90% of organizations putting sea Dios in place. I think what you're seeing now is a realization that Oh, my God, this is a mess. You know what I heard? This year was a lot less of this sort of crowing about the ascendance of sea Dios and Maura about We've got a big integration problem of big data cleansing problem, and we've got to get our hands down to the nitty gritty. And when you talk about, as you said, we had in here so much this year about strategic initiatives, about about artificial intelligence, about getting involved in digital business or customer experience transformation. What we heard this year was about cleaning up data, finding the data that you've got organizing it, applying meditator, too. It is getting in shape to do something with it. There's nothing wrong with that. I just think it's part of the natural maturation process. Organizations now have to go through Tiu to the dirty process of cleaning up this data before they can get to the next stage, which was a couple of three years out for most of >> the second. Big theme, of course. We heard this from the former head of analytics. That G s K on the opening keynote is the traditional methods have failed the the Enterprise Data Warehouse, and we've actually studied this a lot. You know, my analogy is often you snake swallowing a basketball, having to build cubes. E D W practitioners would always used to call it chasing the chips until we come up with a new chip. Oh, we need that because we gotta run faster because it's taking us hours and hours, weeks days to run these analytics. So that really was not an agile. It was a rear view mirror looking thing. And Sarbanes Oxley saved the E. D. W. Business because reporting became part of compliance thing perspective. The master data management piece we've heard. Do you consistently? We heard Mike Stone Breaker, who's obviously a technology visionary, was right on. It doesn't scale through this notion of duping. Everything just doesn't work and manually creating rules. It's just it's just not the right approach. This we also heard the top down data data enterprise data model doesn't works too complicated, can operationalize it. So what they do, they kick the can to governance. The Duke was kind of a sidecar, their big data that failed to live up to its promises. And so it's It's a big question as to whether or not a I will bring that level of automation we heard from KPMG. Certainly, Mike Stone breaker again said way heard this, uh, a cz well, from Andy Palmer. They're using technology toe automate and scale that big number one data science problem, which is? They spend all their time wrangling data. We'll see if that if that actually lives up >> to his probable is something we did here today from several of our guests. Was about the promise of machine learning to automate this day to clean up process and as ah Mark Ramsay kick off the conference saying that all of these efforts to standardize data have failed in the past. This does look, He then showed how how G s K had used some of the tools that were represented here using machine learning to actually clean up the data at G S. K. So there is. And I heard today a lot of optimism from the people we talked to about the capability of Chris, for example, talking about the capability of machine learning to bring some order to solve this scale scale problem Because really organizing data creating enterprise data models is a scale problem, and the only way you can solve that it's with with automation, Mike Stone breaker is right on top of that. So there was optimism at this event. There was kind of an ooh, kind of, ah, a dismay at seeing all the data problems they have to clean up, but also promised that tools are on the way that could do that. >> Yeah, The reason I'm an optimist about this role is because data such a hard problem. And while there is a feeling of wow, this is really a challenge. There's a lot of smart people here who are up for the challenge and have the d n a for it. So the role, that whole 360 thing. We talked about the traditional methods, you know, kind of failing, and in the third piece that touched on, which is really bringing machine intelligence to the table. We haven't heard that as much at this event. It's now front and center. It's just another example of a I injecting itself into virtually every aspect every corner of the industry. And again, I often jokes. Same wine, new bottle. Our industry has a habit of doing that, but it's cyclical, but it is. But we seem to be making consistent progress. >> And the machine learning, I thought was interesting. Several very guest spoke to machine learning being applied to the plumbing projects right now to cleaning up data. Those are really self contained projects. You can manage those you can. You can determine out test outcomes. You can vet the quality of the of the algorithms. It's not like you're putting machine learning out there in front of the customer where it could potentially do some real damage. There. They're vetting their burning in machine, learning in a environment that they control. >> Right, So So, Amy, Two solid days here. I think that this this conference has really grown when we first started here is about 130 people, I think. And now it was 500 registrants. This'd year. I think 600 is the sort of the goal for next year. Moving venues. The Cube has been covering this all but one year since 2013. Hope to continue to do that. Paul was great working with you. Um, always great work. I hope we can, uh we could do more together. We heard the verdict is bringing back its conference. You put that together. So we had column. Mahoney, um, had the vertical rock stars on which was fun. Com Mahoney, Mike Stone breaker uh, Andy Palmer and Chris Lynch all kind of weighed in, which was great to get their perspectives kind of the days of MPP and how that's evolved improving on traditional relational database. And and now you're Stone breaker. Applying all these m i. Same thing with that scale with Chris Lynch. So it's fun to tow. Watch those guys all Boston based East Coast folks some news. We just saw the news hit President Trump holding up jet icon contractors is we've talked about. We've been following that story very closely and I've got some concerns over that. It's I think it's largely because he doesn't like Bezos in The Washington Post Post. Exactly. You know, here's this you know, America first. The Pentagon says they need this to be competitive with China >> and a I. >> There's maybe some you know, where there's smoke. There's fire there, so >> it's more important to stick in >> the eye. That's what it seems like. So we're watching that story very closely. I think it's I think it's a bad move for the executive branch to be involved in those type of decisions. But you know what I know? Well, anyway, Paul awesome working with you guys. Thanks. And to appreciate you flying out, Sal. Good job, Alex Mike. Great. Already wrapping up. So thank you for watching. Go to silicon angle dot com for all the news. Youtube dot com slash silicon angles where we house our playlist. But the cube dot net is the main site where we have all the events. It will show you what's coming up next. We've got a bunch of stuff going on straight through the summer. And then, of course, VM World is the big kickoff for the fall season. Goto wicked bond dot com for all the research. We're out. Thanks for watching Dave. A lot day for Paul Gillon will see you next time.