(soft bright music) (logo swooshing) (crowd murmuring) >> Hey everyone, welcome to Las Vegas! Lisa Martin here on the ground with theCUBE about Coupa Inspire 2022. And can you hear the buzz behind me? It is so great to be in person. Nick Banich joins me, the Chief Revenue Officer and Global Partnership Manager for the Coupa Alliance at Miebach Consulting. Nick, it's great to have you on the program. >> Thanks for having me, Lisa. First time here at Inspire and it's exciting. >> Is it exciting? It's great to see this room packed. >> It is! It feels, like, the pandemic is finally- >> It does. >> Maybe behind us. >> Right, fingers crossed. (Nick chuckles) So talk to us a little bit about Miebach Consulting and a little bit about the Coupa Partnership, so the audience gets that understanding of what you guys do. >> Yeah, guess, we're kind of new to the Coupa ecosystem. You could say, we came as part of the acquisition of LLamasoft. So Miebach is a supply chain focus, advisory, consultancy, engineering firm. So we have three different business lines. Supply chain strategy, where we do things like supply chain design and the Coupa platform, planning, inventory, engineering, automation studies, and distribution centers, with the labor crunch that we're facing right now. As well as we have a digital transformation group that works on getting the decision-making as a supply chain industry into the digital realm and away from Microsoft Excel. >> Let's talk about the digitization of the supply chain. You know, one of the things that we've seen in the last couple of years is this massive acceleration to digital because businesses in every industry had no choice. But where are, what are the current trends from a digital supply chain perspective? >> You know, I think the, kind of the integration of the compression of the decision-making cycle has really gotten companies to not look at strategic decisions then operational decisions and tactical decisions in execution. That all has to be compressed now with the volatility we've all been exposed to. I mean, basically, for the past 20 years, we took the supply chain and turned it into a Swiss watch. It was very long, very well orchestrated. But with the volatility, with labor issues, with the land war in Europe, this volatility and change is requiring companies to be much more adaptive. And they've had to compress that decision cycle down and the Coupa platform, certainly, from a supply chain standpoint, absolutely helps infuse that process to shorten time from question to answer and allow you to address strategic and tactical topics in parallel to one another and not kind of waterfall down over the decision making product. >> That's important, 'cause these days, there is no time for waterfalls. So let's unpack the Coupa supply chain design platform. Talk to me about it, what it does and how it is helping that acceleration? >> Yeah, so it's incredibly powerful. And what it allows you to do is create that digital representation. We can take a three dimensional world and put it into a two dimensional linear program. And within the same platform we can optimize strategically and take a look at end to end type of supply chain decisions, nearshoring, onshoring, supplier diversification, and risk aspects. We can look at it more operationally. We're actually looking at which manufacturing plans should make what? What distribution centers should serve what customers? How do I segment my products? How do I segment my customers? Then within the same modules, you can use and go to your inventory optimization, not only optimize inventory, but also simulate it, which gives you phenomenal power in a world where there is so much uncertainty. You can apply risk in those questions of what if, so you're ready. So that way, when the thing happens, you're not that scrambling to have analysts crunch Excel files to see what do you do to normalize inventory levels or normalize your supplier base. You're able to be more proactive with the predictive and prescriptive analytics that the full suite provides for you. >> That is essential. If that's one of the lessons we've learned in the last couple of years, not if, but when. >> Nick: Yes. >> Talk to me about customers that are using the platform. What are some of the, using it well. What are some of the things that they have in common? >> You know, I think the organizations that are implementing it well, look for it. They view it as a real platform. You know, historically, supply chain design, network optimization, was seen as a tool, and companies implement it as a tool. You purchase licenses, you assign a couple of people to work on it from your analytical department and you just went with it. This is a very powerful platform to completely revolutionize how you make decisions within your supply chain. And you need to approach it the same way you approach a new warehouse management system, a new planning platform, a new labor management system, the change management aspects, the organizational aspects, the education of stakeholders on what is this, demystifying it. So it's not a black box and everybody knows what it can and should do and how best to utilize it. So those organizations that view it as more than a distribution network tool, "Hey, where do I put my new warehouse? Hey, this lease is coming up in Central Europe. It's coming up in Ohio. Do I extend the lease? Do I need to move?" That's, like, a level zero maturity on our maturity graph. The very mature companies are using it and infusing it both strategically, operational, technically, and are using it for distribution decisions, transportation decisions around mode selection, production footprint decisions. You have the capability to have a digital twin. And by having, the other thing companies struggle with is, they just build one model. >> Uh-hmm. >> I start out, I buy the product. You know, I get it built in, I move everything to the cloud and then I do a distribution solve for the U.S. And then the European group says, "Hey, that was great. That was insightful. Can we do the same thing in Europe?" And you take that model and then you add Europe into it. And then the production group says, "Hey, you know, we're thinking about changing some of our make-buy decisions. Can you model what the effect would be on total cost if we did do some nearshoring?" And all of a sudden, you turn your one model that you had built for a specific purpose into this Christmas tree where everybody's hanging their ornaments. And what you really need to do is having a modeling strategy. What type, you should have a volume, a portfolio of models you can pull from and say, "Hey, here's our strategic end to end model. Hey, here's our tactical Asian production models. Hey, here's our total landed cost for top 15% of our customers." And having that set of models, so you have right models, the right questions. >> Uh-hmm. >> That's what the companies that are really scaling this and really excelling. And you'll notice a pattern. The companies that are excelling that have the Coupa platform, typically, you'll find them on list, like, Gartner's Top 25 and things along those lines. Because it is a very powerful platform when you unlock the art of the possible with it. >> Sounds, like, those are companies that are very innovative. But where does the company, that maybe isn't there yet? How do they start? 'Cause it sounds, like, there's a tremendous wealth of potential and opportunities that the technology can deliver. Do they have to start with executive buy-in? What do you see as kind of, like, some of those early steps? >> This is a change management exercise from the very beginning. So creating that sense of urgency, creating your powerful coalition. You have to start with that. If you view this as, "Hey, we're going to have a tool, we're going to use this once, and then our supply chain's fixed for the next 10 years." I mean, I think most leaders are realizing that those days are long gone. That supply chain design has to be a continual topic at the top levels. You know, supply chain is on the lips of every politician and every (chuckles) board member right now. So this is a wonderful moment for those supply chain leaders that have wanted to infuse a greater level of digital decision-making. This is the perfect opportunity. You can get buy-in, like, you never had before. Your CFO is probably analyzing labor inflation, fuel inflation rates, disruptions on supply base, and you're probably having to deal with more pressure out of the CFO and its department than you ever had to in the past. We see it with our clients. The pressure is on with those leaders. And this allows you to very quickly be much more holistic in that decision-making. You're not relying on how good was the analyst, that made this Excel file that told you to open up this plan, move this distribution center, serve this customer base in this way. It's not based on how that data looks and how good that analyst was, you're infusing an entire practice into your organization. >> That's critical, because every company these days is a data company. If they're not, they're not going to be around. It's about the ability to have visibility extract the value from the data to make those data-driven decisions, because we don't have time. We heard a lot about that from a real-time perspective and the keynote this morning that's table stakes run any organization. >> Yeah, and with the move of the platform to the cloud, as part of the Coupa ecosystem, with the DDM, with the rapid model builder, and all those things that come along with it, it will significantly squash the amount out of time you have from question to answer. Because the first time you do this, it probably takes four months. And of that four months to ask that question, and get an answer, build your model, you know, replicate the 3D world in that 2D environment. Over half of that time is spent on cleaning data, building the baseline model, aligning with finance, they peanut butter spread certain aspects of cost onto the onto SKUs and really getting correct cost allocations for A, B, and C SKUs. You spend half your time just playing around with your data to get the model to work right now. Once you add that model, next time, question and answer infinitely quicker. But you have to have a good data strategy. You have to have the right data architecture. If you don't have that specific to supply chain, leaders really need to get on that. Because what we see a lot of times is organizations will have an enterprise data strategy. >> Uh-hmm. >> And they're going to build a data warehouse or a data lake, you know, whatever, I'm a consultant, so I'm also guilty of the buzz words. But, we kind of call it the supply chain data plan. You don't need to wait for the whole enterprise to get ready to have all of your data sorted out in a single instance, homogenize. Start collecting that supply chain data, have a data strategy around it. So that way, you can start replicating these things then you can feed it back into the enterprise data strategy. But you have to get your data right. It's the old adage garbage in garbage out. >> Right. >> It's still true to this day. No matter how powerful the analytical tools are, we're infusing machine learning, artificial intelligence into some of the solves in the platform. But if you don't have that good data, you're going to struggle. So that's a key piece to it, getting that executive buy-in and having that right data strategy will set you on a much smoother path to success than if you don't do those things. >> Right, the data strategy is critical. If not, one of the biggest competitive differentiators these days. Where is the chief data officer, the chief digital officer, the chief information officer, in these conversations that Miebach is having with customers? >> Too often, not at the forefront enough. >> Lisa: Really? >> Those clients that have that group, have that organization, and they have influencing power, those programs go much quicker, much simpler. The rate of adoption, the scalability of the program. All of a sudden, you're not thinking about, "What am I going to do with one or two analysts interacting with the product?" You're now developing apps. You have your planners interfacing with it. You have capacity managers interacting with the digital model. Those that don't have that, do have much more impetus, because it's always the adage of, "Oh, IT, what do we do? And our data's a mess. We have this data program and our IT resources are super constrained." So you have to bring those people to the table. You have to have them part of the conversation, 'cause they can be an incredible enabler if you bring them and get them bought in. >> That's a great point of those enablers. And especially, given the fact that nobody has extra time to waste here. This is a, everything is so fast moving. You mentioned supply chain being on the lips of every politician. Everybody's lips, everybody's expecting some delivery that is delayed for whatever reason. >> I mean, 12 years ago when I started with the firm, and people, "Oh, what does the firm do?" I'm like, "Oh we're a global supply chain consultancy." And they're like, "What?" >> Yeah. (laughs) >> You know, now everybody knows. And they're like, "Oh, yeah!" It's amazing that the revolution, I mean, the pandemic has been incredibly unfortunate with all the hardships and deaths and everything and still dealing with hotspots and things. I think it did bring supply chain, supply chain was struggling for a while to get a seat at the table. Organizations started having chief supply chain officers. You know, that was a new thing not that long ago. This has brought table stakes to the supply chain organization. My challenge back to us is what do we do with this now? >> Right. >> For years, as an industry, we've asked to be at the table, we're here now, spotlight's on us. It's time for us to deliver. Things like the Coupa platform are an incredible enabler of that. But you got to get it right when you roll it out. >> The spotlight's on you, but there's also a skill shortage. Talk to me about that. I just saw you do a big sigh. How can Miebach and Coupa with this platform help to mitigate some of the supply chain skills gap that organizations in every industry are facing? >> You know, it really comes down to the human element and when people talk a lot about sustainability, they talk about environmental conditions. There's a human sustainability topic we have to cover. Nobody likes being assigned to be a data analyst on a transformational project. And you're crunching Excel spreadsheets and running it sequel coding. No, no, that's not an enjoyable fulfilling task for many people. >> Lisa: No. >> There are special people that it is, and God bless (chuckles) them. So with things, like, the apps, with things, like, building out, so that way, we can take the people that you do have and have them making decisions, driving discussions around the insights the platform's giving versus just crunching numbers and building models. This is where you're going to have a much higher retainment. People are going to be excited about the job. They're going to have fun at the job because you do see a turnover of organizations that don't get the data strategy right, that people don't like being in a supply chain center of excellence in perpetuity. Again, there are certain people that are, but a lot of times, once the people get this analytical insight to how strategically the design of the company is set up, business units will grab them and give them a significant role. And then you're continually churning and replacing your COE talent. So having a talent strategy for your COE and having a strategy of how you're going to leverage, you know, we're in a world where my first grader's are learning coding, right? Like, you need to have a data strategy. So that way, that becomes your people strategy as well. And too many times, people think, "Hey, I buy the platform. I need a project strategy. What are the projects we're going to do?" And not often enough, do they talk about the people element of it to really make this work. And it absolutely has to be part of the discussion as you're setting up your center of excellence, it's people, it's processes and it's technology. >> Absolutely! >> You got to bring those three together or you real struggle a bit. >> You do. And then change management is not an easy thing to do for anybody. But one of the things you talked about, this is the pandemic as an accelerator of getting the supply chain folks to the table, being able to accelerate, getting data into the hands of people that can actually take in clean insights and make decisions based on that. So if you look into a crystal ball, what's the future of supply chain design? Where is it going? >> I believe we're going to see a lot more of movement towards applications and infusing of artificial intelligence and machine learning. It's there. It's ready to go. What a lot of companies are lacking and it goes back to what we already talked about is the data piece of it. I mean, we have been developing algorithms in a machine learning environment for three, four years now. It goes back to garbage in, and garbage out. So I think it's going to be a big element of supply chain talent, securing that, figuring out with robotic product process automation and things like that. How do you take non-value added work so you can take the talent you do have and give them more fulfilling work? I think companies are going to need to have data strategies and all that unlocks applications and things. So you can democratize, right? You have this digital twin in the cloud. How many people within the organization cross-functionally have questions about the supply chain? >> Right. >> What if this happens? What if that happens? Hey, if we do this, what does it effect upstream downstream? >> Right. >> So once you build that cloud, develop the applications that allow the entire enterprise to interface with this digital representation to play around and see what the effect is to then make better, more informed, more holistic decisions, drive more conversational, cross functionally amongst leaders, and even below the top leadership level. I think this is really where we're going to go and the companies that don't just survive, but thrive in this new normal, whatever that's going to be, is going to be the companies that get that right. >> They have to embrace that. There's no doubt. >> Nick: Have to embrace it. >> Nick, it's been great having you on the program, talking about supply chain, what's going on there, the accelerators, but also the opportunities. Thank you so much for sharing your insights. >> I appreciate the opportunity. So it's been a great conversation. I look forward to the rest of the event! >> I agree. For Nick Banich, I'm Lisa Martin on the ground in Las Vegas at Coupa Inspire 2022. Stick around, I'll be back with my next guest shortly. (bright music)

>> Announcer: From Miami Beach, Florida, it's theCUBE. Covering Acronis Global Cyber Summit 2019. Brought to you by Acronis. >> Hello everyone, welcome back to theCUBE's coverage here in Miami Beach, Florida at the Fontainebleau Hotel for the Acronis Global Cyber Summit 2019, where cyber protection is becoming an emerging trend. And we see these once in a while, when you have these big waves, you know, some unique trends. Observability and cloud computing, automation and cloud computing came out of nowhere from these white spaces. Now you're seeing the confluence of data protection and cyber security coming together to the platform. That's what they're talking about here. And my next guest, to break it all down, is an analyst from Forrester Research, Naveen Chhabra. Thanks for joining us today. >> Thank you for having me here. >> So Miami Beach, not a bad venue is it? >> Oh yeah, absolutely. (laughing) >> Get a dip in the ocean there, the water's warm. I got to ask you this, break down this market. Acronis is on here earlier. They've got a story to tell, and their story is not something that's obvious. It's kind of a new category, I guess, emerging, not really a traditional category from a research standpoint. But cyber protection by combining traditional thinking about data protection and cyber security software, bringing them together into one thinking, wholistic data model, with a platform that can enable services. I mean, this is a classic platform. This is what these guys have. What's your take on the industry? Is the industry ready for this? Is this a real trend? >> The industry certainly needs the technology, and I'll give you some examples as to why. So if you think upon the ransomware attacks that have happened in the past, the ransomware attacks would cripple any organization, right? And the best defense that an organization has to recover from, backups. Now, what that means is, okay, I can certainly recover from a backup which was taken last hour, last yesterday or a few days back, a few weeks back. But the most important question is how do I find out that the last copy or the last snapshot is a clean, uninfected copy? Because that's important, right? So if you recover from an infected copy, you're going to be hit again. And you don't want that, right? So, the million dollar question there is how do I get back to the copy which is clean and uninfected? Right? And you cannot do that traditionally the way organizations have been structured. You have infrastructure and operations guys, those who are responsible for operations, you know, keeping copies in their place, wherever required, and then you have the second group, which is security and risk, which is responsible for identifying all things security, right? But, ransomware is one thing in the industry which is pulling these two teams together. But the organizations are not ready yet. In one of the surveys that I did, I asked the respondents, "Do you have these two teams working together "to solve this problem?" And the answer was abysmally low. You know, no they don't work with each other. >> You point at a great point. I think one of the things you highlight there that I think is really critical is backup and recovery was because of some operational disruption. >> Naveen: Yes. >> Outage, flood, so rollback. The disruption wasn't a hack, so to that point, all those mechanisms around, generations of backup and recovery didn't actually take into account security. >> Exactly. >> Meaning the malware or the infection, the disruption is coming from a secure breach, not some electrical outage or some sort of other disruption. And they used to call that non-disruptive operations. I remember all the stories when we just talked about that. >> Right. >> Now it's not that anymore. The disruption is coming from security, so how do you bake security in from day one? That's the million dollar question that I always hear. What's your answer to that? What's the industry doing to get security baked in? What are some of the mechanisms you've seen successful for a large enterprise to adopt a plan that way? >> So I, specifically from a technology standpoint, I see very little efforts. The technology vendors are doing their own efforts, but you know, my guidance to clients is to be proactive in terms of your using the right storage for that matter. Let's say, if you have a WORM storage which can not be encrypted. Written once, cannot be changed, right? Use that model which will ensure that whatever you backed up yesterday, one, the backup is not infected, right? Or even from your core business application standpoint, you know, you want to schedule the data to be kept at a particular point in time to that WORM storage, for example, right? I don't see much of an effort from the organizations because, again, inner security is a domain which is handled by security, backup has not looked at using WORM as a potential storage target. >> WORM being "Write Once Read Many" for the folks-- >> Yes. >> at home tracking this. >> Right, and not that they do not know the technology. They know the technology. It's also about thinking out of the box and applying what's available to another-- >> To a known problem, right? >> Yes. >> And ransomware is so bad, it's such a hard problem to solve. I've heard (mumbles) has been in solution, WORM's a good one. That's the first time I heard that. That's awesome. It makes sense. >> Absolutely. >> But how do you deploy that to scale throughout the enterprise where you had these traditional work stream workflows that-- >> That becomes a problem. >> A people problem. You've been doin' a lot of work around the people equation. People process technology, everyone says it's digital transformation. But the people equation is a hard nut to crack. What's your take on the people situation? >> It certainly is a hard nut to crack because security would not trust more infrastructure in place that our guys would be doing. They've been told to operate in that model and now comes a situation, ransomware situation, where they're asked to trust each other and work with each other. Boy, that's not happening, is it? (chuckles) >> Yeah, they hate each other before, now they have to like each other. I mean, that's been a 20 year, 10 year, 5 year you've seen it evolve over time. Dev Ops is certainly with the cloud enforced a lot of that. That's kind of what brought people together under the Dev Ops infrastructure's code. But we're talkin' about application development that's growing like crazy. (mumbles) C.s want to build in-house stacks and communicate via A.P.I.s and, or some data-sharing with vendors. So this idea of a lot of this there's a restructuring that's going on at least from a architectural, technically, and staffing. What's some of the best practices that you've seen? What is some of the customer environments out there that you can talk to to show and point at a success story? >> I think some of the examples I've seen organizationally addressing this problem, wholistically, is to start from the top. I came out with this report a couple of years back titled Ransomware is a Business Continuity Issue. So don't approach it with a technology solution. Eventually, you will end up in adopting that same technology but I didn't define why do you need to use that technology so that it ties up your business requirements. So start from identifying that as a business risk which I see very little organizations do that today. Cyber risks are not identified as vulnerable as important a risk as they should be. So start off from that and trickle down into the next sub-steps that you must be taking, going eventually to the same technology. >> You know, one of the things I want to get your thoughts on is that obviously the digital threats are the industrialization of automating attacks. You're seeing Zero-day, you're seeing all this malware out there. You got surface errors with I.O.T.s increasing. So, the threats are coming. They're not going away. In fact, they're going to be increasing over time. Maybe get, you might not see it like D-DOS kind of been distracted away. But now the complexity is a huge issue because the costs will kick off of the complexity, this is something that Acronis is talking about and this is what I want to get your thoughts on. Complexity is one of those things that if you don't solve it and you look the other way, it gets more expensive to solve over time. So as complexity piles up, it's like climate change or cleaning up the Boston harbor. The longer you wait the more expensive it's going to be. >> Exactly. >> So that's startin' be be realized in some people's minds. They call it re-platforming, digital transmission, there's just buzz words for that. But I think this is a reality that people like, "Oh, I got to get... "I got to take care of business." I got I.O.T., I got complete industrial I.O.T., N.I.O.C. I got all those data centers movin' to the cloud. I got to clean up the complexity problem. What's the answer? How do you, What's the research tell you? >> Unfortunately, there's no easy answer because all the tools, technologies the organizations are using, they're using it for a purpose. So silos is a challenge, increasing silos is a challenge. So, I would highly recommend organizations start to think about reducing the silos, not be reducing the tools, but by potentially looking at cross-liberating by integrating, right? And one of the examples here is very important around recovery from ransomware attacks. So, going back to the point that, "Okay, how do you identify where is the right, "clean copy of the backup?" So these two teams would have to work together. Now the teams would work right out of their heads. They got to depend on technology, right? So that's where the requirement of the tools, themselves, working with each other, security to identifying, "Okay, when to do the forensics tracing "you know where the ransomware part "would identify when did the ransomware get in? "When did the malware get in? "Which systems did it infect?" And then, the backup tools correspondingly acting on those backup instances which have been identified as clean and uninfected. Easier said than done, but that's a part forward. >> And the other thing to make that more complex is that you said business continuity before, that's a people issue, as well. Not just technical process. >> Absolutely. >> Okay, so the two has to have a plan. Like, "What's the plan?" Do they actually huddle and do dry runs? Do they have fire drills? I mean, these are the things that most cyber groups do. They tend to have, you know, very structured approaches to either incidents, response,... So as these worlds come together, what does your research tell you around (chuckles) the questions of working together, proactively, show you? >> Interestingly, enough. I, a couple of years back, I did a survey asking those organizations who have been hit by ransomware attack and have lost data. I asked them, "How many of you have these two teams "working together?" Apparently, you know, some thirty-odd percent responded and said, "Yes, we have these two teams working together." But among, you know, asking final questions, qualifying questions about, "Yes, these two teams "work together," but do they effectively and eventually get to where they should be. Like, have a common plan, right? I think three, four, five percent of the respondents would say, "Yes, we do have a common operating, "understood plan "between the two teams." But largely, all I can say almost all organizations do not have that plan, unfortunately. >> You're, I think, one of the first ransomware experts I've had on theCUBE that's done a lot of research in the area, directly. So I got to ask you on ransomware, first of all it's really bad news and it comes from multiple actors. People lookin' for cash and also state-sponsored, which I believe is goin' on a lot, but no one's reporting on it, but, you know, still that's not proofed yet, but I still get a feeling it's done. On ransomware, do you have any data or insights around if the people clean up their act and get fixed, because I see a lot of ransomware coming back to the same places where they hit once, solve it, pay some bit-coin or whatever their extortion currency is, and then they get hit again. And hit again. Because (clap) there's cash there. Do you see that as a trend? What's the data? Is there any anecdotal insight or are people gettin' hit twice? Three times? >> There are incidents, and I was speaking on, you know, on a panel like half an hour back, and I gave this example. There was a hotel chain in central Europe which was attacked. And the key management system, like if you're one of the guests of that you would not be able to get in, into our rooms. And while they paid a ransom for to release that key management application, they didn't secure that infrastructure and applications further, which was required. And three months later, they were attacked once again. So such incidents are happening. And that's where, you know, guidance from Forrester where we have published a paper about when to consider to pay ransom. Because, you would not be sure that you get the keys. You get the keys for all the data? You don't get any traces of malware left behind or a new malware coming in. You never know, right? >> Of course, yes. >> While this is an untrusted world, but you got to trust if you're paying. (chuckles) >> Yeah, well I think I would bet that the criminals would come back for, you know, new shoes, new coat, new car... They need new things. They need cash (clap), they're going to come back to the bank. >> Absolutely! And they're coming back to basic prey. >> Naveen, thanks for comin' on. I want to get your thoughts on the industry as we wrap up this segment on the trends around cyber protection, data protection, platform. You know, really we're living in a cyber data-driven world. And data is a key part of it. What's the most important trend or story that you think needs to be told or is being told today, in terms of customers to pay attention to? What's, is it ransomware? What's, in your mind, are the top three things that are the most important stories that must be covered or need to be covered, or aren't covered? >> So I think it's not just my story, it's about the state of affairs at an industrial level, globally. I was referring to the World Economic Forum where all the global risks that economies face. It could be famine. It could be a country going bankrupt, right? It could be any other risk that the industry faces. We have seen that, to that starting the World Economic Forum did, in the last 10 years, cyber risk has started to appear on the list of top four, top five risks for the last three years. >> In the world? >> Globally. >> Global issues? >> Global issues, yes. And one of our research also tells us that the number of ransomware incidents have grown 500% in the preceding last 12 months. And the impact, intensity, and frequency of a ransomware attack is simply great. Many organizations are actually shutting down operations. Medical practice in mid-west, called upon the practice and said, "Oh, they are closing operations?" And in fact, it's in public domain. "We're closing operations, you can come back to us "for whatever data we currently have on you." But, I mean I think that from a regulation standpoint, people (mumbles) so that you have to keep control of the data and also be able to provide. But guess what? In this case, the medical practice doesn't have data. If you were their client, if you were a patient they don't have any data on you. Guess what? If it was there for years, you've lost years of your medical data. >> So global issues, ransomware's real and cyber attacks are happening at high frequency. >> Absolutely. >> Naveen, thanks for comin' on. Naveen Chhabra, senior analyst at Forrester Research here inside theCUBE. We are at the Acronis Global Cyber Summit 2019. I'm John Furrier. Back with more coverage for two days here, in Miami Beach, after this short break. Stay with us. (techno music)

>> live from Miami Beach, Florida It's the que covering demon 2019. Brought to you, by the way. >> Welcome back to Miami. Everybody watching the Cube, The leader in live tech coverage. This is Day two of the mon 2019 3 cubes. Third year at V mon, We did New Orleans. We did Chicago last year. Course here at the Fountain Blue in Miami. Great venue for an event like this. I'm Dave a lot. It was my co host, Peter Burroughs. Abba Dabbas. Eye is Adi is here. He's the head of a Charles Russell speech. Liza London based law firm. How about great. Great to see you. Thanks for coming on. Thankyou. So you tell us about this judge. Interesting name. Charles Russell. Speech lease. It was a merger of two firms, Right. Tell us how it all came about. >> Back in 2,014 Charles, loss of species performed for a merger between two different companies. Charles docile and speaks Lee Burcham from a 90 perspective. That was very interesting for the two departments coming together s So we have a limited time period where we had to merge these two companies Two different systems different data centers, different data sets. So it was formed by emerging back in 2,014 for five years on way here today >> that we see this a lot, you know, Emanate goes down. The acquiring company of this sounds like it was a merger. You know, they sort of battle. Okay, who's going toe? Really? Which framework is going to win? Because I'm sure had that conversation. But so to take us through that merger, what it entailed what? What the scenario looked like and how you plan for it. Sure. >> So I was part of the Charles. Also legacy Charles Russell team on, then obviously speaks about. Some had their own team as well. So initially, when we first found out about the merger, it was essential for the two teams to get together to work out. Okay, What systems? You have free mail. What systems you have for document management system playing trump cards. Which is who's got the best system and which way do we wantto move forward? A little. >> Ah, >> so but being a law firm, most law firms around the world and in the UK especially used the same types of software so essentially that from that perspective it was It was it was quite simple. But then way had to work out. How do we How do we go forward with this? Because two different headquarters in the London area. Which office do we move into? Sort of logistics around that. Can we fit in pre merger? It was six. Charles Lawson had sickle. Roughly 600 people, especially birds, had roughly 500 people. So pretty comparable. Yeah, yeah. So working out space logistics was was an issues >> making that even even more complicated, right? Yeah. >> One of the things that's interesting about a law firm, like versus a traditional manufacturer or AW financial services firm that has a lot of very fast right writing systems and have to scale on those lines is a law firms feature very complex dogs, very complex in from out of files, a lot of files that are written. But at the same time, you have to be repurposed to a lot of different work flows very sensitive to external contingent regulatory change. And so you have all of that happening, especially, I mean, two years ago from now on MySpace steak, and it was you're getting into brexit stuff, too, so that also had to be a source of uncertainty. So how has it been combining external regulatory issues the way that technology is being used in law firms and some of the new work clothes that you guys trying to support? And then adding, On top of that, the complexity of bringing these two firm GPR >> GPO itself was It was a year old project for us on. Obviously, we've got offices. The Middle East, but obviously is in the Far East on DH in Central Europe has well, so data logistics or where it sits, is an issue for us as well. So GDP, ours being a big project for us in terms of the merger itself. It was it was very, very difficult for the two I T departments to come together on actually work out. How how do we go to one unified systems? Essentially one doctor man, just in one email system. All of that took a lot of plan in law project management on essentially within the legal press itself. We got doubted in the time frames that we had that we can achieve it on within. I think It was 18 month period. We had merged order, different systems and various offices because speech the Bertram and Time is what I had. Offices in Zurich and Geneva were to merge with different offices together as well. So it was. It was a big, big task for the i T department on the firm itself. >> They're very tight migration deadlines. And and as you started to approach those deadlines you had to worry about, Okay, When we're going to cut over, how do we avoid downtime? How do we make sure that we don't? You know, I have bad data, data, corruption and the like. So how did you plan for that? And how did it go? >> So wait, we're here. C'mon on DH. Veen was It was it was a big part of our migration process. So where we had two different parts of the business Different storage systems, Different actualization system's way used to mean a CZ. The middleman basically, to my great data, from one day to center to another, using swink it. So where there was a large amount of terabytes and terabytes, amount of data way had swing kit available to us using team were able to be to be essentially a love the environments into the swing care and then bring them over to the other side of the business. And vain was essentially part on on top of that, making sure that the data that we were coming that will bring in a cross is true and not corrupt on DH, that using some of their technology is sure backups and stuff like that really, really was essential to, you know, do migration going well >> And was was Wien installed and both organizations at the time? Or was that something that you had to sort of redeploy? >> And yeah, So Legacy Charles also had way was actually myself going back probably eight years ago. Version For a time, I think team had 20,000 customers. So to here >> there were version 10 now 33 150 >> 1,001,000, 4,000 month. >> That makes me proud that we invested in vain when we did good car. So yeah, it was It was a good call from us, and essentially three other side of the business did not have. But then we just wait. Expanded our Venus State to look at both sides and then bring him across on. And then, ever since then, we've grown our vamos state across the world, across all of officers. So >> So how did you do that? So that was that was another migration that had to occur. And did you? You kind of do those simultaneously. Did you do the theme of migration first, and then bring the two systems together? >> Do you seem to do Stouffer special sauce in the migration? >> Yeah. So Veen was essentially a tool that we used to my great data sensors from one data center to another using their backup technology using their replication technology, we were able to replicate all of one side's virtual machines to the other. And then that gave us that gave us the flexibility as well. When when we had the limited down time periods that we've had, they give us the flexibility to actually Circe the business is during these particular ours. We're not gonna be able to You're not gonna have access to these systems because we're going to bring up systems from point A to point B. So veen was essential to them if >> you had to do it over again. If he had a mulligan, what would you have done differently? What what advice might you give to somebody who's trying to go through a similar migration? >> I would say Give your partners and lawyers more realistic time. Pray the time frame that we would get. >> Or don't let them give you an unrealistic time for him. >> Exactly. Yeah, so says ensured that the amount of work it's it's not just day to itself. You know, we're talking network and we're talking security. We're talking, you know, to to similar sized companies coming together. We were very, very limited time frame, consolidating all of their systems into one which is essential for the two parts of the business to collaborate together because, you know, way could have taken our time. We could have got to take this free four years a CE, far as we're concerned. But the fact that we did do it in such a quick time for him and that business to parts of the business from Day one can collaborate much better with each other. So >> we talked a lot about digital business transformation and you know, our approach or our observations on the digital business transformations, the process by which you altar and change your firm to re institutionalize the work. Change your game. Tomato Grover. All governments model as you use data as an asset, so that's affecting every firm everywhere. How's it affecting a law firm and you know your law from specifically on? How is that going to change your stance in your approach to data protection >> Data is incredibly important to unlawful. A zit is to most most organizations, but in terms of, you know, one of one of the things that's quite important in terms of law firms. We work with the financial institutions, so we held information by that. We hold personal data way hold all times of information. Charles Oscar speech leads works with Aware is of law apart from Kunal. So the areas of law that they worked with his vast in terms of the amount of data that we hold and essentially I mean, for us data is the most important thing that runs the firm and having visibility tow our data. How do we How do we work that data? How do we then market based on the data that we have? How do we market ourselves from that data. You know, there might be one area the business that's dealing with a family issue, family law. But then, you know that that could correspond with the litigation issue. You know, how do we work that data? To be to be an advancing to our businesses is extremely important. For >> what? What do you think of the announcements this week? I'm kind of curious. I was liketo ask the practitioners of what they think about. You know what was announced. You had, uh, well, you had the ve made $1,000,000,000. That's kind of fun and cool, but But you had the with the program, which was kind of interesting. The whole ap I look the beam availability orchestrator, where they're really talking about recovering from backups as a host that needed to recover from, you know, a replicated instance. You know, some of the automated testing stuff was kind of interesting. They talked about dynamic documentation, things you saw this week that you'll actually go back and say, Hey, I can apply that to solve a problem. Sure. >> So, essentially, I think I've been a really good question is very relevant to us many of not just ourselves law firm but many of the other law firms around the world are now looking at cloud based services now for us. I mean, this was a big thing five years ago way you know, everyone was talking about public clouds. Us. We're now we're now looking clouds and where basically, we've bean pushed by the vendors themselves to go towards cloudlike Citrix, for example. Their licensing model was based around their services. So is Microsoft in Mike's off? You don't you don't really have, you know, exchange anymore. Within premises you have off 365 A lot of the SAS applications are moving toward the cloud on DH. What wrote me? I had to say doing the keynote in regards to act, too. And how team are trying to be the visionaries in terms of look at that cloud is their next big thing for the next 10 years, offering often a crucial and for businesses like ours who have limited exposure to cloud technologies limited understanding, essentially having a tool that could migrate from one cloud to another. It's fantastic, you know, we've offered, you know I've spoken to, obviously are United directors around the other law firms where I wanted to have gone to the public cloud. But they don't know how to come back in and having a tall that essentially gives you that flexibility to bring it back in house to go form a ws to zoo. Or if there's a particular assess application, for example, that piers better with a W s. But you've got your other application that piers with that particular application is your Why would you want to have in the door? You'll probably want to move into a W eso for us, I think. What? The message coming out of'em on this year has bean really, really helpful for us. >> So So when you started with theme, they had it said 20,000 custom You like the 20001st customer on DIT was coincided with the virtual ization, you know, craze. Do you feel like the team knowing what you know about them, you have a lot of experience with them Consort of Replicate that success in this town intendant and in Act two, >> I think when I first looked at them, Wow, this is really, really simple. It's a bit like an iPhone. You know you given iPhone to your grandmother or to your children, and they have to play with it. And I see the beam as an intuitive piece of software that easy fighting professionals to get on with it, as their slogan said a few years ago. It just works. It does just work. Wear were great advocates of him. It's worked wonders for us. We've acquired smaller businesses using we've managed companies using and when I see you know, when you go to the sessions and you see the intelligence behind their thinking, I think going back to your question I think Wei si oui, si, vamos a strategic partner for us when we see their vision and we believe in their vision, and I think what they're doing in terms of what they working on next few years, I think we're well favor there, and I think, you know, essentially, that's where the most of their business is going to come from, >> where you sit down with, you know, rat mayor over over vodka and he says, Tell me the one thing I could do to make your life you know, easier, better you can't say cut prices s a hellhole. But what would you advise him to >> make my life better >> other than Jim instead of >> yeah, eyes that >> would make you crazy. >> So in terms of a zoo, a technology, >> your business relationship or something, she'd like to see them do that would. I >> think in terms of mergers and acquiring companies, seen license rentals will be a good thing. I know, I know. They give you a valuation license keys, and that's something that you can use. So, for example, if we were to acquire a company that has hundreds of servers and PM's having license rentals for a period of time, able >> to spin it up and spin it down actually allowed >> Exactly. Yeah, that would be an advantage. I think in terms of what you know what they're doing in the marketplace, and a lot of law firms use him. I feel I can't do any more than they are doing now. And in all the years that we've used to be my fingers on eight years now, but we've only had one serious problem, and the way they got that problem, you know the way, the way they communicated to reverse the way they a lot of different teams across the the Europe and the US go involved. I think, you know, in terms of service, in terms of software, in terms of what they what they do for us. I don't think there's anything more to add. Teoh. Right? Maia's vision. >> That's great for their custom of it. Well, thanks so much for coming on. The Cube is not heavy. Really? Thank you very much. You're welcome to keep it right there, buddy Peter, and I'll be back with our next guests right after this short break. We're live from Miami at the front of Blue Hotel. You're watching the Cube from Vienna on 2019 right back.

(upbeat music) >> Narrator: Live from the Wynn hotel in Las Vegas, it's theCUBE, covering Magento Imagine, 2018. Brought to you by Magento. >> Welcome back to theCUBE's coverage of Magento Imagine 2018 from the Wynn, Las Vegas. I'm Lisa Martin, and I'm excited to be joined by some award finalists of the Magento Imagine Experience Awards. We have Dr. Markus Reheis, the chief marketing officer at Gabor Shoes, and Stefan Willkommer, the CEO of TechDivision, a systems integrator. Hi guys, welcome to theCUBE. >> Hi. >> Hi, nice to meet you. >> Great to have you guys here. Congratulations on being an award finalist for the best sales channel growth. We're going to talk about that in a second, but Gabor Shoes. Talk to us about what Gabor does, where you guys are located, and then we'll talk about how you're transforming the shoe space with e-Commerce. >> Gabor is a manufacturer of shoes, ladies shoes only. Our headquarters in Germany, and our main markets are in Germany and central Europe, but we do also export to 60 countries, more than 60 countries worldwide, to China, to Korea, also to the United States a little. >> Lucky me. So your customers are the retailers themselves. How many different brands do you have, different SKUs, different products? I imagine it's massive numbers. >> Yes, our main product is ladies shoes, as I said, we have several brands for the ladies shoes, Gabor, Rollingsoft for the sports shoes type, but we also offer bags, handbags, and socks and tights, but the most important is the ladies shoes for us. >> So many, many hundreds of thousands of SKUs, lots of different locations. You've been the chief marketing officer there for quite a long time. Talk to us about the opportunity that you saw, that you could give to your retailers by expanding this physical in-store shopping experience into the online world. >> Yes, we have started our online business quite late. We long time hesitated to set up our own online shop toward the end user, because it was always our philosophy that we want to be partners of our retailers. We did not want to compete with them by opening an online shop. So it was clear for us that when we start our online business, we want to have our retailers as partners on our side. And that's why we developed this Omnichannel concept that integrates the retailers. >> Omnichannel is a word that we hear a lot at events like this. It's critical for a seamless customer experience. We were talking before we went live is we're all consumers, everyday lives, we pick up a tablet or a mobile phone and we expect to be able to find whatever we want at a simple click. What was the process like of becoming partners with your retailers? Was it an obvious sell to them, that they have revenue-generating opportunities, the opportunities to reach many more customers in different regions? Or was it more of a challenging conversation to convince them? >> Yeah, let me explain a little bit about the situation. We do distribute via traditional classic brick and mortar retailers primarily. There are around 5,000 companies worldwide that buy shoes from Gabor. They have around 20,000 stores. But the situation is that there is quite a mixed structure of retailers. Many of them are small businesses, family owned businesses, and they do not have the chance to have an own online presence that is competitive. So they have to focus on their brick and mortar business. But nowadays, in Germany, we have around 30% of all shoes that are bought online, and this brings many of our customers into trouble. So it was our idea to open this marketplace to let the traditional retailer participate at the online business. >> So talk to us about, from a technology perspective, the modern technology that you needed to be able to deliver this. So, Stefan, talk to us about how TechDivision, as a long-time partner of Magento, is helping in working with Gabor shoes to enable this Omnichannel experience. >> First of all, the marketplace looks like a simple online shop. So for the end consumer, it looks like any other online shop where you simply buy just the shoes. In the background, there are a lot of processes going on, so like we have to allocate orders to stores, to inventory locations, that means the retailer, and we have to look where the inventory is. We don't want to do a lot of order splitting, of course, because we don't want to ship a lot of different packages, and you need a sophisticated solution who is capable of doing exactly that, because I mean there are a lot of processes, and of course algorithms that around, what do you need, or what do you have to have in place that you can do that like that. And Magento was offering, with the order management, exactly great product to delivering that. So this is the foundation for the whole concept, and makes it able for us, and for Gabor, to integrate the retailers really smooth. >> So how many retailers are integrated currently? >> We have started the concept just a few months ago. It was surprising that so many retailers contacted us and said, I want to be part of that system. So we have around 100 retailers with around 400 stores that still have to be connected. Currently we have 40 stores connected with the system. >> So you had retailers that were proactively reaching out to you, saying, we want to get in on this? >> Yeah. >> Wow, that must have been pretty exciting. And Stefan, you mentioned the word simple. And that's something, as buyers, we want a simple, clean experience as the consumer, but also for the retailer, right, and the supplier. Talk to us about how you're leveraging, You mentioned the Magento management software, to give your retailers this complete visibility of their inventory so that they can fulfill through the right channels. >> Yeah, first of all it is in the German market, in the German retail shoe market, a little bit simpler, maybe than in other countries. There is a couple of POS solutions, there are not too many, and we build a basic interface so they can really easily attach their inventory to our order management, or the order management of Gabor, and then we are able to utilize the different inventory, or the different stocks. That is pretty simple. There are a lot of other processes which are not really technical, it's more about contracting, so more the retailers, there is of course some training, you have to train the people, the staff, because they have to use the platform, and that way they see, okay, an order is coming in, what they have to do now, they have to create the pick list, they have to pick the stuff, pack the stuff, ship the stuff, print the label out, putting the documents in and everything, so you have to train the people and the simplicity is because they just need a simple web browser to do that. So either a tablet or a PC, that's all what they need. They don't need any other software. They don't need really other devices. Basically most of the retail stores already have these kind of devices in store. >> So they can utilize an existing POS system, or maybe an ERP system ... >> Yes. >> instead of having to replace things. So from an integration perspective, it sounds like it's a fairly... >> Yeah, they don't have to invest really money, they just have to, I mean, bring the inventory, and that can be through a flat file, or through a web service, so both possibilities are there. Right now they just need a web browser connected to the internet, that's all. >> Sounds so simple. >> Yeah, it is. >> So let's talk about, we hear the term digital transformation used everywhere, and it means different things to different organizations, depending on where they are in that digital transformation journey. When we look at commerce, commerce is becoming a center of gravity for digital transformation. Markus, talk to us about the transformation that Gabor has undergone. Where are you on this digital transformation journey? >> Still, we are really right on the beginning. We have installed, of course, digital tools to make the sales process easier, but we always thought about B2B processes. For example, we have installed a B2B online shop maybe 10 or 12 years ago, so that's an existing thing. The new thing for us is that we go towards the end user. I have a number for you. We produce around 9 million pairs of shoes every year, and still the amount what we directly sell to the end user is a very, very small amount. So we are at the beginning of this process, but we have ambitious goals, and we want to grow in the future. We started our marketplace concept in Germany, but we want to roll it out to other European countries, maybe to countries outside Europe, so there's a lot to do, a lot of opportunities for us in the coming years. >> So let's talk about the rest of 2018. Here we are in April. You're going to be adding many more retailers. What are some of the things from a technology perspective that TechDivision is going to be able to do with you, and maybe Magento, to start finding the other 8 million in opportunities that you just mentioned? >> In the end, it's not just a thing of the online store, but of course it's a thing of online marketing, so this has to be increased, definitely. Yeah, we still have a lot of things to do, onboarding the retailers, and this again is not just a technical thing, it's a lot of, Stefan already told you, it's more to do with training, and explaining the processes, that costs a lot of time. So it goes step by step, but we make good progress there. >> So last question, Stefan, for you- as the chief marketing officer, I'm a marketer myself, tell me about, from a digital marketing perspective, as consumers, and really, in the B2B space, Magento had a study on their website that said 93% of B2B buyers want to purchase online, right? So we're seeing that trend as consumerization into the business space. From a marketing perspective, there's a lot of shifting going on there, too. Big data has been a big enabler of marketing becoming a science. And being able to demonstrate to the business and influence business there. Tell me a little bit about, in the last minute or so, how are you leveraging big data and analytics, maybe even through Magento, to redefine marketing that you're doing at Gabor? >> Yeah, again, big data can help us to build customer groups, to send them individual offerings. That's a good thing about the digital business, when we have a satisfied customer, of course we can always, again, send them products, product offerings, but these offerings have to be individual, they have to be relevant for the end user. That's why artificial intelligence, for example, can help us. >> Maybe to add something, we already started using Magento BI, for example. So we are using that full commerce suite of Magento right now. We are using the areas to measuring how fast the shipment is done through a retail stores, and then adjusting the allocation to that measurement. So if a retailer is shipping faster, it's getting more likely that he's getting an order allocated next time, when an allocation run is taking place. So we are using this to get a better end user, consumer experience, by having the products earlier, or more frequent ship. >> Right. So many benefits for the businesses, the retailers, maybe repeat sales, they've got this instant purchase capability that Magento released recently, one click, get things even faster, reducing checkout time, all the things that drive up repeat business. But also the personalization front is going to be key to be able to deliver, as you said, Markus, the relevance offers that we all want. >> Exactly. The great benefit of this marketplace concept is that since we have connected the different stocks of our retailers, we can offer much more product by this way than we could do it alone. So the offering of our 3,000 styles per season gets nearly unlimited to the end user. >> Limitless. We talk about limitless commerce. Well, gentlemen, thank you so much for stopping by and having a chat with me today. We wish you good luck on the award nomination. I hear those are being given out tonight, so best of luck, and we hope to see you again on theCUBE soon. >> Thank you. >> Thanks a lot. >> We want to thank you for watching theCUBE, live from Las Vegas at Magento Imagine 2018. I'm Lisa Martin. You're watching theCUBE. Stick around, we'll be right back with our next guest. (upbeat music)