>>Live from Las Vegas. It's the cube covering splunk.com 19 brought to you by Splunk. >>Hey, welcome back. Everyone's the cubes coverage here in Las Vegas for Splunk's dot com I'm John, the host of the cube. This is Splunk's 10th year user conference is the cube seventh year. We've been riding on the same wave with Splunk over the years and just watching the phenomenal growth and changes at the level of data at scale we've been covering. We can remember I said from day one data at the center of this, not just log files is now gone. Beyond that, we're here with Carrie Pailin, the CMO, chief marketing officer for Splunk. Welcome to the cube. Thanks for coming on. Thank you so much. It's great to be here. The folks that know us know about spunk. Notice the color changes in the background, the popping kink, burning yellow, orange underneath, new branding. You're new to Splunk story, career in technology. Um, this is exciting. And then portfolio, there's all the news is a phenomenal good news flow. >>Very relevant, right on Mark. Data is now creating value and datas like software. It's enabling value. Splunk software and solution platform has done that and this new new grounds to take. But you're now setting the agenda for the brand and the company tell us, I mean, it's a marketer's dream. What can I say? It's a, you know, I joined nine months ago and when I was interviewing for the role, I remember Doug Merritt saying to me, Hey, you know, we might be the only $2 billion enterprise software company that nobody's ever heard of. Amy said, I want to go solve for that. Right? Like the folks who know Splunk and our customers, they love us, our product is awesome and our culture is awesome, but the world doesn't know about us yet and we haven't invested there. So I want to go take the brand to the next level. >>And I want the world to understand what data use cases are out there that are so broad and so vast. And we believe that every problem ultimately can be solved through data or almost every problem. And we wanted to set the stage for that with this new brand campaign. Yeah. Just on a personal note. And following the journey of Splunk, a scrappy startup goes public and growth modes. When you're a growth Moe is hard to kind of lay down foundational things like branding and whatnot. But now sponsor leader, we did a poll within our community and for cloud and on premise security, Splunk's the number one supplier for just laws with workloads. And then now cloud security is kicking in. So the relationship to Amazon, Google cloud platform and Azure is a critical part of Splunk is now the leader. So leaders have to do things like make sure that their brand's good. >>This is what you're doing. Take us behind the scenes of the branding, the things you chose and data for everything. Yeah. D the little small nuance data to everything. Um, and the reason behind that was we believe you can bring and we can enable our customers to bring data to every question, every decision and every action to create meaningful outcomes. And the use cases are vast and enormous. We talked about some of them before the show started, but helping look at global law enforcement, get ahead of human trafficking through SPOHNC and spelunking. What's going on across all sorts of data sources, right? Helping zone Haven, which is our first investment from Splunk ventures, which startup that's actually helping firefighters figure out burn burn patterns with fire wildfires. But also when temperatures and humidity change where sensors are, they can alert firefighters 30 to 45 minutes earlier than they would usually do that. >>And then they can also help influence evacuation patterns. I mean it's, it's remarkable what folks are doing with data today and it's really at the, at the core of solving some of the world's biggest issues. It's hard to tell a story for a company that solves some of the use cases. Yes. Because depending on who you talk to, that's the company. This is what we should be telling them. I know you do this over here, so when you're horizontally creating this kind of value, yeah, it's hard to kind of brand that because it will get a lot of opinions because you're doing a lot of different things. There's not like one vertical. That's right. So this is the challenge that most B to B marketers will fall on the trip. We do this because we have a lot of customers in this one segment. But yes, you guys are hitting so much more. >>How did you deal with that? Ha, we had a lot of talks about it, a lot of discussions, a lot of debate and I love diversity of thought. It usually drives the right outcomes, but we had a lot of this, this is not an easy answer. If it had been, it would have been done years ago and we really talked about setting the stage for where, you know, I love the Wayne Gretzky quote about skate to where the puck is going and that's what he always did and that's why he was so good. We believe there will ultimately be a data platform of platforms and we believe Splunk is that platform, right? And so that's where the industry's going. We wanted to cast a net that would take us there so that this is the beginning of a brand evolution for us and not a total rebrand, but it's setting the stage for a category creation that we believe is coming in the industry. >>A few. You guys are smart and I think my observation would be looking at some of our 10 years of reporting and sharing some on digital is that all the conversations around data is impacting the real world. Yes. You see Mark Zuckerberg and on Capitol Hill having the answer to the date of debacles, he has cybersecurity attacks, national security, um, ransomware taking down cities and towns. This is a real impact. Forest fires disrupting rolling blackouts. So technology's impacting real world lives. That's right. This is really new to tech. I mean usually behind the scenes, you know, coding, but not anymore. We're the front lines of real societal, global. Yes. Jade is at the forefront and it's really exciting. It's also frightening, right? Because we believe data presents the greatest opportunity for humanity, but also some of the greatest threats. And so hence our ability to really dig in on data security. >>It's important to do that while we're actually also surfacing data to solve real world issues. You've been in the industry for a while and when you came to Splunk, boasts a couple of things that surprised you as you, you had some thoughts going in, you knew Splunk. Yes. What are some of the things that surprised you when you got here? Oh, I mean, in such a good way. A few things, you know. Well, here's the story. Three days into being at Splunk, my dad got very ill and I wasted him to Austin for heart surgery and he actually didn't make it. Um, and so it's been a rough year to say the least. And uh, the way that Splunk's culture, I knew about it before I came, but the way that this company treated me, like I had been here 10 years, uh, when I'd really only been an employee three days was something I'll never forget. >>And it's, it's special. Um, and so I believe that companies are successful if they are smart and healthy and in Splunk has the healthy and droves and not just the compassion and the empathy, but you know, a very transparent culture. We debate things, we talk about things, we support each other. We are accountable. And I believe that's a big part of why we've grown so fast because our culture is incredibly healthy and very, um, collaborative as a team. I'm sorry for your loss. Thank you. Um, you mentioned the culture is a big part of Splunk. Yes. In talking to some of the folks that spoke over the years, there's no, I will, I'll totally say this. There's no shortage of opinions, so have not volunteered. These are robustness. Yes. Diversity of thoughts, very actionable communities. How do you, um, how do you look at that? Because that's a, could be a force, a force multiplier. >>Yes. For the brand. How are you going to tie in to everything with the community? How are you going to harness that energy? Yeah. So it's coming and the reality is data to everything is actually a set up to tell the stories of everyone who is using data today. And so the community is going to be one of the first places we go to surface. Some of those amazing stories. Um, and some of the things you see here at the show are actually showcasing that in the keynote today we heard from zone Haman and Porsche and so many others around their use cases. But the community is where it all begins and that's the lifeblood of our sort of spunkiness and a something that we don't take for granted once. One second. Sorry about the Barack Obama. Yeah. Directions with him and his interest in Splunk. Yeah. So we had our big re rebrand a reveal last month we had an event and it was for C suite type of folks. >>That was a very intimate event and we wanted somebody to keynote that and headline that that really brought to life the whole notion that you can bring data to everything. And president Obama was the first POTUS that actually use data in his campaign strategy. He's very open about that. He's the first president to appoint a chief data scientist to the white house. He's actually exceptionally geeky and very data-driven. And so when we asked him to come and headline this, he actually was really excited about it. Um, and you know, in, in great fashion, his communications team was really strict on curating the questions that we had for him. And he was so cute. He showed up to the event and he said, look, um, I'm so thrilled to be here. I love what you guys are doing and you can ask me anything. It's just like ready to go. >>And he was so wonderful and teed up this, this notion of day bringing data to everything so brilliantly. He's kicking, dig and be ad live all the time. He's very colorful as well as personality. Yes. He's kind of nerdy and you know, he was very open and OpenGov too. One of the things that I remember and when big data really started rolling into the scene around 2009, 2010 yes. You saw that opening up data registries from cities and towns and actually created innovation from health care medical supplies? Yes. Yes. So this has been a big part of it. Huge. You guys are doing some things out here and I see the exhibits we're using the day you're doing demos. How do you see you guys helping society with that? Because if you get to the next level, you've got some great use cases. Yes, the public sector is a big part of some news here. >>Fed ramp is one little technicality, but you got some certification, but government's modernizing now. So you know post Obama, you're seeing modernization of procurement roll with cloud, certainly cyber security. Amazon with the CIA, department of defense, role of data in the military and public sector. Yes, education. This is going to be a disruptive enabler for faults on the public impact. I mean, look, there's, you know, Doug touched on this a little bit this morning, the reality in our press conference, but the reality is if you do it right, opening up datasets to communities of people that can do better together and you can get this collective momentum going. For instance, in healthcare, I mean I'm a little bit of a health care nerd and I don't know if you've watched the PBS special on the Mayo clinic, it's spectacular. But one of the reasons the Mayo has been amazing for years is because their doctors all work off the same systems in every discipline in that facility and they can learn more holistically about a patient. >>And I think about the impact that data could have if we could open up those data sets across every health provider for one person or the same illness with every major institution across the U S collaborating and sharing and what we could actually do to make real impact and strides against some of the diseases that are really crippling society today. So I think that the good that we can do with data, if we open up those data sets and do it in a way that, that it's safe. It's remarkable the progress we can make. You know, one of the from machine learning has been a big success story. Machine learning toolkit. Customers are raving about it. Opening up the data creates better machine learning. AI creates better business value. That's right. That's that part of how you guys see things rolling out. Sure. I mean, as a marketer we use AI today and it's really more machine learning. >>It's sad pattern recognition. But we use, uh, you know, my last stand as a CMO, the last company I was at, we use an AI bot to augment our sales headcount for following up on leads. And it looked like a human being. I mean, same thing for Splunk. I mean, the more we can see pattern recognition, proffer up insights, the better off we are to help out our customers. And so Tim Teles team is driving that hard and fast into our innovation curve with everything that we do. Innovation culture, big time here, right? Huge, huge and one of the reasons I came to Splunk is when I interviewed with Tim and I said, Hey, how are you doing on recruiting engineers in the Valley? We all know that that is liquid gold, and he said that he had hired 370 odd engineers in less than a year and from really big brands like Airbnb and I thought, all right, there's some really cool innovation going on here. >>If some of the best engineers in the Valley really want to come work here and they want to work for a great leader, and Tim and his team are that. so.com is 10 years now this year has been riding the wave together. It's been fun. Your first, my very first dotcom. Yes. Your thoughts on this, on this community, this event. Share your, your thoughts. I mean I'm blown away and this is a team sport. I'm so proud of the events team, the creative team, the sales teams, everybody who's come together to make this event so spectacular. It's just sort of mind numbing that a company of our size can put on such an experience for our user community, but I'm also thrilled with the engagement. We have over 300 sessions this week and most of them are user and customer use, case driven and the stories they are telling are magnificent. >>They're doing this all with Splunk, so it's pretty special. And the ecosystem and the app showcase is pretty hot here. You're seeing real applications, people writing code on top of Splunk? Yes, it's, it's, I'm sorry I don't use this word often. I'm 48 but it's rad. It's so cool. Yes. Harry, thanks so much for coming on the cube and sharing your insights. Absolutely. Final thoughts for the people who aren't here at the event, watching on camera, what, how would you encapsulate.com this year? What's the top story that needs to be told? I mean, look, the reality is that we are bringing data to way more than just security and it ops, which has been our core use cases forever, and they will continue to be, but folks are that are not incredibly data literate or through Splunk bringing data to everything and solving some big gnarly issues in the world. And it's pretty exciting stuff. So check us out. All right. Thanks. Gnarly red. Cool. I need a surf board, Jerry. Thanks for coming on Friday. Thank you so much. Coverage here@thetenth.com I'm Jennifer with the cube, bringing you all the action here in Las Vegas. Three days of cubed wall to wall coverage. We've got one more after this short break.

>>Fly from San Francisco. It's the cube covering RSA conference, 2020 San Francisco brought to you by Silicon angle media. >>Hi everyone. Welcome back to the cubes coverage here at in San Francisco, the Moscone center for RSA conference 2020 I'm job for your host. We are the very special guests, the COO of VMware, Sanjay Poonen, cube alumni. When you talk about security, talk about the modern enterprise as it transforms new use cases, new problems emerge. New opportunities exist here to break it down. Sanjay, welcome back. Thank you John. Always a pleasure to be on your show and I think it's my first time at RSA. We've talked a number of times, but nice to see you here. Well, it's a security guard. Well, this is really why I wanted you to talk, talk to you because operations is become now the big conversation around security. So you know, security was once part of it. It comes out and part of the board conversation, but when you look at security, all the conversations that we're seeing that are the most important conversations are almost a business model conversation. >>Almost like if you're the CEO of the company, you've got HR people, HR, organizational behavior, collaboration, technology, stack compliance and risk management. So the threat of cyber has to cut across now multiple operational functions of the business. It's no longer one thing, it's everything. So this is really kind of makes it the pressure of the business owners to be mindful of a bigger picture. And the attack velocity is happening so much faster, more volume of attacks, milliseconds and nanosecond attacks. So this is a huge, huge problem. I need you to break it down for me. >> Good. But then wonderful intro. No, I would say you're absolutely right. First off, security is a boardroom topic. Uh, audit committees are asking, you know, the CIO so often, you know, reports a report directly, sometimes, often not even to the CIO, to the head of legal or finance and often to the audit. >>So it's a boardroom topic then. You're right, every department right now cares about security because they've got both threat and security of nation state, all malicious, organized crime trying to come at them. But they've also got physical security mind. I mean, listen, growing a virus is a serious threat to our physical security. And we're really concerned about employees and the idea of a cyber security and physical security. We've put at VMware, cybersecurity and, and um, um, physical security. One guy, the CIO. So he actually runs vote. So I think you're absolutely right and if you're a head of HR, you care about your employees. If you're care ahead of communications, you care about your reputation and marketing the same way. If you're a finance, you care about your accounting systems and having all of the it systems that are. So we certainly think that holistic approach does, deserves a different approach to security, which is it can't be silo, silo, silo. >>It has to be intrinsic. And I've talked on your show about why intrinsic and how differentiated that intrinsic security, what I talked about this morning in my keynote. >> Well, and then again, the connect the dots there. It's not just security, it's the applications that are being built on mobile. For instance, I've got a mobile app. I have milliseconds, serious bond to whether something's yes or no. That's the app on mobile. But still the security threat is still over here and I've got the app over here. This is now the reality. And again, AirWatch was a big acquisition that you did. I also had some security. Carbon black was a $2 billion acquisition that VMware made. That's a security practice. How's it all coming together? Can you think of any questions? Blame the VMware because it's not just security, it's what's around it. >> Yeah. I think we began to see over the course of the last several years that there were certain control points and security that could help, you know, bring order to this chaos of 5,000 security vendors. >>They're all legitimate. They're all here at the show. They're good vendors. But you cannot, if you are trying to say healthy, go to a doctor and expect the doctor to tell you, eat 5,000 tablets and sailed. He just is not sustainable. It has to be baked into your diet. You eat your proteins, your vegetables, your fruit, your drink, your water. The same way we believe security needs to become intrinsically deeper parts, the platform. So what were the key platforms and control points? We decided to focus on the network, the endpoint, and you could think of endpoint as to both client and workload identity, cloud analytics. You take a few of those and network. We've been laboring the last seven years to build a definitive networking company and now a networking security company where we can do everything from data center networking, Dell firewalls to load balancing to SDN in this NSX platform. >>You remember where you bought an nice syrup. The industry woke up like what's VM ever doing in networking? We've now built on that 13,000 customers really good growing revenue business in networking and and now doing that working security. That space is fragmented across Cisco, Palo Alto, FIU, NetScaler, checkpoint Riverbed, VMware cleans that up. You get to the end point side. We saw the same thing. You know you had an endpoint management now workspace one the sequel of what AirWatch was, but endpoint security again, fragmented. You had Symantec McAfee, now CrowdStrike, tenable Qualis, you know, I mean just so many fragmented IOM. We felt like we could come in now and clean that up too, so I have to worry about to do >> well basically explaining that, but I want to get now to the next conversation point that I'm interested in operational impact because when you have all these things to operationalize, you saw that with dev ops and cloud now hybrid, you got to operationalize this stuff. >>You guys have been in the operations side of the business for our VMware. That's what you're known for and the developers and now on the horizon I gotta operationalize all the security. What do I do? I'm the CSO. I think it's really important that in understanding operations of the infrastructure, we have that control point called vSphere and we're now going to take carbon black and make it agentless on the silverside workloads, which has never been done before. That's operationalizing it at the infrastructure level. At the end point we're going to unify carbon black and workspace one into a unified agent, never been done before. That's operationalizing it on the client side. And then on the container and the dev ops site, you're going to start bringing security into the container world. We actually happened in our grade point of view in containers. You've seen us do stuff with Tansu and Kubernetes and pivotal. >>Bringing that together and data security is a very logical thing that we will add there. So we have a very good view of where the infrastructure and operations parts that we know well, a vSphere, NSX workspace one containers with 10 Xu, we're going to bring security to all of them and then bake it more and more in so it's not feeling like it's a point tool. The same platform, carbon black will be able to handle the security of all of those use cases. One platform, several use cases. Are you happy with the carbon black acquisition? Listen, you know, you stay humble and hungry. Uh, John for a fundamental reason, I've been involved with number of acquisitions from my SAP VMware days, billion dollar plus. We've done talking to us. The Harvard business review had an article several years ago, which Carney called acquisitions and majority of them fail and they feel not because of process of product they feel because good people leave. >>One of the things that we have as a recipe does acquisition. We applied that to AirWatch, we apply the deny Sera. There is usually some brain trust. You remember in the days of nice area, it was my team Cosato and the case of AirWatch. It was John Marshall and that team. We want to preserve that team to help incubate this and then what breve EV brings a scale, so I'm delighted about Patrick earlier. I want to have him on your show next time because he's now the head of our security business unit. He's culturally a fit for the mr. humble, hungry. He wants to see just, we were billion dollar business now with security across networking endpoint and then he wants to take just he's piece of it, right? The common black piece of it, make it a billion dollar business while the overall security business goes from three to five. >>And I think we're going to count them for many years to come to really be a key part of VMware's fabric, a great leader. So we're successful. If he's successful, what's my job then? He reports to me is to get all the obstacles out of the way. Get every one of my core reps to sell carbon black. Every one of the partners like Dell to sell carbon black. So one of the deals we did within a month is Dell has now announced that their preferred solution on at Dell laptops, this carbon bike, they will work in the past with silence and crowd CrowdStrike. Now it's common black every day laptop now as a default option. That's called blank. So as we do these, John, the way we roll is one on here to basically come in and occupy that acquisition, get the obstacles out of the way, and that let Patrick scaled us the same way. >>Martine Casado or jumbo. So we have a playbook. We're gonna apply that playbook. Stay humble and hungry. And you ask me that question every year. How are we doing a carbon black? I will be saying, I love you putting a check on you. It will be checking in when we've done an AirWatch. What do you think? Pretty good. Very good. I think good. Stayed line to the radar. Kept growing. It's top right. Known every magic quadrant. That business is significant. Bigger than the 100 million while nice here. How do we do a nice hero? NSX? It's evolved quite a bit. It's evolved. So this is back to the point. VMware makes bets. So unlike other acquisitions where they're big numbers, still big numbers, billions or billions, but they're bets. AirWatch was a good bet. Turned out okay. That the betting, you're being conservative today anyway. That's it. You're making now. >>How would you classify those bets? What are the big bets that you're making right now? Listen, >> I think there's, um, a handful of them. I like to think of things as no more than three to five. We're making a big bet. A multi-cloud. Okay. The world is going to be private, public edge. You and us have talked a lot about VMware. AWS expanded now to Azure and others. We've a big future that private cloud, public cloud edge number two, we're making a big bet on AB motorization with the container level 10 zoos. I think number three, we're making a big bet in virtual cloud networking cause we think longterm there's going to be only two networking companies in matter, VMware and Cisco. Number four, we're making a big bet in the digital workspace and build on what we've done with AirWatch and other technologies. Number five, and make it a big bet security. >>So these five we think of what can take the company from 10 to 20 billion. So we, you know, uh, we, we've talked about the $10 billion Mark. Um, and the next big milestone for the company is a 20 billion ball Mark. And you have to ask yourself, can you see this company with these five bets going from where they are about a 10 billion revenue company to 20. Boom. We hope again, >> Dave, a lot that's doing a braking and now he might've already shipped the piece this morning on multi-cloud. Um, he and I were commenting that, well, I said it's the third wave of cloud computing, public cloud, hybrid multi-cloud and hybrids, the first step towards multi-cloud. Everyone kind of knows that. Um, but I want to ask you, because I told Dave and we kind of talked about this is a multi-decade growth opportunity, wealth creation, innovation, growth, new opportunity multicloud for the generation. >>Take the, this industry the next level. How do you see that multicloud wave? Do you agree on the multigenerational and if so, what specifically do you see that unfolding into this? And I'm deeply inspired by what Andy Jassy, Satya Nadella, you know, the past leading up to Thomas Korea and these folks are creating big cloud businesses. Amazon's the biggest, uh, in the iOS pass world. Azure is second, Google is third, and just market shares. These folks collectively are growing, growing really well. In some senses, VM-ware gets to feed off that ecosystem in the public cloud. So we are firm believers in what you're described. Hybrid cloud is the pot to the multicloud. We coined that term hybrid thought. In fact, the first incantation of eco there was called via cloud hybrid service. So we coined the term hybrid cloud, but the world is not multi-cloud. The the, the key though is that I don't think you're gonna walk away from those three clouds I mentioned have deep pockets. >>Then none of them are going away and they're going to compete hard with each other. The market shares may stay the same. Our odd goal is to be a Switzerland player that can help our customers take VM or workloads, optimize them in the private cloud first. Okay? When a bank of America says on their earnings caller, Brian Warren and said, I can run a private cloud better than a public cloud and I can save 2 billion doing that, okay? It turns off any of the banks are actually running on VMware. That's their goal. But there are other companies like Freddie Mac, we're going all in with Amazon. We want to ride the best of both worlds. If you're a private cloud, we're going to make you the most efficient private cloud, VMware software, well public cloud, and going to Amazon like a Freddie Mac will help you ride your apps into that through VMware. >>So sometimes history can be a predictor of future behavior. And just to kind of rewind the computer industry clock, if you looked at mainframe mini-computers, inter networking, internet proprietary network operating systems dominated it, but you saw the shift and it was driven by choice for customers, multiple vendors, interoperability. So to me, I think cloud multicloud is going to come down to the best choice for the workload and then the environment of the business. And that's going to be a spectrum. But the key in that is multi-vendor, multi, a friend choice, multi-vendor, interoperability. This is going to be the next equation in the modern error. It's not gonna look the same as mainframe mini's networking, but it'll create the next Cisco, the create the next new brand that may or may not be out there yet that might be competing with you or you might be that next brand. >>So interoperability, multi-vendor choice has been a theme in open systems for a long time. Your reactions, I think it's absolutely right, John, you're onto something there. Listen, the multicloud world is almost a replay of the multi hardware system world. 20 years ago, if you asked who was a multi hardware player before, it was Dell, HP at the time, IBM, now, Lenovo, EMC, NetApp, so and so forth and Silva storage, networking. The multicloud world today is Amazon, Azure, Google. If you go to China, Alibaba, so on and so forth. A Motiva somebody has to be a Switzerland player that can serve the old hardware economy and the new hardware economy, which is the, which is the cloud and then of course, don't forget the device economy of Apple, Google, Microsoft, there too. I think that if you have some fundamental first principles, you expressed one of them. >>Listen where open source exists, embrace it. That's why we're going big on Kubernetes. If there are multiple clouds, embrace it. Do what's right for the customer, abstract away. That's what virtualization is. Managed common infrastructure across Ahmed, which is what our management principles are, secure things. At the point of every device and every workload. So those are the principles. Now the engineering of it changes. The way in which we're doing virtualization today in 2020 is slightly different from when Diane started the company and around the year 2020 years ago. But the principals are saying, we're just not working just with the hardware vendors working toward the cloud vendors. So using choices where it's at, the choice is what they want. Absolutely, absolutely. And you're right. It's choice because it was the big workloads. We see, for example, Amazon having a headstart in the public cloud markets, but there's some use cases where Azure is applicable. >>Some use his word, Google's applicable, and to us, if the entire world was only one hardware player or only one cloud player, only one device player, you don't need VMware. We thrive in heterogeneity. It's awesome. I love that word. No heterogeneity provides not 3000 vendors. There's almost three, three of every kind, three silver vendors, three storage vendors, three networking vendors, three cloud vendors, three device vendors. We was the middle of all of it. And yeah, there may be other companies who tried to do that too. If they are, we should learn from them, do it better than them. And competition even to us is a good thing. All right. My final question for you is in the, yeah, the Dell technologies family of which VMware is a part of, although big part of it, the crown jewel as we've been calling them the cube, they announced RSA is being sold to a private equity company. >>What's the general reaction amongst VMware folks and the, and the Dell technology family? Good move, no impact. What we support Dell and you know, all the moves that they've made. Um, and from our perspective, you know, if we're not owning it, we're going to partner it. So I see no overlap with RSA. We partner with them. They've got three core pillars, secure ID, net witness and Archer. We partnered with them very well. We have no aspirations to get into those aspects of governance. Risk and compliance or security has been, so it's a partner. So whoever's running it, Rohit runs on very well. He also owns the events conference. We have a great relationship and then we'll keep doing that. Well, we are focused in the areas I described, network, endpoint security. And I think what Michael has done brilliantly through the course of the last few years is set up a hardware and systems company in Dell and allow the software company called Vima to continue to operate. >>And I think, you know, the movement of some of these assets between the companies like pivotal to us and so on and so forth, cleans it up so that now you've got both these companies doing well. Dell has gone public, we Hammer's gone public and he has said on the record, what's good for Dell is good, what's good for VMware and vice versa and good for the customer. And I think the key is there's no visibility on what cloud native looks like. Hybrid, public, multi, multi, not so much. But you get almost, it's an easy bridge to get across and get there. AI, cyber are all big clear trends. They're waves. Sasha. Great. Thank you. Thanks for coming on. Um, your thoughts on the security show here. Uh, what's your, what's your take to, uh, definitive security shows? I hope it stays that way. Even with the change of where RSA is. >>Ownership goes is this conference in black hat and we play in both, uh, Amazon's conference. I was totally starting to, uh, reinforce, reinforce cloud security will show up there too. Uh, but we, we think, listen, there's what, 30,000 people here. So it's a force. It's a little bit like VMworld. We will play here. We'll play a big, we've got, you know, it just so happens because the acquisition happened before we told them, but we have two big presences here. We were at carbon black, um, and it's an important business for us. And I said, like I said, we have $1 billion business and security today by 30,000 customers using us in a security network, endpoints cloud. I want to take that to be a multi, multiple times that size. And I think there's a pot to do that because it's an adjacent us and security. So we have our own kind of selfish motives here in terms of getting more Mindshare and security. >>We did a keynote this morning, which was well received with Southwest airlines. She did a great job. Carrie Miller, she was a fantastic speaker and it was our way of showing in 20 minutes, not just to our point of view, because you don't want to be self serving a practitioner's point of view. And that's what's really important. Well finally on a personal note, um, you know, I always use the term tech athlete, which I think you are one, you really work hard and smart, but I got to get your thoughts. But then I saw you're not on Twitter. I'm on. When IBM announced a new CEO, Arvin, um, fishnet Indian American, another CEO, this is a pattern. We're starting to see Indian American CEOs running cup American companies because this is the leadership and it's really a great thing in my mind, I think is one of the most successful stories of meritocracy of all time. >>You're quick. I'm a big fan of oven, big fan of Shantanu, Sundar Pichai, something that Ellen, many of them are close friends of mine. Uh, many of them have grown up in Southern India. We're a different ages. Some of them are older than me and in many cases, you know, we were falling behind other great players like Vino Cosla who came even 10 to 15 years prior. And you know, it's hard for an immigrant in this country. You know, um, when I first got here and I came as an immigrant to Dartmouth college, there may have been five or 10 Brown skin people in the town of Hanover, New Hampshire. I don't know if you've been to New Hampshire. I've been there, there's not many at that time. And then the late 1980s, now of course, there's much more, uh, so, you know, uh, we stay humble and hungry. >>There's a part of our culture in India that's really valued education and hard work and people like Arvin and some of these other people are products. I look up to them, the things I learned from them. And um, you know, it's true of India. It's a really good thing to see these people be successful at name brand American companies, whether it's IBM or Microsoft or Google or Adobe or MasterCard. So we're, we're, I'm in that fan club and there's a lot I learned from that. I just love being around people who love entrepreneurship, love innovation, love technology, and work hard. So congratulations. Thank you so much for your success. Great to see you again soon as you put in the COO of VM-ware here on the ground floor here at RSA conference at Moscone, sharing his insight into the security practice that is now carbon black and VMware. All the good things that are going on there. Thanks for watching.

>>Live from Las Vegas, you covering splunk.com 19 brought to you by Splunk.. >>Okay. Welcome back everyone. That's the cubes live coverage in Las Vegas for Splunk's dot com user conference 10 years is their anniversary. It's cubes seventh year. I'm John Farah, your host with a great guest here. Joe Partlow, CTO of rely AQuESTT recently on the heels of vying thread care and Marcus, Carrie and team. Congratulations. They'd come on. Yeah. Yeah. It's been a been a fun month. So obviously security. We love it. Let's take a minute to talk about what you guys do. Talk about what your company does that I've got some questions for you. Yeah. So you know, obviously with the increasing cyber threats, uh, you know, uh, security companies had a lot or customers had a lot of tools. Uh, it's easy to get overwhelmed, um, really causes a lot of confusion. So really what we're trying to do is we have a platform called gray matter that is really kind of how we deliver security model management, which what that means is that's bringing together people, process technology in a way that's easy to kind of make sense of all the noise. >>Um, yeah, there's, there a, a lot of features in there that would help monitor the health, uh, the incident response, the hunt, um, any kind of features that you would need from a security. So you guys are a managed service, you said four? >> Yeah. Yeah, a different, a little different than a traditional MSSP. We um, you'll work very close with, uh, the customers. Uh, we work in their environment, we're working side by side with them, uh, in their tools and we're really maturing and getting better visibility in their environment to get that MSSP for newer. >> Right. That's where you guys are. M S S VP >> on steroids. A little bit different. >> Alright. Well you guys got some things going on. You got a partnership with Splunk for the dotcom sock. Oh yeah. Talk about that with set up out here. And what's it showing? Yeah, that's been a great experience. >>Uh, we, we work very close with the Splunk, uh, team. Uh, we monitored Splunk corporate, uh, from a work with skirt team monitoring them. Uh, so when.call came around, it was kind of a natural progression of Hey, uh, you know, Joel and team on their side said, Hey, how do we kind of build up the team and do a little bit extra and I'll see any way that we can help secure.com. Uh, it was really cool. I give credit to the team, both teams, uh, standing up a, uh, new Splunk install, getting everything stood up really in the last few weeks, uh, making sure that every, uh, everybody at the pavilion and the conference in general is protected and we're watching for any kind of threat. >> So it's, it's been great working with the Splunk team. So is that normal procedure that the bad guys want to target? >>The security congresses? This is gonna make a state visit more of graffiti kind of mentality. It's an act kind of lift, fun, malicious endpoints that they want to get out of here. Oh yeah. There's, there's a little bit of a, you know, let's do it for fun and mess with the conference a little bit. So we'll want to make sure that, that that's what happened. So is my end point protected here? My end points, my phone and my laptop. Uh, not the user specific but any of the conference provided demo stations. Okay. So or structure for the equipment, not me personally. You are not monitoring your personal okay. I give up my privacy years ago. Yes. This is a interesting thing to talk about working with spunk because you know, I hear all the time and again we're looking at this from an industry wide perspective. >>I hear we've got a sock, they got a slot. So these socks are popping up yesterday. Operation centers. What is, what is the state of the art for that now? Is it best practice to have a mega Monster's sock or is it distributed, is it decentralized? What's the current thinking around how to deploy Sox surgery operations center or centers? Yeah, we certainly grow with a decentralized model. We need to follow the sun. So we've got operations centers here in Vegas, Tampa and Dublin. Uh, really making sure that we've got the full coverage. Uh, but it is working very close with the Splunk socks. So they've got a phenomenal team and we work with them side by side. Uh, obviously we are providing a lot of the, uh, the tier one, tier two heavy lift, and then we escalate to Splunk team. They're obviously gonna know Splunk corporate better than we will. >>So, uh, we work very close hand in hand. So you guys acquired threat care and Marcus carries now in the office of CTO, which you're running. Yes. How is that going to shape rely a quest and the Europe business? >> Yeah, the acquisition has been extremely, uh, you know, uh, exciting for us. Uh, you know, after meeting Marcus, uh, I've known of Marcus, he's a very positive influence in the community, uh, but having worked with him, the vision for threat care and the vision for Lioncrest really closely aligned. So where we want to take, uh, the future of security testing, testing controls, making sure upstream controls are working, uh, where threats they're wanting to go for. That was very much with what we aligned more so it made sense to partner up. So, uh, very excited about that and I think we will roll that into our gray matter platform has another capability. >>Uh, gray matter, love the name by the way. I mean, first of all, the security companies have the best names or mission control gray matter, you know, red Canary, Canary in the coal mine. All good stuff. All fun. But you know, you guys work hard so I know the price gotta be good. I gotta ask you around the product vision around the customers and how they're looking at security because you know, it's all fun games. They'll, someone's hacking their business trash or this ransomware going on. Data protection has become a big part of it. What are customers telling you right now in terms of their, their fears and aspirations? What do they need? What's on the agenda? Guests for customers right now? Yeah. I think kind of the two biggest fears, um, and then the problems that we're trying to address is one, just a lack of visibility. >>Uh, customers have so many things on their network, a lot of mergers and acquisitions. So, uh, unfortunately with a lot of times the security team is the last one to know when something pops up. Uh, so anything that we can do to increase visibility and that and that, a lot of times we work very closely with Splunk or send that they have out to make sure that it happens. And then the other thing I think is, you know, most people want to get more proactive. Uh, you know, salmon logging by nature is very reactive. So when he tried to get out in front of those threats a little bit more, so anything that we can do to try to get more proactive, uh, may certainly going to be on their, their top of mind. Well, the machine learning toolkits, getting a lot of buzz here at the show, that's a really big deal. >>I think the other thing that I'm seeing I to get your reaction to is this concept of diverse data. That's my word, not Splunk's, but the idea of bringing in more data sets actually helps machine learning that's pretty much known by data geeks, but in making data addressable because data seems to be the one thing that is all doing a lot of the automation that's takes that headway heavy lift and also provides heavy lifting capabilities to set data up to look at stuff. So data is pretty critical. Data addressability data diversity, you got to have the data and it's gotta be addressable in real time and through tools like fabric search and other things. What's your reaction to that and thoughts around that? No, I agree 100%. Uh, you know, obviously most enterprise customers have a diverse set of data. So trying to search across those data sets, normalize that data, it's, it's a huge task. >>Um, but to get the visibility that we need, we really need to be able to search these multiple data sets and bring those into make sense. Whether you're doing threat hunting or responding to alerts. Um, or you need it from a compliance standpoint, being able to deal with those diverse data sets, uh, is is a key key issue. You know, the other thing I wanna get your thoughts on this one that we've been kind of commenting, I've kind of said a ticket position on this gonna from an opinion standpoint, but it's kind of obvious but it's not necessarily true. But my point is with the data volume going up so massive, that puts the tips, the scales and the advantage for the adversaries. Ransomware's a great example of it and you know, as little ransomware now is towns and cities, these ransomware attacks just one little vector, but with the data volume data is the surface area, not just devices. >>Oh yeah. So how is the data piece of it and the adversarial advantage, you think that that makes them stronger, more surface area? Yeah, definitely. And that's something that where we're leaning on machine learning for a lot is if you really kind of make sense of that data, a lot of times you want to baseline that environment and just find it what's normal in the environment, what's not normal. And once you to find that out, then we can start saying, all right, is this malicious or not? Uh, you know, some things that uh, yeah, maybe PowerShell or something and one environment is a huge red flag that Hey, we've been compromised in another one. Hey, that's just a good administrator automating his job. So making sense of that. Um, and then also just the sheer volume of data that we, that we see customers dealing with. >>Very easy to hide in if you're doing an attack, uh, from an adversary standpoint. So being able to see across that and make sure that you can at scale SyFy that data and find actionable event. You guys, I was just talking with a friend that I've known from the cloud, world, cloud native world. We're talking about dev ops versus the security operations and those worlds are coming together. There are more operational things than developer things, but yet CSOs that we talked to are fully investing in developer teams. So it's not so much dev ops dogma, if you will. But we gotta do dev ops, right? You know, see the CIC D pipeline. Okay, I get that. But developers play a critical role in this feature security architecture, but at the end of the day, it's still operations. So this is the new dev ops or sec ops or whatever it's called these days. >>What's your, how, how do customers solve this problem? Because it is operational, whether it's industrial IOT or IOT or cloud native microservices to on premise security practices with end points. I mean, I, the thing we see that, that kind of gets those teams the most success is making sure they're working with those teams. So having security siloed off by itself. Um, I think we've kind of proven in the past that doesn't work right? So get them involved with their development teams, get them involved with their net ops or, or, you know, sec ops teams, making sure they're working together so that security teams can be an enabler. Uh, they don't want to be the, uh, the team that says no to everything. Um, but at the end of the day, you know, most companies are not in the business of security. They're in the business of making widgets or selling widgets or whatever it is. >>So making sure that the security, yeah, yeah, that's an app issue. Exactly. Making sure that they're kind of involved in that life cycle so that, not that they can, you know, define what that needs to be, but at least be aware of, Hey, this is something we need to watch out for or get visibility into and, and keep the process moving. All right. Let's talk about Splunk. Let's set up their role in the enterprise. I'll see enterprise suite 6.0 is a shipping general availability. How are you guys deploying and optimizing Splunk for customers? What are some of the killer use cases that's there and new ones emerging? Yeah, we've, we provide, you know, really kind of three core areas. First one customers, you're one is obviously making sure that the platform is healthy. So a lot of times we'll go into a, a customer that, uh, you know, maybe they, they, there's one team has turned over or they rapidly expanded and, and in a quickly, you kind of overwhelming the system that's there. >>So making sure that the, the architecture is correct, maintained, patched, upgraded, and they're, they're really taking advantage of the power of Splunk. Uh, from an engineering standpoint. Uh, also another key area is building content. So as we were discussing earlier, making sure that we've got the visibility and all that data coming in, we've got to make sure that, okay, are we pursuing that data correctly? Are we creating the appropriate alerts and dashboards and reports and we can see what's going on. Um, and then the last piece is actually taking, you know, see you taking action on that. So, uh, from an incident response standpoint, watching those alerts and watching that content flyer and making sure that we're escalating and working with the customer security team, they'd love to get your thoughts. Final question on the, um, first of all, great, great insight. They'll, I love that. >>As customers who have personal Splunk, we buy our data is number one third party app for blogs work an app, work app workloads, and in cloud as well as more clients than you have rely more on cloud. AWS for instance, they have security hub, they're deploying some of this to lean on cloud providers, hyperscale cloud providers for security, but that doesn't diminish the roles flung place. So there's a lot of people that are debating, well, the cloud is going to eat Splunk's lunch. And so I don't think that's the case. I want to get your thoughts of it because they're symbionic. Oh yeah. So what's your thoughts on the relationship to the cloud providers, to the Splunk customer who's also going to potentially moves to the cloud and have a hybrid cloud environment? Yeah, and now I would agree there's, you know, there are going to exist side by side for a long time. >>Uh, most environments that we see are hybrid environments. While most organizations do have a cloud first initiative, there's still a lot of on premise stuff. So Splunk is still going to be a, a key cornerstone of just getting that data. Where I do see is maybe a, you know, in those platforms, um, kind of stretching the reach of Splunk of, Hey, let's, let's filter and parse this stuff maybe closer to the source and make sure that we're getting the actionable things into our Splunk ES dashboards and things like that so that we can really make sure that we're getting the good stuff. And maybe, you know, the stuff that's not actionable, we're, we've up in our AWS environment. Um, and that's, that's a lot of the technology that Splunk's coming out with. It's able to search those other environments is going to be really key I think for that where you don't have to kind of use up all your licensing and bring that non-actionable data in, but you still able to search across. >>But that doesn't sound like core Splunk services more. That's more of an operational choice there. Less of a core thing. You mentioned that you think splints to sit side by side for the clouds. What, what gives you that insight? What's, what's, uh, what's telling you that that's gonna happen? What's the, yeah, you still need the core functionality of Splunk running with spark provides is a, you know, it's a great way to bring data and it parses it, uh, extremely well. Um, having those, uh, you know, correlate in correlation engines and searches. Um, that's, that's very nice to have that prepackaged doing that from scratch. Uh, you can certainly, there's other tools that can bring data in, but that's a heavy riff to try to recreate the wheel so to speak. We're here with Joe Parlo, CTO, really a quest, a pardon with Splunk setting up this dotcom SOC for the exhibits and all the infrastructure. >>Um, final question, what's the coolest thing going on at dotcom this year? What's, what should customers or geeks look at that's cool and relevant that you think should be top line? Top couple of things. Yeah, I, I, uh, one of the things I like the most out of the keynote was, uh, the whole, uh, Porsche use case with that. The AR augmentation on my pet bear was really, really cool. Um, and then obviously the new features are coming out with, with VFS and some of another pricing model. So definitely exciting time to be a partner of Splunk. Alright, Joe, thanks for them. John furrier here with the cube live in Las Vegas day two of three days of coverage.com. Their 10th year anniversary, our seventh year covering the Silicon angle, the cube. I'm Sean furrier. Thanks for watching. We'll be right back.

>> from Austin, Texas. It's Theo Cube, covering your storage. Accelerate 2019. Brought to you by pure storage. >> Welcome back to the Q B. All the leader in live tech coverage. I'm Lisa Martin with David Dante. Couple of gents back on the Cube we have on Stuart the VP of technology for pure von. Welcome back. >> It's great to be here. Thanks for being accelerate. >> Were accepted severe. And we've got Carrie Stanton, VP of Global Biz Dev and corporate development from Theme Carrie, Welcome back. Thank you very much. I'm in the rain. I love the love it planned. Of course. Thank you. Very good branding here. Lots going on with theme and pure. Let's secure. Let's go ahead and start with you. Talk to us about the nature of the V Impure partnership. I'm assuming better together, but give us the breakdown. Sure, >> we've had a relationship for many years, but over the past three years we've seen it. You know, this year, counting this year, like the scale out is just unbelievable. We're growing at triple digits on our Cosell winds in the field, all of its writing, all of the predominantly being driven from the flash blade success that we've had in the marketplace, Our customers are buying into the performance that they have. Our our relationship is growing through joint innovation and joint development. And so what we've seen is raising them to a global partner, on having dedicated resources on it, as only amplified our success. We have. So yeah, it's fantastic. >> And then one from your perspective, what are some of the things that you are hearing? Are you guys being brought in? Maur from team customers is being being brought in more from pure side. What's that mixed like >> we've had? We've had a strong set of channel partners that I think promoting our joint solution on our products kind of a top of their line card. Of course, there's always the customer requested to get pulled in, and I think customers who have experienced either one of our products look at their satisfaction. They look extremely it, like NPS scores right and say, you know, if I'm a pure customer, there's a data protection company. That's gotta nps very similar years, you know, tell us more about what you're doing with with theme. If you look at kind of our common ethos. Right simplicity in the model right co innovation Help Dr Scale. Whether it's been through joint A P I integration with the universal adaptor or tryingto lean into next generation architectures like Flash to flash the cloud. It's just been a very easy progressive partnership to drive and bring in a market. >> Talk more about that joint development. Um, there's a start in the field. No engineering resource is I'd love to Have you had some color to that? >> I think I think I think it's >> a combination of. So we'll start with a universal adapter that was beams initiative to help add scale to the back of process to as you're putting virtue machines into backup mode along, you know, leverage these the storage controller snapshots so that you could come in and out of that back about very quick. V, invisible to production operations, offload a bunch of data processing and in time, out of the equation that just helps scale right back up, more virtual machines faster. That's a program that they initiated that we were one of the founding partners on one of the first partners to publish ah Universal adaptor, or R A p i for it. The >> results have been The results are pure is by far the number one partner for downloads for a customer downloads that we have across our partner Rico system. So we have a vote 15 partner Rico Systems that have written to the universal FBI on. So just last week, you know, over 3000 downloads surpassed over 3000 downloads. Here is 6500 customers. I'll let you do the math. All right, so it's it's great that we see such strong adoption from their customer base. Almost 50% of their customers are team customers on. Then that >> contusion. That's hi, >> It's very high. >> Wow. So give me your favorite customer example that really articulates the value that pure brings the value that being brings. >> We've got a lot going on in the financial space in the healthcare space. >> Butler Health is a joint customer that we have a customer reference win that they've published in that we've published on dhe obviously many, many more, but especially in the people, customers in the financial health care that are looking for performance on Dhe. Looking to that flash blade, a za landing zone that's going to give them more than just a backup target. It's going to give them the ability to leverage it for a I and ML and many other factors, which is again, one of the reasons why we've seen such strong adoption. >> You talk about health care, we're talking about patient data, lives at stake. Give me some of the meat about what this customer, for example, is achieving at the business. Subtle and the human lives level >> Well, I think what they're seeing is of what they were used. It's not so much the exact stats that I could give you down to how money they're getting per second, but it's what they were using before, which is one of the legacy competitors that we have, which we call. You know, some of these donors that they give to market share that we take away day in and day out with without saying names. But there was a reform replace that we came in and taking a second generation solution from a legacy hardware appliance that was being used previously in a secondary storage. >> Yeah, allow me to elaborate a bit, right? So you asked about the technology we kind of talked about the universal adapter for the off load where we've really seen growth has been in this notion of flash to flash the cloud and peers introduced this notion of rapid restore. So again, how do we grow our businesses together? Growing amore mission critical or patient? Critical deployments has been this notion of not just backing up the data faster. That's kind >> of the the >> daily repetitive task that no organization wants to to deal with. Where the rubber meets the road is Can you put the data back? And we've seen this explosion in the increase of of the capacity of data, set sizes and the pressure they put on restoring that data. When you happen to have, ah, harbor failure, a data center go off line or a power issue and this goes so you go back to patient records gotta be online when everything fails and there's an issue with a chair, whatever. Maybe how quickly can we get the data? And we're orders of magnitude faster, then the legacy >> platform. So having an integrated appliance is part of that key and co engineering. Is that right? I mean, you guys pure software no pun intended, right? You don't want to be >> No, no, it sze taking the they wrote to our a p I right So the work that they did on the FBI and then continue to innovate and iterated against it right and coming out with the next version that they just come out with it is, is just differentiating themselves in the marketplace. And that's really what we're seeing. And we're seeing that success that the enterprise today, from what we have without even looking forward to our upcoming V 10 which is gonna have some high end enterprise feature sets. >> And we want to get into that. But something that mom that you were just saying It's almost as if data protection is no longer just an insurance policy. It's an asset. We have to be able to get it back. >> Absolutely fuel, We believe if you look at the legacy backup appliances, they were designed and optimized for short backup windows and are proving to be a challenge at restoring the data, which is actually where the value in the architecture is. We've talked about rapid restore in bringing, flashing that space. We worked with team engineering on V 10 actually double that performance so that customers, as they upgrade their code line, can again bring those mission critical workloads back online even faster than in the past. In addition to that, we've worked through some of the VM integrations for customs who want to mind that data who want to clone those workloads and bring them up on online and ADM or analytics or searching the metadata of that data. So there's a lot going on besides just your backup and recovery. >> So you guys are saying, Chuck, the appliance don't need the appliance. You've got a better model. Is that what I'm hearing? Or >> we win against appliances day in and day out? So absolutely software. Best of breed software. Best of breed storage hardware. >> What should we expect for V 10 adoption there? You guys announced in the spring? >> Yes, and it will shift in Q four. Dave, honestly, this is gonna be Anton is gonna shit >> a good track record. They're gonna go out there. >> No, but we have some key features that will differentiate us in the marketplace, especially as we go to the enterprise with pier storage, such as immune ability right, So that's a feature that we've talked about. You know, we've been hyping because we believe in it that what it's gonna bring for the protection of ransom, where malware and it's it's gonna be a game changer. We believe in the marketplace and our famous now, as they were finally gonna support now support for their enterprise customer base. So, I mean, those two keep features in and of itself. So again, I talked about the scale that we're having today in the marketplace without these key enterprise features and then having those chip, you know, in the next 90 days are again we believe just gonna continue to elevate our business. >> We're talking to Charlie earlier today about just a CZ. Part of his job is tam expansion and data protection is an obvious area for that. You could have chosen to go buy a small software company, certainly have the cash on your balance sheet and compete. We have chosen to partner talk about the opportunity that you guys jointly see in terms of the market you can penetrate. >> I think it is such a Our ecosystem is so comprised today of partnerships that are based on. On one hand, you're partnering, and on the other hand, you're competing that it is. It is really refreshing to find a partnership like Veen, where we've got very clear lines of what our product offerings are, where they come together and no competitive obstacles. It makes partying in the field the easiest, right? We've got great partnerships across the board somewhere. Appliance vendors. Sometimes those partnerships work fast. Sometimes they running hurdles. We never run into a hurdle together, so it's worked very well. I think our partners, our channel partners, have preferences around the server side that they like to go to market with. We give them the freedom together to pick and choose. So they put invested class software with best class storage to to meet the needs. They put the rest together based on what fits their business model or their current agreements go forward. So >> clear, clear swim lanes, Big market. You guys showed some data at V Mon. I want to say Danny's data, maybe $15 billion Tim man larger. You guys get a piece of that, you get a piece of that >> on a savant said. It's just there's no there's no friction in the marketplace is going out and doing the work we need to do to win. But we never get it that Oh, we can introduce this because it's gonna compete with, even if it's only 2% of what they have, there's there's looting. No, they do not have data protection. And we don't do as, you know. We don't do hardware in storage. So again invested breeds. And I >> think those numbers maybe even conservative because, you know, as you were pointing out, the traditional backup products were designed to deal with the biggest problem, which was back up window, which, by the way, 60% of times the backup didn't work anyway. But you have to get inside of, you know, Yeah, we backed it up check. But backup is One thing is my friend Fred Morris. Recovery is everything. So things are shifting in a digital business recovery. You know, it is tantamount. You know, ever you can't ever not be without your data. So it's an imperative. Yeah, >> it's, um, when you're and the flashlight business unit first came up with the construct of a rapid restore. I mean, admittedly, I was sitting in the corner. I'm just saying there's no way. There's no way that a customer would look to pay a premium for Flash for their backup. And then you meet the customers and it's just one after the other. And there's these stories around. We had to stop production. We couldn't get the AARP back online. Right Way couldn't take transactions because the processing database of the purchasing database was off line and you're just sitting there going. These are really world right issues that impact revenue for organizations. And so we are going through an evolution about rethinking around data protection and what it means into in today's day and age. >> It's security. Such top of mind carry today on the CEO's mind and data protection is part of that. Backup is a key part of that. You think about Ransomware, right? You guys get solutions there. I mean, it all fits together. It's not these sort of bespoke, you know, ideas anymore. It's really one big mosaic so that people can drive their digital transformations. I mean, that's really what they care about. >> I think the themes, old slogan, it just works right. It continues to evolve and that you talked about backup not working in the first place, right? So we have our core fundamental foundations. That theme has right is that it will trust that the customer will know that it will be online. We have the shortest r p o r t o is right in the marketplace, and then you take that and the's enterprise class features again. That's why marrying it with Piers route to market and there go to market strategy is having the success we're having in the marketplace. >> You're hearing a lot from customers. Flash Flash MacLeod. This is There is a very strong need for this. Some of the things that were announced today terms up some more firsts that piers delivering to the market. What are some of the things that you guys were? You maybe Carrie. We'll start with you from themes partnership perspective like a flash Teresi, for example, or starting to be able to deliver. I saw Blake smiles, uh, be ableto bring the cost down so that customers could look at putting a spectrum of workloads, even backups on flash. What is themes? Reaction? Well, smiles. I tend to >> do with Lisa, but I mean, to be honest with you. We sit back and love everything that piers doing from innovation. And so if they're going to come out with a broader set of target solutions for secondary storage, then we're going to be there partner there as we are with flashlights. So we're sitting back and loving the innovation that they're bringing to the market place and to their customers. >> I saw that Cheshire cat grin von >> s o for the audience who may be missed. We had a number of product announcements this morning taking the flash ray from a single product line into a portfolio going to that two year zero workload with the direct memory cache acceleration powered by Intel's often products as we go into a chair to economic space but still keeping all the Tier one features and availability we not flash or a C, which is leveraging QSC is a storage medium. Uh, while we have a design, do expand our tam and find new workloads. We have not looked at backup for the flash rate. See, at this point the flash, the flash, the cloud powered by the data hub in the rapid restore is going strong, so you want to kind of keep the team focused on that? And we've got other markets that we have yet to penetrate that have been more price sensitive where we think the flash racy is a better alignment. Now again, maybe over time I'll be found wrong and we'll change our tune. But you know, I'll give an example. Go back to Ransomware. Ransomware is a top three question in terms of any storage conversation. When you deal with a financial institution today to the point where not only are they asking about, what are you doing in your products? What are you doing across your partner ecosystem? Some of the modern proof of concepts required it to go through a ransomware recovery procedure because you know these financial institutions, they're worried about getting not just locked out, but locked out on your H a sight because you just replicated the ransomware over. So this this ability have immutable, immutable image to bill to bring it back online fast a rapid restored somewhere. You could see what these technologies start to line up in a comprehensive solution for the customers, and so flash racy is great. It has nowhere. The band with a flash blade. So we're gonna try to keep those a separate products in different markets at the time. But at least for time being, >> thanks for clarifying >> that cloud. I gotta ask the quad cloud question. It's interesting you guys have both embraced. Cloud is you're seeing it. In the old days, I was saying, I think I'm saying Charlie again. Executives were like, No, don't do that. It's gonna kill us. But now it's okay. It's not a zero sum game. That trend is your friend. You gotta embrace it. How are you making cloud each of you a tailwind versus the You know what all the analysts expect ahead, What else gets going? Zero sum game is going to steal from a to B. >> Well, I mean, Dave, you can imagine from my vantage point, it's easy to say that we're looking at Cloud is just, you know, expanding the TAM, expanding the ecosystem features we have today at the archive here. The success we're having with both Microsoft Azure and eight of us are phenomenal. Growing 40% month over month, right, the adoption with all the new innovations that Danny and Antonio have talked on the show that were coming out with envy. 10 are only gonna amplify that. But it all starts back with our partners ships today that we have one private clouds and as customers are looking to evolve to the cloud So we work with our partners like peer to ensure that we're working with them today. And as customers want to embrace the cloud they can. But predominantly, those primary workloads are still remaining on Prem and they're looking on how they're going to support the cloud. And we're doing that today and we'll be doing that. Maura's we go forward >> block storage announcement you guys made today was quite interesting way now spinning up East End shoes and s threes And what >> So this morning we announced general availability for pure Claude Block store on AWS and plans, as we are currently in beta and development for other clouds. But the folks today is this AWS and you pair Claude Block store, which is basically the software of a flash ray architect for the hardware inside of a W s so that you have the same functionality and service that you have on Prem and you pair that with pure is a service, which is our op X moderate could pay as you consume and the flexibility of sign a 12 month contracts. You want 90% on Prem today in 10% of cloud two months from now, you want it 50 50 like used the utility model to consume wherever you want, so you can meet the requirements of your infrastructure, whether it's on Prem in the cloud or some hybrid combination. >> But the interesting thing to me was your doing a lot of the heavy lifting for the customers with regard to the architecture. What you architect in the club that I wonder. Is there an opportunity to do something like that with backup? Or is that just, you know, not economical, deep, deep archive, things like that? I mean, >> I'm pretty sure we're told not to make any news right now because >> stay tuned. I've already said >> too much, so I'm probably a >> good thing. We're live >> in big trouble. >> Wow, guys. So the 1st 10 years of pure, tremendous amount of innovation is, Charlie said, an overnight success in 10 years, so much more coming down. We've already heard about a tremendous amount of innovation and evolution today. So we can't wait to have you guys back on to the next event in here. Get our neck braces on for the whiplash of news that's gonna be coming at us. All right. We are like your day Volante. I'm Lester Martin. Go pats. >> You're sorry. And Bruce. Carrie and I were crazy >> sports fans. Let's just be very PC. Go, everybody. Everybody gets participation. Trophies just coming anyway. You're watching the Cube. Lisa Martin for day, Volante. Thanks for watching.

>> from Austin, Texas. It's Theo Cube, covering pure storage. Accelerate 2019. Brought to you by pure storage. >> Welcome back to the Cube. The leader in live tech coverage. Lisa Martin and David Lantz wrapping up day one of our coverage of pure accelerate. 2019. Howdy. How do y'all Hey, I >> think I started a trend. >> I think you did. So, Dave, this has been a dice shot out of a cannon. I think, as only you know, pure does. Well, we had lots of conversations. Lots of news this morning, Which was nice to hear. As pure welcomes their 10th anniversary in a couple of weeks. We talked with customers. We talked in many different industries partners, Puritans. Lots of innovation has occurred in their 1st 10 years. Charlie got up on stage this morning. Then he came to the Cube and talked about this modern data experience and the 10 X improvements and many things that they're gonna deliver. Not in the next 10 years. In the next few years. >> Yes. So we're seeing a story of growth here. It's a theme. If you look read yours press releases, they start The first line is the only storage company that's growing, which is true, at least the storage company of size of a billion dollar plus storage company and talking a lot about modern storage. To me, it's a story of entering new markets their second decade tam expansion into new ai ai workloads. Certainly the cloud trying to make the cloud of a tailwind. We have just heard from Carrie Stanton of'em Data protection is an area. You know, years ago, Uh, I remember talking to executive at Netapp Tom George and saying, Hey, we're gonna buy ah, storage backup cos you know, we're gonna preserve our partnerships with whomever con vault and Veritas in vino, whoever they're working with time and you see pure taking a similar strategy E M. C at the time did something different. They vertically integrated. They they bought a company called Llegado. They integrated into compete. And of course, now they're that sort of their stack. And so, if you were small enough now still close to $2 billion at the at the end of this fiscal year that they don't have to necessarily vertically integrate, we'll see 10 Next 10. That's the third decade, what happens there and in the customer input you're seeing. Customers are continuing to invest in pure. They're very happy. What you've seen, Lisa is customers look at pure is shifting. And I said this on the Cube earlier shifting labor in tow. Pure czar and D. Now the hyper scale is like Amazon. They'll spend time of engineering time to save money. I t practitioners of the enterprise. They'll spend money to save time and so they will happily spend money on on products if they can lower the IittIe labor costs. So totally different mindsets and you're you're seeing that's taking hold and pure really has done a great job of that. Now, as I said in my my breaking analysis, you know, a couple weeks ago, analyzing the vendors pure, clearly growing. But these things go in cycles, right? There's hard compares. You're going to see. I guarantee you're going to see these other companies, you know, chewing their models. They're big, pure talks about 10 X. The reality is, you know, Delhi emcees 10 x the size of pure right, so they throw a farm or cash on. So if you're a big whale with a big install base, that's what you do, You mind it If you're pure and you're smaller, you're 1.51 point seven billion. You go hunting. And that's the dynamic worse we're seeing. I don't see that changing dramatically for quite some time until the economy shifts and in the mindset shifts and when. Then we'll see how pure adjusts its business model from, perhaps growth to more profitability. >> And speaking of growth, they're just coming off a very successful second quarter where they announced last month in August, 28% year on year, both adding about seven that new customers a day. A lot of that attributed to innovation and the channel. They did a good job in the last 18 months or so of pivoting. They're smaller medium customer business to the channel, allowing peer to focus on much more enterprise focus. And they actually I think, even in queue to close 50% more multi $1,000,000 deals this last quarter >> and well, and while those seem like great numbers, they actually the stock got hit after the quarter. Why? Because they lowered guidance. Why, Because of this NAND pricing confusion, Nan pricing drops so fast in the quarter faster. They expected it sort of hurt revenues a little bit. They expect that that softness that continue. So they've been conservative going for it. You know, who knows of this smart to be conservative cause I wouldn't say that they're sandbagging. I say they're being conservative, you know, makes a bigger question. You know, it's storage kind of a crappy business, and we'll see. I say, that is, if you're gonna win in storage right these days, you have to gain share. Pure is gaining share della. 0% growth appears to be gaining share 0% growth. It's not a great market. So what's happening, we don't really know is cloud siphoning off demand for the traditional on Prem surgeon Could be. Can these companies make cloud a tailwind or is cloud a zero sum game? I tend to think long term, the Maur cloud, the worse it is for on Prem. So that's why everybody's scrambling for this multi cloud strategy, which is very, very early days. Multi cloud today is largely a a symptom of multi vendor versus you know, a coherent user strategy with right we're management's. Now the Big Five are trying to change that pure is playing its role. Companies like Veum and others are playing their role, so we'll see how that plays out. I do think there's a clear opportunity and multi cloud, but, um, it you know, it's unclear how large that is or whether it's just going to be a series of horses for courses. In other words, the right strategic fit for the right workload. >> So your thoughts on the evolution of their AWS partnership really looking at what they're now doing with eight of us as this bridge toe hybrid cloud customers of choice on from hosted, you know, as a service public cloud your take on this forcing function of bringing pure and AWS together of the customer base. >> Yeah, I think it's actually pretty clever. Move by pure take their engineering. It's okay. We're gonna settle, do all the heavy lifting set up AWS with e c two priority E. C. Two instances networking we're gonna mirror. We're gonna the architect of the basically block storage inside of eight of its front ending s three, which is the cheap object store? Pretty innovative. What it does is it gives customers an option for hire availability block storage that looks like pure but runs on AWS in the cloud. Very clever. And so all the advantages of OPEC's versus cap ex. You know the cloud experience, but it's the pure management experience. Eso very clever. Give pure customers who were happy. An option is there. I'm sure they're hearing from the customers. Hey, we want to go to the cloud where we heard it from the the eight of us Speaker today. Gardner Data. 88% of customers have a cloud first strategy, but 86 continue to spend on print. Right? Okay. So smart by pure to do that, I don't know how big a business that's gonna be, but it's a nice hedge. In case that really, that trend takes off >> and your thoughts on one of the other announcements today. Another first rip your We've talked about that the number of times they have there been first in a lot of things in the last 10 years transitioning offering most of their portfolio as a service and your perspective against the other competitors that you mentioned. How do you see that? >> Yeah, you know, the first your lips, they're bigger than the small companies that people have never heard of, like Zadar, a storage who actually were probably one of the first. But but they're the first again $1,000,000,000 plus company to do this. That's what customers want Customers want. The cloud experience in a big part of that cloud experience is a pricing model in the utility model. That's cloud like when AWS announced outposts, it was a clear sign that the industry had had to respond. I'm not saying this is a response to Outpost, but it's clearly a response to the cloud model so paid by the drink. You know, Op X versus cap packs of being able to have that cloud pricing model and experience across the portfolio is goodness. >> So Charlie, their CEO, talked about this morning, this modern data experience going into the next decade, it's gonna be three. Us is simple, seamless, sustainable. We all want that. I think for anything in life, your take on that from marketing to reality >> I see is anything but simple. Let's be honest. It's seamless is probably the most overused word in a >> knot. I think in future proof >> it's the chance to say that and sustainable >> eh? Well >> sustained from the standpoint, what I love about the model is way. Heard this in the customer today. Well, you know, the five year TCO was kind of a wash, but then beyond five years, it was a no brainer because we're now in that subscription model. So I guess that's that's the sort of sustainability you think its sustainability in different ways. You know, green, I t >> right >> again. I t is not really green. So, you know, good marketing. >> Well, we heard from I think we had three or four customers on today with four to legal firms, one in New Zealand, one in the States we heard from a utility company out of Tulsa, Oklahoma, and then Mercedes AMG, Petunias Motor Sport. Formula One free, very different industries, similar stories in terms of the management simplicity of pure the evergreen model of being able to swap out and take advantage of those innovations and the things that Piers is doing the r and d on from a cost perspective. But I think those were three kind of common business and I t benefits that I heard articulated by three very different industries of very different sizes. >> I mean, I think it's important. Remember, you get a really effusive commentary from the pure customers, and I'm not trying to B B negative on that. They're very, very clear that companies like pure Nutanix cohesive the rubric wien. They have great customer experiences, and they're different than what companies air used to buying very often. Having said that, when we get these, when we get into these, you know, benefit, cost benefit discussions Typically you're you're you're comparing a modern, you know, circa 2019 platform with something that's, you know, five years old, so you better have a significantly better metrics again. Having said that, you're seeing a different experience, and that's clearly coming through in the customers that you talk to with pure. They started with a clean sheet of paper, didn't have a lot of technical debt, not a lot of baggage, that alone some really smart people that, you know, in Silicon Valley, you know, inundated with all this cloud stuff, and then they brought it forth very hard to build a billion dollar storage company. Pure was the 1st 1 since Netapp. So >> that was a couple of guys going >> to do it compelling couldn't do it. Equal logic couldn't do it after you've never heard of half of these companies, right? It's been it's been many, many years, decades since you saw a billion dollar storage company. That's how hard it is and to achieve escape velocity and fewer did it, which is quite a feat. And now that now the challenge is their market cap. It's so large that four and 1/2 1,000,000,000 and growing right ostensibly that they may be become acquisition proof. Okay, that's a good thing on the one hand, cause we love independent companies. On the other hand, at some point, the Tam Tam expansion within that little niche gets very difficult. That's why, for example, e M. C. Had to go out and buy a company like Llegado, and it made some actually, you know, some other crappy Apple acquisitions that didn't work out. And then they stumbled into VM, where it was gonna part of a TAM expansion strategy, and they lucked out because they the greatest acquisition in the history of I T. But I guess my point is at some point, a billion dollar company becomes a $2 billion company. Maybe give becomes a $5 billion company, and then it's like, OK, what do we do next? How do and you're seeing that app is in there now. Netapp is a growth challenge, Um, and a Tam expansion challenge. But it's too big to get acquired. There were years for their. For years. There were rumors about Cisco required, kept the stock up. It never happened. So stock buybacks tuck in acquisitions, you know, refresh of the portfolio, squeezing out a little bit of growth, some bad quarters. You know, that's That's the nature of the big company so pure at some point we'll hit that, but I think we're a couple of 1,000,000,000 away. >> They have also done a robust job of building a robust partner ecosystem. We talked to a number of them today, Cisco in video we had on the team. Tomorrow's Blanc is on in terms of this growth that you talked about, How well positioned are they with with the strategic and technology partnerships that they are not only building but evolving quite quickly? Where does that factor into your thoughts about their future in the next decade? >> I think, um, I think the key to that is their architecture. In terms of their AP, I, uh, framework. It makes it easy to integrate. Wait, Um and to the extent that they continue to grow, the customers buy their products, loved their products. The high end p s scores all that stuff, it's easier to have a NPS score when you're a billion dollar company is when you're, you know, $50 billion company. But are you with a big portfolio? But customers, clearly you're has momentum. People want to be with a winner. If yours a winner there. Architectures easy to integrate. Relatively speaking. Thio, You know the legacy vendors and it's clean across the portfolio. And so that's that's why I think the ecosystem continues to grow. I'd like to see more growth, you know, I remember service now when they were a billion dollar company and thinking, Wow, it was about this size, you know? Now you go to service now. I mean, you see the big, uh s eyes. You see a lot of niche players bumping into him or jumping up. I'd like to see that here, and I think it will continue. >> Well, this is certainly ah good chunk larger than last year's accelerate, which was about a year and 1/2 ago. And look where we are, Dave, We're in Austin. This is Dell's backyard. This is a bold company. I was telling you earlier today when I was doing some research for our guests, something that catches my attention as a marketer that many companies cannot d'oh and that is very bold and very direct against their competitors and tell customers this is why you should be buying us. I applaud that as a marketer, and as somebody who gets to interview folks on the Q, because it's hard to do. They have this bullish culture that they've always had, and they have grown in the last 10 years. We're seeing expansion, and we're seeing them not afraid to tackle anybody that their customers are looking at. >> So I want to talk about some of the industry dynamics as well. The I T industry loves a vacuum, and I think in some respects the acquisition of the EMS see by Del created a vacuum and pure is taking advantage of that now. For a while, Gel took its eye off the ball and was storage business was affected, and then they got their act together. And now it's 0% growth. It's it's Yeah, okay, I'd like to see better growth there, but they've been doing a lot of work, and pure is referenced this and some of the pressure. This is Dallas consolidating its portfolio, which is exactly the right thing to do. Deli emcees Portfolio is way too complicated, but you have to be careful. You can't just consolidate overnight because you're alienating your customers. So there's still some of that going on. The linchpin of Del strategy is VM wear. That is the key. That's where the future is for those guys. So when AMC was an independent storage company, it would fight tooth and nail. You know, Jeremy Burton was gonna take out net app, and he didn't do it. You have all these crazy videos and they, you know, they were focused, competitive oriented company that loved its customers and was very customer focused in many respects. I mean, they're still competitive, very competitive, but they're not that independent, pure play anymore. It's now it's netapp and pure, and I feel like net episode distracted, you know, with some of the struggles that pure is really, you know, has an opportunity. You know, I I remember Scott decent years and years and years ago told me when they were nobody said We think we could be the next TMC in storage. And I was like, Really? That's a amazingly bold statement when it appeared that the storage industry was kind of disappearing and everybody was getting acquired and it was becoming this vertically integrated converged infrastructure player with storage and networking and service. And that still may happen. A cloud, everything else, Um, but, you know, if you're has an opportunity to really become the leader in in this business in, you know, has an opportunity become the number one storage company takes some time, Uh, for a while. I question is, it doesn't really make sense to have independent stores, But you still see a lot of innovation. Certainly the backup vendors startups, you know, you see smaller companies, VC money still coming in back to something you said earlier. I t generally, and storage specifically really isn't simple. It's very complicated, and it's very hard. >> Well, Dave, we have had a great first day. I'm excited to work with you tomorrow. We've got cause coming on. Kicks coming on some more customers. Lots of good stuff in store for day two. >> All right, Cool. >> Likewise for David. Dante. I'm Lisa Martin. You're watching the Cube, the leader in live coverage.

>> from our studios in the heart of Silicon Valley, Palo Alto, California It is a cute conversation >> live in. Welcome to a special cube conversation here in Palo Alto. The Cube Studios. Jon, for your host. We're here with a special panel. Talk about the new brand of tech leaders in this era of cloud computing data. Aye, aye. And engineering excellence with us. We have Christine Heckart to CEO of Scaler J. P. Krishna of Marthe Moorthy. These s VP of engineering a Copa software and Patna saying, VP of engineering a glass door. Guys, welcome to come the Cube conversation. Welcome, engineer. And you guys are all running engineering organizations. You've been a former engineer now running a big company CEO, engineering led company. This is a big trend that's clearly defined. No one needs any validation. Cloud computing has certainly changed the game, eh? I certainly the hottest trend with respect, the data machine learning and the benefits. They're changing the cultures of companies changing how things were built, how people are hired. You're starting to see a complete shift towards old way and new ways. I want to get your thoughts about the engineering opportunities. What is engineering excellence today mean in this modern error? >> Well, for us it we talk a lot about mastery and setting up an environment where engineers have a chance to build their own mastery. But they can also have the necessary tools and technologies to be master of their domain. And these domains, especially if it's cloud base. They're very distributed. They're very, very fast moving. There's a lot of continual risk s so you have to set them up in the right way so they could be successful. >> What's your thoughts? I mean, you guys air cutting edge startup? >> Yes. For us, it's very important that the environment, the working moment for engineers, is organically inspiring. And what I mean by that is when every engineer no, why are there what are they doing? Well, how their work is impacting the company in the business initiators. At the same time, we are making sure that their interests are aligned with Albert projects and work in a way that we are also in a healthy, very extending and stretching their skills when their work has a purpose. And that's what our mission is, which is we want to make sure that everybody finds an opportunity where they feel there's a purpose that its purpose driven, that's when we feel like it. That's a great environment where they will be inspired to come every day and deliver their 110% >> J p excellence and engineering. I mean, this is what people strive for. >> So excellent points from both off them and I. I think I have a slightly different take on it as well. Today's business is we are asked to respond really, really fast, maybe hear the tongue a gel everywhere, John, right? So it's about how do we respond to the needs of the business as quickly as you can On dhe, it becomes the mantra for the organization. Having said that, there is another side to it. The dark side is technical debt. That's something we all have toe grapple with because you're moving fast, you're making decisions. You're hoping things all right, You want to prove your thesis out there, but at the same time, you don't wantto put yourself behind so that it might come and bite you later. So it's finding that balance is really, really important, and that becomes the focal point of the organization. How do you move fast, but at the same time Hold it. Oh, do you not slow yourself down in the >> future? That's a great point. I want to get probably your thoughts. That's because open source has been really a different game changer from the old way to the new way. Because you could work with people from different companies. You can work on projects that a better man for other people as well. So it's got a communal aspect to it. But also there is an element of speed the same time agile forces, this kind of concept. So technical debt. You want to move fast, we gotta recover. You kind of know how to get there. How is open source? Change that in Europe in >> well, number one thing that opens and allows all smaller company especially but more companies is that now you you can take on an open source project and start rather starting from ground zero. You can start somewhere where you know it's already helped, and you have a framework ready to start working on. So you're not every two single time we're building our thinking off a new idea you're not starting. Okay, Now let me school start from ground up, right? So you already are at a certain level, the second area where, like you said, you know, we're a Joe. Uh, we have open source, but we also have certain level of customization that the customers needed our application needs. And that's what inspires engineers as well, which is taking the challenger for K. We have a code based. Now let me build something more interesting, more innovative. And then what they also love is giving back to the community. It's we're not. The companies are not just tech community engineering team. We are have a bigger engineering community now, the whole tackle, and that's what makes a big difference for us working in Silicon Valley to even be part of that and contributing factor. >> J P Talk about technical debt when it comes back to the modern era because you can go back to It's been around for a while. Technical dead concerts, not new, but it's always been kind of the water cooler come with core lead engineer and the team. The Aussies have a term called feature creeping. You know, the old days. I don't get it. The feature creep. Actually, it kind of takes it away because of you. If you're applying technical debt properly, you're managing the velocity of the project. So the question is, how is technical debt evolved to the management levels of senior engineering managers? Because that seems to be a key variable in managing the speed and quality of the teams with managing the table. Done. Now, management is what some other conversations. >> So the game depends on the stage of the company Onda stage of the projects you are. If you're in a really mature suffer environment, very you're not making a lot of change. It's OK. It's not the primary conversation off the topic. But if you're trying to you capture a market or promote an idea, it becomes the fundamental thesis, forgetting things out there quickly Now, getting things out there quickly doesn't mean you get to let users suffer. You had to build it in the right way, needs toe work, but at the same time it needs to be just enough so that we can We can get the feedback from from the user's on. At the same time, you probably would have left out potentially features on. Maybe you didn't even make certain decisions on Let's say, hi availability or our scalability. Maybe you wanna prove it out in only one region of the world and so on. So you have to find those balances, and it becomes part of the planning conversations right in the front. And as you go into the further iterations of the product, it becomes part of the prioritization conversation of the product managers because it's not just about getting one part done and getting it out there. But as it reached the full level of maturity that you would want, >> I'm sure there's a lot of debates about an engineer organizations because, you know, engineers a very vocal you. Yeah, so you could fall in love with your product of your time to market, maybe taking some technical debt to get product market fit. And that's my baby, though, when you got a re platform or re scale it to make it scale, bringing with your point you mentioned. How do you guys manage? Because this becomes a talent management. People say, Oh, you gotta manage the ECOWAS. But if some people are managing the project in there. They're going to fire over their skis on technical debt. You gotta kind of rain that in. How do you guys manage the people side of the equation? That because it's an art and a science at the same time? What's your thoughts? >> Well, I'll say this, um, supporting al aspects of change, right? That's also is an injury leader. It's a core responsibility and call it a priority for us, not just the technical debt, but also the market shifts. Technology shifts. We have new tech coming in. We have involving in evolving every technology. So how do via dear to and make sure that it's very important that engineering is supporting and kind of coming up with these technologies a tte the same time? We are not just pulling down to their version of grades and all of them, so in a jest, it's it's a core aspect of leadership to make sure that you, as we are supporting these changes, were also making sure that these changes are not pulling us down. So that should be proper quality checks. There should be a proper conversation and roadmap items which is saying that it's not attack debt. It's more of a tech investment, and we are talking about so that we're in lock steps with our business partner and not behind, so that now we're saying Okay, we need a whole quarter to develop new things. So it's an aspect of filmmaking. Sure, team this motivated >> This comes back to culture. Next question. I want to get you guys thoughts on this building. A positive work culture given engineering led organization. Christine, you're leading that now to start up because your own real fast a lot. A lot of engineers. They're probably a lot of opinions on what that looks like. What is the cultural quick? Because this sets the DNA early on for startup. But as you're maturing organization, you gotta track the best talent. And some say, Well, we work on We saw hard problems. That's kind of cliche, but ultimately you do have to kind of have that problem solving aspect. You gotta have a culture what is a successful work culture for engineering. >> So every everybody talks about engineers wanna solve hard problems. I think that's true. But as Pablo said earlier, if you can help every engineer connect what they're doing, every day to the higher purpose. The organization to the problem that you're solving and how that makes the customers like better in our case, were accompanied by engineers for engineer. So our engineers get really excited about giving other engineers in the world a better day. We have taken it one step further recently by starting a peer network because one of my observations coming into this organization is there are so many peer networks in I t. Because it's been a 30 year industry. There are tons of pure organizations for CEOs. There are tons appear organizations for C. M. O's, but there really aren't for engineers. And if we want to help engineers really develop their career and their full skill set and therefore develop into their full potential, it's about more than just training them. It's about giving them context and full social skills and giving them places where they can learn not just from the other engineers in their company, but from engineers across the organization or across the industry at their same level, and maybe from very different industries and maybe in very different environments. So I think in our case, you know, really trying to bring these peer networks together has been one way that we can not only pay it forward for our own engineers, but also help a lot of other engineers around of the industry >> how you guys handling the engineering talent pertaining, attracting and keeping the best now. >> So I think that's where the whole company comes together, in my view. So as an injuring leader, it's not just that I said the tune of my engineering or as to what? That hiring his top priority. It's where the whole company comes together. You're recruiting team to build the stellar interview process. You are, you know, heads of other orcs to make sure that across the board you're helping define a mission for your company that resonates with your candidates who would want to work with you. So it's a collective effort of building a stellar environment for us glass door when one of the few values is transparency and we live and die by it, which means that when someone is higher, they need to see that be within the company. We are transparent, so we'd share a lot of data. A lot of information, good and bad with every single person in the company. It's never, um, hidden at the same time. We build and set up trust in them to say, Hey, it's confidential. Make sure that it doesn't leave the company and it's been 11 years and it hasn't It has never been the case. >> What class door you don't want have a glass door entry on black. Gotta be transparent. That's the culture. Culture matters minutes. Your culture is all about sharing and being open. >> You will see it. So that's what this is, what God goes down spike for as well, right? Building transparency within the company culture and more and more as we see many stories that we have seen for various companies. And sometimes I get a bad story, too, and I get an invitation. Oh, you're from class door, you know. But that helps overall Rios living and working for user's and professionals. >> Cross is big for you guys, >> absolutely professionals who are in this world looking for a job and life because you're spending a lot of time at work. So we want you to get up every day and be inspired and happy about where you're going to work and for that. That's why we have sharing a lot of the insights about the company's from reviews and ratings and CEO data to make sure that when you make your decision of the next move, you are you can be fully trust. You could be fully confident that the date of your sharing the new with that you're making a good decision. >> J. P. Your thoughts. You guys are on a tear. We've got a great coverage of your the annual conference in Vegas. Recent cube coverage. Your company on paper looks like you're targeting one segment, but you have a lot of range and you're technical platform with data. Um, how you guys articulating to engineering? How do you keep them? What if some of the stories you tell them to attract them to join you guys? >> So number one thing is about the talent that we already have in hopes. So people want to come to work at a place where they can learn, contribute on dhe, also for their Carrie Carrie Respert, both inside Cooper and as the lead on coming into Cooper. They look at it and they say, Oh, you have ah, wide variety of things going on here. You're solving a business problem. But at the same time, the technology stocks are different. You're on all the best clothes are there, so that's an easy attraction for them to come in. But also, it's not just about getting people, and how do you retain them on? We've been lucky. That had very low tuition for many years. Right now in the engineering organization, especially in the value, it is a big deal. Andi. I think part of the things that that is the collaboration and cooperation that they get from everybody on. You know, it's an age old saying diversity and thought, unity in action, right? So I really promote people thinking about radius ideas and alternatives. But there is a time for that debate. And once we agree on a solution, we all pulled in and try to make that successful. And then you repeat that often, and it becomes part of part of the culture and the way the organization operates as >> a follow up to culture. One thing that's become pretty clear is that's global engineering. You mention the valley very competitive, some start ups that they get on that rocket ship can get all the great talent. If you will public everyone. Everyone gets rich of one's happy, a good mission behind it, you know, win win outside. Some stars have to attract talent. You've got to start going on here. You might have a good colonel of great engineers, but you have development environments all over the world, so remote is a big thing. How do you manage the engineer remote? It's a time zone base. Does it put leaders in charge? Is there a philosophy in the Amazon? Has a two pizza team is their big thing. You get small groups. How did you guys view the engineering makeup? Because this becomes a part of the operational tension but operating model of engineering thoughts >> I can go first. I think there is a tension between keeping teams working on one problem on not distributing it across the world for efficiency reasons. But at the same time, how do you all owe for continuity, especially if you have a problem in one area? Can somebody else from another region step in in a different time zone continuing? That's always a problem, and then the other one is in a landscape like ours, in which is not uncommon for many, many companies. It is not that they built a lot of fragmented things. They all need to work together. So having a level of continuity within the radius remote centers is really critical on everybody has their own recipe for this one. But the ones that works for us and I've seen that played out many times, is if you can get a set off teams, toe, focus on certain problem areas and become experts in those >> cohesive within their >> within the physical, and then also have enough critical mass within a center that gives you the good balance between working on. One thing. Worse is knowing everything. So so that works for us, and I I think that's that's the way to get out >> of the operating system. It is a couple highly cohesive, >> and you need to have the right technical leaders on both sides and be willing to collaborate with each other >> partner thoughts >> I want to emphasize on the last statement you really need strong good, really, you know, trusted leaders in the location to Canada, then inculcated more bigger team everything Glassdoor groove from one location to four locations in last three years. And one thing that we learned after our first remote location that we started was that when we seeded our new remote location with few people from the original location that hoped start, you know, the similar aspects of what glassware stands for and over core at those and values. And then, as we added, new people, they just can easily just transfer to them so that hope does in a big way. And then he moved to Chicago with the same idea and, of course, Brazil. Now with the same >> knowledge transfer culture transfer, >> it all makes it easy. Even you have few people seating from the original location that was court for us. >> Pop in actually started their first remote office in San Francisco, which has now become their headquarters. So she has a lot of experience. Everyone of scale er's customers globally. You know, we sell the engineer, so we're dealing with with our customers who are dealing with this problem all the time. And in addition to culture, one thing that seems to bubble up regularly is can do you know when they need a common tool set and where they can do their own thing. How do you, you know, balance that and where do you need a single source of truth that people can agree on? And again, where can people have different points of view? >> You're talking sing associates from code base to what could >> be whatever, Like in our case, it's yeah, if you're going to troubleshoot something, you know, where the logs, the truth in the logs, Are you gonna have a single source for that? But for other people, it could be the data that they're bringing in or how they analyze the business. But if you can be proactive about understanding, when is commonality of tools of approach, of philosophy, of data, whatever, when it's commonality going to be what we drive and when are we going to allow people to do their own thing? And if you can put that framework in place than people know when they have the latitude and when they got a snap to grit and you could move a lot more quickly and there's kind of a technical debt that isn't code based? It's more about this kind of stuff, right? It's tool based its process and culture based. And if you can be more proactive about avoiding that debt, then you're gonna move more quickly. >> Videoconferencing. Very, very important. You should be able to jump on a video Constance very easily to be able to connect with someone driving just a phone calls all of these face time, different areas of face time Technology plays a big role >> technology. This is This is a modern management challenge for the new way to leave because it used to be just outsource. Here's the specs member, the old P. R. D S and M R D's. There's the specs, and you just kind of build it. Now it's much more collaborative to your point. There's really product and engineering going on, and it's gotta be. It's evolving. This is a key new ingredient >> because the expectation on the quality of product is so much more higher than competition is so much more. >> And when you know these engineers build in a lot of cases, they have to operate it now. So, like you say, whether it's a free service to a consumer, Aurens in enterprise, the expectation is perfect. No downtime, no hiccups >> and the reward incentives now become a big part of this now. New way of doing things. So I gotta ask the natural question. What's the reward system? Because Google really kind of pioneered the idea of a host 20% of your time work on your own project. That was about a decade or so ago. Now it's evolved beyond that to free lunches and all these other perks, but this has got to appeal to the human being behind it. What are some of the reward mechanisms? You guys see his management that's that's helpful in growing, nurturing and scaling up engineering organizations. >> Well, engineers are human, and as every human autonomy is critical for any aspects of moderation. And that's what please the core level. Then, of course, lunches, matter and other perks and benefits matter. Snacks of pours. Good coffee machine definitely is the core of it, but autonomy of what you want to do and is that the line. But what we want or what we are trying to deliver, and the aspect and the information of I did and rolled this out, what was the impact of it? That new should go back to that engineer who built that. So threading it through to the end and from the start is its very core for everybody to know because I want to know what I'm as I'm going every day. How is it helping >> and we really try. I personally try Thio. Make sure that each human on the team, regardless of their function, that we understand their potential and their career aspirations because a lot of times the the normal ladder, whatever that lander is, might not be right for every person. And people can pivot and use their skills in very, very different ways, and we need to invest in their ability to try new things. If it doesn't work out, let him come back. So you know, we try to spend time as a company for engineers not just in our company, but beyond. To really help them build out their own career, build out their own brands. Engineers more and more could be, you know, on TV shows and doing blog's and building out their own personal brand in their point of view. And that gives them impact. That goes beyond the one piece of code that they're writing for a company in a given day or a week. >> J. P you guys went public stock options. All these things going on as well. Your thoughts? Yeah, >> I just came back from a trip to my newest Dev center in Hyderabad, India. It's funny. I had sessions with every team over there. The number one topic was full >> s >> so excited about food. So there is something primal about food. Having said that, I think, uh, praise and recognition the age old things. They matter so much. That's what I've seen You acknowledge what somebody has done and kind of feedback to elect partner was saying, The impact that it creates, you know, it's it's a lot more fulfilling than monetary incentives. Not that they're not useful. Occasionally they are. But I think repeating that on doing it more often creates a sense off. Okay, here's what we can accomplish as a team. It is how I can contribute to it, and that creates a normal sense of purpose. >> Austin, you guys talked about tools of commonality is kind of key. It's always gonna be debates about which tools, much codes, languages to use, encoding, etcetera. But this brings up the notion of application development as you get continuous development. This is the operating model for modern engineering. What's the state of the art? What do you guys seeing as a best practice as managers to keep the machinery humming and moving along? And what what's on the horizon? What's next? >> Yeah, in my view, I would just say So what's humming and what state of the art I think I is core thio. Most of the systems and applications, the, uh, the core aspect of pretty much every company as you see, and that's the buzz word, even in Silicon Valley for the right reasons, is how we have built our platforms, insistence and ideas. But now let's make it smarter, and every company now has a lot of data. We are swimming in data, but it's very important that we can pick and pull the the core insides from that data to then power the same product and same system to make it more smarter, right? The whole goal for us ourselves is where they're making our platform or smarter, with the goal of making it more personalized and making sure that as users are navigating a project, pages they are seeing more personalized information so that they're not wasting their time there. We can make faster decisions in more rich data set, which is very catered towards them. So smart, so building that intelligence is core. >> And with continues, integration comes, continues risk. All right, so no risk, no reward. And so we live in an era of freemium. Free service is so you know why not take the risk? You don't have to do an A B test. You got digital. You do a B, C D and use all kinds of analytics. So this is actually a creative opportunity for engineering as they get to the front lines you mentioned earlier getting part of the empowerment. How is the risk taking changing the management? >> You know, I deal with class off users were willing to pay money, so I don't know if I can talk a lot about the freedom aspect of the problem. But now there's always desire for new functionality. If you want it, otherwise you don't want it. There's a lot of risk of worsens that's still floating around, especially in the interprets there today. On it is a big tension that you have to deal with. If you're not careful, then you can introduce problems on believing you're operating on the cloud and you're servicing thousands of customers. A small change can bring down the entire ecosystem, so you'll take it very seriously. You're helping others run their business, and that means you had invest in the right tools and processes. >> So you guys are actually Freemium business model, but still engineers. I got a test that they want to take the rhythms. So is it a cloud sand boxing? How is the risk taking managed? How you guys encouraging risk without having people hurt? You don't >> wantto overburden engineers to the point. They feel stifled and they cannot do anything. So there is a right balance. So you know, there are many techniques we follow the. For example, we roll out the software, tow US staging environment so customers can play around and make sure things are not breaking for their comfort more so than for us. But it is an important part of the equation, and then internally, you have to invest a lot of planning. Appropriately, there are the high risk content on the features, and then there are the low risk ones. You want to think about experimentation frameworks in no way be testing and so on and more importantly, about automation and testing. I don't think if a customer logs a bug and finds the problem, they don't want to see it one more time. Ever really have to make sure that those things don't happen when you're investing robust automation around testing processes because there isn't enough time for the complexity of these applications for destiny thing, man, >> this whale automation with cloud comes in containers kubernetes. All of >> those things, you know you heard will enable engineers with the technology said so that they contested scale. You have to provide access to production like data because you have to worry about no privacy, security and all those aspects. But at the same time, they need to have access to the variety off configurations that are out there so that they contested meaningful so to invest in all of those things. >> But I'll take it back to kind of where we started. This, which is the human factor with continuous delivery, is this continuous risk, and it doesn't matter if this engineer is supporting a free consumer application or the highest end of enterprise. When something goes wrong, this, their stress level goes through the roof and you know, how can we equipped? These people, too, solve problems in real time to have that visibility, to have whatever tool said or date or whatever they need? Because at the end of the day, a bad day for an engineer is a day when something is breaking and they're the ones that have to stay up all night and fix it and a good day for an engineer. A human being is the day they get to go home and have dinner with the family or not be woken up in the night. And there is >> for kite surfing or whatever, you >> know, whatever they dio, there's, you know, there is truly a human way. We think about engineers and engineers get up every day, and they want to change the world and they want to make an impact. And thank God we have, you know, teams of engineers that do that for all of us, and they're human beings, and there's a level of continuous stress that we've injected into their lives every day and to the extent that we, as companies and managers and leaders, can help take some of that burden off of them. The world becomes >> the whole being seeing the results of their work to is rewarding as well. >> Scaler does a lot of stuff there, so I have to call that are at the same time in a lot of very good nuggets, J P. Brother. But one more thing that has shifted in terms of how process of practice works is more of more. Engineers now participate very early on in product development is in the day. They try to understand what is the context and why are we doing. And we do a lot of users research to understand that that process, so that they have full context, that they are building in developing eso they're more of a partner now and not an afterthought. >> Think agile And Dev ops to me has proven that the notion of silos and waterfall practices has democratizing flatten. The organization's out where interdisciplinary crossovers are happening. >> Oh, yes, >> and this has been an interesting art of management is encouraging the right person that crust over the right line was you give people little taste, but sometimes they may not belong there kind of called herding cats in the old days. But now it's more of managing kind of interests and growth there. >> That original Dev ops model, though if you have anybody read the Phoenix project like years ago, but it it was really about bringing different points of view. It's a diversity thing. It's bringing different points of view around the table before the first line. It is written so that you're thinking about every angle on the problem and on the ongoing operation of whatever you're building >> Well, it's all about diversity and inclusion and diversity. I was with states, inclusion and diversity, diversity, inclusion Because male and females are involved. We have two females in tech here. This has been a discussion. We still don't have the numbers up to the senior levels within engineering in general. What has to happen to move the needle for women in tech and or inclusionary people involved in engineering to get the right perspective? What's what's >> not? Start with J P because he's actually a huge champion, and without the men involved, we don't have a solutions, >> inclusion and diversity, J. P your thoughts on this was super important. >> Yeah, Number one is recognition. I was stealing Christine yesterday. I just came back from India. That's like told you I took a picture there of my management team. Came back here, looked at it. There is no female, No right, it's crazy. I mean, it's not that we're not trying on gum it. We had the same problem and we started our center in 2015 right? There was a group picture off the team. There was like they were like two women on the thing. We put a lot of effort into it on. Two years later, a significant chunk of the organization has got women embedded in the team's came because we tried. We went out. Look, for those who are good in this area is not that we compromised on the qualifications. It's really about putting some energy in tow, getting the right resumes and then looking at it. The other thing. We're also doing his cultivation. You have to go to the grassroots because there are just enough women engineers. It's unfortunate, for whatever reasons, they're not taking up that professional military enough studies written on it So last two years we weigh, have conducted something called rails. Girls in India, 150 school age children, Women. I mean, girls come in and then we have supported them, run their classes, hold a class. And that helps, you know, even if 10% off them, you know, choose to take up this profession. It's gonna be a big boost. And we have to do a lot more of those in my opinion. >> Europe T rex President Leading Engineering. What's your view? >> Well, I'll say this, you know, for the people who are participating in helping drive this mission just like J. P. I say thank you, especially for men who are participating in it. We cannot do this without you, but for all the people who, if they're not participate in participating in helping drive this mission, I have all share this one data, uh, one of the initiative that glass or drives this gender pay gap, which is also an outcome off, not having diverse outlook at all levels into in the workplace. And we in our economic research team. They did a study and they shared a projection off when will be closed. The gender pay gap. It's 2017. That's depressing. So for for me, when I hear people who say you know, they, they don't want to participate or they don't think this is the right approach of solving for diversity in workplace, I say Okay, but that's not the reason for you to not participate and stay out. If it join it, join it in your own way. But it's only when l offers. Can I see it as a real problem and participate just like Gibby, as you said grassroot level as well as outside One of the example that I told my team when they say, You know, we don't want to drop the bar, the quality bar, I say Sure, don't drive it, but don't drop it. But if you have two candidates, one with a diverse background, Um, who who might be after cable to the same job in 2 to 3 months over someone who slam dunk today, let's invest in the person who is bringing the diverse background for 2 to 3 months and then make them successful. That's not dropping the bar that's still supporting and investing in helping diversity. >> My good friend and heat you saw at IBM. They put out a survey said Diversity, inclusion, diversity. First companies have a bit of advantage, so the investment is so much lower in the bars, more bringing perspective because if we tell about software here has male and female and that's being 17% female, it's >> not just, you know, I had two things to the comments, all of which I agree with one. It's not just a pipeline problem. It is a a culture problem where people have to feel welcome and it has to be a comfortable environment, and they have to believe that their diverse point of view matters and doesn't matter if they're men or women. But there are lots of times when we all make it hard for somebody with a different point of view to enter the conversation. So we have to do a better job of creating the culture, and secondly, there's a saying you have to see it to be it. We have to see people of diversity, gender and of every other type, cognitive diversity of all types at every level in the company. And, you know, we had the same thing, so I'm lucky enough to send a Fortune 500 public board. And I spend a lot of my time helping women and people of color and diversity get on public boards. But if you go back seven years ago, we were 14% women on public boards and it did not move and it did not move and it did not move and in one year popped over 20%. And that's before the loss. So you know, you make these linear projections we can with effort, yes, actually make >> a >> difference. It just takes a very concerted effort. And in this case, particularly for engineering and for leadership, it is making a concerted effort at every level, from board to CEO to executive team to all levels down. Making sure we have inclusion and diversity in >> this is a modern management challenge in the new way of leading managing >> this process. These things, This >> is the big challenge, folks, thanks so much for coming on. Really appreciate. Final question for you guys is what if you could summarize the new way to lead and his modern error from an engineering standpoint, building out of companies building along durable value creation with its company a product or service. What is the key keys to success >> as a leader >> as a leader has a new brand of leaders. >> I would say, You know, this lot goes into, I'm sure you need to know engineering and all the strategic aspect of your job. But the core aspect I feel, is as a leader, my success depends on the quality of relationships I'm building with my team and members that I work with. So that goes into the people aspect, the people connection that goes into it, >> J p. >> Absolutely People are are a big portion of the story. I also feel understanding the problem and driving for results. You know, it's not just about building something. It's about building for a purpose. What is it that you're you're tryingto accomplish and continuing to find that? And working with the teams is so critical for success, especially in a fast moving in Christine. >> Yeah, I agree. It is all about the people, and I think old and new. This hasn't changed. People need to feel like they belong and they're being appreciated, and they're being heard >> scaler. Glass door Copa software. You guys do a great work. Thanks for sharing the engineering inputs, Thio. Leading successful companies. >> Thank you for >> your leadership. Thank you. >> Thank you so much. >> I'm shot for the Q. Thanks for watching. >> Well.

>> Live from San Diego, California It's the queue covering Sisqo live US 2019 Tio by Cisco and its ecosystem. Barker's >> Welcome Back to San Diego. The Cube has been live here at Cisco Life for the last three days. Student a man with meat, Lisa Martin wrapping things up and we're pleased to welcome to the Cube for the first time James Slay me, the cofounder and had a product for Double James. Welcome to the Cube >> very much. >> All right, So, Deborah, before we get into who you guys are, why you started this company stew. Thought maybe this had to do with your love of dub. Step the name >> way do like that step. But it really wasn't the reason May my co founders were involved with telecommunications and the industry, and we thought the cloud was coming quite fast. And we thought, you know, we started an opportunity that as much as the telcos we're trying to move service. It's a cloud that was value weds they need to provide. And there wasn't really a quality solution for recording for uncle's. >> So came from dubbing tape to tape back in the day. For those here is can remember when we had >> the tapes the name came from. That's how I remember we came, came about The name is that we're thinking, you know, I like to set because it was dubbing and then, you know, double came out of that was available. >> So tell us our audience about call cloud based call recording tell us a little bit about that. But why? What was the impetus for you saying? You know what? There's a gap in the market. We gotta solve it. >> Yeah, So everything think traditional providers were all in on premise Catholics based servers licensing all that traditionally no software model with the transition to cloud for telephony. So unified communications or anything like that Theo ability to have a platform that could record content. Really, By switching it on where that was, we partnered with Toko. So I say, I say tacos and Australian Server that Carrie is also provided tell they want to hear about what they called connect to their network and then offer it at scale so they could switch on one user or actually switch on 100,000 users instantly. And we managed the back into that and they get to go to the service. >> Yeah, it's interesting. So Lisa and I were at the Enterprise Connect show this year, and one of the themes we got out of the week of doing that show is Well, there's always the cool new technologies were doing video, and you know, there's the E R. And you know, people use Chatbots Airways do their voices still critical. Yeah, So maybe talk about you know, your customer base and you know, the role that you're playing to help them. And, you know, still, that that voice is is such an important decent of how we communicate. Yeah, it's really interesting, >> Like way still. Look at that. The important things that I done via voice. If you've got an important customer, you know, discussion, we have you going to send him an email you're probably gonna have followed up with a phone call or initiate with a phone call on most of time. That daughter is is lost. So you know things we discuss and you don't get them back. And, you know, generally call recording. If you're looking at that, people think contact center and regulatory reasons like financial services and that's our bread and butter. But now we're seeing with exposed the more cloud based options. That is, this is a study talk to expand that used case across outside of that traditional reason and not just call recording, you know, eyes that you know, becoming more prevalent as well. >> So how are you guys infusing a I into what you're doing? And also with Sisko to not only be able to apply intelligence to the data that you're gathered from reported calls, but also Dustan, the way that also facilitates security and privacy? >> Yeah, so Security's calling way couldn't have a platform that's use it is connected. Tio, You know, 18 See's Network way got over 100 telco or carrying their ways connected globally at the moment. That's all across Europe, America, Canada and then Asia as well. And now you know, we've been chosen by Sisko for their broad cloud platform, which I recently acquired way. What we see is that because we can capture content at scale way, then can actually easily then produce transcriptions, sentiment tone from the best of the three providers around the world with my be asked. But, you know, we could use any other third party provider that customer might want to use. Use case. Then Khun B. Go towards a small business in my you know, I'll say it's more reasonable and I'll explain on enterprise in a small business, theirselves person might be speeding, made the main customer 1,000,000 customer brings up. It is not happy, and we're going to tell the boss or the team leader they could automate, literally as easy automation, saying notifications Conor, a team leader. You should call this customer back. Without that, they lose the potential of retaining that customer now that previously that's only really the large business or the only has the technology to do that, all the ability to actually get it to market with us and because we connected to the network or even on, you know easily on ah, call manager solution through Cisco, that's any size of business. Large business. We're seeing also a bank as an example there, looking to capture everything across their whole business, not just contact center and start looking for key words that I said it's a credit card or home loan, and they make sure that their agent or their employee is disclosing that product correctly to the customer to make sure they're compliant Now that they're not talking about that across the of the whole business, not just always example. 4,000 seats in a context enter but 40,000 across their whole business on any phone, they using the moment without a mobile cellular or a despondent. >> Okay, so bring us inside your customers. Is that you know you mentioned call centers? Is that the primary use case? Do you go into different verticals? You know what? What does your customer base look like? >> Way definitely go like a safe contact centers for sure on DH. That's it's it's been there for a long time. That requirement to record phone calls and do it well, uh, financial services knock. It's throughout throughout the world, in the U. S. As well in the Europe because of me fit and all those requirements compliant. But as said way are now expanding that use case because of a A and requirement access data. Also, our platform is an open, open platform if that makes sense, but everything we record or capture is encrypted. But it isn't a format that Thean customer can use a CZ that won't apply themselves. They're all looking at using a I. You know, there are other other data sources in the company because it's available. They can use it with other. Well, >> yeah, actually, I just wanted to poke it that because one of the challenges we have out there is there's a lot of data, but how do I actually extract value out of that? So is this now a way for your customers to really unlock something that historically you just you you might have kept it for compliance. Reason to work, you know, to review some kind of training. But it was a little bit tough to get in and leverage the information that was in >> there. Yeah, you know, cos today I really they're they're assessing, You know, anything in a written format today they already losing. I want to do that Previously has been really hard to do that with voice now, because we can capture again captured at scale there. Now I can look at it and say, Can we use the same tools? Were looking for everything else in our business. I looked down and saw that the voice >> so walk us through an example of where double is integrated into an organization. If we think of a bank and you mentioned, you know, use case is one of them piqued my interest about Okay, sentiment. If there is an issue that needs to be escalated and somebody in the organization needs to call a customer, what's been recorded is indicating that is never able to integrate with, like marketing automation serum tools that that data is then pulled in a map back to that account and how it's being managed. >> Yeah, correct. Good, really good question, probably explained that way are a global platform. So we deployed everywhere in the world. So Australia's I'm from a trailer again, but U S Canada, Singapore, Japan, London, Ireland and the UK way recording that in that country we store in the country. But it is a scale. Little platform is a service, which means that way run a product, eyes a p I to open a p I, whether we've integrated with their application or the customer then can say we never want to log into doubles applications. Were you present all the daughter and our own complications already? That's already practiced today. It's available today is in ample. If they wanted to use South forces a serum looking today. Look at the contacts. You can see all the holes, All the transcriptions directly in South Force. >> That's cool. So they get that visibility in a way that that works for them? >> Yeah. Yeah, not precious. We look at ourselves a platform first, and we provide applications. We know users. Did you call recording as they expect to use it, like with permission based access team management. But in reality, we're trying to make it fit in the way that you they'll write their own business and more insights. >> Alright. So, James, we're here at Cisco Live. So explain to us how you tie into what's going on here at the show. You know, we're here in the definite zone. Curious If you talked about being an open platform, Do you know I did in the development pieces here? Yeah, >> we've We've had some really good conversations in the last three days. It's interesting to see people talk about, you know, they come up and they start talking about cool recording and way Explain what we just discussed. Relations open and they can access via Pio, and they start thinking they can see their mind. Figure out how they could apply that their own business. We've always wave always work the Cisco Way Boys work with broad Soft, which they've now acquired, and they now make that part of the business. But you know where that's called Manager. Wait. Have now announced they're doing whether it's calling, you know, we're talking to customers about cool recording through double on whether it's calling now. So if businesses you know, having a plan, Teo moved there from the UN Prem to cloud that Cisco way, make a second unified solution for them and they could make a road map for that with him. So it's a really good conversation we're having here. >> So in the development of the go to market strategy, or so I already have an established Francisco. >> Now where do you have a stress ready? We're day of Ah, we're partners, Cisco. Already we've got over 100 carries who used this go in. Their networks were really connected to them. I'm already recording in capturing content on those networks were pretty tight with this guy for sure, but you look at the enterprise that its president, although cloud yet they're really moving to that. So if they want to have a core recording solution or a solution on for him, and they might want to move to cloud future in the future, we have that in the future. So I'm doing it now is probably maintain the same service right through. >> So can you give us an example, a customer success that is leveraging Debra with Cisco whether you, you, Khun Anonymous eyes it or if you can name it? Great. But I would love to see how it's really working in action to drug business results. >> Yeah, it's going Good question. I'm trying to be the best one to give you. At the moment, I could think of a customer of ours with, you know, in the UK they're spread it costs. I think around 100 locations they're currently recording with double and using transcription to transcribe their calls are looking for patterns across the whole business and the using Cisco for the late telephony on then, looking at that and I've actually found things that just decided to save money, they've been losing some money in certain locations, and they've used the transcription. Seem patents actually implemented changes to actually sell a say that >> Awesome. So in terms of the last three days of Sisqo live, some of the announcements that have come out Cisco has been on this transition here on the hardware company network here, back in the day to now introducing AP eyes across the product portfolio, which he'd been two years ago. They didn't have to this pivot towards a software focus for a company like double born in the cloud. What does that signify to you guys? >> Uh, so you see what a sight it was. >> Yeah, what does that signify to double >> wellit's great for us, and it's really important for us to make sure we're along into that. We've already have always been an A P I first company on, you know, accessing the contents. But it's a challenge may, sometimes for businesses to embrace that way, need to make sure that we're way we're looking at Cisco and understand how they want to use Ap eyes and aligning ourselves on DH. Hopefully push him along because we're doing it for a while, eh? So we released, you know five years ago. It was cloud based, and it's good for everyone. Started talking about a pee eyes and employing them. >> Awesome. Well, James Splint. Pleasure to have you on the Cube this afternoon with stew in me. Thanks for stopping Mind sharing what Debra's doing with Cisco and to really help transform enterprises from any industry. We appreciate your time, all right. And we can't close the queue. But Sisqo live in San Diego without saying this one thing, which we're all going to do together. You ready, guys? On my count. 321 Classy. San Diego for soon. Minuteman II. Lisa. Bart, you've been watching the Cube. Thanks so much for watching. We'll see you next time.

>> Live from Orlando, Florida It's the Cube covering Enterprise Connect twenty nineteen brought to you by five nine. >> Welcome back to Orlando, Florida. Lisa Martin. With the cues to minimum joining me, we are a day three of our coverage of enterprise connect nineteen. Thanks to our gracious hosts in the booth here, five nine, We're pleased to welcome from five nine to the program. Wendell Black, VP of Global Channels and international Business. Wendell, thank you so much for joining us today. >> Well, Lisa, thank you for having me on. >> I know you're a bit of a celebrity because you have now been a crn channel chief honoree three times, most recently last month. Congratulations. >> Well, thank you very much. It's absolutely a tribute to my team and the company's focus on building out our channel business over the last three years. So it's been, you know, a super time for five nights growth in this area on DH. It definitely is a team engage sport >> team that pulled you out of retirement. They're less >> Well, you know, we don't talk about that so much, but it is exciting to be back in the business and, you know, working here toe, you have to build something new for five nine and to help take us into the next Thira Business delivery and especially the expansion we're doing outside of North America. That's, uh, that's the really exciting part. >> So before we talk about the international peace, one of the things that's been really interesting to watch anybody that knows the channel is the cloud has had a dramatic effect on on them. If I walk around the show floor, many of the companies here in the channel that they did, where used to sell in boxes and then all I need to understand software and oh, jeez, this cloud, it's gonna put us out of a business. They'Ll all go direct, but I'm sure you've got a lot of perspectives on this. So maybe help walk us through some of that transformation. >> But it's interesting. I've been an evangelist in the cloud space since the late nineties senses peace. So we didn't call it cloud then it was multi tenant managed service technology. But you know, the really exciting part is, you know, the last four or five years when it really caught on and started to take off, you know, we've had a lot of good trailblazing companies out there that yo have won the minds of people for cloud and the C r m or the Air P and other spaces. Yeah, telecommunications is kind of the lagging, Uh, yeah. Technology area to be adopted, You know, his standards for cloud. But I believe today most buyers are trying to figure out why not cloud, rather than why go to cloud. And that's a game changer. >> Yes. Oh, I'm curious. Just from the channel perspective itself. We understand that customer journey, but the channel people was there. Do they have the skill set that they need to go? Was just some retraining. Was it partnerships like like yours, you know, how did that transition go? >> Yeah, that's a great question. And I really think that the channel has the skills. Yeah, they just have to adapt and re tune a little bit. Things just happen faster when you do the cloud and and we have get a MIDI discussions and experiences with partners where we're sitting around the table planning Ah, roll out. And you're just doing the basic discovery. And, you know, at the end of that, r P s team can say, Well, I've actually built it. Let me show you how it works, you know, rather than you know, the six month or twelve months rollout process that people were accustomed to in the past. So it's pretty exciting to be able to show people actionable results that kind of time frame very, very fun. >> Talk to us about the partnerships and the influence that your partners have had on such a big, successful close to f. Y eighteen. >> You know, the other partners were strong contributors in, you know, our cue for and we certainly value everything they're doing for us and with us out in the market are continuum of partners is get both in the master agent community. So referral oriented relationships where the five nine direct sales team is getting Carrie in the water and working with them to get a deal done, but also in our resale business. Uh, you know, it's great to see those partners doing more and more to build the business and their portfolio on DH delivered joint customers. So it's a very exciting, you know, kind of up lift everything we're doing. All right, >> So So Wendell, uh, one of things when we talked. A lot of companies, it's like, Well, there's North American. There's everything else I was promised by some of your team members. You can actually give us a little bit more granular view of, you know, Europe, Eastern Europe and some of the other global differences that are happening in the market Place would love if you could share some of your wisdom. It's >> your thing. And I believe that I don't want to be disparaging Tio my friends in Europe, but they're a little slower on the adoption rate. Um, it's interesting. In my history and contact center, there were times where Europe led the field with different technologies, and yet other times that they were kind of behind what North America was doing. Uh, this is one of behind times, and I think it is just, you know, an ongoing concern and their minds about you know, how security and management of a cloud based delivery model was going to affect their business and how they were going to be looked at by regulators. But I think we've overcome, uh, those hurdles and the last several years in twenty eighteen, our business in Europe doubled year over year. Uh, and it's inspired us God, ADM. Or sales and other departmental resource is in the region so that we can do that again here and twenty nineteen similar story in Latin America. And now there is, ah lot of growth, a lot of interest. And it's not just in the mid market anymore. We're talking big, big call centers on. They are all jumping on the bandwagon. Uh, for all of the economic reasons that people want to go to the cloud in the first place. You know it's less expensive to get started. You know, it's easier to be nimble and flexible and your staffing and costs, and, you know, they all need those benefits just as much as a mid market or s and be kind of a client. >> Well, dig in a little bit further, Wendell, on how five nine and your partners have helped some of these customers in Europe in Latin America become comfortable with. We need to move to the cloud and also help them understand some of the other implications. Besides costs and things like the opportunity to start taking advantage of a >> okay, Great, yeah, because in particular, one of our partners in the UK has specialized in the travel, vacation Liza kind of industry and yell when they work in those markets. Uh, distributed workforce is very much kind of the norm for them. And so, you know, one of their clients, in particular, has agents in the UK They have agents in Germany. They want to manage him, is a common group and be able Teo manage there, television advertising to be ableto staff and respond based on wherever the load is. You know, whenever things are going on in there, you know, marketing activity, that's that's a key flexibility win for them. And they get the right staff at the right time to be ableto you know, to cover the television advertising, which is pretty costly, but it's a big win for them. Gotta have that flexibility with five nine. >> You know, it's interesting. We actually have only talked a little bit this week about the distributed workforce, and I I'd love to get your perspective. You know, I think back there's, you know, a large apparel company in the Northeast that when they didn't have any of their agents, you know, in their headquarters, and, you know, it was something that got written up. You know when that had happened. So today you know what? What is that? That mix? And, you know, are there some geographic differences that you see in that? >> Yeah, there are some differences just based on the infrastructure that may be available. And, you know, we find that home based workforce is a little bit more challenging in Latin America than it is perhaps in Europe or in the US But then there's also cultural differences. Yeah, there are some countries that have actually regulate that employees have to show up in a physical building or you're violating the law because you might be taking advantage of your employees. So that's different. Different strokes for get up for different locations. We are finding it more and more desirable because of all the reasons that, yeah, I've been around for a long time. You can save on real estate. You can save on the wear and tear of your employees traveling, but probably the biggest one is the benefit of flex staffing that allows you to get the right number of people for a short shift to cover your peaks or your be ready for your valleys that you know if people have to drive to an office they're just not is likely to want to sign up for, But that business modeling is actually becoming more and more compelling. Driving around Orlando. You know, this week it was kind of a challenge. Get on I for and with the rain. And I'm sure there are a lot of people who want to be at home workers here, you know, based on the weather this week. >> Definitely. So this is the end of enterprise Connect Expo Hall anyway, today, three full days this Expo Hall one hundred forty vendors knew new products. New service is sixty five hundred attendees. So much excitement in this hot, hot contact center market. What are some of the things that excite you that you've heard from partners and customers that just think we're on the right track? The momentum, The wind is at our backs >> Well, and you mentioned a I and what do your earlier questions? And that's kind of the buzz. Everybody was to talk about automation and machine learning, and you can bring a I into, you know, interacting in the call center. I'm sure you've heard from other people that have been up here. The focus we see in the near term is on agent augmentation and, you know, enhancing. Yeah. Agent performance through those technologies on, you know, a lot of people would have approached this thinking like Ivy ours in the past. I can replace agents with interactive voice response. Well, we will. We want to make a smarter, better customer serving agent and bring that technology and to play to do it. That's to me. Going be the things I've been seen exciting new technologies that can be applied in real time transcription and Theo providing the ability to read that and data depth and serve things up for for agents to allow them, Tio go to be more on the ball, talking to a client. >> Yeah, that old mental Asian is definitely something that came up quite a bit. We even talked with your CEO, Rohan trollop about that and the importance of empathy and voice that as consumers I would love to know that you went to an augmented agent on the other end. Who knows? Okay, I understand the issue. I see how many times this person has reached out through different channels and they're actually going to use that technology to facilitate a resolution and hopefully drive up. See Elvi. >> I mean, that insight into the customer experience is key for the agent to be able to do Mohr and do it better. You know, we've been talking about that night of insight for years and years. You know, technology has caught up with desire. And so now that we have the technology to do it, you know, we can allow the agent focus more on their conversation with a customer and not have to be working the keyboard in order to retrieve the next thing that they need to take care of. And so better prepared agent, you know, knowing the background of the client, you know, is going to give them a much better experience. And, you know, that's what five nines trying to deliver in the market. >> We've heard that resoundingly throughout the re through your partners customers, and it's been fantastic. Wendell, congrats again on your three time channel, chief. Honoree. A record. And I'm sure there's got to be a fourth one around the corner. I won't jinx that, but I'm just gonna gas. >> Thank you. >> We thank you so much for your time. >> Appreciate it. >> Likewise forced to Mina. Man, I'm Lisa Martin. You're watching the Cube?

>> Live from San Francisco. It's the cube covering IBM thing twenty nineteen brought to you by IBM. >> Hey, welcome back here when we're here. Live in San Francisco for IBM. Think twenty nineteen, two cubes Exclusive coverage. I'm over here, students to it's been four days. Were our fourth day powered through a lot of interviews. Obstructing the Civic Lanois number one live event covers a Cuba to great guests here. Ashutosh Mooney, vice president, Applications services with an IBM and carried to lose chief technology officer nationwide Building society in the UK Great to have you guys. Thank you, John, for applications. Big part of the focus because the applications air now dictating the data strategy. The II with a and you could cloud multi cloud underneath. So the chained, changing market requirements around what, after doing are super important? All this is a focus. It's dictating that the infrastructure what to do so that this is the key to the cloud. Talk about what you guys are doing. >> Absolutely, absolutely, in fact, not just for IBM. For clients, mostly for them to be able to ready for their customers, they need to make sure that their applications are up there for their customer experience as well. What we're seeing is most of these supper clients today are saying that all the work that they have done in past for the last five, ten years that's the core that they have been in there trying to look at how they can minimize the spend on that and maximize the spending a ll. The customer facing applications like to enhance the customer experience >> they call and you call that the workload? Oh, yes. Load is code for applications. Carry your customer of IBM. Let me explain what you guys do first. Then we can talk about some things you're working on, >> So we are a large, UK based mutual building society. We have about fifteen million members in the U. K. But you can think of us as a bank. In many respects, most people do. Challenge throws us, as you said, is basically we have thirty or forty years of legacy technology. We need to transform that technology and also bill the next generation digital services alongside that technology. So if Rose, it's the combination of how do we transform that legacy core whilst also building from you? >> And what are some of the use case is that the new technology going bring you because containers has been great with legacy because you don't kill the old to bring in the new. As you look at the modern modernization journey, you're on What is guiding principles? One things you guys are looking at, how you guys thinking that through? >> Okay, so a number of things. One is we've been on a thirty year journey towards looser and looser coupling on smaller and smaller micro services. So what you're starting to see is big applications, monolithic applications being broken down into services and the micro services. So for us, the key is the smaller and smaller micro services. The more agility we can create more value great. And that loose coupling them becomes really important because that then allows us to deliver a high level of parallelism in development in change. So those are two key areas. >> It has it going today. Good scar tissue. You learning its >> learning and its iterating and it's failing and its understanding. But the main thing is, you know, the more we do, the more we learn, the more we can then build that back into Nick's situation. >> Actually, I always love to hear, especially the financial services ones that have been around a while that that modernization and how they do that, I couldn't help but notice. You're both wearing the, you know, I heart a I the shirts. So if you connect the dots for us between that application modernization and the wave of a ay >> yeah. So I heard that Tom fail fast and fail regular. I mean, it's all good until you actually have atleast one success, right? Failing fast is good, but you cannot escape feeling. So where it comes into play is primarily making sure that you're basing your those decisions on what have been proven right in Pastor's. Well, so what we have seen, especially for financial services, is even though the system's off engagement has changed the fundamental principles on which the banking services all the insurance services operator has not changed. So you're still wearing the same set of services just in different ways. The expectation of the client has changed, but the services remain the same. So our ability to be ableto look at what we have been doing in past which services makes sense to be Microsoft's enabled us getting talked about. It's not that you just take all the functions and enable them. That's where we're able to bring value Tour Kari. What's the impact >> on this on your ultimate and user >> better value? So for us, it's about helping our members, who are customers, to make better financial decisions on. To do that, they need data. So what we're trying to do is to really take that Legacy estate, which is really about locking data into the course. Or we can use it trying to liberate that day to get it out into the hands of our members so they could make better decisions on a eyes were really keep part of >> you. I mean that that was what we think back to. That wave of big data was the I should be able to have smaller companies, you know, not take years and millions of dollars to be able to do that. Tell us what's different about, you know today in a I that that we might not have been able to do five years >> ago. There's a couple of things, really. So one is compute power. So what you're seeing really is eyes is not necessarily advancing massively in terms of the algorithms and the approaches in the methodologies. What you're seeing, though, is compute power in storage capacity growing at an exponential rate store. So what it's doing is enabling those algorithms to work in a way that they've never been able to do before. We're getting to value quicker because the time it takes to reach that value is much shorter. >> I want to get your perspective on you mentioned parallel breaking down, decoupling things with looser sets the services. This is certainly the cloud way make AP eyes have micro services. Big part of it. How is that going from a culture standpoint? Because this is one of the things we hear all the time is it's a cultural journey to one. Get people lined up with that. And then what if some of the business benefits that you see what this parallel isn't? His efficiency is an innovation. Where do you see that culture? What did What did you do to change the culture? Go. Cheers. Um, this is what people want to know about. >> So in fact, what we're seeing is a majority of the clients have started to look into this because everybody else was because somebody digital native out there was doing it, so they some of them actually last on too quickly. They have not been ableto change their internal culture within the organization when the customers were ready, but their internal organizations or not. But I think plants like Cup NBS have sought out a fairly good strategy, and it will be great to get if you can >> share with your secret sauce that you like Carrot Stick. They were gonna go this way or you burn the boats, as they say at the How did you get people to go in the right direction? >> For us? There's a really, really important related past this the culture of the people from a culture perspective. You know, we've got teams of people who have been doing phenomenal pieces of work for thirty forty years coming to the end of their career. And you know, the technology that we're using again, we're looking at and the service life. So how do we how do we get away from that world where we're constantly focusing on the legacy to start focusing on new technology? So it's bringing in new people with new ideas. It's changing the way we work, so we started to focus on things like our child. They've ops, automation, new ways of working to allow people to really sort of liberate away from the old ways of working and give them new ideas and new opportunities. That's part of that as well. There's a couple of things in there for us which is really important. So one is bringing new technologies in bringing new people in that Khun, use those technologies. We also have to make sure we keep our own people trained up as well, so we can't forget the people that we've got. So it's it's a set of different things, >> and training is critical. Was gonna open source out there. It's like, you know, every years like a dog here, and you gotta keep up to date, Keep learning >> and all these aspects of procreation, right? So you cannot do it in isolation if you're doing it together. I mean, whether use design, thinking or not right, that's it. That's it. That's the way to do it. But I think the aspect of co creating in your end stakeholders and your own stakeholders, Orin more >> talk about more about that, cause this is a big team co creation we love doing with content were in the Q. We're doing it here with constant when you get into development. This is a new psychological dynamic, but also it's a productivity opportunity. Can you share what you're seeing there? Explain co creation a litte bit deeper >> Look so that we talk hypothetically, right? So from hypothetical perspective, if we were able to look at organization or a flat form where were able to access an amount ofthe computational power computation skills are programming skills. Our ability to be able to do the most creative expects for any use case and industry would be enormous. We just don't have that. We're limited to specific parts that were working with the Limited with specific employees that we have Andrea limited to the customers that were kids, and I think if we expand, so while we don't have, uh, handle off all the things that we haven't played. But if you are able to bring in our customers or internal stakeholders as well as our partners that we're working with and are able to build a common team and one of those common themes could be that I need to get you those services quickly and then figure out how to three can actually work in tandem we'll be able to make. >> How does that change your engagement model? Because I might be the same in eight days there, Miss Captain. Well, we used to do that before we usedto partner and understand their needs Bring solutions to the marketplace. Is it more software driven? So what's changed from the old way to the new way? Because I don't agree with you, by the way, I'm not I'm not a skeptic, but, yeah, that was what skeptic might say. >> Yeah, no, I think earlier what was happening was they were It was more offering leg and what I mean by offering letters these of the sex I have. And let's make these assets find the solutions. So what people will do is they will say this is the banking solution I have in this specific case and let's figure out what fifteen things I can >> do without those solutions. >> Approach now is different. They approach now is This is what the customer is demanding and the reason they're demanding is because customers expectation is based on there most recent experience that they had somewhere else, not necessarily with the bank. They may have experience and over, so when they have experienced that experience there, they want the similar services from the bank. So now the co creation model is actually starting from the other side of the equation rather than coming from Essex out. That's >> so it's flipped. The old model was hears. We got here's what you could do, Your limited and now it's like is what we want to do >> This ice >> program the infrastructure and focus on software to find agile. This is seems to be the new way. >> Let me add to that as well, because I think one of the things that we've done over the last year is really focusing on what our technology strategy, how this technology going change. Our business we've done is created a strategy where our ambition actually exceeds our ability to execute. So from a co creation perspective, we actually need really good partners are going to work with us in that context on be strong challenges br critical friend in the process. >> So it's more efficient and more productive. You get best of both worlds and the outcomes are more aligned via agile. Got me more acute on target. Many pretty much that >> getting Carrie actually love to get your perspective on like, what does it mean to have a cloud strategy today? We heard this week. You know, Jenny said, We're, you know, entering chapter to of the clouds. We took care of the twenty percent that was a little bit easier. We're getting eighty harder. Lots of customers I talked to. It's It's changing all the time, and things like hybrid and multi Cloud don't really mean much to them. Got serious in your shop, how you think of things. >> Great question. I think it's changing, and it's different from industry to industry. So I'm banking. The challenge for us has always been regulation has been the regulators pushing back on public cloud and saying, You know, we were nervous about that. Have you manage the security of the controls around that? So a lot of banking is focused on private Cloud? Can we adopt the technology in those banking's those styles of technology delivery in the private cloud way? But we're now starting to see that there is this shift towards public cloud with the economic advantage that public cloud house on the innovation that's going on in public cloud. It's becoming really attractive. So the strategy for us is about how do we make that happen? How do we build that multi cloud model? And then how do we move that sort of hybrid model from private to public and get the advantages of the different styles of cloud computing? >> Guys, Thanks for coming on, Given the inside love, this Dev ops Co creation model and really applications air driving the requirements now with programmable infrastructure. This is changing. The procurement is changing. The culture hiring strategist is really disrupted. This is really the digital transformation. It's all about creating great shop. Thanks for coming on. We appreciate final question while we're here. Thoughts on think this year in San Francisco. Libit Rainy February. That's okay, but all tightly together. What's your thoughts? What's the themes? What's your What's the top story here? >> Getting your pops? >> Whether it makes me feel like >> home is fantastic. Eso No, it's been It's been an amazing week. >> Lots of innovation, Lots of great conversation. So I really enjoyed it. >> Yeah, No, absolutely. I think we've gone around myself, even though we are definitely aware of what's going on in here. But I think there have been lots of partner ecosystem that has been here, and I think that collaboration has been great. Thank you. >> It's been great. Show a lot of inside Kaspar perspective. Thanks for sharing what your journeys on and some specifics Way appreciates. A cube coverage. I'm shoppers to Minuteman. Stay with us for a day, for we're four days a coverage. We're here on day for Stay with us for more after this short break.

(Caribbean music) >> Narrator: Live, from San Juan, Puerto Rico. It's theCUBE, covering Blockchain Unbound. Brought to you by Blockchain Industries. >> Hello, welcome back everyone. I'm John Furrier, co-host of theCUBE. Exclusive coverage here in Puerto Rico for Blockchain Unbound, it's a global conference where a lot of the leaders are coming together. It's our second day of wall-to-wall coverage. Talking to all the top people: government officials, entrepreneurs, investors, and tons of great action here. Our next guest is Marcus Levin who's the co-founder of XYO Network, xyo.network is the URL. Interesting opportunity really built from the ground up. No outside funding, although it does some interesting things with their community. Great IoT example, great use of the cloud, great example of how real entrepreneurs are working with crypto and blockchain to actually grow. Welcome to theCUBE. >> Thank you, John. >> So, tell me a little bit about what you guys do. Take a minute to explain to the audience what XYO Network is, how did you get here, what is it all about? >> Yeah, sure. So, XYO Network is the world's first decentralized location oracle. "Oracle" means data input into smart contracts. Now you have the problem that a lot of data sources are centralized and hackable or spoofable. So, if you make a bet, for example, you need to look at the results of the bet at a website, the website could be hacked, it could collude with someone to provide wrong data. The same problem exists with GPS. GPS is easily spoofable and hackable, like during the Pokemon Go craze, for example, all the kids just downloaded GPS spoofing apps, they get all the rare Pokemons. Or, allegedly the Iranians took down an American drone a few years back sending up a wrong GPS signal. The drone just landed. So, because of that, you can't do transactions based on location data. Today, most applications for location, GPS location, are navigational but not transactional. We solve this by providing a decentralized location data or network. We do this though IoT devices, mobile phone apps, and other types of partnerships. We are around since 2012. Started as an IoT company which provided location beacons, we call it XY Findit. We have about a million of them out there, and they can recognize each other's location. It's like us two taking a selfie together, we print out two copies, put our signatures on there. When we leave each other, we can prove that were here together. And it's the same thing with those devices. Our own devices but also with partnerships we build this mobile app distributors and IoT companies. What can you do with this? You could, for example, do payment up and delivery for e-commerce. So, you could put a chip, a small chip like an RFID chip into Amazon packaging tape. Once the package arrives at your doorstep, or even in your house, the payment gets triggered. It works by the doorbell, your Tesla in the driveway, your neighbor's cell phone, any type of connected device recognizing that the package is there. The payment automatically gets triggered. One third of Americans experienced porch theft in 2016. You don't know if it was a UPS driver, for example, scanning the package but taking it, or your neighbor took the package, or someone random came by. This way, you can prevent porch theft, or you can discover it. Or you could make sure your kids arrived safely at school, they arrived there with their friends and they took the path you wanted them to take. Or hotel review sites, for example, have the problem that they lose their users because they don't believe that the reviews are real anymore. But if you could prove someone flew from San Diego, that's where we're based, to Puerto Rico, has stayed at this hotel for tonight, and then flew back and wrote the review about it, suddenly you have a location-verified review. So, that's all today, but in the world, in five to ten years, full of AI, robots, self-driving cars, drones, smart cities, you need transactional location data and nobody's providing that today and we want to be the center of the future. >> Awesome. So, that's super-exciting, I got to ask you about the IoT piece because, do you need physical devices out there? Are you going to be deploying sensors? Are you leveraging pre-existing infrastructure? I love that selfie example. I can imagine we do a selfie, share it, it's a location-based opportunity. The phone's got location base. How do you guys interface with this? How does it work? >> Right now the network builds on top of our own devices. We are around since 2012, as I said, so we have a large network already. We are an existing company, it's a little rare in the blockchain space. >> Yeah. >> And we build partnerships now with IoT companies like certain light bulb division company, or fridges, all connected devices, mobile app distributors. >> So, you're providing your customers the IoT device folks who are proliferating out there. >> Yeah, we put our code basically out there. We can-- >> Open source? >> Open source, yeah. >> Okay. >> And you can plug it as an SDK into, let's say, your mobile app. Or you can use it as a monetization tool as well, because you earn tokens as you verify location, and this data is part an answer, and so you could earn XYO tokens, as you become-- We call them "sentinels", location verification device in our network. >> So, how do you guys tie this together on the token side? So, you reward, what behavior do you reward with a token? >> There are four components in our network. There's the sentinel, as I spoke about, which are the IoT devices or mobile phones which verify the location. Then you have bridges which relay the data. They relay it into something we call the archivist, which is a distributed computer system, if you are familiar with storage here in this space, for example, or the old system, like Sentient home from Berkeley, it works like that. So, the data's on people's personal computers. And then we have something we call the diviner algorithm, which provides the answers. It works like mining. So, you might want to ask, "Where's my package right now?" And the question gets sent to the network, a bunch of diviners, which works like mining, Ethereum, transactional things. A bunch of diviners will take the data from the archivist, the distributed computer system, and try to find the best answer and try to find as close as possible the consensus as they can. >> What about spoofing? I mean, people might want to spoof the location. >> Yes. >> How do you prevent spoofing? >> Yeah, that's a good question. So, we two could collude pretty easily. But if this entire room of people is who you usually don't know, it's very difficult to collude. So, one of them is scale. Then we build reputation over time. So, as your answers are probable, you build reputation. For example, if all us say we are here at this hotel right now, but you say, "No, we are in Shanghai," your answer is improbable and your reputation goes down. In addition to that, we disincentivize lying-- >> You're very data-driven. >> Extremely. >> This is big time analytics. >> Extremely data-driven. >> So, what are you guys doing for analytics and what chain are you using? 'Cause performance becomes an issue. >> Yep. >> How's the plumbing work? What's the analytics look like? Take a minute to explain that. >> Yeah, it's very beautiful. We have our own chain: the XYO main chain. So, we are an oracle which plugs into any type of smart contract. You know, you have Ethereum and about 19 other coins which have smart contracts. So, we build on our chain to lower the transaction costs, transaction times, and build a more reliable network for ourselves and then it plugs into all other smart contracts. >> So, you have your own chain to manage this? >> Yes. >> So, that's one of the reasons why you, from an operational standpoint, you want to lock that down. >> Yes. >> So you can control performance. >> Exactly. >> Latency, timestamps, security, whatnot. >> Exactly, that's right. >> The openness is for the smart contracts. Is that what you're saying? >> Yeah. >> I can do any smart contract I want. >> This is basically for old site developers it's like an API, you can plug into it-- >> Got it. >> We connect the real world with the blockchain. So, right now you have very limited applications for blockchain in a lot of cases because you can't take offline things and connect them to the chain. What we allow to do is, we call it the API to the real world, where you take location data, put it into the chain and make it transactional. >> So, I got to ask you a question. This is interesting, I love this, I want to get into more of the token sale and what you guys are doing raising money. In the IoT world, certainly with cloud computing, the big debate is, do you move compute to the edge where the data is, or do you move the data back to the centralized cloud? Here, since you're decentralized with the IoT device, is the data coming back to your central network, or-- >> No, it's not. >> Where is the processing at? At the edge? What's the edge equation? Explain that. >> So, everything is decentralized. We believe that our company doesn't need to necessarily exist in a few years and the network will live on and grow as we grow the community, so the community is very important to us. The devices are decentralized, you own your cell phone. The data storage is decentralized. So, you can define, like, 3% of my personal computing power goes to this, for example, you earn XYO tokens. The mining is decentralized like any mining is decentralized today, so us as a company, once people start to build on the platform, we don't need to exist, which makes it beautiful, right? This is what blockchain is all about. Decentralizing and building this platform layer where people can build on top of. >> So, there's a ton of Bluetooth and GPS out there. >> Yep. >> Talk about where you guys have got your traction. I want you to take a minute to explain. We kind of went off on a tangent on some IoT rant, there, I was interested in. But I want to take it back to mainstream. >> Okay. >> There's GPS out there, you've got Bluetooth, everyone's got Bluetooth devices. So, it's not like this is massive new, it's a requirement. >> Yeah. >> You guys did some interesting things how you funded your first token sale. >> Right. >> You have customers. You've been around for how long? >> 2012. >> 2012. You've been successful. No outside capital. >> Yeah. >> So, you bootstrapped. You made things happen. Had some revenue come in. How'd you do it? Take us through that progression. >> Yeah, so we co-founders worked in various ventures together previously and one of our co-founders, the main founder I would say, Arie Trouw, he started this company in 2012, and we bootstrapped it with seven million dollars of our own cash and one and a half million in venture debt. We really believe in what we do. >> You guys put up a lot of capital. >> Yes. >> Congratulations. >> We believe in what we do. We believe in our capabilities to attract the right teams, we have an amazing team. >> That's skin in the game. >> It's skin in the game and it's actually a low-risk investment for me because I know what we are capable of. >> You are underwriting your own competence. >> Exactly, exactly. >> Okay, so, you had seven million of your own cash. Did you pass the hat around, you all kind of contributed money in, or? >> It was mostly from Arie, actually. (laughs) But we all have skin in the game there. >> So, you have a community, then you launch your idea, what happened next? >> Exactly. So, then the VCs started to come. We did some outreach, VCs started to come, they're interested in our idea, you know, they love what we do. Platform is right, quite sexy right now. In blockchain we are a platform and you can build a lot on top of it. We pushed off the VCs and we said we want to take community money first. The reason is, we believe in building this strong community of evangelists, people who believe in us, who want to code with us. We went to all the developer conferences, not to, like, investor conferences, or something like that. And, so, we marketed to about 2,300 people, our token sale and a little under 500 people put some Ethereum into our token sale and 95% were under 5 ETH. That was a very global community. >> Was that a utility token sale? >> Yes. >> Outside the US, 'cause there's credited investors involved, or what was the-- >> It's clearly a utility token, because you can build on top of it. Last weekend, the city of San Diego and 120 hackers, a IoT company, were in our office to build on top of our chain, traffic flow and parking solutions for the city of San Diego. So, it's clearly a utility token but because of the uncertain regulatory environment we are actually running it like it's a security, so, we have a Reg A, Reg D, Reg S, whatever, we have 115 different jurisdictions we look at, I spoke during the whole process, I'm not lying, it's-- >> That's a lot of work. >> Yeah. 23 lawyers I spoke with. It's a lot of hours with lawyers on the phone. The most aggressive on of them, she suggested to me a structure with no taxes but 20% prison potential, I think. (laughs) On the other side-- >> It's a good cause. You're doing it right. So you spent a lot of money to make sure that your community was involved. >> Yes. And they weren't throwing a lot of money, like they're millionaires, they're like, let's throw a thousand dollars? >> Yep. >> That kind of numbers. >> Yes, exactly. >> So, it's not like you're breaking the bank but they feel ownership. >> Absolutely. If you look at our telegram channel-- >> And you've raised, what, a million, two million, three million, from that? >> One point seven. >> From the community? >> Only community, those 400 people. We had it open for five to six days. We closed it down. We didn't take any money anymore. And since yesterday, I started talking with institutionals again and now we are a sexy story so now they come again, right? (laughs) >> Platforms are sexy. >> Exactly. >> We know, we have one, too. >> (laughs) That's awesome. Love your project. >> Well, the thing about platforms is that, as you know, we talked about last night, is that the platform wars and the platform entrepreneurial thinking has radically changed. In the old days, it was, I've got a platform and I'm going to monetize my platform for my application. Look at Facebook. >> Right. >> They monetize their platform data for advertisers, not users. I am a Google search engine, I need to make the best search result so I can get better advertising. And search results, thats a part. But the new order is the platform value goes to the users or customers. >> Right, right. That's right. >> So not... >> We are not rent-seeking. >> This is an open model with platforming. >> 100% open. There is a lot of the platforms are rent-seeking, where a certain percent of each transaction goes to the company or to some founders or something. We don't have that at all. So, what we do, for every token we sell, we allocate one to the company and after the token sale there is not going to be ever more XYO tokens ever again. And we use our portion to build this network but we don't take any fees or anything there. >> How do you make money? >> Building partnerships with companies, helping them to build on top of the chain, building the community. >> At some point you need to take a small cut of something, right? >> Yeah, if we own half the tokens, hopefully there is some value. >> They could be-- okay, so you'll get the token opportunity? >> Yes. >> So, on the security token, do the investors, the community and now token holders, is that an equity security token, so they own the company through the tokens, right? Non-dilutive, non-voting equity, is that what you're thinking? >> Yeah, it's not an equity token. It's still in our mind a utility token but we do something very interesting. During the token sale event, we are going to launch an equity sale at the same time. So, you can decide if you are comfortable in the blockchain space, you know, all you want to be an equity investor. The disadvantage is you have less liquidity there but you have all the protections an equity gives you. We are a California-based company. It was audited financial since 2012. SEC-qualified and regulated, so equity in our case is a kind of sexy kind of thing. >> Yeah, and they have the long game. They're betting on acquisition or something else. >> Basically. >> Oh, well, they've got to get some revenue going. Well, what's next? What are you guys doing? Token sale done, is it working? What, is it going on now, let me just check it out. You've completed it? >> No, it's going to start on March 20th. It's going to run for two months until May 20th and so now it's a lot of travel, speaking with people, engaging. >> (laughs) >> Yeah, that's next. >> Well, congratulations. >> Thank you. >> So glad that Carrie on Facebook notified me of you guys. Super-impressed with what you're doing and we had a great conversation last night at the monetize roof party. Great to know you guys. I think IoT really needs this kind of model because there's a lot of real critical challenges around the role of data, the role of immutability. There's all kind of sensor devices out there, cameras, you can't go anywhere, digital cities are coming, smart cities. >> Right. >> Self-driving cars. It's going to be wired up, big time, so I think you guys got a good opportunity. Thanks for coming on theCUBE. This is John Furrier here in Puerto Rico for exclusive coverage of Blockchain Unbound. More after this short break. (electronic beats)

>> (upbeat music) Live from Boston Massachusetts. It's theCube! Covering Red Hat Summit 2017. Brought to you by Red Hat. >> It is day three of the Red Hat Summit, here in Boston Massachusetts. I'm Rebecca Knight. Along with Stu Miniman. We are wrapping up this conference Stu. We just had the final keynote of the morning. Before the cameras were rolling, you were teasing me a little bit that you have more scoop on the AWS deal. I'm interested to hear what you learned. >> (Stu) Yeah, Rebecca. First of all, may the fourth be with you. >> (Rebecca) Well, thank you. Of course, yes. And also with you. >> (Stu) Always. >> Yeah. (giggles) >> (Stu) So, day three of the keynote. They started out with a little bit of fun. They gave out some "May The Fourth Be With You" t-shirts. They had a little Star Wars duel that I was Periscoping this morning. So, love their geeking out. I've got my Millennium Falcon cuff links on. >> (Rebecca) You're into it. >> I saw a bunch of guys wearing t-shirts >> (Rebecca) Princess Leia was walking around! >> Princess Leia was walking around. There were storm troopers there. >> (Rebecca) Which is a little sad to see, but yes. >> (Stu) Uh, yeah. Carrie Fisher. >> Yes. >> Absolutely, but the Amazon stuff. Sure, I think this is the biggest news coming out of the show. I've said this a number of times. And we're still kind of teasing out exactly what it is. Cause, partially really this is still being built out. There's not going to be shipping until later this year. So things like how pricing works. We're still going to get there. But there's some people that were like "Oh wait!' "Open shift can be in AWS, that's great!" "But then I can do AWS services on premises." Well, what that doesn't mean, of course is that I don't have everything that Amazon does packaged up into a nice little container. We understand how computer coding works. And even with open-source and how we can make things server-less. And it's not like I can take everything that everybody says and shove it in my data center. It's just not feasible. What that means though, is it is the same applications that I can run. It's running in OpenShift. And really, there's the hooks and the API's to make sure that I can leverage services that are used in AWS. Of course, from my standpoint I'm like "OK!" So, tell me a little bit about how what latency there's going to be between those services. But it will be well understood as we build these what it's going to be use for. Certain use cases. We already talked to Optim. I was really excited about how they could do this for their environment. So, it's something we expect to be talking about throughout the rest of the year. And by the time we get to AWS Reinvent the week after Thanksgiving, I expect we'll have a lot more detail. So, looking forward to that. >> (Rebecca) And it will be rolled out too. So we'll have a really good sense of how it's working in the marketplace. >> (Stu) Absolutely. >> So other thoughts on the key note. I mean, one of the things that really struck me was talking about open-source. The history of open-source. It started because of a need to license existing technologies in a cheaper way. But then, really, the point that was made is that open-source taught tech how to collaborate. And then tech taught the world how to collaborate. Because it really was the model for what we're seeing with crowdsourcing solutions to problems facing education, climate change, the developing world. So I think that that is really something that Red Hat has done really well. In terms of highlighting how open-source is attacking many of the worlds most pressing problems. >> (Stu) Yeah, Rebecca I agree. We talked with Jim Whitehurst and watched him in the keynotes in previous days. And talked about communities and innovation and how that works. And in a lot of tech conferences it's like "Okay, what are the business outcomes?" And here it's, "Well, how are we helping the greater good?" "How are we helping education?" It was great to see kids that are coding and doing some cool things. And they're like, "Oh yeah, I've done Java and all these other things." And the Red Hat guys were like, "Hey >> (Rebecca) We're hiring. Yeah. (giggles) >> can we go hire this seventh grader?" Had the open-source hardware initiative that they were talking about. And how they can do that. Everything from healthcare to get a device that used to be $10,000 to be able to put together the genome. Is I can buy it on Amazon for What was it? Like six seven hundred dollars and put it together myself. So, open-source and hardware are something we've been keeping an eye on. We've been at the Open Compute Project event. Which Facebook launched. But, these other initiatives. They had.... It was funny, she said like, "There's the internet of things." And they have the thing called "The Thing" that you can tie into other pieces. There was another one that weaved this into fabric. And we can sensor and do that. We know healthcare, of course. Lot's of open-source initiatives. So, lots of places where open-source communities and projects are helping proliferate and make greater good and make the world a greater place. Flattening the world in many cases too. So, it was exciting to see. >> And the woman from the Open-Source Association. She made this great point. And she wasn't trying to be flip. But she said one of our questions is: Are you emotionally ready to be part of this community? And I thought that that was so interesting because it is such a different perspective. Particularly from the product side. Where, "This is my IP. This is our idea. This is our lifeblood. And this is how we're going to make money." But this idea of, No. You need to be willing to share. You need to be willing to be copied. And this is about how we build ideas and build the next great things. >> (Stu) Yeah, if you look at the history of the internet, there was always. Right, is this something I have to share information? Or do we build collaboration? You know, back to the old bulletin board days. Through the homebrew computing clubs. Some of the great progress that we've made in technology and then technology enabling beyond have been because we can work in a group. We can work... Build on what everyone else has done. And that's always how science is done. And open-source is just trying to take us to the next level. >> Right. Right. Right. And in terms of one of the last... One of the last things that they featured in the keynote was what's going on at the MIT media lab. Changing the face of agriculture. And how they are coding climate. And how they are coding plant nutrition. And really this is just going to have such a big change in how we consume food and where food is grown. The nutrients we derive from fruit. I was really blown away by the fact that the average apple we eat in the grocery store has been around for 14 months. Ew, ew! (laughs) So, I mean, I'm just exciting what they're doing. >> Yeah, absolutely right. If we can help make sure people get clean water. Make sure people have availability of food. Shorten those cycles. >> (Rebecca) Right, right. Exactly. >> The amount of information, data. The whole Farm to Table Initiative. A lot of times data is involved in that. >> (Rebecca) Yeah. It's not necessarily just the stuff that you know, grown on the roof next door. Or in the farm a block away. I looked at a local food chain that's everywhere is like Chipotle. You know? >> (Rebecca) Right. >> They use data to be able to work with local farmers. Get what they can. Try to help change some of the culture pieces to bring that in. And then they ended up the keynote talking more about innovation award winners. You and I have had the chance to interview a bunch of them. It's a program I really like. And talking to some of the Red Hatters there actually was some focus to work with... Talk to governments. Talk to a lot of internationals. Because when they started the program a few years ago. It started out very U.S.-centric. So, they said "Yeah." It was a little bit coincidence that this year it's all international. Except for RackSpace. But, we should be blind when we think about who has great ideas and good innovation. And at this conference, I bumped into a lot of people internationally. Talked to a few people coming back from the Red Sox game. And it was like, "How was it?" And they were like, "Well, I got a hotdog and I understood this. But that whole ball and thing flying around, I don't get it." And things like that. >> So, they're learning about code but also baseball. So this is >> (Stu) Yeah, what's your take on the global community that you've seen at the show this week? >> (Rebecca) Well, as you've said, there are representatives from 70 countries here. So this really does feel like the United Nations of open-source. I think what is fascinating is that we're here in the states. And so we think about these hotbeds of technological innovation. We're here in Boston. Of course there's Silicon Valley. Then there are North Carolina, where Red Hat's based. Atlanta, Austin, Seattle, of course. So all these places where we see so much innovation and technological progress taking place here in the states. And so, it can be easy to forget that there are also pockets all over Europe. All over South America. In Africa, doing cool things with technology. And I think that that is also ... When we get back to one of the sub themes of this conference... I mean, it's not a sub theme. It is the theme. About how we work today. How we share ideas. How we collaborate. And how we manage and inspire people to do their best work. I think that that is what I'd like to dig into a little today. If we can. And see how it is different in these various countries. >> Yeah, and this show, what I like is when its 13th year of the show, it started out going to a few locations. Now it's very stable. Next year, they'll be back in San Francisco. The year after, they'll be back here in Boston. They've go the new Boston office opening up within walking distance of where we are. Here GE is opening up their big building. I just heard there's lots of startups when I've been walking around the area. Every time I come down to the Sea Port District. It's like, "Wow, look at all the tech." It's like, Log Me In is right down the road. There's this hot little storage company called Wasabi. That's like two blocks away. Really excited but, one last thing back on the international piece. Next week's OpenStack Summit. I'll be here, doing theCube. And some of the feedback I've been getting this week It's like, "Look, the misperception on an OpenStack." One of the reasons why people are like, "Oh, the project's floundering. And it's not doing great, is because the two big use case. One, the telecommunication space. Which is a small segment of the global population. And two, it's gaining a lot of traction in Europe and in Asia. Whereas, in North America public cloud has kind of pushed it aside a little bit. So, unfortunately the global tech press tends to be very much, "Oh wait, if it's seventy-five percent adoption in North America, that's what we expect. If its seventy-five percent overseas, it's not happening. So (giggles) it's kind of interesting. >> (Rebecca) Right. And that myopia is really a problem because these are the trends that are shaping our future. >> (Stu) Yeah, yeah. >> So today, I'm also going to be talking to the Women In Tech winners. That very exciting. One of the women was talking about how she got her idea. Or really, her idea became more formulated, more crystallized, at the Grace Hopper Conference. We, of course, have a great partnership with the Grace Hopper Conference. So, I'm excited to talk to her more about that today too. >> (Stu) Yeah, good lineup. We have few more partners. Another customer EasiER AG who did the keynote yesterday. Looking forward to digging in. Kind of wrapping up all of this. And Rebecca it's been fun doing it with you this week. >> And I'm with you. And may the force... May the fourth be with you. >> And with you. >> (giggles) Thank you, we'll have more today later. From the Red Hat Summit. Here in Boston, I'm Rebecca Knight for Stu Miniman. (upbeat music)

from London England extracting the signal from the noise it's the Kuhn covered discover 2015 brought to you by Hewlett Packard Enterprise now your hosts John furrier and Dave vellante okay welcome back everyone we are here live in london england for HPE discover this is silicon angles the cube our flagship program we go out to the events and extract the signal from noise i'm john / with my co-host avalon say our next guest scott well our is SVP and general manager HP east technology services support group this guy welcome back you below many times every year great to have you on usually on though usually the first one on every time but now you've schedules packed i made on the last way this time right before questions for you now your last a baby for us welcome back thank you so give us the update from your standpoint it's just every year more and more stuffs happening yeah that requires services especially the technology services this year is composable right Dave and I were talking on the intro HP got it right with converged infrastructure you know right out of the gate and back then kinda people scratching their heads what's converge infrastructure looking back its mainstream now now you have the next bet on compostable we like it I love it a lot yeah now customers probably like oh my got another new thing so how do you guys doing right now with all the changes clouds pretty clear no public cloud good right a lot of private clouds that's yeah good stuff you've been building out right now composable what's the update so you like you said a lot going on we have in in a way reinvented the company which you don't do very often right but i think the the companies that can reinvent at the right times are the ones that survive and thrive and in particular pivoting our strategy around these for transformation areas is really is really important and you'll see the implications of that play out over time like you're seeing some of it now but it really changes the way we think about our customers what what their problems are what we're here to do for them and you're right it's there's a huge service element in that in fact you could even say that a lot of that is service led and so the transformation area work has led to probably 50 distinct solutions that are in every way pan HPE they involve you know it's a pan portfolio pan go to market kind of view on things and so right now you know we have competitors that are single plays you know storage competitors server competitors solution competitors and so we have to do the new we have to do this new view on the world as well as continue to be a fierce competitor right and these in these single play environments so so that's that's a a new challenge for us but I mean it's such an exciting time and just see this i'm actually very proud of what we've been able to do it's really interesting you certainly for your memoirs can put into the book this past couple years and certainly the past year I mean you had the operating as a split entity prior to the official date right huge IT track cross over the engine services workforce plus new hiring for the gaps you we talked about last time so congratulations on that I think really phenomenal yeah I love to drill down on that but I want to get to the point you just mentioned this is interesting in vague as we talked about the services piece viscosity the transformation was laid out them same four pillars right now you're seeing a lot of meat on the bone even how the show's organized it's not by org chart right it's by solutions we see oh yeah how to run your government booth over here that's not a division of age feeds a solution right so tell us what's of all I mean I love this services led angle Dave and I were just talking on the intro about IOT once you get them into the network the methodology for the customer depends on the customer or how they want to get the data function of what the device is right again just a random example but this is the the new normal the services led infrastructure it is and you know I can just tell you from the inside that that this is not market texture that you guys are seeing I mean this is real you know deep into the way the company not only operates and develop solutions and goes to market but again how do we think about what we're here to do for our customers how do we want to show up in in discussions with our customers so so this is a you know I wouldn't say that we're through that I mean we have a lot to learn a lot to do but this is this is definitely a reinvention a rotation for us and the reaction has been incredible and like you said we we made a conscious decision that we would show up here like that like it you know this is we're going to start to live what we really believe we need to do is this new company so it's got an indication of that it's not just market texture it's real it would be how you get measured by customers in it yeah and it used to be okay the projects on budget on time you know successful check and now that's table stakes Wow as you move toward these new four pillars solution areas are the ways in which you're measured changing right so what what we are seeing and experiencing is a shift from sort of like project technical project based of deliverables and have you done that to have you created the business outcome that I intended when I went down this path with Sheila Packard enterprise so and those outcomes are you know contextual their unique fairly unique to the customer situation and it can be anything from have you moved us to hybrid have you have you shown us how we can be a high velocity I tea shop have you have you brought devops into our context and shown us how to be successful so it's those kinds of things about you know are we you know ultimately without the specifics the question is are we helping our customers succeed through IT and and then the the specifics of that context will drive it but that that's really the difference it's not about project outcomes its business outcomes well that's a much more complicated equation for your zero because you check tick off the items and it'll fit you know the earlier days this is not what we delivered and oh the customer didn't exploit it you know because of XYZ man now they're holding you're responsible for the business outcome so how that basically talks some deeper business integration how is that changing the way you go to market your skill sets well you know a few years ago there was a whole question of do I just sell a product and then kind of the customers on their own to get some value out of it and actually for all of us as consumers if we don't use a product we don't we don't know whether we got any benefit obviously and so the companies that make those product would really like us to use them and and and so good things happen when you actually help customers realize the value of their investments with us you take that to the next step and you say you know if you care about whether the customer actually got to what they were planning for intending by working with us that that's a different mindset and it doesn't have to be contractual necessarily it starts with a mindset and then you can write it into contracts and there are ways to do that and we're seeing some of that but really more it's it's a mindset and what are we there to do for them and and yes you you begin just you begin to think about well you know you know maybe this project this this deployment didn't really achieve what they wanted what are we going to do about that together with the customer one of the things that we talked about yesterday with some of the channel partners was his reinvention isn't blurring the lines between of a band a bar and a reseller and distributor right and Carrie Bailey was on from the cloud group and really saying hey you know we should identify the value points and focus on that but I want to ask you on that on that thread because now that brings up the conscience we had again in Vegas which is there's so much work to do on the services side it's almost ridiculous to think about mind blowing and most like how many reference architectures it could be at me right variations it could be so we know you're busy work it away on that now but also now the channel partners are there and there's also the channel conflict so how do you guys because there's a lot of work to do how do you separate what you guys going to do with in HP and go direct to the customers and or right provide to the channel partners in the form of reference architectures because now they're taking the ball yeah and going to the front lines as well so seems to be that's a nice area you guys have managing that what's the thoughts there what's your vision so you know my belief is that actually simplicity is the better outcome you don't want to have a buffet of reference architectures or even products you know you I think our customers and our partners expect us to do our homework segment the market understand what business we're in and have you know enough but no more in terms of products use reference architectures and so on that's part of being a thought leader in this industry from there you're right it comes down to the kind of channel relationships you want the kind of plays you want to run with the channel in some cases it means the channel does everything in some cases it means that the channel you know does one piece of it and the direct is the other piece of it and we're so big and we're global so we have all kinds of buyers you know and we have we have direct customers who buy direct from so for some things and actually work with partners for other things so it's all of the above and we have to harmonize that we have to rationalize that for sure but at times they might not have the capabilities right so well it's down to the balance between roles and delivery right and that's the and that's the other piece of it is the partners get really upset with us when we're not innovating if they can do everything that we do then they wonder why in the world there partner program so so there is a creative tension right we're always going to be innovated sometimes that leads us down paths that overlap you know the forward leaning partners sometimes it works itself out so so but that is a constant dance and it's a good thing actually because our partners teach us a lot and and good checks and balances but you're also going to be an enabler right I mean yes you can leverage a lot of the work you're doing just pass it on that's as you get to movies converge and integration yes yeah yeah and and you know the channel piece is interesting because the channel is going through a massive transformation like everybody else yeah and you know let's face it most of the channel revenue today is moving tin and then but that's changing your rapidly because that business is kind of going away what happened overnight yeah so the lines are blurring but my understanding Scott and from speaking in the past is that that you're open to the channel white labeling your services they do that talk to many of your channel partners that are happy to do that and you allow that it doesn't have your not dogmatic about it's got to be the HP brand can you talk about that philosophy yeah so I think that's correct in that assertion so generally it's that that's not the way we kind of view the world we have a few what would we call partner branded programs and those are very very specific and targeted generally speaking what we want to do is pour a ton of investment into innovation and we ask our partners where there's there's you know where we have clear innovation and clear leadership to sell our brands we authorize them to do that we pay them to do that we encourage them to do that and we have multipliers on how they can earn with us you know the more for more model but in a few cases we do we do have a partner branded program and and sometimes that has to do with geography sometimes it has to do with a product and the competitors that are that are in the market with that product I see okay so so it really is selective and you're really trying to to have that HP branded service but the the partner can resell that service and make the partner can resell and they can deliver against it as well and again we make it worth their while through our partner programs you guys have a great track record with the channel excuse got a great history there's why I asked but the innovation things what I was getting at night so I gotta ask you since Vegas what's the top seller what product is working the most right now well I mean I mean I mean come joking but I want to kind of know where's the traction what's the most hot yeah what's hot well you know you were there when we introduced proactive care for example three years ago that's become possibly the fastest selling product in HP's history and most of it is done through the channel so here's the case where we're able to offer proactive in sight backed by analytics and reporting that most partners don't have either the time the breath the visibility to do and again that's where they said hey thank you thank you for innovating he look back at enterprise we would like to take that to our customers composable services what's going on there it's news right out of the gate so it's a new announcement right Rio T stuff again we love the IOT messaging though got a rouble wireless out there ya bought with a great leader transition right so I'll take them in order so so first of all composable you know what what all what every ops and I tea shop will know is that it's really hard to provision right it it's labor intensive it's is error prone its disruptive sometimes it's not very secure depending on where you get your images and so from and so with with the with synergy what we've done is we've said look we want to make provisioning happen at runtime we want the gear to self-assemble why can't the gear kind of discover itself and self assemble that kind of makes sense right but but nobody's done this right so we're really excited about that capability and then on top of that it has native exposure for this this infrastructure as code paradigm which now now you begin to excite the developer community about this being a target right versus the morass that they sometimes feel that I T is presenting back to them so it's high velocity IT it's in the paradigm that they want and from the knobs perspective a lot easier to live with I mean the livability of synergy versus conventional gear is so much better so we're trying to take the hassle factor out of being an ops person and also encourage a collaboration that eventually you know DevOps is all about but not everybody is there yet and and it's going to take time so we've just been discussing John and I a week whether synergy is evolutionary or revolutionary from the services perspective you haven't a good angle on that yeah and if it is evolutionary what does it mean from a services perspective what's your take synergy composable infrastructure that you've announced evolutionary or revolutionary and when I think lican I mean I think that could be a fun debate i'm not sure but i think you know for me for me i think it's going to feel quite revolutionary to customers and that's the reaction we're getting of course we pull the analysts all through the development cycle about what do you think and what do you think this is going to mean and they're really excited it's a cinema big weighing in at river there that I think I think they would say is revolutionary and from a certain perspective look at what's the abyss you know from a service perspective on one level it's no different than any other product there are more potentially more seams or fewer seams for my business to kind of deal with on behalf of the customer but it's also going to mean that we have the ability to now to kind of fulfill what I've laid out is our vision which is we need to be about making sure that customers are successful through IT and do that over the long term independent of market headwinds and independent of technology changes and so this is to me it's an enablement of what we're trying to do generally and then the rest of our service just wrap around it as they always do were you was your team asked to help dog food with the split and did you get tired of that well yeah remember all on the payroll it is but but but yes in fact you know we talked about how like in a couple weeks we had to build 4,000 servers well my team got involved with that why wouldn't we right we have the expertise yeah so in the long face and a lot of yeah a lot of my team were involved in the various you know behind the scenes aspects of it and but again that's something to be proud of because now people look and say wow that's almost like a benchmark for what how things should happen right and and so and we've actually made a business out of helping other companies do similar things whether it's divestiture or merger it's quite an accomplishment i think it's worth capturing and documenting as a use case because to do that a death scale at that level of that edge speed is really agile dan again it's for it is purest yeah non-dogmatic form yes I mean agile in terms of development I get that but to move that kind of scale yeah in that you know I think about it like a man on the moon in a decade we will do XYZ and that's and you know we in one year we are going to be two separate companies and we did it awesome well I gotta get your take on the overall vibe actually actually first IOT I want to get that the coyote is really an opportunity moonshots now being yeah I disagree gated opportunities there so so first of all there are cycles right you know mainframe client-server on on and on IOT moving compute to the edge is is the the latest cycle and it's going to last a long time because as much as we'd like to put in the sensors there's a cost right if the sensors are all super smart now they can't proliferate so putting compute on the edge is a nice architecture and moonshots a perfect vehicle for that the thing that for the service business there's a there's sort of an edge where I'm not going to take it further in other words our edge the true edge in other words I will provide support for the IOT aggregation right the aggregation quite the compute point but people say well why don't you you know isn't isn't a you know a RFID tag just you know part of the architecture well yes it is well I don't have people who can go into hazardous environments like I don't have people who are trained to go into medical facilities to grow that last mile right so when it comes yeah when it comes to talk about this right of service night around from us from Hewlett Packard Enterprise it'll go it'll go up to the compute layer or edge and then we'll work with other people and that'll be part of our overall big solution when you talk about big solutions like we might you know might be doing for an airline or for the health industry in general so we have advising people to define that edge yeah and we added one way element to that which is not only the provisioning of the labor of the training is also power and internet and the 30 patients and yes everything everything about that so it's a very it becomes a collaborative play like people say well why wouldn't you want to do smart meters well I don't have meter readers in my workforce for example and it's all going to be automated anyway so if you face to though I mean the reality now is that the addressable market now is the edge of the network your true edge and then I OT everything yes let's try to go outside the bounds of that true edge as you were pointing out you start getting into over your skis yes and you get into all these little fatal flaw trip wires well not only that but you know we can't forget that the companies to build the sensors are quite interested in the value chain of all this to ya so this is where I think we'll meet in the middle will collaborate yeah and and it's actually very exciting I in my past I was involved heavily in telematics and so I know that I know the drill and but I completely agree with this huge huge opportunity well you interesting that's a point about leading in the middle that actually favors HP with the ecosystem play yeah absolutely put you guys right if we will out so yeah interesting we're kind of stitches together in real time we had a great statement on that great great visibility workplace productivity I've been trying to figure out what the heck that that transformation pillar is all about it's like it's splendid right oh yeah yeah the product guy I'm trying to get a product out of it but you got development you got user experience it seems mazi to me can you clarify that for what that means we service isn't so the very first maybe the you know glaringly obvious part of that is mobility right and with our Aruba acquisition we have I think we have a great position there and this notion that you know years ago we talked about work-life balance sometimes it became kind of a joke but the work-life balance doesn't exist really it's like I'm working now in two seconds from now I'm going to be on my life because I'm interacting with my kid or whatever on text back to work and that the only way that actually happens is if you can essentially be connected everywhere yeah and and back to IOT you know what what we're doing is you know you've heard about data center care where we wrap around arms around all the gear in a data center we are doing the same thing is it'll be called campus care or something like that but how do you provide that kind of integrated single point of contact experience for a campus network right so that you can you can create that experience so so that moves us but it's fuzzy because that's just way the world is it's fuzzy it's splendid that's the way wins that's why we work i'm on the sidelines watch my kids lacrosse game and I answering email in between apps right so you know exactly is that bad or good i get actually he's a product it just is so I gotta ask you I know we're getting close on time but you brought up wireless and you mentioned right ampas huge refresh opportunity in campus networking right now and wireless it seems to be the top item for all user experience yes does that on your Lily on your road map right now in terms of delivery because I can imagine yeah the refresh cycles from went you know yeah remotely connected with wired or Wireless now I mean nobody's running wires anymore yeah so but yes the refresh the the the first placement stadiums you know places where where you were lucky if you could have a cell phone signal people want to show up and they want to watch the replays on their device and they you know it becomes an immersive experience all enabled through technology i Scott I know you got another appointment and really appreciate you taking the time great insight on IOT and as usual great insight across sport thanks for sharing the insight here all that big day to come in there on the cube for your in the services love the services lead I really believe that debris are now in a services led sure because the infrastructure is in different than every company so there's no boilerplate anymore it's harder for you but I'd get that get those reference architectures to be more of them congratulations I'm split thank you Scott Weller senior vice president Romero technology services group here Enterprise HP Enterprise hv discovery right back with more from the cube after this short break you

>> Live from New York City, it's buck you. Here is your host, Jeff Frick. >> Hey, welcome back. I'm Jeff. Rick. We're here at the Cubes. Fifth birthday party. A big date in Icy in Manhattan is part of the big Date. A week. It's got Stratos cough, a dupe world. And, of course, big Aidan. I see. So now having our party, which is always good to have, and I'm joined department X gas. Kerry McFadden from Parodi Research. Carrie. Welcome. Well, thank you very much. So last last we saw he was actually a big data and twenty thirteen, So it's lots changing the year. >> Absolutely, Absolutely. I think the whole hoodoo thing is really taken off. And the thing that interests me the most about show or or the exhibitors at the show is that Bye. You could get a lot of data into Duke, but how do you get it out? How do you make it useful? What do you do with it when you get it out? You know, I said on structure data is structured. Date. Is that a combination? Is it ski Melis? >> All the above all the above, >> right? Exactly. So I think really, that's been on and actually have been Jeff to all the shows, right? Since the beginning, when it was just a new world. Okay, Cube started back. And I think two thousand ten two thousand filling our fifth birthday. Right? So at least at least at least twenty ten. So since then, you've seen, you know, progression off vendors coming in to provide services that actually enable Duke to do more than it does started is kind of a batch oriented type of solution that now, because of these other value added solutions can to really or near real time processing, you can take the data out of it a lot more easily. You can use do basically as a as a repository, right on DH. And a lot of the solutions out there are are evolving to the point where you can, uh, you could basically make a sense of the information, and I think that's a really important rights. Dated information information inside, right? That's where we want to go with this thing. Business decisions made in real time. Which way? Define as in time to do something about it. Right? Right. Yes. Some of the players, I mean, you've got the map. Our guys. You've got the act. Aeon folks that just bought pervasive software. So they've got the Predictive Analytics piece sort of covered. Obviously. That's stone breakers. Old company, you know, a variant of ing gris, right? You've got. Obviously, IBM is a player in this space. With their blue mix and their cloud capabilities and all of their information management pieces, every major vendor is got a piece of is part of the action, if you will. Trying to build something on top of a dupe to make it more useful and make it more valuable. Yeah, the floor was filled with little companies, big companies, and everyone is certainly jumping in. So let me get your prospectus that you've been coming for a lot of years on this thing. Where are we on the journey? How? How? You know, I think we're past the P E O C stage, right? People are getting stuff into production deployments, but it's still early days. You know, the Giants are playing tonight. Go Giants, are we? First inning, third inning, seventh inning. Where are we? I think we're probably in the second or third any second. I think we got a ways to go. And what's the next big hurdle to get us to the next inning. I think one of the problems is this storage issue, right? So you've got this issue of being able to scale out theoretically, exponentially, right? The nice thing about do piss If you need Teo, if you need more space, you just add No J had storage and whatnot, But what happens when you get too much information? You're into the pedal bike, multiple PETA right range now, and most of that data, you know you're not going to access. You may access only two percent of it overtime. I think they're a lot of figures around that. But actually, a wicked bon article that I read recently is very interesting, one called Flake Flake or what they were doing. Flake. I want to make sure he gets a slave by a herd where he said it to me off camera, right? It's a f L a P. It's a combination of flash and tape on DH. Basically, there's a great article on the Wicked Bond site by Wicked Bonds CTO, David's lawyer Okay, and his premises that at some point, relatively soon a cz thie as data grows exponentially into the multiple petabytes ranges and maybe even beyond The thing is gonna get squeezed is the traditional HDD or hardening is spinning disc, right? So tape has become much more, uh, much more resilient. Uh, tape last has a meat time failure of about twenty six or thirty years versus disc, which is about five. And obviously flash is much, much faster, right? Right in some cases don't get into all the nuances of almost feet feet, but flavor going to squeeze out disks and the men think so. And what that'll offer customers is a is a much lower TCO from managing those huge petabytes scale environments and also accessing it at a relatively quick speed. So I think that's that's a piece. It's interesting that the other part that's very interesting to me, Mr Cognitive Computing face. So I was at the no SQL event last week last month in in San Jose, and with that they had a cognitive computing component on DH. I think thie idea of trying to get machines to think more like people building neuro morphing chips to two. It's kind of mimic the way synapses or electricity, electricity in the brain, you know, works how neurons fire and so forth is very interesting. And I think once you Khun Get Dupe is the repository. You've got the data there. But how do you make use of it? And I think that's the challenge. That's going to be, well, paramount the next few years. Exciting days ahead. Well, Gary, thanks for taking a few minutes. We're at the fifth birthday party at the Cube. Were at Big Data and nice jefe. Rick, we're on the ground. Thanks for watching.