our Studios in the heart of Silicon Valley Palo Alto California this is a cute conversation hey welcome back they're ready Jeff Rick here with the cube we're in our Palo Alto studios today to have a conversation with a really exciting company they've actually been around for a while but they've raised a ton of money and they're doing some really important work in the world in which we live today which is a lot different than the world was when they started in 2010 so we're excited to welcome to the studio he's been here on before Mohit ladee is the CEO and co-founder of Thousand Eyes mode great to see you great to see you as well as pretty to be here yeah welcome back but for people that didn't see the last video or not that familiar with Thousand Eyes tell them a little bit kind of would a thousand eyes all about absolutely so in today's world the cloud is your new data center the Internet is your new network and SAS is your new application stack and thousand eyes is built to be the the only thing that can really help you see across all three of these like it's your own private environment I love that I love that kind of setup and framing because those are the big three things and as you said all those things have moved from inside your control to outside of your control so in 2010 is that was that division I mean when you guys started the company UCLA I guess a while ago now what was that the trend what did you see what yes what kind of started it so it's really interesting right so our background as a founding company with two founders we did our PhD at UCLA in computer science and focused on internet and we were fascinated by the internet because it was just this complex system that nobody understood but we knew even then that it would meaningfully change our lives not just as consumers but even as enterprise companies so we had this belief that it's going to be the backbone of the modern enterprise and nobody quite understood how it worked because everyone was focused on your own data center your own network and so our entire vision at that point was we want people to feel the power of seeing the internet like your network that's sort of where we started and then as we started to expand on that vision it was clear to us that the Internet is what brings companies together what brings the cloud closer to the enterprise what brings the SAS applications closer to the enterprise right so we expanded into into cloud and SAS as well so when you had that vision you know people had remote offices and they would set up they would you know set up tunnels and peer-to-peer and all kinds of stuff why did you think that it was gonna go to that next step in terms of the internet you know just kind of the public Internet being that core infrastructure yes we were at the at the very early stages of this journey to cloud right and at the same time you had companies like Salesforce you had office 365 they were starting to just make it so much easier for companies to deploy a CRM you don't have to stand up these massive servers anymore its cloud-based so it was clear to us that that was gonna be the new stack and we knew that you had to build a fundamentally different technology to be able to operate in that stack and it's not just about visibility it's about making use of collective information as well because you're going from a private environment with your own data center your own private network your own application stack to something that's sitting in the cloud which is a shared environment going over the Internet which is the same network that carries cat videos that your kids watch it's carrying production traffic now for your core applications and so you need a different technology stack and you need to really sort of benefit from this notion of collective intelligence of knowing what everybody sees together as one view so I'm here I think I think Salesforce was such an important company in terms of getting enterprises to trust a SAS application for really core function which just sales right I think that was a significant moment in moving the dial was there a killer app for you guys that was you know for your customers the one where they finally said wait you know we need a different level of his ability to something that we rely on that's coming to us through an outside service so it's interesting right when we started the company we had a lot of advisors that said hey your position should be you're gonna help enterprises enforce SLA with Salesforce and we actually took a different position because what we realized was Salesforce did all the right stuff on their data centers but the internet could mess things up or enterprise companies that were not ready to move to cloud didn't have the right architectures would have some bottlenecks in their own environment because they are backhauling traffic from their London office to New York and then exiting from New York they're going back to London so all this stuff right so we took the position of really presenting thousand eyes as a way to get transparency into this ecosystem and we we believe that if we take this position if we want to help both sides not just the enterprise companies we want to help sales force we want to have enterprise companies and just really present it as a means of finding a common truth of what is actually going on it works so much better right so there wasn't really sort of one killer application but we found that anything that was real-time so if you think about video based applications or any sort of real-time communications based so the web access of the world they were just very sensitive to network conditions and internet conditions same with things that are moving a lot of data back and forth so these applications like Salesforce office 365 WebEx they just are demanding applications on the infrastructure and even if they're done great if the infrastructure doesn't it doesn't give you a great experience right and and and you guys made a really interesting insight too it's an it's an all your literature it's it's a really a core piece of what you're about and you know when you owned it you could diagnose it and hopefully you could fix it or call somebody else to fix it but when you don't own it it's a very different game and as you guys talked about it's really about finding the evidence or everyone's not pointing fingers back in and forth a to validate where the actual problem is and then to also help those people fix the problem that you don't have direct control of so it's a very different you know kind of requirement to get things fixed when they have to get fixed yeah and the first aspect of that is visibility so as an example right you generally don't have a problem going from one part of your house to another part of your house because you own the whole place you know exactly what sits between the two rooms that you're trying to get to you don't you don't have run into surprises but when you're going from let's say Palo Alto to San Francisco and you have two options you can take the 101 or 280 you need to know what you expect to see before you get on one of those options right and so the Internet is very similar you have these environments that you have no idea what to expect and if you don't see that with the right level of granularity that you would in your own environments you would make decisions that you have you know you have no control over right the visibility is really important but it's giving that lens like making it feel like a google maps of the internet that gives you the power to look at these environments like it's your private network that's the hard part right and then so what you guys have done as I understand is you've deployed sensors basically all over the Internet all at an important pops yeah an important public clouds and important enterprises etc so that you now have a view of what's going on it I can have that view inside my enterprise by leveraging your infrastructure is that accurate correct and so this is where the notion of being able to set up this sort of data collection environment is really difficult and so we have created all of this over years so enterprise companies consumer companies they can leverage this infrastructure to get instant results so there's zero implementation what right but the key to that is also understanding the internet itself and so this is where a research background comes in play because we studied we did years of research on actually modeling the internet so we know what strategic locations to put these probes that to give good coverage we know how to fill the gaps and so it's not just a numbers game it's how you deploy them where you deploy them and knowing that connectivity we've created this massive infrastructure now that can give you eyes on the internet and we leverage all of their data together so if let's say hypothetically you know AT&T has an issue that same issue is impacting multiple customers through all our different measurements so it's like ways if you're using ways to get from point A to point B if Waze was just used by your family members and nobody else it would give you completely useless information values in that collective insight right and then now you also will start to be able to until every jamel and AI and you know having all that data and apply just more machine learning to it to even better get out in front of problems I imagine as much as as is to be able to identify it so that's a really interesting point right so the first thing we have to tackle is making a complex data set really accessible and so we have a lot of focus into essentially getting insights out of it using techniques that are smarter than the brute-force techniques to get insights out and then present it in manners that it's accessible and digestible and then as we look into the next stages we're going to bring more and more things like learning and so on to take it even further right it's funny the accessible and digestible piece I've just had a presentation the other day and there was a woman from a CSO at a big bank and she talked about you know the problem of false positives and in in early days I mean their biggest issues was just too much data coming in from too many sensors and and too many false positives to basically bury people so I didn't have time to actually service the things that are a priority so you know a nice presentation of a whole lot of data that's a big difference to make it actual it is absolutely true and now that the example I'll give you is oftentimes when you think about companies that operate with a strong network core like we do they are in the weeds right which is important but what is really important is tying that intelligence to business impact and so the entire product portfolio we've built it's all about business impact user experience and then going into connecting the dots or the network side so we've seen some really interesting events and as much as we know the internet every day I wake up and I see something that surprises me right we've had customers that have done migrations to cloud that have gone horribly wrong right so we the latest when I was troubleshooting with the customer was where we saw they migrated from there on from data center to Amazon and the user experience was 10x worse than what it was on their own data the app once they moved to Amazon okay and what had happened there was the whole migration to Amazon included the smart sort of CDN where they were fronting your traffic at local sites but the traffic was going all over the place so from if a user was in London instead of going to the London instance of Amazon they were going to Atlanta they were going to Los Angeles and so the whole migration created a worse user experience and you don't have that lens because you don't see that in a net portion of that right that's what we like we caught it instantly and we were able to showcase that hey this is actually a really bad migration and it's not that Amazon is bad it's just it's been implemented incorrectly right so ya fix these things and those are all configurations all Connecticut which is so very easy all the issues you hear about with with Amazon often go back to miss configuration miss settings suboptimal leaving something open so to have that visibility makes a huge impact and it's more challenging because you're trying to configure different components of this environment right so you have a cloud component you have the internet component your own network you have your own firewalls and you used to have this closed environment now it's hybrid it involves multiple parties multiple skill sets so a lot of things can really go wrong yeah I think I think you guys you guys crystallize very cleanly is kind of the inside out and outside in approach both you know a as as a service consumer yep right I'm using Salesforce I'm using maybe s3 I'm using these things that I need and I want to focus on that and I want to have a good experience I want my people to be able to get on their Salesforce account and book business but but don't forget the other way right because as people are experiencing my service that might be connecting through and aggregating many other services along the way you know I got to make sure my customer experience is big and you guys kind of separate those two things out and really make sure people are focusing on both of them correct and it's the same technology but you can use that for your production services which are revenue generating or you can use that for your employee productivity the the visibility that you provide is is across a common stack but on the production side for example because of the way the internet works right your job is not just to ensure a great performance in user experience your job is also to make sure that people are actually reaching your site and so we've seen several instances where because of the way internet works somebody else could announce that their google.com and they could suck a bunch of traffic from the Internet and this happens quite routinely in the notion of what is now known as DP hijacks or sometimes DNS hijacks and the the one that I remember very well is when there was the small ISP in Nigeria that announced the identity of the address block for Google and that was picked up by China Telecom which was picked up by a Russian telco and now you have Russia China and Nigeria in the path for traffic to Google which is actually not even going to Google's right those kinds of things are very possible because of the way the internet how fast those things kind of rise up and then get identified and then get shut off is this hours days weeks in this kind of example so it really depends because if you are let's say you were Google in this situation right you're not seeing a denial of service attack T or data centers in fact you're just not seeing traffic running it because somebody else is taking it away right it's like identity theft right like I somebody takes your identity you wouldn't get a mail in your inbox saying hey your identity has been taken back so I see you have to find it some other way and usually it's the signal by the time you realize that your identity has been stolen you have a nightmare ahead of you all right so you've got some specific news a great great conversation you know it's super insightful to talk people that are in the weeds of how all the stuff works but today you have a new a new announcement some new and new offering so tell us about what's going on so we have a couple of announcements today and coming back to this notion of the cloud being a new data center the internet your new network right two things were announcing today is one we're announcing our second version of the cloud then benchmark performance comparison and what this is about is really helping people understand the nuances the performance difference is the architecture differences between Amazon Google ad your IBM cloud and Alibaba cloud so as you make decisions you actually understand what is the right solution for me from a performance architecture standpoint so that's one it's a fascinating report we found some really interesting findings that surprised us as well and so we're releasing that we're also touching on the internet component by releasing a new product which we call as Internet insights and that is giving you the power to actually look at the internet more holistically like you own the entire internet so that is really something we're all excited about because it's the first time that somebody can actually see the Internet see all these connections see what is going on between major service providers and feel like you completely owned the environment so are people using information like that to dynamically you know kind of reroute the way that they handle their traffic or is it more just kind of a general health you know kind of health overview you know how much of it do I have control over how much should I have control over and how much of I just need to know what's going on so yeah so in just me great question so the the best way I can answer that is what I heard CIO say in a CIO forum we were presenting it where they were a customer it's a large financial services customer and somebody asked the CIO what was the value of thousand I wasn't the way he explained it which was really fascinating was phase one of thousand eyes when we started using it was getting rid of technical debt because we would keep identifying issues which we could fix but we could fix the underlying root cause so it doesn't happen again and that just cleared the technical debt that we had made our environment much better and then we started to optimize the environments to just get better get more proactive so that's a good way to think about it when you think about our customers most of the times they're trying to just not have their hair on fire right that's the first step right once we can help them with that then they go on to tuning optimising and so on but knowing what is going on is really important for example if you're providing a.com service like cube the cube comm right it's its life and you're providing it from your data center here you have two up streams like AT&T and Verizon and Verizon is having issues you can turn off that connection and read all your customers back live having a full experience if you know that's the issues right right the remediation is actually quite quite a few times it's very straight forward if you know what you are trying to solve right so do you think on the internet insights this is going to be used just more for better remediation or do you think it's it's kind of a step forward and getting a little bit more proactive and a little bit more prescriptive and getting out ahead of the issues or or can you because these things are kind of ephemeral and come and go so I think it's all of the about right so one the things that the internet insights will help you is with planning because as you expand into new geo so if you're a company that's launching a service in a new market right that immediately gives you a landscape of who do you connect with where do you host right now you can actually visualize the entire network how do you reach your customer base the best right so that's the planning aspect and if you plan right you would actually reduce a lot of the trouble that you see so we had this customer of ours that was deploying Estevan software-defined man in there a she offices and they used thousand eyes to evaluate two different ISPs that they were looking at one of them had this massive time-of-day congestion so every time every day at nine o'clock the latency would get doubled because of congestion it's common in Asia the other did not have time of day congestion and with that view they could implement the entire Estevan on the ice pea that actually worked well for them so planning is important part of this and then the other aspect of this is the thing that folks often don't realize is internet is not static it's constantly changing so you know AT&T may connect to where I is in this way it connects it differently it connects to somebody else and so having that live map as you're troubleshooting customer experience issues so let's say you have customers from China that are having a ton of issues all of a sudden or you see a drop of traffic from China now you can relate that information of where these customers are coming from with our view of the health of the Chinese internet and which specific ISPs are having issues so that's the kind of information merger that simply doesn't happen today right promote is a fascinating discussion and we could go on and on and on but unfortunately do not have all day but I really like what you guys are doing the other thing I just want to close on which which I thought was really interesting is you know a lot of talked about digital transformation we always talk about digital transformation everybody wants a digital transfer eyes it but you really boiled it down into really three create three critical places that you guys play the digital experience in terms of what what the customers experience you know getting to cloud everybody wants to get to cloud so one can argue how much and what percentage but everybody's going to cloud and then as you said in this last example the modern when as you connect all these remote sites and you guys have a play in all of those places so whatever you thought about in 2010 that worked out pretty well thank you and we had a really strong vision but kudos to the team that we have in place that has stretched it and really made the most out of that so excited good job and thanks for for stopping by sharing the story thank you for hosting always fun to be here absolutely all right well he's mo and I'm Jeff you're watching the cube when our Palo Alto studio is having a cube conversation thanks for watching we'll see you next time [Music]

(funk music) (funk music) (funk music) (funk music) >> Hello and welcome to theCUBE studios in Palo Alto, California for another CUBE conversation where we go in-depth with thought leaders driving innovation across the tech industry. I'm your host, Peter Burris. Every enterprise is responding to the opportunities of cloud with significant changes in people, process, how they think about technology, how they're going to align technology overall with their business and with their business strategies. Now those changes are affecting virtually every aspect of business but especially every aspect of technology. Especially security. So what does it mean to envision a world in which significant new classes of services are being provided through cloud mechanisms and modes, but you retain and in fact, even enhance the quality of security that your enterprise can utilize. To have that conversation, we're joined today by a great guest, Amit Sinha is president and CTO at Zscaler. Amit, welcome back to theCUBE. >> Thank you Peter, it's a pleasure to be here. >> So before we get into it, what's new at Zscaler? >> Well, at Zscaler our mission is to make the internet and cloud a secure place for businesses and as I engage with our global 2000 customers and prospects, they are going through some of the digital transformation challenges that you just alluded to. Specifically for security, what is happening is that they had a lot of applications that were sitting in a data center or in their headquarters and that center of gravity is now moving to the cloud. They probably adopt their Office 365, and Box, and Salesforce, and these applications have moved out. Now in addition, the users are everywhere. They're accessing those services, not just from offices but also from their mobile devices and home. So if your users have left the building, and your applications are no longer sitting in your data center, that begs that question: Where should the security stack be? You know, it cannot be your legacy security appliances that sat in your DMZ and your IT closets. So that's the challenge that we see out there, and Zscaler is helping these large global organizations transform their security and network for a more mobile and a cloud-first world. >> Distributed world? So let me make sure I got this right. So basically, cause I think I totally agree with you >> Right. >> Just to test it, that many regarded the cloud as a centralization strategy. >> Correct. >> What we really see happening, is we're seeing enterprises more distribute their data, more distribute their processing, but they have not updated how they think about security so the presumption is, "yeah we're going to put more processing data out closer to the action but we're going to backhaul a whole bunch back to our security model," and what I hear you saying is no, you need to push those security services out to where the data is, out to where the process, out to where the user is. Have I got that right? >> You have nailed it, right. Think of it this way, if I'm a large global 2000 organization, I might have thousands of branches. All of those branches, traditionally, have used a hub-and-spoke network model. I might have a branch here in Palo Alto but my headquarters is in New York. So now I have an MPLS circuit connecting this branch to New York. If my Exchange server and applications and SAP systems are all there, then that hub-and-spoke model made sense. I am in this office >> Right. >> I connect to those applications and all my security stack is also there. But fast forward to today, all of those applications are moving and they're not just in one cloud. You know, you might have adopted Salesforce.com for CRM, you might have adopted Workday, you might have adopted Office 365. So these are SaaS services. Now if I'm sitting here in Palo Alto, and if I have to access my email, it makes absolutely no sense for me to VPN back to New York only to exit to the internet right there. What users want is a fast, nimble user experience without security coming in the way. What organizations want is no compromise in their security stack. So what you really need is a security stack that follows the user wherever they are. >> And the data. >> And the data, so my data...you know Microsoft has a front-door service here in Redwood City and if if you are a user here and trying to access that, I should be able to go straight with my entire security stack right next to it. That's what Gartner is calling SASE these days. >> Well, let's get into that in a second. It almost sounds as though what you're suggesting is that the enterprise needs to look at security as a SaaS service itself. >> 100 percent. If your users are everywhere and if your applications are in the cloud, your security better be delivered as a consistent "as-a-service," right next to where the users are and hopefully co-located in the same data center as where the applications are present so the only way to have a pervasive security model is to have it delivered in the cloud, which is what Zscaler has been doing from day one. >> Now, a little spoiler alert for everybody, Zscaler's been talking about this for 10-plus years. >> Right. >> So where are we today in the market place starting to recognize and acknowledge this transformation in the basic security architecture and platform that we're going through? >> I'm very excited to see that the market is really adopting what Zscaler has been talking about for over a decade. In fact, recently, Gartner released a paper titled "SASE," it stands for Secure Access Service Edge and there are, I believe, four principal tenets of SASE. The first one, of course, is that compute and security services have to be right at the edge. And we talked about that. It makes sense. >> For where the service is being delivered. >> You can't backhaul traffic to your data center or you can't backhaul traffic to Google's central data center somewhere. You need to have compute capabilities with things like SSL Interception and all the security services running right at the edge, connecting users to applications in the shortest path, right? So that's sort of principle number one of SASE. The second principle that Gartner talks about, which again you know, has been fundamental to Zscaler's DNA, is to keep your devices and your branch offices light. Don't shove too much complexity from a security perspective on the user devices and your branches. Keep it simple. >> Or the people running those user devices >> Absolutely >> in the branches >> Yeah, so you know, keep your branch offices like a light router, that forwards traffic to the cloud, where the heavy-lifting is done. >> Right. >> The third principle they talk about is to deliver modern security, you need to have a proxy-based architecture and essentially what a proxy architecture allows you to do is to look at content, right? Gone are the days where you could just say, stop a website called "evil.com" and allow a website "good.com," right? It's not like that anymore. You have to look at content, you know. You might get malware from a Google Drive link. You can't block Google now, right? So looking at SSL-encrypted content is needed and firewalls just can't do it. You have to have a proxy architecture that can decrypt SSL connections, look at content, provide malware services, provide policy-based access control services, et cetera and that's kind of the third principle. And finally what Gartner talks about is SASE has to be cloud-native, it has to be, sort of, born and bred in the cloud, a true multitenant, cloud-first architecture. You can't take, sort of, legacy security appliances and shove it in third-party infrastructure like AWS and GCP and deliver a cloud service and the example I use often is, just because you had a great blu-ray player or a DVD player in your home theater, you can't take 100,000 of these and shove it into AWS and become a Netflix. You really need to build that service from the ground up. You know, in a multitenant fashion and that's what we have done for security as a service through the cloud. >> So we are now, the market seems to be kind of converging on some of the principles that Zscaler's been talking about for quite some time. >> Right. >> When we think about 2020, how do you anticipate enterprises are going to respond as a consequence of this convergence in acknowledging that the value proposition and the need are starting to come together? >> Absolutely, I think we see the momentum picking up in the market, we have lots of conversations with CIO's who are going through this digital transformation journey, you know transformation is hard. There's immune response in big organizations >> Sure. >> To change. Not much has changed from a security and network architecture perspective in the last two decades. But we're seeing more and more of that. In fact, over 400 of global 2000 organizations are 100 percent deployed on Zscaler. And so that momentum is picking up and we see a lot of traction with other prospects who are beginning to see the light, as we say it. >> Well as you start to imagine the relationship between security and data, between security and data, one of the things that I find interesting is many respects to cloud, especially as it becomes more distributed, is becoming better acknowledged almost as a network of services. >> Right. >> As opposed to AWS as a data center here and that makes it a cloud data center. >> Right. >> It really is this network of services, which can happen from a lot of different places, big cloud service providers, your own enterprise, partners providing services to you. How does the relationship between Zscaler and kind of an openness >> Hm-mm. >> Going to come together? Hm-mm. >> So that you can provide services from a foreign enterprise to the enterprise's partners, customers, and others that the enterprise needs to work with. >> That's a great question, Peter and I think one of the most important things I tell our customers and prospects is that if you look at a cloud-delivered security architecture, it better embrace some of the SASE principles. One of the first things we did when we built the Zscaler platform was to distribute it across 150 data centers. And why did we do that? We did that because when a user is going to destinations, they need to be able to access any destination. The destination could be on Azure, could be on AWS, could be Salesforce, so by definition, it has to be carrier-neutral, it has to be cloud-neutral. I can't build a service that is designed for all internet traffic in a GCP or AWS, right. So how did we do that? We went and looked at one of the world's best co-location facilities that provide maximum connectivity options in any given region. So in North America, we might be in an Equinix facility and we might use tier one ISPs like GTT and Zayo that provide excellent connectivity to our customers and the destinations they want to visit. When you go to China, there's no GCP there, right so we work with China Unicom and China Telecom. When we are in India, we might work with an Airtel or a Sify, when we are in Australia, we might be working with Telstra. So we work with, you know, world class tier one ISPs in best data centers that provide maximum connectivity options. We invested heavily in internet exchange connectivity. Why? Because once you come to Zscaler, you've solved the physics problem by building the data center close to you, the next thing is, you want quickly go to your application. You don't want security to be in the way >> Right. >> Of application access. So with internet exchange connectivity, we are peered in a settlement-free way or BGP with Microsoft, with Akamai, with Apple, with Yahoo, right. So we can quickly get you to the content while delivering the full security stack, right? So we had to really take no shortcuts, back to your point of the world is very diverse and you cannot operate in a walled garden of one provider anymore and if you really build a cloud platform that is embracing some of the SASE principles we talked about, you have to do it the hard way. By building this one data center at a time. >> Well, you don't want your servicers to fall down because you didn't put the partnerships in place >and hardend them Correct. >> As much as you've hardened some of the other traffic. So as we think about kind of, where this goes, what do you envision Zscaler's, kind of big customer story is going to be in 2020 and beyond? Obviously, the service is going to be everywhere, change the way you think about security, but how, for example, is the relationship between the definition of the edge and the definition of the secure service going to co-evolve? Are people going to think about the edge differently as they start to think more in terms of a secure edge or where the data resides and the secure data, what do you think? >> Let's start off with five years and go back, right? >> We're going forward. >> Work our way back. Well, five years from now, hopefully everyone is on a 5G phone, you know, with blazing-fast internet connections, on devices that you love, your applications are everywhere, so now think of it from an IT perspective. You know, my span of control is becoming thinner and thinner, right? my users are on devices that I barely control. My network is the internet that I really don't control. My applications have moved to the cloud or either hosted in third-party infrastructure or run as a SaaS application, which I really don't control. Now, in this world, how do I provide security? How do I provide user experience? Imagine if you are the CIO and your job is to make all of this work, where will you start, right? So those are some of the big problems that we are helping our customers with. So this-- >> Let me as you a question 'cause here's where I was going with the question. I would start with, if I can't control all these things, I'm going to apply my notion of security >> Hm-mm. >> And say I am going to control that which is within >> Right. >> my security boundaries, not at a perimeter level, not at a device level, but at a service level. >> Absolutely and that's really the crux of the Zscaler platform service. We build this Zero Trust architecture. Our goal is to allow users to quickly come to Zscaler and Zscaler becomes the policy engine that is securely connecting them to all the cloud services that they want to go to. Now in addition, we also allow the same users to connect to internal applications that might have required a traditional VPN. Now think of it this way, Peter. When you connect to Google today, do you VPN to Google's network? To access Gmail? No. Why should you have to VPN to access an internal application? I mean, you get a link on your mobile phone, you click on it and it didn't work because it required a separate form of network access. So with Zscaler Internet Access and Zscaler Private Access, we are delivering a beautiful service that works across 150 data centers. Users connect to the service and the service becomes a policy engine that is securely connecting you to the destinations that you want. Now, in addition, you asked about what's going to happen in a couple of years. The same service can be extended for partners. I'm a business, I have hundreds of partners who want to connect to me. Why should I allow legacy VPN access or private circuits that expose me? I don't even know who's on the other end of the line, right? They come onto my network and you hear about the Target breaches because some HVAC contract that had unrestricted access, you hear about the Airbus breach because another contract that had access. So how do we build a true Zero Trust cloud platform that is securely allowing users, whether it's your employees, to connect to named applications that they should, or your partners that need access to certain applications, without putting them on the network. We're decoupling application access from network access. And there's one final important linchpin in this whole thing. Remember we talked about how powerless organizations >> Right. >> feel in this distributed model? Now imagine, your job is to also ensure that people are having a good user experience. How will you do that, right? What Zscaler is trying to do now is, we've been very successful in providing the secure and policy-based connectivity and our customers are asking us, hey, you're sitting in between all of this, you have visibility into what's happening on the user's device. Clearly you're sitting in the middle in the cloud and you see what's happening on the left-hand side, what's happening on the right-hand side. You know, you have the cloud effect, you can see there's a problem going on with Microsoft's network in the China region, right? Correlate all of that information and give me proactive intelligence around user experience and that's what we launched recently at Zenith Live. We call it Zscaler Digital Experience, >> Hmm. >> So overall the goal of the platform is to securely connect users and entities to named applications with Zero Trust principles. We never want security and user experience to be orthogonal requirements that has traditionally been the case. And we want to provide great user experience and visibility to our customers who've started adopting this platform. >> That's a great story. It's a great story. So, once again, I want to thank you very much for coming in and that's Amit Sinha, who is the president and CTO at Zscaler, focusing a lot on the R&D types of things that Zscaler's doing. Thanks again for being on theCUBE. >> It's my pleasure, Peter. Always enjoy talking to you. >> And thanks for joining us for another CUBE conversation. I'm Peter Burris, see you next time. (funk music) (funk music)

from our studios in the heart of Silicon Valley Palo Alto California this is a cute conversation hey welcome back here ready Jeff Rick here with the cube we're in our Palo Alto studios today to have a cube conversation with a really exciting company they've actually been around for a while but they've raised a ton of money and they're doing some really important work in the world in which we live today which is a lot different than the world was when they started in 2010 so we're excited to welcome to the studio he's been around before Mohit lad he is the CEO and co-founder of thousand ice mode great to see you great to see you as well thrilled to be here yeah welcome back but for people that didn't see the last video or not that familiar with thousand ice tell them a little bit kind of would a thousand eyes all about absolutely so in today's world the cloud is your new data center the Internet is your new network and SAS is your new application stack and thousand eyes is built to be the the only thing that can really help you see across all three of these like it's your own private environment I love that I love that kind of setup and framing because those are the big three things and as you said all those things have moved from inside your control to outside of your control so in 2010 is that was that division I mean when you guys started the company UCLA I guess a while ago now what was that the trend what did you see what yes what kind of started it so it's really interesting right so our background is a founding company with two founders we did our PhD at UCLA in computer science and focused on Internet and we were fascinated by the internet because it was just this complex system that nobody understood but we knew even then that it would meaningfully change our lives not just as consumers but even as enterprise companies so we had this belief that it's gonna be the backbone of the modern enterprise and nobody quite understood how it worked because everyone was focused on your own data center your own network and so our entire vision at that point was we want people to feel the power of seeing the internet like your network that's sort of where we started and then as we started to expand on that vision it was clear to us that the internet is what brings companies together what brings the cloud closer to the enterprise what brings the SAS applications closer to the enterprise right so we expanded into into cloud and SAS as well so when you had that vision you know people had remote offices and they would set up they would you know set up tunnels and peer-to-peer and all kinds of stuff why did you think that it was going to go to that next step in terms of the Internet you know just kind of the public Internet being that core infrastructure yes so we were at the at the very early stages of this journey to cloud right and at the same time you had companies like Salesforce you had office 365 they were starting to just make it so much easier for companies to deploy a CRM you don't have to stand up these massive servers anymore its cloud-based so it was clear to us that that was gonna be the new stack and we knew that you had to build a fundamentally different technology to be able to operate in that stack and it's not just about visibility it's about making use of collective information as well because you're going from a private environment with your own data center your own private network your own application stack to something that's sitting in the cloud which is a shared environment going over the Internet which is the same network that carries cat videos that your kids watch it's carrying production traffic now for your core applications and so you need a different technology stack and you need to really sort of benefit from this notion of collective intelligence of knowing what everybody sees together as one view so I'm curious force was such an important company in terms of getting enterprises to trust a SAS application for really core function with just sales right I think that was a significant moment in moving the dial was there a killer app for you guys that was you know for your customers the one where they finally said wait you know we need a different level of visibility to something that we rely on that's coming to us through an outside service so it's interesting right when we started the company we had a lot of advisors that said hey your position should be you're gonna help enterprises enforce SLA with Salesforce and we actually took a different position because what we realized was Salesforce did all the right stuff on their data centers but the internet could mess things up or enterprise companies that were not ready to move the cloud didn't have the right architectures would have some bottlenecks in their own environment because they are backhauling traffic from their London office to New York and then exiting from New York they're going back to London so all this stuff right so we took the position of really presenting thousand eyes as a way to get transparency into this ecosystem and we we believe that if we take this position if we want to help both sides not just the enterprise companies we want to help sales force we want to have enterprise companies and just really present it as a means of finding a common truth of what is actually going on it works so much better right so there wasn't really sort of one killer application but we found that anything that was real-time so if you think about video based applications or any sort of real-time communications based so the web access of the world they were just very sensitive to network conditions and internet conditions same with things that are moving a lot of data back and forth so these applications like Salesforce office 365 WebEx they just are demanding applications on the infrastructure and even if they're run great if the infrastructure doesn't it doesn't give you a great experience right and and and you guys made a really interesting insight to its and it's an all your literature it's it's a really a core piece of what you're about and you know when you owned it you could diagnose it and hopefully you could fix it or call somebody else to fix it but when you don't own it it's a very different game and as you guys talked about it's really about finding the evidence or everyone's not pointing fingers back in and forth a to validate where the actual problem is and then to also help those people fix the problem that you don't have direct control of so it's a very different you know kind of requirement to get things fixed when they have to get fixed yeah and the first aspect of that is visibility so as an example right you generally don't have a problem going from one part of your house to another part of your house because you own the whole place you know exactly what sits between the two rooms that you're trying to get to you don't you don't have run into surprises but when you're going from let's say Palo Alto to San Francisco and you have two options you can take 101 or 280 you need to know what you expect to see before you get on one of those options right and so the Internet is very similar you have these environments that you have no idea what to expect and if you don't see that with the right level of granularity that you would in your own environments you would make decisions that you have you know you have no control over right the visibility is really important but it's giving that lens like making it feel like a google maps of the internet that gives you the power to look at these environments like it's your private network that's the hard part right and then so what you guys have done as I understand is you've deployed sensors basically all over the Internet all at an important pops yeah and a point in public clouds and important enterprises etc so that you now have a view of what's going on it I can have that view inside my enterprise by leveraging your infrastructures that accurate correct and so this is where the notion of being able to set up this sort of data collection environment is really difficult and so we have created all of this over years so enterprise companies consumer companies they can leverage this infrastructure to get instant results so there's zero implementation in what right but the key to that is also understanding the internet itself and so this is where a research background comes in play because we studied we did years of research on actually modeling the Internet so we know what strategic locations to put these probes that to give good coverage we know how to fill the gaps and so it's not just a numbers game it's how you deploy them where you deploy them and knowing that connectivity we've created this massive infrastructure now that can give you eyes on the internet and we leverage all of their data together so if let's say hypothetically you know AT&T has an issue that same issue is impacting multiple customers through all our different measurements so it's like ways if you're using ways to get from point A to point B if Waze was just used by your family members and nobody else it would give you completely useless information values in that collective insight right and then now you also will start to be able to leverage ml and AI and you know having all that data and apply just more machine learning to it to even better get in get out in front of problems I imagine as much as as is to be able to identify so that's a really interesting point right so the first thing we have to tackle is making a complex data set really accessible and so we have a lot of focus into essentially getting insights out of it using techniques that are smarter than the brute-force techniques you get insights out and then present it in manners that it's accessible and digestible and then as we look into the next stages we're going to bring more and more things like learning and so on to take it even further right it's funny the accessible and digestible piece I was just had a presentation the other day and there was a woman from a CSO at a big bank and she talked about you know the problem of false positives and in in early days I mean their biggest issues was just too much data coming in from too many sensors and and too many false positives to basically bury people so they didn't have time to actually service the things that are a priority so you know a nice presentation of a whole lot of data makes a big difference to make it action it is absolutely true and now that the example I'll give you is oftentimes when you think about companies that operate with a strong network core like we do they're in the weeds right which is important but what is really important is tying that intelligence to business impact and so the entire product portfolio we've built it's all about business impact user experience and then going into connecting the dots or the network side so we've seen some really interesting events and as much as we know the internet every day I wake up and I see something that surprises me right we've had customers that have done migrations to cloud that have gone horribly wrong right so we the latest when I was troubleshooting with the customer was where we saw they migrated from there on from data center to Amazon and the user experience was 10x worse than what it was on their own data of the app once they moved to Amazon okay and what had happened there was the whole migration to Amazon included the smart sort of CDN where they were fronting your traffic at local sites but the traffic was going all over the place so from if a user was in London instead of going to the London instance of Amazon they were going to Atlanta or they were going to Los Angeles and so the whole migration created a worse user experience and you don't have that lens because you don't see that in a net portion of that right that's why we like we caught it instantly and we were able to showcase that hey this is actually a really bad migration and it's not that Amazon is bad it's just it's been implemented incorrectly right so yeah fix these things and those are all configurations all Connecticut which is so very easy all the issues you hear about with with Amazon often go back to miss configuration miss settings suboptimal leaving something open so to have that visibility makes a huge impact and it's more challenging because you're trying to configure different components of this environment right so you have a cloud component you have the Internet component your own network you have your own firewalls and you used to have this closed environment now it's hybrid it involves multiple parties multiple skill sets so a lot of things can really go wrong I think I think you guys you guys crystallized very cleanly is kind of the inside out and outside in approach both you know a as as a service consumer yeah right I'm using Salesforce I'm using maybe s3 I'm using these things that I need and I want to focus on that and I want to have a good experience I want my people to be able to get on their Salesforce account and book business but but don't forget the other way right because as people are experiencing my service that might be connecting through and aggregating many other services along the way you know I got to make sure my customer experience is big and you guys kind of separate those two things out and really make sure people are focusing on both of them correct and it's the same technology but you can use that for your production services which are revenue generating or you can use that for your employee productivity the visibility that you provide is is across a common stack but on the production side for example because of the way the internet works right your job is not just to ensure a great performance in user experience your job is also to make sure that people are actually reaching your site and so we've seen several instances where because of the way internet works somebody else could announce that their google.com and they could suck a bunch of traffic from the internet and this happens quite routinely in the notion of what is now known as DP hijacks or sometimes DNS hijacks and the the one that I remember very well is when there was the small ISP in Nigeria that announced the identity of the address block for Google and that was picked up by China Telecom which was picked up by a Russian telco and now you have Russia China and Nigeria in the path for traffic to Google which is actually not even going to Google's right those kinds of things are very possible because of the way the internet how fast those things kind of rise up and then get identified and then get shut off is this hours days weeks in this kind of example so it really depends because if you are let's say you were Google in this situation right you're not seeing a denial of service attack to your data centers in fact you're just not seeing traffic running in because somebody else is taking it away right it's like identity theft right like I somebody takes your identity you wouldn't get a mail in your inbox saying hey your identity has been taken back so easy you have to find it some other way and usually it's the signal by the time you realize that your identity has been stolen you have a nightmare ahead of you alright so you got some specific news a great great conversation you know it's super insightful to talk to people that are in the weeds of how all the stuff works but today you have a new a new announcement some new and new offering so tell us about what's going on so we have a couple of announcements today and coming back to this notion of the cloud being a new data center the internet your new network right two things were announcing today is one we're announcing our second version of the cloud then benchmark performance comparison and what this is about is really helping people understand the nuances the performance difference is the architecture differences between Amazon Google as your IBM cloud and Alibaba cloud so as you make decisions you actually understand what is the right solution for me from a performance architecture standpoint so that's one it's a fascinating report we found some really interesting findings that surprised us as well and so we're releasing that we're also touching on the internet component by releasing a new product which we call as internet insights and that is giving you the power to actually look at the internet more holistically like you own the entire internet so that is really something we're all excited about because it's the first time that somebody can actually see the Internet see all these connections see what is going on between major service providers and feel like you completely owned the environment so are people using information like that to dynamically you know kind of reroute the way that they handle their traffic or is it more just kind of a general health you know kind of health overview you know how much of it do I have control over how much should I have control over and how much of I just need to know what's going on so yeah so it just me great question so the the best way I can answer that is what I heard CIO say in a CIO forum we were presenting at where they were a customer it's a large financial services customer and somebody asked the CIO what was the value of thousand I wasn't the way he explained it which was really fascinating was phase one of thousand eyes when we started using it was getting rid of technical debt because we would keep identifying issues which we could fix but we could fix the underlying root cause so it doesn't happen again and that just cleared the technical debt that we had made our environment much better and then we started to optimize the environments to just get better get more proactive so that's a good way to think about it when you think about our customers most of the times they're trying to just not have their hair on fire right that's the first step right once we can help them with that then they go on to tuning optimizing and so on but knowing what is going on is really important for example if you're providing a.com sir is like cube the cube comm right it's its life and you're providing it from your data center here you have two up streams like AT&T and Verizon and Verizon is having issues you can turn off that connection and let all your customers back live having a full experience if you know that's the issues right right the remediation is actually quite quite a few times it's very straightforward if you know what you're trying to solve right so do you think on the internet insights this is going to be used just more for better remediation or do you think it's it's kind of a step forward and getting a little bit more proactive and a little bit more prescriptive and getting out ahead of the issues or or can you because these things are kind of ephemeral and come and go so I think it's all of the about right so one the things that the internet insights will help you is with planning because as you expand into new geo so if you're a company that's launching a service in a new market right that immediately gives you a landscape of who do you connect with where do you host right as now you can actually visualize the entire network how do you reach your customer base the best right so that's the planning aspect and if you plan right you would actually reduce a lot of the trouble that you see so we had this customer of ours that was deploying Estevan Software Defined one in there a she offices and they used thousand eyes to evaluate two different ISPs that they were looking at one of them had this massive time-of-day congestion so every time every day at nine o'clock the latency would get doubled because of congestion it's common in Asia the other did not have time of day congestion and with that view they could implement the entire Estevan on the ice pea that actually worked well for them so planning is important part of this and then the other aspect of this is the thing that folks often don't realize is Internet is not static it's constantly changing so you know AT&T might connect to Verizon this way it connects it differently it connects to somebody else and so having that live map as you're troubleshooting customer experience issues so let's say you have customers from China that are having a ton of issues all of a sudden or you see a drop of traffic from China now you can relate that information of where these customers are coming from with our view of the health of the Chinese Internet and which specific ISPs are having issues so that's the kind of information merger that simply doesn't happen today right promote is a fascinating discussion and we could go on and on and on but unfortunately do not have all day but I really like what you guys are doing the other thing I just want to close on which which I thought was really interesting is you know a lot of talk about digital transformation we always talk about digital transformation everybody wants the digital transfer eyes it but you really boiled it down into really three create three critical places that you guys play the digital experience in terms of what what the customers experience you know getting to cloud everybody wants to get to cloud someone can argue how much and what percentage but everybody's going to cloud and then as you said in this last example the MA when as you connect all these remote sites and you guys have a play in all of those places so whatever you thought about in 2010 that worked out pretty well thank you and we had a really strong vision but kudos to the team that we have in place that has stretched it and really made the most out of that so excited good job and thanks for for stopping by sharing the story thank you for hosting always a fun to be here absolutely all right well he's mo and I'm Jeff you're watching the cube when our power out the studio's having a cute conversation thanks for watching we'll see you next time [Music]

>> Live, from New York City, it's theCUBE. Covering Lenovo Transform 2.0. Brought to you by, Lenovo. (electronic music) >> Welcome back to theCUBE's live coverage of Lenovo Transform, here in New York City. I'm your host, Rebecca Knight, along with my cohost Stu Miniman. We have two guests here on this segment, We have Kirk Skaugen, he is the president of Lenovo Data Center Group, and Brad Anderson, the Corporate Vice President of Enterprise Mobility for NetApp. Thanks for coming on the program. >> Thank you for having us. >> So the big news of the day, the NetApp Lenovo partnership, explain to our viewers exactly what this means. These are two global powerhouses joining forces. >> Yeah sure, so I think Lenovo has had an amazing year. Last year in our Transform 1.0 we announced the largest server portfolio in our history. And this year we announced the largest data center, data management storage portfolio in our history. With a partnership with NetApp, so we're creating a multi-billion dollar global alliance, a multi-year alliance and it has a place in a joint venture in China as well as we'll be distributing NetApp products in over 160 countries in the world. >> So tell us about the background to this partnership. How did it come about? >> Well, you know, for NetApp we were looking for expanding our reach, and there was two markets that were kind of underserved in. One being kind of the commercial SMB SME channel, and Lenovo has a high-velocity channel there, a strong position. So Lenovo made complete sense in that space as well as in China, where we have a strong brand but we're underserved there as well, so who is better in China than Lenovo? So for us this is all about global market and then the fact that they're a server vendor is just icing on the cake, because the other two server vendors in the marketplace are also our competitors. And then, Lenovo is so much more compatible and complementary to our entire business. >> Kirk, maybe you could spend a little more, because when you look at storage today, storage is really built on servers. You know, NetApp is, you know, at it's heart a software company, even back in the day NetApp was never, some of the other storage companies spent a lot of time and money on the hardware pieces. And of course had reliable, good, trustable hardware, but maybe explain how much, kind of, I.P. goes into this partnership. >> Yeah, sure. So I think today we have about 15 percent coverage of the overall storage market within Lenovo. We've grown our flash array business over 100 percent over the last four quarters. IDC had us at 30% quarter to quarter growth. So we've done well, but we've only cover 15% of the market. After this announcement, and shipping now today, we'll cover over 90% of the market in more than 160 countries. So we're using our global supply chain which is ranked number five in the world by Garner. Manufacturing in Europe, in China, in Mexico et cetera. Really expand this out through our channel partnership program. And in China we're taking a very unique approach to this joint venture. This isn't about taking global products and just trying to force fit them into China. China has unique software solutions, unique hyper scale requirements. So we're pooling our R and D there. Lenovo will be a 51% owner, NetApp a 49% owner. Brad's going to be on the board and there we're going to be delivering products in China for China. >> Yeah, is it, you've got a lot of experience with that. You talk about coming in the future there's an NFV software and hardware solution in China, so Lenovo has some experience doing this kind of engagement, you know. >> Yeah, I think we have a more than 50% growth now, year on year in China. We retooled a lot of the operations that we had there. We have a really nice, broad portfolio now since we launched Think System and Think Agile so it's a nice place to grow on. But today we talked about the joint venture with NetApp and also the fact that over the next year we'll be building out a telecom NFV company after having China Mobile and China Telecom with us as at Mobile World Congress. As well as new edge gateway and edge server solutions. >> Brad, I know cloud is in your title for what you are doing, when I hear NetApp talking, I see NetApp at all the cloud shows we go to. It's a very different world than when I think about NetApp ten years or twenty years ago as like, you know, the Nas Filer company. So bring us up to speed of kind of the NetApp today the momentum and what this brings. >> Yeah, I mean we are going through our own transformation where we were principally a storage company and now we want to be a data company, and increasingly to be a data company you got to be a cloud company. And so, we continue to develop what we think are the, you know, the best storage products in the world, but they are all cloud connected. 'Cause we want data to be able to flow from prim to cloud and customers be able to, you know. That's what really kind of fuels these digital enterprises is that data is the new oil. And so in doing that we have kind of expanded NetApp's charter significantly to being the data authority in hybrid cloud. Hybrid being both the private and the public. And so part of my business is really focused on providing products and solutions so customers can have the same experience in building their own private clouds that they enjoy in the public. And then on the public side we have partnerships with all the hyper scalers to put NetApp's in there so they can deliver native cloud data services. And so, this is a very different company where we're getting more and more cloudy every day. (Rebecca laughs). And that's part of our transformation intentionally. >> So, the transformation, it's the theme of this conference and you were up on the main stage talking about Lenovo's turning this corner and really accelerating its growth, and also talking about the transformation from within the company. Changing the look of the leadership team in particular. Can you tell our viewers a little bit more about that strategy. >> Sure, so we acquired the IBM system X business in late 2014 and we did some things really well and we did some things that we've learned from. So we spent, you know, basically the last 18 months transforming the whole company. New channel programs, new system integrator partnerships, new training certifying over 11,000 people in the world now. Tripling the number of our solution recipes. And we have transformed The management team as well. We have replaced about 19 executives because we wanted the right balance of external and internal perspectives from our competitors as well as from ex-Lenovo and ex-IBM employees. So we feel like we have a very customer-centric organization now and, again, Gardner now is saying we are growing 49% year on year in units, IDC said we are growing 87% year on year in revenues. So I think customers are responding to the new product line. Over the last year the Think System brand truly meant the highest customer performance, the highest reliability, the highest customer satisfaction. And as a result it does take a while to transform. And I think that over the last 12 months you've seen that and we're exponentially growing now as a company. >> And you see it in your results. I mean, they are outstanding. >> So Brad, bring us inside the products a little bit. So we've got, it's the Think System DE and DM. Of course the storage industry very much, they need to trust it, they need to understand it. Gives little to understand, I believe DE maybe has something to do with the >> The E series >> The E series there and tell us the DM series, what's underneath there and how do people understand what's different and what's the same. >> Yeah, I mean the. We're taking platforms across our E series, our FAS and our all flash arrays. So the DE corresponds to the E series. The DM will have our FAS products as well as our all flash array products in there. So that's kind of the mapping. We're putting initially I think, ten products in there. We have the capacity to expand and I'm sure we're going to learn a lot because these are serving markets that NetApp doesn't typically serve. So I think not only is this going to give Lenovo the tools to compete, it's going to give us a lot of information to even build better products, better solutions for both NetApp and our Lenovo customers. So we're super excited about that. The second thing is, it's OnTab, it's the same core software, and all the value and performance testing and validation you get with NetApp. That all goes into the Lenovo branded products as well. And we have made it one of our hallmarks is our data fabric. All of the data services that are on top of this that you can move data and manage data between platforms, that is really important for the NetApp customer. All those values extend to the Lenovo customer. So if they also have NetApp in their environment, or vice-versa, they can share or move data between both those platforms. So that's, nowhere else in the industry is that possible across vendors let alone within. >> So how does it work when you are in the product development process. Two companies, both relentlessly focused on customers. This is part of your culture, part of your DNA. So how do you work together in terms of innovating and collaborating. >> Well, I think the first thing is you just look at the core business: our server business and NetApp branded storage, or Lenovo branded storage based on NetApp's portfolio. We're going to have a better together solution. So the first thing we're looking at is a set of solution recipes so that when you use NetApp and Lenovo together, you're going to get a better experience as a customer base. So that's why I am excited today. We've launched three times as many engineered solutions as we did a year ago. And trained these 11,000 people because we have a very solution oriented sales force and a very complementary channel. From a development perspective, we're going to be building X Clarity management into our portfolio. So the same systems management software that is mission critical for Lenovo server products will now manage the big system DE and DM products. So it's a very familiar management interface for customers, there's an engineering effort gone with that. And then on service and support, we're going to use over 10,000 people around the world that Lenovo has to go service and support these products. So we can deliver a premium customer experience. Whether you're buying the server or the storage. And back to the customer base: we're going to, especially in China, have deep engineering collaborations. Where we're walking into those customer bases and asking what's unique about the China market. >> And, and. It really helps that the two companies are very complementary. So NetApp has deep storage expertise, Lenovo has tremendous compute expertise. So they are very complementary and as customers want more and more complete solutions, we are learning, our engineers are learning from each other and it doesn't hurt the fact that we have a large engineering. We NetApp, have a large engineering population in the research triangle where Kirk's people are at. >> That's right. We're probably one kilometer away from each other in research triangle park. >> Geography matters, location location location. >> No, and our two support organizations are next door as well. So I think that proximity will only contribute to the collaboration. >> Yeah, exactly. >> Alright, so the storage industry actually has a relatively good track record of some deep, long partnerships. NetApp has had a number of them over the years. Tell us, what does success look like if we look back three years from now, what's this partnership. >> Well, what we said publicly is we plan to have a multi-billion dollar, multi-year alliance. So that's going to be fantastic as we grow in over 160 countries. We're going to use Lenovo's extensive supply chain network. So you know as one of the largest kind of procurers of componentry and things around the world, we get to leverage this global factory network to build even more value into that situation. And in China specifically, we've set a goal of being a top three storage player. So we both have probably single digit share in China but together with this collaboration we are setting sights quite high to be in the top three over the next several years. >> I think that's exactly right and I think those are all achievable goals. But right now, we want to get out the gate fast. I mean this is a partnership with two companies with a lot of momentum and I see this as a huge opportunity for both our companies to kind of amplify that momentum near term. And so while there's a lot of excitement on the future, I think success is going to look like, you know, some very exciting results that Kirk can share at Transform 3.0 next year. >> That's right. And for our customer base, we have already gone into production. Taking orders, as of today and tons of engineering, tons of manufacturing development. So we'll have a whole host of seed units and early access units. Our customers can get their hands on this stuff right away and start testing it in their environment. >> As you said, it is an audacious vision. You announced an audacious vision last year, you did another one again this year. So when you think about what you want to be talking about next year. You said what success looks like. What are some other things that you're working on? You said, this is a process, Lenovo has turned the corner and it's got a lot of momentum. But what else are you, what else do you have on tap that you're... >> Well, if we tell all of you that, (Rebecca laughs) we won't have this here next year. >> Yeah >> But I think today is about entry and midrange. About expanding Lenovo's breadth from 15 to 90% of the market and being very aggressive against our top competitors that have a combined server storage portfolio. And I think as I've gone around the world, I've been in Latin America, in India, our channel partners are incredibly excited about this. So I think while other customers might be taking business more direct, we've traditionally been very channel-centric. So, I've seen a lot of pull for choice in the market and I think that's what we're going to deliver to our channel partners. But we will have a lot more in store, that I can promise you. This is phase one of a multi-phase, multi-year plan. >> I think there's a lot of things, there's a lot of possibilities on the product development side and how we can do better products, but I think a lot of success is going to look, it's going to come in our global market. Already, Kirk, since I've been here, I've had a channel partner come up and said "Hey, this makes me rethink my channel partners all over again", because now that channel partner who's a Lenovo has the full breadth of the storage portfolio. So I think this is going to be really good for both of us. Particularly when, you know, Lenovo and NetApp are both very channel friendly partners and companies and I think this I going to be a catalyst to have more people on our side than ever before. >> Kirk, just last thing, just give you the opportunity to talk about some of the other breadth and choice and other things that Lenovo has going on. We're going to talk to some of your team about, you know, hyper converge and hyper scale and other hyper things, but yeah. (Rebecca laughs) >> Well I think the good news about our growth now is that we're doing it across multiple segments in the industry. There isn't just one part of the market that growing. So last year we set an audacious goal of being the largest supercomputer company in the world by 2020. We've now crossed that actually this year. So we are the largest supercomputer company in the world. About one in every four supercomputers now are there. And we're expanding that into a lot of AI offerings as well with our four artificial intelligence centers, from China, Germany, Taipei, Beijing. All having customers bring their AI workloads into a controlled environment with our partners where there's intel and video or the FGBA vendors. So super-computing is alive and well and we continue to innovate with our warm-water cooling technology that's going to be here on display. We think we're building one of the largest supercomputers in Europe right now using that technology. So not just helping solve global warming but being more energy-efficient while we are computing on that as well. In hyper scale we've grown to about delivering six of the top ten hyper scalers products. And we're doing that through, basically starting with a white sheet of paper with our customers and building more than thirty customized products. In the motherboard, in the system, in putting it through our entire supply chain. Versus just, in the past maybe two years ago, maybe just leveraging ODM products, so. Significant growth in hyper scale where we're bringing on new billion dollar customers on a regular basis now. And then in flash arrays, our traditional business, we were over 100% growth year on year. So we're building off of momentum. We had great products but only covering 15% of the market, now much larger. Last but not least, we did announce since Transform, new divisions in embedded and IoT as well as in telecommunications NFVF software. We think each of those can be billion dollar groups within Lenovo, so that's probably a lot of what we would be talking about next year is announcements and innovations we've had. Would be Transform 3.0 probably. (Rebecca laughs) >> Well, we're already looking forward to the next Transform. >> 3.0 will be CUBEd so we look forward to that. >> Stu, very nice. Very nice. Excellent. Well thank you so much Brad and Kirk for being on the show, I really appreciate it. >> Thank you very much. >> I'm Rebecca Knight for Stu Miniman. We will have more from Lenovo Transform and theCUBE's live coverage, just after this. (intense electronic music)

(electronic dance music) (Intel Jingle) (ethereal electronic dance music) ♪ Okay ♪ (upbeat techno dance music) ♪ Oh oh oh oh ♪ ♪ Oh oh oh oh ♪ ♪ Oh oh oh oh oh ♪ ♪ Oh oh oh oh ♪ ♪ Oh oh oh oh oh ♪ ♪ Take it back take it back ♪ ♪ Take it back ♪ ♪ Take it back take it back ♪ ♪ Take it back ♪ ♪ Take it back take it back ♪ ♪ Yeah everybody get loose yeah ♪ ♪ Yeah ♪ ♪ Ye-yeah yeah ♪ ♪ Yeah yeah ♪ ♪ Everybody everybody yeah ♪ ♪ Whoo whoo ♪ ♪ Whoo whoo ♪ ♪ Whoo yeah ♪ ♪ Everybody get loose whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ >> As a courtesy to the presenters and those around you, please silence all mobile devices, thank you. (electronic dance music) ♪ Everybody get loose ♪ ♪ Whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ (upbeat salsa music) ♪ Ha ha ha ♪ ♪ Ah ♪ ♪ Ha ha ha ♪ ♪ So happy ♪ ♪ Whoo whoo ♪ (female singer scatting) >> Ladies and gentlemen, please take your seats. Our program will begin momentarily. ♪ Hey ♪ (female singer scatting) (male singer scatting) ♪ Hey ♪ ♪ Whoo ♪ (female singer scatting) (electronic dance music) ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ ♪ Red red red red ♪ ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ ♪ Red red red red ♪ ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ ♪ Red red red red ♪ ♪ Red don't go ♪ ♪ All hands are in don't go ♪ ♪ In don't go ♪ ♪ Oh red go ♪ ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ ♪ Red red red red ♪ ♪ All hands are red don't go ♪ ♪ All hands are in red red red red ♪ ♪ All hands are in don't go ♪ ♪ All hands are in red go ♪ >> Ladies and gentlemen, there are available seats. Towards house left, house left there are available seats. If you are please standing, we ask that you please take an available seat. We will begin momentarily, thank you. ♪ Let go ♪ ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ (upbeat electronic dance music) ♪ Just make me ♪ ♪ Just make me ♪ ♪ Just make me ♪ ♪ Just make me ♪ ♪ Just make me ♪ ♪ I live ♪ ♪ Just make me ♪ ♪ Just make me ♪ ♪ Hey ♪ ♪ Yeah ♪ ♪ Oh ♪ ♪ Ah ♪ ♪ Ah ah ah ah ah ah ♪ ♪ Just make me ♪ ♪ Just make me ♪ (bouncy techno music) >> Ladies and gentlemen, once again we ask that you please take the available seats to your left, house left, there are many available seats. If you are standing, please make your way there. The program will begin momentarily, thank you. Good morning! This is Lenovo Transform 2.0! (keyboard clicks) >> Progress. Why do we always talk about it in the future? When will it finally get here? We don't progress when it's ready for us. We need it when we're ready, and we're ready now. Our hospitals and their patients need it now, our businesses and their customers need it now, our cities and their citizens need it now. To deliver intelligent transformation, we need to build it into the products and solutions we make every day. At Lenovo, we're designing the systems to fight disease, power businesses, and help you reach more customers, end-to-end security solutions to protect your data and your companies reputation. We're making IT departments more agile and cost efficient. We're revolutionizing how kids learn with VR. We're designing smart devices and software that transform the way you collaborate, because technology shouldn't just power industries, it should power people. While everybody else is talking about tomorrow, we'll keep building today, because the progress we need can't wait for the future. >> Please welcome to the stage Lenovo's Rod Lappen! (electronic dance music) (audience applauding) >> Alright. Good morning everyone! >> Good morning. >> Ooh, that was pretty good actually, I'll give it one more shot. Good morning everyone! >> Good morning! >> Oh, that's much better! Hope everyone's had a great morning. Welcome very much to the second Lenovo Transform event here in New York. I think when I got up just now on the steps I realized there's probably one thing in common all of us have in this room including myself which is, absolutely no one has a clue what I'm going to say today. So, I'm hoping very much that we get through this thing very quickly and crisply. I love this town, love New York, and you're going to hear us talk a little bit about New York as we get through here, but just before we get started I'm going to ask anyone who's standing up the back, there are plenty of seats down here, and down here on the right hand side, I think he called it house left is the professional way of calling it, but these steps to my right, your left, get up here, let's get you all seated down so that you can actually sit down during the keynote session for us. Last year we had our very first Lenovo Transform. We had about 400 people. It was here in New York, fantastic event, today, over 1,000 people. We have over 62 different technology demonstrations and about 15 breakout sessions, which I'll talk you through a little bit later on as well, so it's a much bigger event. Next year we're definitely going to be shooting for over 2,000 people as Lenovo really transforms and starts to address a lot of the technology that our commercial customers are really looking for. We were however hampered last year by a storm, I don't know if those of you who were with us last year will remember, we had a storm on the evening before Transform last year in New York, and obviously the day that it actually occurred, and we had lots of logistics. Our media people from AMIA were coming in. They took the, the plane was circling around New York for a long time, and Kamran Amini, our General Manager of our Data Center Infrastructure Group, probably one of our largest groups in the Lenovo DCG business, took 17 hours to get from Raleigh, North Carolina to New York, 17 hours, I think it takes seven or eight hours to drive. Took him 17 hours by plane to get here. And then of course this year, we have Florence. And so, obviously the hurricane Florence down there in the Carolinas right now, we tried to help, but still Kamran has made it today. Unfortunately, very tragically, we were hoping he wouldn't, but he's here today to do a big presentation a little bit later on as well. However, I do want to say, obviously, Florence is a very serious tragedy and we have to take it very serious. We got, our headquarters is in Raleigh, North Carolina. While it looks like the hurricane is just missing it's heading a little bit southeast, all of our thoughts and prayers and well wishes are obviously with everyone in the Carolinas on behalf of Lenovo, everyone at our headquarters, everyone throughout the Carolinas, we want to make sure everyone stays safe and out of harm's way. We have a great mixture today in the crowd of all customers, partners, industry analysts, media, as well as our financial analysts from all around the world. There's over 30 countries represented here and people who are here to listen to both YY, Kirk, and Christian Teismann speak today. And so, it's going to be a really really exciting day, and I really appreciate everyone coming in from all around the world. So, a big round of applause for everyone whose come in. (audience applauding) We have a great agenda for you today, and it starts obviously a very consistent format which worked very successful for us last year, and that's obviously our keynote. You'll hear from YY, our CEO, talk a little bit about the vision he has in the industry and how he sees Lenovo's turned the corner and really driving some great strategy to address our customer's needs. Kirk Skaugen, our Executive Vice President of DCG, will be up talking about how we've transformed the DCG business and once again are hitting record growth ratios for our DCG business. And then you'll hear from Christian Teismann, our SVP and General Manager for our commercial business, get up and talk about everything that's going on in our IDG business. There's really exciting stuff going on there and obviously ThinkPad being the cornerstone of that I'm sure he's going to talk to us about a couple surprises in that space as well. Then we've got some great breakout sessions, I mentioned before, 15 breakout sessions, so while this keynote section goes until about 11:30, once we get through that, please go over and explore, and have a look at all of the breakout sessions. We have all of our subject matter experts from both our PC, NBG, and our DCG businesses out to showcase what we're doing as an organization to better address your needs. And then obviously we have the technology pieces that I've also spoken about, 62 different technology displays there arranged from everything IoT, 5G, NFV, everything that's really cool and hot in the industry right now is going to be on display up there, and I really encourage all of you to get up there. So, I'm going to have a quick video to show you from some of the setup yesterday on a couple of the 62 technology displays we've got on up on stage. Okay let's go, so we've got a demonstrations to show you today, one of the greats one here is the one we've done with NC State, a high-performance computing artificial intelligence demonstration of fresh produce. It's about modeling the population growth of the planet, and how we're going to supply water and food as we go forward. Whoo. Oh, that is not an apple. Okay. (woman laughs) Second one over here is really, hey Jonas, how are you? Is really around virtual reality, and how we look at one of the most amazing sites we've got, as an install on our high-performance computing practice here globally. And you can see, obviously, that this is the Barcelona supercomputer, and, where else in New York can you get access to being able to see something like that so easily? Only here at Lenovo Transform. Whoo, okay. (audience applauding) So there's two examples of some of the technology. We're really encouraging everyone in the room after the keynote to flow into that space and really get engaged, and interact with a lot of the technology we've got up there. It seems I need to also do something about my fashion, I've just realized I've worn a vest two days in a row, so I've got to work on that as well. Alright so listen, the last thing on the agenda, we've gone through the breakout sessions and the demo, tonight at four o'clock, there's about 400 of you registered to be on the cruise boat with us, the doors will open behind me. the boat is literally at the pier right behind us. You need to make sure you're on the boat for 4:00 p.m. this evening. Outside of that, I want everyone to have a great time today, really enjoy the experience, make it as experiential as you possibly can, get out there and really get in and touch the technology. There's some really cool AI displays up there for us all to get involved in as well. So ladies and gentlemen, without further adieu, it gives me great pleasure to introduce to you a lover of tennis, as some of you would've heard last year at Lenovo Transform, as well as a lover of technology, Lenovo, and of course, New York City. I am obviously very pleasured to introduce to you Yang Yuanqing, our CEO, as we like to call him, YY. (audience applauding) (upbeat funky music) >> Good morning, everyone. >> Good morning. >> Thank you Rod for that introduction. Welcome to New York City. So, this is the second year in a row we host our Transform event here, because New York is indeed one of the most transformative cities in the world. Last year on this stage, I spoke about the Fourth Industrial Revolution, and our vision around the intelligent transformation, how it would fundamentally change the nature of business and the customer relationships. And why preparing for this transformation is the key for the future of our company. And in the last year I can assure you, we were being very busy doing just that, from searching and bringing global talents around the world to the way we think about every product and every investment we make. I was here in New York just a month ago to announce our fiscal year Q1 earnings, which was a good day for us. I think now the world believes it when we say Lenovo has truly turned the corner to a new phase of growth and a new phase of acceleration in executing the transformation strategy. That's clear to me is that the last few years of a purposeful disruption at Lenovo have led us to a point where we can now claim leadership of the coming intelligent transformation. People often asked me, what is the intelligent transformation? I was saying this way. This is the unlimited potential of the Fourth Industrial Revolution driven by artificial intelligence being realized, ordering a pizza through our speaker, and locking the door with a look, letting your car drive itself back to your home. This indeed reflect the power of AI, but it just the surface of it. The true impact of AI will not only make our homes smarter and offices more efficient, but we are also completely transformed every value chip in every industry. However, to realize these amazing possibilities, we will need a structure built around the key components, and one that touches every part of all our lives. First of all, explosions in new technology always lead to new structures. This has happened many times before. In the early 20th century, thousands of companies provided a telephone service. City streets across the US looked like this, and now bundles of a microscopic fiber running from city to city bring the world closer together. Here's what a driving was like in the US, up until 1950s. Good luck finding your way. (audience laughs) And today, millions of vehicles are organized and routed daily, making the world more efficient. Structure is vital, from fiber cables and the interstate highways, to our cells bounded together to create humans. Thankfully the structure for intelligent transformation has emerged, and it is just as revolutionary. What does this new structure look like? We believe there are three key building blocks, data, computing power, and algorithms. Ever wondered what is it behind intelligent transformation? What is fueling this miracle of human possibility? Data. As the Internet becomes ubiquitous, not only PCs, mobile phones, have come online and been generating data. Today it is the cameras in this room, the climate controls in our offices, or the smart displays in our kitchens at home. The number of smart devices worldwide will reach over 20 billion in 2020, more than double the number in 2017. These devices and the sensors are connected and generating massive amount of data. By 2020, the amount of data generated will be 57 times more than all the grains of sand on Earth. This data will not only make devices smarter, but will also fuel the intelligence of our homes, offices, and entire industries. Then we need engines to turn the fuel into power, and the engine is actually the computing power. Last but not least the advanced algorithms combined with Big Data technology and industry know how will form vertical industrial intelligence and produce valuable insights for every value chain in every industry. When these three building blocks all come together, it will change the world. At Lenovo, we have each of these elements of intelligent transformations in a single place. We have built our business around the new structure of intelligent transformation, especially with mobile and the data center now firmly part of our business. I'm often asked why did you acquire these businesses? Why has a Lenovo gone into so many fields? People ask the same questions of the companies that become the leaders of the information technology revolution, or the third industrial transformation. They were the companies that saw the future and what the future required, and I believe Lenovo is the company today. From largest portfolio of devices in the world, leadership in the data center field, to the algorithm-powered intelligent vertical solutions, and not to mention the strong partnership Lenovo has built over decades. We are the only company that can unify all these essential assets and deliver end to end solutions. Let's look at each part. We now understand the important importance data plays as fuel in intelligent transformation. Hundreds of billions of devices and smart IoTs in the world are generating better and powering the intelligence. Who makes these devices in large volume and variety? Who puts these devices into people's home, offices, manufacturing lines, and in their hands? Lenovo definitely has the front row seats here. We are number one in PCs and tablets. We also produces smart phones, smart speakers, smart displays. AR/VR headsets, as well as commercial IoTs. All of these smart devices, or smart IoTs are linked to each other and to the cloud. In fact, we have more than 20 manufacturing facilities in China, US, Brazil, Japan, India, Mexico, Germany, and more, producing various devices around the clock. We actually make four devices every second, and 37 motherboards every minute. So, this factory located in my hometown, Hu-fi, China, is actually the largest laptop factory in the world, with more than three million square feet. So, this is as big as 42 soccer fields. Our scale and the larger portfolio of devices gives us access to massive amount of data, which very few companies can say. So, why is the ability to scale so critical? Let's look again at our example from before. The early days of telephone, dozens of service providers but only a few companies could survive consolidation and become the leader. The same was true for the third Industrial Revolution. Only a few companies could scale, only a few could survive to lead. Now the building blocks of the next revolution are locking into place. The (mumbles) will go to those who can operate at the scale. So, who could foresee the total integration of cloud, network, and the device, need to deliver intelligent transformation. Lenovo is that company. We are ready to scale. Next, our computing power. Computing power is provided in two ways. On one hand, the modern supercomputers are providing the brute force to quickly analyze the massive data like never before. On the other hand the cloud computing data centers with the server storage networking capabilities, and any computing IoT's, gateways, and miniservers are making computing available everywhere. Did you know, Lenovo is number one provider of super computers worldwide? 170 of the top 500 supercomputers, run on Lenovo. We hold 89 World Records in key workloads. We are number one in x86 server reliability for five years running, according to ITIC. a respected provider of industry research. We are also the fastest growing provider of hyperscale public cloud, hyper-converged and aggressively growing in edge computing. cur-ges target, we are expand on this point soon. And finally to run these individual nodes into our symphony, we must transform the data and utilize the computing power with advanced algorithms. Manufactured, industry maintenance, healthcare, education, retail, and more, so many industries are on the edge of intelligent transformation to improve efficiency and provide the better products and services. We are creating advanced algorithms and the big data tools combined with industry know-how to provide intelligent vertical solutions for several industries. In fact, we studied at Lenovo first. Our IT and research teams partnered with our global supply chain to develop an AI that improved our demand forecasting accuracy. Beyond managing our own supply chain we have offered our deep learning supply focused solution to other manufacturing companies to improve their efficiency. In the best case, we have improved the demand, focused the accuracy by 30 points to nearly 90 percent, for Baosteel, the largest of steel manufacturer in China, covering the world as well. Led by Lenovo research, we launched the industry-leading commercial ready AR headset, DaystAR, partnering with companies like the ones in this room. This technology is being used to revolutionize the way companies service utility, and even our jet engines. Using our workstations, servers, and award-winning imaging processing algorithms, we have partnered with hospitals to process complex CT scan data in minutes. So, this enable the doctors to more successfully detect the tumors, and it increases the success rate of cancer diagnosis all around the world. We are also piloting our smart IoT driven warehouse solution with one of the world's largest retail companies to greatly improve the efficiency. So, the opportunities are endless. This is where Lenovo will truly shine. When we combine the industry know-how of our customers with our end-to-end technology offerings, our intelligent vertical solutions like this are growing, which Kirk and Christian will share more. Now, what will drive this transformation even faster? The speed at which our networks operate, specifically 5G. You may know that Lenovo just launched the first-ever 5G smartphone, our Moto Z3, with the new 5G Moto model. We are partnering with multiple major network providers like Verizon, China Mobile. With the 5G model scheduled to ship early next year, we will be the first company to provide a 5G mobile experience to any users, customers. This is amazing innovation. You don't have to buy a new phone, just the 5G clip on. What can I say, except wow. (audience laughs) 5G is 10 times the fast faster than 4G. Its download speed will transform how people engage with the world, driverless car, new types of smart wearables, gaming, home security, industrial intelligence, all will be transformed. Finally, accelerating with partners, as ready as we are at Lenovo, we need partners to unlock our full potential, partners here to create with us the edge of the intelligent transformation. The opportunities of intelligent transformation are too profound, the scale is too vast. No company can drive it alone fully. We are eager to collaborate with all partners that can help bring our vision to life. We are dedicated to open partnerships, dedicated to cross-border collaboration, unify the standards, share the advantage, and market the synergies. We partner with the biggest names in the industry, Intel, Microsoft, AMD, Qualcomm, Google, Amazon, and Disney. We also find and partner with the smaller innovators as well. We're building the ultimate partner experience, open, shared, collaborative, diverse. So, everything is in place for intelligent transformation on a global scale. Smart devices are everywhere, the infrastructure is in place, networks are accelerating, and the industries demand to be more intelligent, and Lenovo is at the center of it all. We are helping to drive change with the hundreds of companies, companies just like yours, every day. We are your partner for intelligent transformation. Transformation never stops. This is what you will hear from Kirk, including details about Lenovo NetApp global partnership we just announced this morning. We've made the investments in every single aspect of the technology. We have the end-to-end resources to meet your end-to-end needs. As you attend the breakout session this afternoon, I hope you see for yourself how much Lenovo has transformed as a company this past year, and how we truly are delivering a future of intelligent transformation. Now, let me invite to the stage Kirk Skaugen, our president of Data Center growth to tell you about the exciting transformation happening in the global Data C enter market. Thank you. (audience applauding) (upbeat music) >> Well, good morning. >> Good morning. >> Good morning! >> Good morning! >> Excellent, well, I'm pleased to be here this morning to talk about how we're transforming the Data Center and taking you as our customers through your own intelligent transformation journey. Last year I stood up here at Transform 1.0, and we were proud to announce the largest Data Center portfolio in Lenovo's history, so I thought I'd start today and talk about the portfolio and the progress that we've made over the last year, and the strategies that we have going forward in phase 2.0 of Lenovo's transformation to be one of the largest data center companies in the world. We had an audacious vision that we talked about last year, and that is to be the most trusted data center provider in the world, empowering customers through the new IT, intelligent transformation. And now as the world's largest supercomputer provider, giving something back to humanity, is very important this week with the hurricanes now hitting North Carolina's coast, but we take this most trusted aspect very seriously, whether it's delivering the highest quality products on time to you as customers with the highest levels of security, or whether it's how we partner with our channel partners and our suppliers each and every day. You know we're in a unique world where we're going from hundreds of millions of PCs, and then over the next 25 years to hundred billions of connected devices, so each and every one of you is going through this intelligent transformation journey, and in many aspects were very early in that cycle. And we're going to talk today about our role as the largest supercomputer provider, and how we're solving humanity's greatest challenges. Last year we talked about two special milestones, the 25th anniversary of ThinkPad, but also the 25th anniversary of Lenovo with our IBM heritage in x86 computing. I joined the workforce in 1992 out of college, and the IBM first personal server was launching at the same time with an OS2 operating system and a free mouse when you bought the server as a marketing campaign. (audience laughing) But what I want to be very clear today, is that the innovation engine is alive and well at Lenovo, and it's really built on the culture that we're building as a company. All of these awards at the bottom are things that we earned over the last year at Lenovo. As a Fortune now 240 company, larger than companies like Nike, or AMEX, or Coca-Cola. The one I'm probably most proud of is Forbes first list of the top 2,000 globally regarded companies. This was something where 15,000 respondents in 60 countries voted based on ethics, trustworthiness, social conduct, company as an employer, and the overall company performance, and Lenovo was ranked number 27 of 2000 companies by our peer group, but we also now one of-- (audience applauding) But we also got a perfect score in the LGBTQ Equality Index, exemplifying the diversity internally. We're number 82 in the top working companies for mothers, top working companies for fathers, top 100 companies for sustainability. If you saw that factory, it's filled with solar panels on the top of that. And now again, one of the top global brands in the world. So, innovation is built on a customer foundation of trust. We also said last year that we'd be crossing an amazing milestone. So we did, over the last 12 months ship our 20 millionth x86 server. So, thank you very much to our customers for this milestone. (audience applauding) So, let me recap some of the transformation elements that have happened over the last year. Last year I talked about a lot of brand confusion, because we had the ThinkServer brand from the legacy Lenovo, the System x, from IBM, we had acquired a number of networking companies, like BLADE Network Technologies, et cetera, et cetera. Over the last year we've been ramping based on two brand structures, ThinkAgile for next generation IT, and all of our software-defined infrastructure products and ThinkSystem as the world's highest performance, highest reliable x86 server brand, but for servers, for storage, and for networking. We have transformed every single aspect of the customer experience. A year and a half ago, we had four different global channel programs around the world. Typically we're about twice the mix to our channel partners of any of our competitors, so this was really important to fix. We now have a single global Channel program, and have technically certified over 11,000 partners to be technical experts on our product line to deliver better solutions to our customer base. Gardner recently recognized Lenovo as the 26th ranked supply chain in the world. And, that's a pretty big honor, when you're up there with Amazon and Walmart and others, but in tech, we now are in the top five supply chains. You saw the factory network from YY, and today we'll be talking about product shipping in more than 160 countries, and I know there's people here that I've met already this morning, from India, from South Africa, from Brazil and China. We announced new Premier Support services, enabling you to go directly to local language support in nine languages in 49 countries in the world, going directly to a native speaker level three support engineer. And today we have more than 10,000 support specialists supporting our products in over 160 countries. We've delivered three times the number of engineered solutions to deliver a solutions orientation, whether it's on HANA, or SQL Server, or Oracle, et cetera, and we've completely reengaged our system integrator channel. Last year we had the CIO of DXE on stage, and here we're talking about more than 175 percent growth through our system integrator channel in the last year alone as we've brought that back and really built strong relationships there. So, thank you very much for amazing work here on the customer experience. (audience applauding) We also transformed our leadership. We thought it was extremely important with a focus on diversity, to have diverse talent from the legacy IBM, the legacy Lenovo, but also outside the industry. We made about 19 executive changes in the DCG group. This is the most senior leadership team within DCG, all which are newly on board, either from our outside competitors mainly over the last year. About 50 percent of our executives were now hired internally, 50 percent externally, and 31 percent of those new executives are diverse, representing the diversity of our global customer base and gender. So welcome, and most of them you're going to be able to meet over here in the breakout sessions later today. (audience applauding) But some things haven't changed, they're just keeping getting better within Lenovo. So, last year I got up and said we were committed with the new ThinkSystem brand to be a world performance leader. You're going to see that we're sponsoring Ducati for MotoGP. You saw the Ferrari out there with Formula One. That's not a surprise. We want the Lenovo ThinkSystem and ThinkAgile brands to be synonymous with world record performance. So in the last year we've gone from 39 to 89 world records, and partners like Intel would tell you, we now have four times the number of world record workloads on Lenovo hardware than any other server company on the planet today, with more than 89 world records across HPC, Java, database, transaction processing, et cetera. And we're proud to have just brought on Doug Fisher from Intel Corporation who had about 10-17,000 people on any given year working for him in workload optimizations across all of our software. It's just another testament to the leadership team we're bringing in to keep focusing on world-class performance software and solutions. We also per ITIC, are the number one now in x86 server reliability five years running. So, this is a survey where CIOs are in a blind survey asked to submit their reliability of their uptime on their x86 server equipment over the last 365 days. And you can see from 2016 to 2017 the downtime, there was over four hours as noted by the 750 CXOs in more than 20 countries is about one percent for the Lenovo products, and is getting worse generation from generation as we went from Broadwell to Pearlie. So we're taking our reliability, which was really paramount in the IBM System X heritage, and ensuring that we don't just recognize high performance but we recognize the highest level of reliability for mission-critical workloads. And what that translates into is that we at once again have been ranked number one in customer satisfaction from you our customers in 19 of 22 attributes, in North America in 18 of 22. This is a survey by TVR across hundreds of customers of us and our top competitors. This is the ninth consecutive study that we've been ranked number one in customer satisfaction, so we're taking this extremely seriously, and in fact YY now has increased the compensation of every single Lenovo employee. Up to 40 percent of their compensation bonus this year is going to be based on customer metrics like quality, order to ship, and things of this nature. So, we're really putting every employee focused on customer centricity this year. So, the summary on Transform 1.0 is that every aspect of what you knew about Lenovo's data center group has transformed, from the culture to the branding to dedicated sales and marketing, supply chain and quality groups, to a worldwide channel program and certifications, to new system integrator relationships, and to the new leadership team. So, rather than me just talk about it, I thought I'd share a quick video about what we've done over the last year, if you could run the video please. Turn around for a second. (epic music) (audience applauds) Okay. So, thank you to all our customers that allowed us to publicly display their logos in that video. So, what that means for you as investors, and for the investor community out there is, that our customers have responded, that this year Gardner just published that we are the fastest growing server company in the top 10, with 39 percent growth quarter-on-quarter, and 49 percent growth year-on-year. If you look at the progress we've made since the transformation the last three quarters publicly, we've grown 17 percent, then 44 percent, then 68 percent year on year in revenue, and I can tell you this quarter I'm as confident as ever in the financials around the DCG group, and it hasn't been in one area. You're going to see breakout sessions from hyperscale, software-defined, and flash, which are all growing more than a 100 percent year-on-year, supercomputing which we'll talk about shortly, now number one, and then ultimately from profitability, delivering five consecutive quarters of pre-tax profit increase, so I think, thank you very much to the customer base who's been working with us through this transformation journey. So, you're here to really hear what's next on 2.0, and that's what I'm excited to talk about today. Last year I came up with an audacious goal that we would become the largest supercomputer company on the planet by 2020, and this graph represents since the acquisition of the IBM System x business how far we were behind being the number one supercomputer. When we started we were 182 positions behind, even with the acquisition for example of SGI from HP, we've now accomplished our goal actually two years ahead of time. We're now the largest supercomputer company in the world. About one in every four supercomputers, 117 on the list, are now Lenovo computers, and you saw in the video where the universities are said, but I think what I'm most proud of is when your customers rank you as the best. So the awards at the bottom here, are actually Readers Choice from the last International Supercomputing Show where the scientific researchers on these computers ranked their vendors, and we were actually rated the number one server technology in supercomputing with our ThinkSystem SD530, and the number one storage technology with our ThinkSystem DSS-G, but more importantly what we're doing with the technology. You're going to see we won best in life sciences, best in data analytics, and best in collaboration as well, so you're going to see all of that in our breakout sessions. As you saw in the video now, 17 of the top 25 research institutions in the world are now running Lenovo supercomputers. And again coming from Raleigh and watching that hurricane come across the Atlantic, there are eight supercomputers crunching all of those models you see from Germany to Malaysia to Canada, and we're happy to have a SciNet from University of Toronto here with us in our breakout session to talk about what they're doing on climate modeling as well. But we're not stopping there. We just announced our new Neptune warm water cooling technology, which won the International Supercomputing Vendor Showdown, the first time we've won that best of show in 25 years, and we've now installed this. We're building out LRZ in Germany, the first ever warm water cooling in Peking University, at the India Space Propulsion Laboratory, at the Malaysian Weather and Meteorological Society, at Uninett, at the largest supercomputer in Norway, T-Systems, University of Birmingham. This is truly amazing technology where we're actually using water to cool the machine to deliver a significantly more energy-efficient computer. Super important, when we're looking at global warming and some of the electric bills can be millions of dollars just for one computer, and could actually power a small city just with the technology from the computer. We've built AI centers now in Morrisville, Stuttgart, Taipei, and Beijing, where customers can bring their AI workloads in with experts from Intel, from Nvidia, from our FPGA partners, to work on their workloads, and how they can best implement artificial intelligence. And we also this year launched LICO which is Lenovo Intelligent Compute Orchestrator software, and it's a software solution that simplifies the management and use of distributed clusters in both HPC and AI model development. So, what it enables you to do is take a single cluster, and run both HPC and AI workloads on it simultaneously, delivering better TCO for your environment, so check out LICO as well. A lot of the customers here and Wall Street are very excited and using it already. And we talked about solving humanity's greatest challenges. In the breakout session, you're going to have a virtual reality experience where you're going to be able to walk through what as was just ranked the world's most beautiful data center, the Barcelona Supercomputer. So, you can actually walk through one of the largest supercomputers in the world from Barcelona. You can see the work we're doing with NC State where we're going to have to grow the food supply of the world by 50 percent, and there's not enough fresh water in the world in the right places to actually make all those crops grow between now and 2055, so you're going to see the progression of how they're mapping the entire globe and the water around the world, how to build out the crop population over time using AI. You're going to see our work with Vestas is this largest supercomputer provider in the wind turbine areas, how they're working on wind energy, and then with University College London, how they're working on some of the toughest particle physics calculations in the world. So again, lots of opportunity here. Take advantage of it in the breakout sessions. Okay, let me transition to hyperscale. So in hyperscale now, we have completely transformed our business model. We are now powering six of the top 10 hyperscalers in the world, which is a significant difference from where we were two years ago. And the reason we're doing that, is we've coined a term called ODM+. We believe that hyperscalers want more procurement power than an ODM, and Lenovo is doing about $18 billion of procurement a year. They want a broader global supply chain that they can get from a local system integrator. We're more than 160 countries around the world, but they want the same world-class quality and reliability like they get from an MNC. So, what we're doing now is instead of just taking off the shelf motherboards from somewhere, we're starting with a blank sheet of paper, we're working with the customer base on customized SKUs and you can see we already are developing 33 custom solutions for the largest hyperscalers in the world. And then we're not just running notebooks through this factory where YY said, we're running 37 notebook boards a minute, we're now putting in tens and tens and tens of thousands of server board capacity per month into this same factory, so absolutely we can compete with the most aggressive ODM's in the world, but it's not just putting these things in in the motherboard side, we're also building out these systems all around the world, India, Brazil, Hungary, Mexico, China. This is an example of a new hyperscale customer we've had this last year, 34,000 servers we delivered in the first six months. The next 34,000 servers we delivered in 68 days. The next 34,000 servers we delivered in 35 days, with more than 99 percent on-time delivery to 35 data centers in 14 countries as diverse as South Africa, India, China, Brazil, et cetera. And I'm really ashamed to say it was 99.3, because we did have a forklift driver who rammed their forklift right through the middle of the one of the server racks. (audience laughing) At JFK Airport that we had to respond to, but I think this gives you a perspective of what it is to be a top five global supply chain and technology. So last year, I said we would invest significantly in IP, in joint ventures, and M and A to compete in software defined, in networking, and in storage, so I wanted to give you an update on that as well. Our newest software-defined partnership is with Cloudistics, enabling a fully composable cloud infrastructure. It's an exclusive agreement, you can see them here. I think Nag, our founder, is going to be here today, with a significant Lenovo investment in the company. So, this new ThinkAgile CP series delivers the simplicity of the public cloud, on-premise with exceptional support and a marketplace of essential enterprise applications all with a single click deployment. So simply put, we're delivering a private cloud with a premium experience. It's simple in that you need no specialists to deploy it. An IT generalist can set it up and manage it. It's agile in that you can provision dozens of workloads in minutes, and it's transformative in that you get all of the goodness of public cloud on-prem in a private cloud to unlock opportunity for use. So, we're extremely excited about the ThinkAgile CP series that's now shipping into the marketplace. Beyond that we're aggressively ramping, and we're either doubling, tripling, or quadrupling our market share as customers move from traditional server technology to software-defined technology. With Nutanix we've been public, growing about more than 150 percent year-on-year, with Nutanix as their fastest growing Nutanix partner, but today I want to set another audacious goal. I believe we cannot just be Nutanix's fastest growing partner but we can become their largest partner within two years. On Microsoft, we are already four times our market share on Azure stack of our traditional business. We were the first to launch our ThinkAgile on Broadwell and on Skylake with the Azure Stack Infrastructure. And on VMware we're about twice our market segment share. We were the first to deliver an Intel-optimized Optane-certified VSAN node. And with Optane technology, we're delivering 50 percent more VM density than any competitive SSD system in the marketplace, about 10 times lower latency, four times the performance of any SSD system out there, and Lenovo's first to market on that. And at VMworld you saw CEO Pat Gelsinger of VMware talked about project dimension, which is Edge as a service, and we're the only OEM beyond the Dell family that is participating today in project dimension. Beyond that you're going to see a number of other partnerships we have. I'm excited that we have the city of Bogota Columbia here, an eight million person city, where we announced a 3,000 camera video surveillance solution last month. With pivot three you're going to see city of Bogota in our breakout sessions. You're going to see a new partnership with Veeam around backup that's launching today. You're going to see partnerships with scale computing in IoT and hyper-converged infrastructure working on some of the largest retailers in the world. So again, everything out in the breakout session. Transitioning to storage and data management, it's been a great year for Lenovo, more than a 100 percent growth year-on-year, 2X market growth in flash arrays. IDC just reported 30 percent growth in storage, number one in price performance in the world and the best HPC storage product in the top 500 with our ThinkSystem DSS G, so strong coverage, but I'm excited today to announce for Transform 2.0 that Lenovo is launching the largest data management and storage portfolio in our 25-year data center history. (audience applauding) So a year ago, the largest server portfolio, becoming the largest fastest growing server OEM, today the largest storage portfolio, but as you saw this morning we're not doing it alone. Today Lenovo and NetApp, two global powerhouses are joining forces to deliver a multi-billion dollar global alliance in data management and storage to help customers through their intelligent transformation. As the fastest growing worldwide server leader and one of the fastest growing flash array and data management companies in the world, we're going to deliver more choice to customers than ever before, global scale that's never been seen, supply chain efficiencies, and rapidly accelerating innovation and solutions. So, let me unwrap this a little bit for you and talk about what we're announcing today. First, it's the largest portfolio in our history. You're going to see not just storage solutions launching today but a set of solution recipes from NetApp that are going to make Lenovo server and NetApp or Lenovo storage work better together. The announcement enables Lenovo to go from covering 15 percent of the global storage market to more than 90 percent of the global storage market and distribute these products in more than 160 countries around the world. So we're launching today, 10 new storage platforms, the ThinkSystem DE and ThinkSystem DM platforms. They're going to be centrally managed, so the same XClarity management that you've been using for server, you can now use across all of your storage platforms as well, and it'll be supported by the same 10,000 plus service personnel that are giving outstanding customer support to you today on the server side. And we didn't come up with this in the last month or the last quarter. We're announcing availability in ordering today and shipments tomorrow of the first products in this portfolio, so we're excited today that it's not just a future announcement but something you as customers can take advantage of immediately. (audience applauding) The second part of the announcement is we are announcing a joint venture in China. Not only will this be a multi-billion dollar global partnership, but Lenovo will be a 51 percent owner, NetApp a 49 percent owner of a new joint venture in China with the goal of becoming in the top three storage companies in the largest data and storage market in the world. We will deliver our R and D in China for China, pooling our IP and resources together, and delivering a single route to market through a complementary channel, not just in China but worldwide. And in the future I just want to tell everyone this is phase one. There is so much exciting stuff. We're going to be on the stage over the next year talking to you about around integrated solutions, next-generation technologies, and further synergies and collaborations. So, rather than just have me talk about it, I'd like to welcome to the stage our new partner NetApp and Brad Anderson who's the senior vice president and general manager of NetApp Cloud Infrastructure. (upbeat music) (audience applauding) >> Thank You Kirk. >> So Brad, we've known each other a long time. It's an exciting day. I'm going to give you the stage and allow you to say NetApp's perspective on this announcement. >> Very good, thank you very much, Kirk. Kirk and I go back to I think 1994, so hey good morning and welcome. My name is Brad Anderson. I manage the Cloud Infrastructure Group at NetApp, and I am honored and privileged to be here at Lenovo Transform, particularly today on today's announcement. Now, you've heard a lot about digital transformation about how companies have to transform their IT to compete in today's global environment. And today's announcement with the partnership between NetApp and Lenovo is what that's all about. This is the joining of two global leaders bringing innovative technology in a simplified solution to help customers modernize their IT and accelerate their global digital transformations. Drawing on the strengths of both companies, Lenovo's high performance compute world-class supply chain, and NetApp's hybrid cloud data management, hybrid flash and all flash storage solutions and products. And both companies providing our customers with the global scale for them to be able to meet their transformation goals. At NetApp, we're very excited. This is a quote from George Kurian our CEO. George spent all day yesterday with YY and Kirk, and would have been here today if it hadn't been also our shareholders meeting in California, but I want to just convey how excited we are for all across NetApp with this partnership. This is a partnership between two companies with tremendous market momentum. Kirk took you through all the amazing results that Lenovo has accomplished, number one in supercomputing, number one in performance, number one in x86 reliability, number one in x86 customers sat, number five in supply chain, really impressive and congratulations. Like Lenovo, NetApp is also on a transformation journey, from a storage company to the data authority in hybrid cloud, and we've seen some pretty impressive momentum as well. Just last week we became number one in all flash arrays worldwide, catching EMC and Dell, and we plan to keep on going by them, as we help customers modernize their their data centers with cloud connected flash. We have strategic partnerships with the largest hyperscalers to provide cloud native data services around the globe and we are having success helping our customers build their own private clouds with just, with a new disruptive hyper-converged technology that allows them to operate just like hyperscalers. These three initiatives has fueled NetApp's transformation, and has enabled our customers to change the world with data. And oh by the way, it has also fueled us to have meet or have beaten Wall Street's expectations for nine quarters in a row. These are two companies with tremendous market momentum. We are also building this partnership for long term success. We think about this as phase one and there are two important components to phase one. Kirk took you through them but let me just review them. Part one, the establishment of a multi-year commitment and a collaboration agreement to offer Lenovo branded flash products globally, and as Kurt said in 160 countries. Part two, the formation of a joint venture in PRC, People's Republic of China, that will provide long term commitment, joint product development, and increase go-to-market investment to meet the unique needs to China. Both companies will put in storage technologies and storage expertise to form an independent JV that establishes a data management company in China for China. And while we can dream about what phase two looks like, our entire focus is on making phase one incredibly successful and I'm pleased to repeat what Kirk, is that the first products are orderable and shippable this week in 160 different countries, and you will see our two companies focusing on the here and now. On our joint go to market strategy, you'll see us working together to drive strategic alignment, focused execution, strong governance, and realistic expectations and milestones. And it starts with the success of our customers and our channel partners is job one. Enabling customers to modernize their legacy IT with complete data center solutions, ensuring that our customers get the best from both companies, new offerings the fuel business success, efficiencies to reinvest in game-changing initiatives, and new solutions for new mission-critical applications like data analytics, IoT, artificial intelligence, and machine learning. Channel partners are also top of mind for both our two companies. We are committed to the success of our existing and our future channel partners. For NetApp channel partners, it is new pathways to new segments and to new customers. For Lenovo's channel partners, it is the competitive weapons that now allows you to compete and more importantly win against Dell, EMC, and HP. And the good news for both companies is that our channel partner ecosystem is highly complementary with minimal overlap. Today is the first day of a very exciting partnership, of a partnership that will better serve our customers today and will provide new opportunities to both our companies and to our partners, new products to our customers globally and in China. I am personally very excited. I will be on the board of the JV. And so, I look forward to working with you, partnering with you and serving you as we go forward, and with that, I'd like to invite Kirk back up. (audience applauding) >> Thank you. >> Thank you. >> Well, thank you, Brad. I think it's an exciting overview, and these products will be manufactured in China, in Mexico, in Hungary, and around the world, enabling this amazing supply chain we talked about to deliver in over 160 countries. So thank you Brad, thank you George, for the amazing partnership. So again, that's not all. In Transform 2.0, last year, we talked about the joint ventures that were coming. I want to give you a sneak peek at what you should expect at future Lenovo events around the world. We have this Transform in Beijing in a couple weeks. We'll then be repeating this in 20 different locations roughly around the world over the next year, and I'm excited probably more than ever about what else is coming. Let's talk about Telco 5G and network function virtualization. Today, Motorola phones are certified on 46 global networks. We launched the world's first 5G upgradable phone here in the United States with Verizon. Lenovo DCG sells to 58 telecommunication providers around the world. At Mobile World Congress in Barcelona and Shanghai, you saw China Telecom and China Mobile in the Lenovo booth, China Telecom showing a video broadband remote access server, a VBRAS, with video streaming demonstrations with 2x less jitter than they had seen before. You saw China Mobile with a virtual remote access network, a VRAN, with greater than 10 times the throughput and 10x lower latency running on Lenovo. And this year, we'll be launching a new NFV company, a software company in China for China to drive the entire NFV stack, delivering not just hardware solutions, but software solutions, and we've recently hired a new CEO. You're going to hear more about that over the next several quarters. Very exciting as we try to drive new economics into the networks to deliver these 20 billion devices. We're going to need new economics that I think Lenovo can uniquely deliver. The second on IoT and edge, we've integrated on the device side into our intelligent devices group. With everything that's going to consume electricity computes and communicates, Lenovo is in a unique position on the device side to take advantage of the communications from Motorola and being one of the largest device companies in the world. But this year, we're also going to roll out a comprehensive set of edge gateways and ruggedized industrial servers and edge servers and ISP appliances for the edge and for IoT. So look for that as well. And then lastly, as a service, you're going to see Lenovo delivering hardware as a service, device as a service, infrastructure as a service, software as a service, and hardware as a service, not just as a glorified leasing contract, but with IP, we've developed true flexible metering capability that enables you to scale up and scale down freely and paying strictly based on usage, and we'll be having those announcements within this fiscal year. So Transform 2.0, lots to talk about, NetApp the big news of the day, but a lot more to come over the next year from the Data Center group. So in summary, I'm excited that we have a lot of customers that are going to be on stage with us that you saw in the video. Lots of testimonials so that you can talk to colleagues of yourself. Alamos Gold from Canada, a Canadian gold producer, Caligo for data optimization and privacy, SciNet, the largest supercomputer we've ever put into North America, and the largest in Canada at the University of Toronto will be here talking about climate change. City of Bogota again with our hyper-converged solutions around smart city putting in 3,000 cameras for criminal detection, license plate detection, et cetera, and then more from a channel mid market perspective, Jerry's Foods, which is from my home state of Wisconsin, and Minnesota which has about 57 stores in the specialty foods market, and how they're leveraging our IoT solutions as well. So again, about five times the number of demos that we had last year. So in summary, first and foremost to the customers, thank you for your business. It's been a great journey and I think we're on a tremendous role. You saw from last year, we're trying to build credibility with you. After the largest server portfolio, we're now the fastest-growing server OEM per Gardner, number one in performance, number one in reliability, number one in customer satisfaction, number one in supercomputing. Today, the largest storage portfolio in our history, with the goal of becoming the fastest growing storage company in the world, top three in China, multibillion-dollar collaboration with NetApp. And the transformation is going to continue with new edge gateways, edge servers, NFV solutions, telecommunications infrastructure, and hardware as a service with dynamic metering. So thank you for your time. I've looked forward to meeting many of you over the next day. We appreciate your business, and with that, I'd like to bring up Rod Lappen to introduce our next speaker. Rod? (audience applauding) >> Thanks, boss, well done. Alright ladies and gentlemen. No real secret there. I think we've heard why I might talk about the fourth Industrial Revolution in data and exactly what's going on with that. You've heard Kirk with some amazing announcements, obviously now with our NetApp partnership, talk about 5G, NFV, cloud, artificial intelligence, I think we've hit just about all the key hot topics. It's with great pleasure that I now bring up on stage Mr. Christian Teismann, our senior vice president and general manager of commercial business for both our PCs and our IoT business, so Christian Teismann. (techno music) Here, take that. >> Thank you. I think I'll need that. >> Okay, Christian, so obviously just before we get down, you and I last year, we had a bit of a chat about being in New York. >> Exports. >> You were an expat in New York for a long time. >> That's true. >> And now, you've moved from New York. You're in Munich? >> Yep. >> How does that feel? >> Well Munich is a wonderful city, and it's a great place to live and raise kids, but you know there's no place in the world like New York. >> Right. >> And I miss it a lot, quite frankly. >> So what exactly do you miss in New York? >> Well there's a lot of things in New York that are unique, but I know you spent some time in Japan, but I still believe the best sushi in the world is still in New York City. (all laughing) >> I will beg to differ. I will beg to differ. I think Mr. Guchi-san from Softbank is here somewhere. He will get up an argue very quickly that Japan definitely has better sushi than New York. But obviously you know, it's a very very special place, and I have had sushi here, it's been fantastic. What about Munich? Anything else that you like in Munich? >> Well I mean in Munich, we have pork knuckles. >> Pork knuckles. (Christian laughing) Very similar sushi. >> What is also very fantastic, but we have the real, the real Oktoberfest in Munich, and it starts next week, mid-September, and I think it's unique in the world. So it's very special as well. >> Oktoberfest. >> Yes. >> Unfortunately, I'm not going this year, 'cause you didn't invite me, but-- (audience chuckling) How about, I think you've got a bit of a secret in relation to Oktoberfest, probably not in Munich, however. >> It's a secret, yes, but-- >> Are you going to share? >> Well I mean-- >> See how I'm putting you on the spot? >> In the 10 years, while living here in New York, I was a regular visitor of the Oktoberfest at the Lower East Side in Avenue C at Zum Schneider, where I actually met my wife, and she's German. >> Very good. So, how about a big round of applause? (audience applauding) Not so much for Christian, but more I think, obviously for his wife, who obviously had been drinking and consequently ended up with you. (all laughing) See you later, mate. >> That's the beauty about Oktoberfest, but yes. So first of all, good morning to everybody, and great to be back here in New York for a second Transform event. New York clearly is the melting pot of the world in terms of culture, nations, but also business professionals from all kind of different industries, and having this event here in New York City I believe is manifesting what we are trying to do here at Lenovo, is transform every aspect of our business and helping our customers on the journey of intelligent transformation. Last year, in our transformation on the device business, I talked about how the PC is transforming to personalized computing, and we've made a lot of progress in that journey over the last 12 months. One major change that we have made is we combined all our device business under one roof. So basically PCs, smart devices, and smart phones are now under the roof and under the intelligent device group. But from my perspective makes a lot of sense, because at the end of the day, all devices connect in the modern world into the cloud and are operating in a seamless way. But we are also moving from a device business what is mainly a hardware focus historically, more and more also into a solutions business, and I will give you during my speech a little bit of a sense of what we are trying to do, as we are trying to bring all these components closer together, and specifically also with our strengths on the data center side really build end-to-end customer solution. Ultimately, what we want to do is make our business, our customer's businesses faster, safer, and ultimately smarter as well. So I want to look a little bit back, because I really believe it's important to understand what's going on today on the device side. Many of us have still grown up with phones with terminals, ultimately getting their first desktop, their first laptop, their first mobile phone, and ultimately smartphone. Emails and internet improved our speed, how we could operate together, but still we were defined by linear technology advances. Today, the world has changed completely. Technology itself is not a limiting factor anymore. It is how we use technology going forward. The Internet is pervasive, and we are not yet there that we are always connected, but we are nearly always connected, and we are moving to the stage, that everything is getting connected all the time. Sharing experiences is the most driving force in our behavior. In our private life, sharing pictures, videos constantly, real-time around the world, with our friends and with our family, and you see the same behavior actually happening in the business life as well. Collaboration is the number-one topic if it comes down to workplace, and video and instant messaging, things that are coming from the consumer side are dominating the way we are operating in the commercial business as well. Most important beside technology, that a new generation of workforce has completely changed the way we are working. As the famous workforce the first generation of Millennials that have now fully entered in the global workforce, and the next generation, it's called Generation Z, is already starting to enter the global workforce. By 2025, 75 percent of the world's workforce will be composed out of two of these generations. Why is this so important? These two generations have been growing up using state-of-the-art IT technology during their private life, during their education, school and study, and are taking these learnings and taking these behaviors in the commercial workspace. And this is the number one force of change that we are seeing in the moment. Diverse workforces are driving this change in the IT spectrum, and for years in many of our customers' focus was their customer focus. Customer experience also in Lenovo is the most important thing, but we've realized that our own human capital is equally valuable in our customer relationships, and employee experience is becoming a very important thing for many of our customers, and equally for Lenovo as well. As you have heard YY, as we heard from YY, Lenovo is focused on intelligent transformation. What that means for us in the intelligent device business is ultimately starting with putting intelligence in all of our devices, smartify every single one of our devices, adding value to our customers, traditionally IT departments, but also focusing on their end users and building products that make their end users more productive. And as a world leader in commercial devices with more than 33 percent market share, we can solve problems been even better than any other company in the world. So, let's talk about transformation of productivity first. We are in a device-led world. Everything we do is connected. There's more interaction with devices than ever, but also with spaces who are increasingly becoming smart and intelligent. YY said it, by 2020 we have more than 20 billion connected devices in the world, and it will grow exponentially from there on. And users have unique personal choices for technology, and that's very important to recognize, and we call this concept a digital wardrobe. And it means that every single end-user in the commercial business is composing his personal wardrobe on an ongoing basis and is reconfiguring it based on the work he's doing and based where he's going and based what task he is doing. I would ask all of you to put out all the devices you're carrying in your pockets and in your bags. You will see a lot of you are using phones, tablets, laptops, but also cameras and even smartwatches. They're all different, but they have one underlying technology that is bringing it all together. Recognizing digital wardrobe dynamics is a core factor for us to put all the devices under one roof in IDG, one business group that is dedicated to end-user solutions across mobile, PC, but also software services and imaging, to emerging technologies like AR, VR, IoT, and ultimately a AI as well. A couple of years back there was a big debate around bring-your-own-device, what was called consumerization. Today consumerization does not exist anymore, because consumerization has happened into every single device we build in our commercial business. End users and commercial customers today do expect superior display performance, superior audio, microphone, voice, and touch quality, and have it all connected and working seamlessly together in an ease of use space. We are already deep in the journey of personalized computing today. But the center point of it has been for the last 25 years, the mobile PC, that we have perfected over the last 25 years, and has been the undisputed leader in mobility computing. We believe in the commercial business, the ThinkPad is still the core device of a digital wardrobe, and we continue to drive the success of the ThinkPad in the marketplace. We've sold more than 140 million over the last 26 years, and even last year we exceeded nearly 11 million units. That is about 21 ThinkPads per minute, or one Thinkpad every three seconds that we are shipping out in the market. It's the number one commercial PC in the world. It has gotten countless awards but we felt last year after Transform we need to build a step further, in really tailoring the ThinkPad towards the need of the future. So, we announced a new line of X1 Carbon and Yoga at CES the Consumer Electronics Show. And the reason is not we want to sell to consumer, but that we do recognize that a lot of CIOs and IT decision makers need to understand what consumers are really doing in terms of technology to make them successful. So, let's take a look at the video. (suspenseful music) >> When you're the number one business laptop of all time, your only competition is yourself. (wall shattering) And, that's different. Different, like resisting heat, ice, dust, and spills. Different, like sharper, brighter OLA display. The trackpoint that reinvented controls, and a carbon fiber roll cage to protect what's inside, built by an engineering and design team, doing the impossible for the last 25 years. This is the number one business laptop of all time, but it's not a laptop. It's a ThinkPad. (audience applauding) >> Thank you very much. And we are very proud that Lenovo ThinkPad has been selected as the best laptop in the world in the second year in a row. I think it's a wonderful tribute to what our engineers have been done on this one. And users do want awesome displays. They want the best possible audio, voice, and touch control, but some users they want more. What they want is super power, and I'm really proud to announce our newest member of the X1 family, and that's the X1 extreme. It's exceptionally featured. It has six core I9 intel chipset, the highest performance you get in the commercial space. It has Nvidia XTX graphic, it is a 4K UHD display with HDR with Dolby vision and Dolby Atmos Audio, two terabyte in SSD, so it is really the absolute Ferrari in terms of building high performance commercial computer. Of course it has touch and voice, but it is one thing. It has so much performance that it serves also a purpose that is not typical for commercial, and I know there's a lot of secret gamers also here in this room. So you see, by really bringing technology together in the commercial space, you're creating productivity solutions of one of a kind. But there's another category of products from a productivity perspective that is incredibly important in our commercial business, and that is the workstation business . Clearly workstations are very specifically designed computers for very advanced high-performance workloads, serving designers, architects, researchers, developers, or data analysts. And power and performance is not just about the performance itself. It has to be tailored towards the specific use case, and traditionally these products have a similar size, like a server. They are running on Intel Xeon technology, and they are equally complex to manufacture. We have now created a new category as the ultra mobile workstation, and I'm very proud that we can announce here the lightest mobile workstation in the industry. It is so powerful that it really can run AI and big data analysis. And with this performance you can go really close where you need this power, to the sensors, into the cars, or into the manufacturing places where you not only wannna read the sensors but get real-time analytics out of these sensors. To build a machine like this one you need customers who are really challenging you to the limit. and we're very happy that we had a customer who went on this journey with us, and ultimately jointly with us created this product. So, let's take a look at the video. (suspenseful music) >> My world involves pathfinding both the hardware needs to the various work sites throughout the company, and then finding an appropriate model of desktop, laptop, or workstation to match those needs. My first impressions when I first seen the ThinkPad P1 was I didn't actually believe that we could get everything that I was asked for inside something as small and light in comparison to other mobile workstations. That was one of the I can't believe this is real sort of moments for me. (engine roars) >> Well, it's better than general when you're going around in the wind tunnel, which isn't alway easy, and going on a track is not necessarily the best bet, so having a lightweight very powerful laptop is extremely useful. It can take a Xeon processor, which can support ECC from when we try to load a full car, and when we're analyzing live simulation results. through and RCFT post processor or example. It needs a pretty powerful machine. >> It's come a long way to be able to deliver this. I hate to use the word game changer, but it is that for us. >> Aston Martin has got a lot of different projects going. There's some pretty exciting projects and a pretty versatile range coming out. Having Lenovo as a partner is certainly going to ensure that future. (engine roars) (audience applauds) >> So, don't you think the Aston Martin design and the ThinkPad design fit very well together? (audience laughs) So if Q, would get a new laptop, I think you would get a ThinkPad X P1. So, I want to switch gears a little bit, and go into something in terms of productivity that is not necessarily on top of the mind or every end user but I believe it's on top of the mind of every C-level executive and of every CEO. Security is the number one threat in terms of potential risk in your business and the cost of cybersecurity is estimated by 2020 around six trillion dollars. That's more than the GDP of Japan and we've seen a significant amount of data breach incidents already this years. Now, they're threatening to take companies out of business and that are threatening companies to lose a huge amount of sensitive customer data or internal data. At Lenovo, we are taking security very, very seriously, and we run a very deep analysis, around our own security capabilities in the products that we are building. And we are announcing today a new brand under the Think umbrella that is called ThinkShield. Our goal is to build the world's most secure PC, and ultimately the most secure devices in the industry. And when we looked at this end-to-end, there is no silver bullet around security. You have to go through every aspect where security breaches can potentially happen. That is why we have changed the whole organization, how we look at security in our device business, and really have it grouped under one complete ecosystem of solutions, Security is always something where you constantly are getting challenged with the next potential breach the next potential technology flaw. As we keep innovating and as we keep integrating, a lot of our partners' software and hardware components into our products. So for us, it's really very important that we partner with companies like Intel, Microsoft, Coronet, Absolute, and many others to really as an example to drive full encryption on all the data seamlessly, to have multi-factor authentication to protect your users' identity, to protect you in unsecured Wi-Fi locations, or even simple things like innovation on the device itself, to and an example protect the camera, against usage with a little thing like a thinkShutter that you can shut off the camera. SO what I want to show you here, is this is the full portfolio of ThinkShield that we are announcing today. This is clearly not something I can even read to you today, but I believe it shows you the breadth of security management that we are announcing today. There are four key pillars in managing security end-to-end. The first one is your data, and this has a lot of aspects around the hardware and the software itself. The second is identity. The third is the security around online, and ultimately the device itself. So, there is a breakout on security and ThinkShield today, available in the afternoon, and encourage you to really take a deeper look at this one. The first pillar around productivity was the device, and around the device. The second major pillar that we are seeing in terms of intelligent transformation is the workspace itself. Employees of a new generation have a very different habit how they work. They split their time between travel, working remotely but if they do come in the office, they expect a very different office environment than what they've seen in the past in cubicles or small offices. They come into the office to collaborate, and they want to create ideas, and they really work in cross-functional teams, and they want to do it instantly. And what we've seen is there is a huge amount of investment that companies are doing today in reconfiguring real estate reconfiguring offices. And most of these kind of things are moving to a digital platform. And what we are doing, is we want to build an entire set of solutions that are just focused on making the workspace more productive for remote workforce, and to create technology that allow people to work anywhere and connect instantly. And the core of this is that we need to be, the productivity of the employee as high as possible, and make it for him as easy as possible to use these kind of technologies. Last year in Transform, I announced that we will enter the smart office space. By the end of last year, we brought the first product into the market. It's called the Hub 500. It's already deployed in thousands of our customers, and it's uniquely focused on Microsoft Skype for Business, and making meeting instantly happen. And the product is very successful in the market. What we are announcing today is the next generation of this product, what is the Hub 700, what has a fantastic audio quality. It has far few microphones, and it is usable in small office environment, as well as in major conference rooms, but the most important part of this new announcement is that we are also announcing a software platform, and this software platform allows you to run multiple video conferencing software solutions on the same platform. Many of you may have standardized for one software solution or for another one, but as you are moving in a world of collaborating instantly with partners, customers, suppliers, you always will face multiple software standards in your company, and Lenovo is uniquely positioned but providing a middleware platform for the device to really enable multiple of these UX interfaces. And there's more to come and we will add additional UX interfaces on an ongoing base, based on our customer requirements. But this software does not only help to create a better experience and a higher productivity in the conference room or the huddle room itself. It really will allow you ultimately to manage all your conference rooms in the company in one instance. And you can run AI technologies around how to increase productivity utilization of your entire conference room ecosystem in your company. You will see a lot more devices coming from the node in this space, around intelligent screens, cameras, and so on, and so on. The idea is really that Lenovo will become a core provider in the whole movement into the smart office space. But it's great if you have hardware and software that is really supporting the approach of modern IT, but one component that Kirk also mentioned is absolutely critical, that we are providing this to you in an as a service approach. Get it what you want, when you need it, and pay it in the amount that you're really using it. And within UIT there is also I think a new philosophy around IT management, where you're much more focused on the value that you are consuming instead of investing into technology. We are launched as a service two years back and we already have a significant number of customers running PC as a service, but we believe as a service will stretch far more than just the PC device. It will go into categories like smart office. It might go even into categories like phone, and it will definitely go also in categories like storage and server in terms of capacity management. I want to highlight three offerings that we are also displaying today that are sort of building blocks in terms of how we really run as a service. The first one is that we collaborated intensively over the last year with Microsoft to be the launch pilot for their Autopilot offering, basically deploying images easily in the same approach like you would deploy a new phone on the network. The purpose really is to make new imaging and enabling new PC as seamless as it's used to be in the phone industry, and we have a complete set of offerings, and already a significant number customers have deployed Autopilot with Lenovo. The second major offering is Premier Support, like in the in the server business, where Premier Support is absolutely critical to run critical infrastructure, we see a lot of our customers do want to have Premier Support for their end users, so they can be back into work basically instantly, and that you have the highest possible instant repair on every single device. And then finally we have a significant amount of time invested into understanding how the software as a service really can get into one philosophy. And many of you already are consuming software as a service in many different contracts from many different vendors, but what we've created is one platform that really can manage this all together. All these things are the foundation for a device as a service offering that really can manage this end-to-end. So, implementing an intelligent workplace can be really a daunting prospect depending on where you're starting from, and how big your company ultimately is. But how do you manage the transformation of technology workspace if you're present in 50 or more countries and you run an infrastructure for more than 100,000 people? Michelin, famous for their tires, infamous for their Michelin star restaurant rating, especially in New York, and instantly recognizable by the Michelin Man, has just doing that. Please welcome with me Damon McIntyre from Michelin to talk to us about the challenges and transforming collaboration and productivity. (audience applauding) (electronic dance music) Thank you, David. >> Thank you, thank you very much. >> We on? >> So, how do you feel here? >> Well good, I want to thank you first of all for your partnership and the devices you create that helped us design, manufacture, and distribute the best tire in the world, okay? I just had to say it and put out there, alright. And I was wondering, were those Michelin tires on that Aston Martin? >> I'm pretty sure there is no other tire that would fit to that. >> Yeah, no, thank you, thank you again, and thank you for the introduction. >> So, when we talk about the transformation happening really in the workplace, the most tangible transformation that you actually see is the drastic change that companies are doing physically. They're breaking down walls. They're removing cubes, and they're moving to flexible layouts, new desks, new huddle rooms, open spaces, but the underlying technology for that is clearly not so visible very often. So, tell us about Michelin's strategy, and the technology you are deploying to really enable this corporation. >> So we, so let me give a little bit a history about the company to understand the daunting tasks that we had before us. So we have over 114,000 people in the company under 170 nationalities, okay? If you go to the corporate office in France, it's Clermont. It's about 3,000 executives and directors, and what have you in the marketing, sales, all the way up to the chain of the global CIO, right? Inside of the Americas, we merged in Americas about three years ago. Now we have the Americas zone. There's about 28,000 employees across the Americas, so it's really, it's really hard in a lot of cases. You start looking at the different areas that you lose time, and you lose you know, your productivity and what have you, so there, it's when we looked at different aspects of how we were going to manage the meeting rooms, right? because we have opened up our areas of workspace, our CIO, CEOs in our zones will no longer have an office. They'll sit out in front of everybody else and mingle with the crowd. So, how do you take those spaces that were originally used by an individual but now turn them into like meeting rooms? So, we went through a large process, and looked at the Hub 500, and that really met our needs, because at the end of the day what we noticed was, it was it was just it just worked, okay? We've just added it to the catalog, so we're going to be deploying it very soon, and I just want to again point that I know everybody struggles with this, and if you look at all the minutes that you lose in starting up a meeting, and we know you know what I'm talking about when I say this, it equates to many many many dollars, okay? And so at the end the day, this product helps us to be more efficient in starting up the meeting, and more productive during the meeting. >> Okay, it's very good to hear. Another major trend we are seeing in IT departments is taking a more hands-off approach to hardware. We're seeing new technologies enable IT to create a more efficient model, how IT gets hardware in the hands of end-users, and how they are ultimately supporting themselves. So what's your strategy around the lifecycle management of the devices? >> So yeah you mentioned, again, we'll go back to the 114,000 employees in the company, right? You imagine looking at all the devices we use. I'm not going to get into the number of devices we have, but we have a set number that we use, and we have to go through a process of deploying these devices, which we right now service our own image. We build our images, we service them through our help desk and all that process, and we go through it. If you imagine deploying 25,000 PCs in a year, okay? The time and the daunting task that's behind all that, you can probably add up to 20 or 30 people just full-time doing that, okay? So, with partnering with Lenovo and their excellent technology, their technical teams, and putting together the whole process of how we do imaging, it now lifts that burden off of our folks, and it shifts it into a more automated process through the cloud, okay? And, it's with the Autopilot on the end of the project, we'll have Autopilot fully engaged, but what I really appreciate is how Lenovo really, really kind of got with us, and partnered with us for the whole process. I mean it wasn't just a partner between Michelin and Lenovo. Microsoft was also partnered during that whole process, and it really was a good project that we put together, and we hope to have something in a full production mode next year for sure. >> So, David thank you very, very much to be here with us on stage. What I really want to say, customers like you, who are always challenging us on every single aspect of our capabilities really do make the big difference for us to get better every single day and we really appreciate the partnership. >> Yeah, and I would like to say this is that I am, I'm doing what he's exactly said he just said. I am challenging Lenovo to show us how we can innovate in our work space with your devices, right? That's a challenge, and it's going to be starting up next year for sure. We've done some in the past, but I'm really going to challenge you, and my whole aspect about how to do that is bring you into our workspace. Show you how we make how we go through the process of making tires and all that process, and how we distribute those tires, so you can brainstorm, come back to the table and say, here's a device that can do exactly what you're doing right now, better, more efficient, and save money, so thank you. >> Thank you very much, David. (audience applauding) Well it's sometimes really refreshing to get a very challenging customers feedback. And you know, we will continue to grow this business together, and I'm very confident that your challenge will ultimately help to make our products even more seamless together. So, as we now covered productivity and how we are really improving our devices itself, and the transformation around the workplace, there is one pillar left I want to talk about, and that's really, how do we make businesses smarter than ever? What that really means is, that we are on a journey on trying to understand our customer's business, deeper than ever, understanding our customer's processes even better than ever, and trying to understand how we can help our customers to become more competitive by injecting state-of-the-art technology in this intelligent transformation process, into core processes. But this cannot be done without talking about a fundamental and that is the journey towards 5G. I really believe that 5G is changing everything the way we are operating devices today, because they will be connected in a way like it has never done before. YY talked about you know, 20 times 10 times the amount of performance. There are other studies that talk about even 200 times the performance, how you can use these devices. What it will lead to ultimately is that we will build devices that will be always connected to the cloud. And, we are preparing for this, and Kirk already talked about, and how many operators in the world we already present with our Moto phones, with how many Telcos we are working already on the backend, and we are working on the device side on integrating 5G basically into every single one of our product in the future. One of the areas that will benefit hugely from always connected is the world of virtual reality and augmented reality. And I'm going to pick here one example, and that is that we have created a commercial VR solution for classrooms and education, and basically using consumer type of product like our Mirage Solo with Daydream and put a solution around this one that enables teachers and schools to use these products in the classroom experience. So, students now can have immersive learning. They can studying sciences. They can look at environmental issues. They can exploring their careers, or they can even taking a tour in the next college they're going to go after this one. And no matter what grade level, this is how people will continue to learn in the future. It's quite a departure from the old world of textbooks. In our area that we are looking is IoT, And as YY already elaborated, we are clearly learning from our own processes around how we improve our supply chain and manufacturing and how we improve also retail experience and warehousing, and we are working with some of the largest companies in the world on pilots, on deploying IoT solutions to make their businesses, their processes, and their businesses, you know, more competitive, and some of them you can see in the demo environment. Lenovo itself already is managing 55 million devices in an IoT fashion connecting to our own cloud, and constantly improving the experience by learning from the behavior of these devices in an IoT way, and we are collecting significant amount of data to really improve the performance of these systems and our future generations of products on a ongoing base. We have a very strong partnership with a company called ADLINK from Taiwan that is one of the leading manufacturers of manufacturing PC and hardened devices to create solutions on the IoT platform. The next area that we are very actively investing in is commercial augmented reality. I believe augmented reality has by far more opportunity in commercial than virtual reality, because it has the potential to ultimately improve every single business process of commercial customers. Imagine in the future how complex surgeries can be simplified by basically having real-time augmented reality information about the surgery, by having people connecting into a virtual surgery, and supporting the surgery around the world. Visit a furniture store in the future and see how this furniture looks in your home instantly. Doing some maintenance on some devices yourself by just calling the company and getting an online manual into an augmented reality device. Lenovo is exploring all kinds of possibilities, and you will see a solution very soon from Lenovo. Early when we talked about smart office, I talked about the importance of creating a software platform that really run all these use cases for a smart office. We are creating a similar platform for augmented reality where companies can develop and run all their argumented reality use cases. So you will see that early in 2019 we will announce an augmented reality device, as well as an augmented reality platform. So, I know you're very interested on what exactly we are rolling out, so we will have a first prototype view available there. It's still a codename project on the horizon, and we will announce it ultimately in 2019, but I think it's good for you to take a look what we are doing here. So, I just wanted to give you a peek on what we are working beyond smart office and the device productivity in terms of really how we make businesses smarter. It's really about increasing productivity, providing you the most secure solutions, increase workplace collaboration, increase IT efficiency, using new computing devices and software and services to make business smarter in the future. There's no other company that will enable to offer what we do in commercial. No company has the breadth of commercial devices, software solutions, and the same data center capabilities, and no other company can do more for your intelligent transformation than Lenovo. Thank you very much. (audience applauding) >> Thanks mate, give me that. I need that. Alright, ladies and gentlemen, we are done. So firstly, I've got a couple of little housekeeping pieces at the end of this and then we can go straight into going and experiencing some of the technology we've got on the left-hand side of the room here. So, I want to thank Christian obviously. Christian, awesome as always, some great announcements there. I love the P1. I actually like the Aston Martin a little bit better, but I'll take either if you want to give me one for free. I'll take it. We heard from YY obviously about the industry and how the the fourth Industrial Revolution is impacting us all from a digital transformation perspective, and obviously Kirk on DCG, the great NetApp announcement, which is going to be really exciting, actually that Twitter and some of the social media panels are absolutely going crazy, so it's good to see that the industry is really taking some impact. Some of the publications are really great, so thank you for the media who are obviously in the room publishing right no. But now, I really want to say it's all of your turn. So, all of you up the back there who are having coffee, it's your turn now. I want everyone who's sitting down here after this event move into there, and really take advantage of the 15 breakouts that we've got set there. There are four breakout sessions from a time perspective. I want to try and get you all out there at least to use up three of them and use your fourth one to get out and actually experience some of the technology. So, you've got four breakout sessions. A lot of the breakout sessions are actually done twice. If you have not downloaded the app, please download the app so you can actually see what time things are going on and make sure you're registering correctly. There's a lot of great experience of stuff out there for you to go do. I've got one quick video to show you on some of the technology we've got and then we're about to close. Alright, here we are acting crazy. Now, you can see obviously, artificial intelligence machine learning in the browser. God, I hate that dance, I'm not a Millenial at all. It's effectively going to be implemented by healthcare. I want you to come around and test that out. Look at these two guys. This looks like a Lenovo management meeting to be honest with you. These two guys are actually concentrating, using their brain power to race each others in cars. You got to come past and give that a try. Give that a try obviously. Fantastic event here, lots of technology for you to experience, and great partners that have been involved as well. And so, from a Lenovo perspective, we've had some great alliance partners contribute, including obviously our number one partner, Intel, who's been a really big loyal contributor to us, and been a real part of our success here at Transform. Excellent, so please, you've just seen a little bit of tech out there that you can go and play with. I really want you, I mean go put on those black things, like Scott Hawkins our chief marketing officer from Lenovo's DCG business was doing and racing around this little car with his concentration not using his hands. He said it's really good actually, but as soon as someone comes up to speak to him, his car stops, so you got to try and do better. You got to try and prove if you can multitask or not. Get up there and concentrate and talk at the same time. 62 different breakouts up there. I'm not going to go into too much detai, but you can see we've got a very, very unusual numbering system, 18 to 18.8. I think over here we've got a 4849. There's a 4114. And then up here we've got a 46.1 and a 46.2. So, you need the decoder ring to be able to understand it. Get over there have a lot of fun. Remember the boat leaves today at 4:00 o'clock, right behind us at the pier right behind us here. There's 400 of us registered. Go onto the app and let us know if there's more people coming. It's going to be a great event out there on the Hudson River. Ladies and gentlemen that is the end of your keynote. I want to thank you all for being patient and thank all of our speakers today. Have a great have a great day, thank you very much. (audience applauding) (upbeat music) ♪ Ba da bop bop bop ♪ ♪ Ba da bop bop bop ♪ ♪ Ba da bop bop bop ♪ ♪ Ba da bop bop bop ♪ ♪ Ba da bop bop bop ♪ ♪ Ba da bop bop bop ♪ ♪ Ba da bop bop bop ba do ♪

>> Narrator: Vancouver, Canada. It's theCUBE, covering OpenStack Summit North America, 2018. Brought to you by Red Hat, the OpenStack Foundation and its Ecosystem partners. (soft music) >> Hi, and you're watching SiliconANGLE Medias coverage of theCUBE, here at OpenStack Summit 2018 in beautiful Vancouver. I'm Stu Miniman with my co-host John Troyer. We've been here, this is now the third day of coverage, John. We've done a couple dozen interviews already. We've got one more day of coverage. We had some kind of perceptions coming in and I have some interesting differing viewpoints as to where we are for OpenStack the project, where this show itself is going. First of all John, give me your impressions overall. Vancouver, your first time here, city I fell in love with last time I came here, and let's get into the show itself, too. >> Sure, sure, I mean the show's a little bit smaller this year than it had been in past years. Some of that is because they pulled some of the technical stuff out last year, or a couple years ago. By being a little bit smaller, and being in a place like Vancouver, I get good energy off of the crowd. The folks we've talked to, the folks that have been going to sessions, have said they've been very good. The people here are practitioners. They are running OpenStack, or about to run OpenStack, or upgrading their OpenStack, or other adjacent technologies. They're real people doing real work. As we talk to folks and sponsors, the conversations have been productive. So, I'd say in general, this kind of a small venue and a beautiful city allows for a really productive community-oriented event, so that's been great. >> Alright, so John come on, on the analysis segment we're not allow to pull any punches. Attendance, absolutely is down. Three years ago when we were here it was around 5500. Mark Collier, on our opening segment, said there was about 2600. But two-year point, I've not talked to a single vendor or attendee here that was like, "Oh boy, nobody's here, "it's not goin' on." Yes, the Expo Hall is way smaller and people flowing through the Expo Hall isn't great all the time, but why is that? Because the people that are here, they're in sessions. They have 40 sessions about Edge Computing. Hot topic, we've talked a bunch about that. Interesting conversations. There is way more in Containers. Containers for more than three years, been a topic conversation. There's so many other sessions of people digging in. The line you've used a couple a time is the people here are people that have mortgages. In a good way, it means these are jobs, these are not them, "Oh, I heard about "this cool new thing, and I'm going to "go check out beautiful Vancouver." Now, yes, we've brought our spouses or significant others, and checking out the environment because yeah, this place is awesome, but there's good energy at the show. There's good technical conversation. Many of the people we've talked to, even if they're not the biggest OpenStack fans, they're like, "But our customers are using this in a lot of different ways." Let's talk about OpenStack. Where is it, where isn't it? What's your take from what you've heard from the customers and the vendors? >> Sure, I definitely think the conversation is warranted. As we came in, from outside the community there was a lot of conversation, even backchannel, like why are you going to OpenStack Summit? What's going on there, is it still alive? Which is kind of a perception of maybe it's an indication of where the marketing is on this project, or where it is on the hype cycle. In terms of where it is and where it isn't, it's built into everything. At this point OpenStack, the infrastructure management, open infrastructure management solution, seems to be mature. Seems to be inside every Telco, every cable company, every transportation company, every bank. People who need private resources and have the smarts and power to do that have leveraged OpenStack now. That seems stable. What was interesting here is, that that doesn't speak to the health overall, and the history of, or the future of the project itself, the foundation, the Summit, I think those are separate questions. You know, the infrastructure and projects seem good. Also here, like we've talked about, this show is not just about OpenStack now. It's about Containers, it's broadening the scope of these people informally known as infrastructure operators, to the application level as well. >> Yeah, if you want to hear a little bit more, some two great interviews we did yesterday. Sean Michael Kerner, who's a journalist. Been here for almost every single one of the OpenStack shows. He's at eWeek, had some really good discussion. He said private cloud, it doesn't exist. Now, he said what does he mean by that? There are companies that are building large scalable cloud with OpenStack but it's like if some of the big China Telecom, big China cloud companies. Oracle and IBM have lots of OpenStack, in what they do, and yes there are, as you mentioned, the telcos are a big used case. We had some Canonical customers talking about Edge as in a used case for a different type of scalability. Lots of nodes but not one massive infrastructure as a service piece. If I talk, kind of the typical enterprise, or definitely going the SNE piece of the market, this is not something that they go and use. They will use services that have OpenStack. It might be part of the ecosystem that they're playing, but people saying, "Oh, I had my VMware environment "and I want to go from virtualization "to private cloud" OpenStack is not usually the first choice, even though Red Hat has some customers that kind of fit into some of the larger sides of that, and we'll be talking to them more about that today. Randy Bias is the other one, take a look. Randy was one of the early, very central to a lot of stuff happening in the Foundation. He's in the networking space now, and he says even though he's not a cheerleader for OpenStack, he's like, "Why am I here? "That's where my customers are." >> Right, right. I mean, I do think it's interesting that public cloud is certainly mentioned. AWS, Google, et cetera, but it's not top of mind for a lot of these folks, and it's mentioned in very different ways depending on, kind of, the players. I think it's very different from last week at Red Hat Summit. Red Hat, with their story, and OpenShift on top of OpenStack, definitely talked public cloud for folks. Then they cross-cloud, hybrid-cloud. I think that was a much different conversation than I've been hearing this week. I think basically, kind of maybe, depends on the approach of the different players in the market, Stu. I know you've been talkin' to different folks about that. >> Yeah, absolutely. So like, Margaret Dawson at Red Hat helped us talk about how that hybrid-cloud works because here, I hate to say it's, some oh yeah, public cloud, that's too expensive. You're renting, it's always going to be more. It's like, well no, come on, let's understand. There's lot of applications that are there and customers, it's an and message for almost all of them. How does that fit together, I have some critiques as to how this goes together. You brought up another point though John, OpenStack Foundation is more than just OpenStack projects. So, Kata Containers, something that was announced last year, and we're talking about there's Edge, there's a new CI/CD tool, Zuul, which is now fully under the project. Yes, joke of the week, there is no OpenStack, there's only Zuul. There are actually, there's another open-source project named Zuul too, so boy, how many CI/CD tools are out there? We've got two different, unrelated, projects with the same name. John, you look at communities, you look at foundations, if this isn't the core knitting of OpenStack, what is their role vis-a-vis the cloud native and how do they compare to say, the big player in this space is Linux Foundation which includes CNCF. >> That's a good one. I mean, in some sense like all organic things, things are either growing or shrinking. Just growing or dying. On the other hand, in technology, nothing ever truly dies. I think the project seems mature and healthy and it's being used. The Foundation is global in scope and continues to run this. I do wonder about community identity and what it means to be an OpenStack member. It's very community-oriented, but what's at the nut of it here if we're really part of this cloud-native ecosystem. CNCF, you know, it's part of Linux Foundation, all these different foundations, but CNCF, on the other hand, is kind of a grab-bag of technology, so I'm not sure what it means to be a member of CNCF either. I think both of these foundations will continue to go forward with slightly different identities. I think for the community as a whole, the industry as a whole, they are talking and they better be talking, and it's good that they're talking now and working better together. >> Yeah, great discussion we had with Lisa-Marie Namphy who is an OpenStack Ambassador. She holds the meat up in Silicon Valley and when she positions it, it's about cloud-native and its about all these things. So like, Kubernetes is front and center whereas some of the OpenStack people are saying, "Oh no, no, we need to talk more about OpenStack." That's still the dynamic here was, "Oh, we go great together." Well, sometimes thou dost protest too much. Kubranetes doesn't need OpenStack, OpenStack absolutely must be able to play in this Container, cloud-native Kubranetes world. There's lots of other places we can learn about Kubranetes. It is an interesting dynamic that have been sorting out, but it is not a zero-sum game. There's absolutely lots, then we have, I actually was real impressed how many customers we got to speak with on the air this time. Nice with three days of programming, we had a little bit of flexibility, and not just people that were on the keynote stage. Not just people that have been coming for years, but a few of the interviews we had are relatively new. Not somebody that have been on since very early in the alphabet, now we're at queens. >> Right. >> Anything more from the customers or that Container, Kubranetes dynamic that you want to cover? >> Sure, well I mean just that, you know, Containers at least, Containers are everywhere here. So, I think that kind of question has been resolved in some sense. It was a little more contentious last year than this year. I'm actually more bullish on OpenStack as a utility project, after this week, than before. I think I can constantly look people in the eye and say that. The interesting thing for me though, coming from Silicon Valley, is you're so used to thinking about VCs and growth, and new startups, and where's the cutting edge that it's kind of hard to talk about this, maybe this open source business model where the customer basis is finite. It's not growing at 100% a year. Sometimes the press has a hard time covering that. Analysts have a hard time covering that. And if you wanted to give advice to somebody to get into OpenStack, I'm not sure who should if they're not in it already, there's definitely defined use cases, but I think maybe those people have already self-identified. >> Alright, so yeah, the last thing I wanted to mention is yeah. Big thank you to our sponsors to help get us here. The OpenStack Foundation, really supportive of us for years. Six years of us covering it. Our headline sponsor, Red Hat, had some great customers. Talked about this piece, and kind of we talk about it's practically Red Hat month on theCUBE for John with Red Hat Summit and OpenStack. Canonical, Contron, Nuage Networks, all helping us to be able to bring this content to you. Be sure to check out theCUBE.net for all the coverage in the past as well as where we'll be. Hit John Troyer, J. Troyer, on Twitter or myself, Stu, on Twitter if you ever have any questions, people we should be talking to, viewpoints, whether you agree or disagree with what we're talking about. Big thanks to all of our crew here. Thank you to the wonderful people of Vancouver for being so welcoming of this event and of all of us. Check out all the interviews. For John Troyer, I'm Stu Miniman. Thanks for watching theCUBE. (soft upbeat music)

(cheerful music) >> Voiceover: Live, from Los Angeles, it's theCUBE covering Open Source Summit North America 2017, brought to you by the Linux Foundation and Red Hat. >> Okay, welcome back here when we're here live with theCUBE coverage of Linux Foundation Open Source Summit North America in Los Angeles, I'm John Furrier, Stu Miniman, our next guest is Arpit Joshipura, General Manager of Networking the Linux Foundation. Welcome back to theCUBE, great to see you. >> Thank you, nice to be here again. >> Always good to talk networking, as Stu and I always say networking is probably the most active audience in our community, because at the end of the day, everything rolls downhill to networking when the people complain. It's like "where the hell's my WiFi, "where's the patent latency," networking SDN was supposed to solve all that. Stu, we're still talking about networking. When are we going to fix the network? It's always in the network, but important. In all seriousness, a lot of action continues and innovation to networking. >> Absolutely. >> What's the update? >> Update is very exciting. So first of all, I can confidently say that open source networking, not just networking, but open source networking is now mainstream. And it's mainstream in the telcos, in the carriers, service providers, it's getting there in the enterprise. And Linux Foundation is really proud to host eight of the top 10 projects that are in open source networking. ONAP, ODL, OPNFV, Fido, you know, the list goes on. And we're really excited about each of these projects, so good momentum. >> We've been seeing and talking about it too, we all, joking aside, the intro there, but in all seriousness we've been saying, we get better the network, it's finally happening. Has it been a maturization of the network itself, has it been industry force and what have been the forces of innovations been? OpenStack has done some great work, they're not getting a lot of love these days with some people, but still we've seen a lot of production workflows at OpenStack, OpenStack's still there, rocking and rolling. New projects are onboarding, you see the telcos getting business models around digital. What's the drivers? Why is network mainstream now? >> I think it's a very simple answer to that, and that is before 5G and IoT hit the market, network better be automated. It's a very simple requirement. And the reason is very self-explanatory, right? You can't have an IoT device on the call on hold while you get your service up (laughs). So, it's IoT, right? And it is the same thing on 5G, a lot of new use cases around cars or around low latency apps. You need automation, and in order to have automation, a carrier or a solution provider goes through a simple journey. Am I virtualized? Yes or no? Am I using the building blocks of SDN and NFV? Yes or no? And the third, which is now reality, which is, am I using open source to do it? Yes, and I'm going to do it. And that's the driver right? I mean it's all- >> Automation, when you started throwing out a lot of TLAs, you talk about SDN and NFV, we've got a four-letter acronym that we need to talk about. The Open Network Automation Platform. Why don't you bring your audience up to speed, what that is, the news that you have this week. >> Absolutely, so ONAP was launched earlier in 2017. It's a combination of two open source projects, ECOMP and Open-O, and we wanted to bring the community together versus sort of fragmented, and because our end users are asking for a harmonized solution. So we brought it together. It was launched earlier this year as we talked about, but the most significant thing is it has received tremendous support from the member community. So at OSS today, we just announced that Vodafone has joined as a platinum member. They will be on our board, and as you know Vodafone is one of the top providers. So if you add up all the subscribers that are being influenced by ONAP, they come to 55%. So out of the 4.5 billion subscribers that exist, more than 55% will be influenced by ONAP and the work that happens. That includes China Mobile, China Telecom, China Unicom, all of the China, Bell Canada, AT&T obviously who sort of was the founding member, Orange, Reliance Jio from India. So we've got, Comcast joined earlier in the quarter, so we've got cable companies, carriers, all joining. And to be very honest, I'll probably just give you the list of all the networking vendors that are participating here, and I've list Amdocs, Cisco, Ericsson, GigaSpaces, Hua Wei, IBM, Intel, Nokia, Tech Mahindra, VMware, ZTE, Juniper, you know, you name it. >> Arpit, I mean the long story short is-- >> Just cause they're involved does that mean they're actually working-- >> They're active. Active. >> we're not going to be critical on this. >> But come on, even Cisco's involved in the open source stuff, right? >> They've very active. >> We've had lots of guests on from Cisco, Lulu Tucker's been on many many times. We know the open source there, but it used to be, networking was very proprietary. Now, it wasn't SDNs going to totally change everything, it's lots of different pieces, lots of different projects. It kind of felt like the river slowly wearing down the mountain as to this transition from proprietary to open source. >> I think what happened is if you just look at four years back, it was proprietary. Not because people liked it, that was the only game in town. When the open source industry, especially in the networking, and this is a hundred year old industry, telecom right? When it came in in the desegregated manner, hardware and software separated, control plane separated from data plane, all of that happened, and what happened suddenly was each components started becoming mature. So they're production-ready components, and what ONAP and what Linux Foundation is intending to do this year is trying to bring all the components into a system solution. So that it's easy to deploy, and all you have to do is point, click a service, everything below it will all be automated and integrated. >> Well the telcos are under a lot of pressure. I mean this has been a decade run, over-the-top they've been struggling with that from years ago, decade ago or more. But now they're getting their act together. We're seeing some signs, even VMworld. Stu, Pat Gelsinger said 5G's the next big kahuna in networking the next 20 years, you can validate it. This is going to be a 20 year changeover, so as the Linux Foundation, which essentially is the organic growth engine for this community, what do you guys see in that 20 years? Cause I see 5G's going to create all these connection points. IoT is going to be massive. That's going to increase the surface area for potential attacks. We're seeing a networking paradigm that's moving from old guards Cisco, Juniper, and some of the names you mentioned. They got to make some changes. How are they adjusting? What's going on so the next 20 years we don't have more conflict and more identity politics. >> I'll tell you one thing, I come from a vendor community, right? So I really appreciate the work they're doing. Part of the reason you would have seen in the past a vendor dragging their feet is because of fragmentation in the community. You as a vendor do not know where to put your resources, people, and where you put your money. What we're doing at the Linux Foundation is starting to harmonize all that. And once you do that and you have enough of a scale and enough of a community, there is no shortage of people and developers that the vendors are contributing to. >> John: What's some of the proof points that you can share? >> Okay, so ONAP, from start to now, about 1100 Wiki members already. That means 1100 unique developers are joining the project. Over 50 members. We ran out of VMs, I mean it's like that has not happened in any project for over five years. We had to fire up people more. So you can see that... And this is not just, these are competitors, but if you step back and look at it, they're competitors from an end user perspective, but they're solving the common problem in which they don't get any money. They don't make any money. These are things that absolutely need to happen. The plumbing, the infrastructure, the orchestration, the control layer, the data plane layer, all of that need to just happen, it should just work. And let them differentiate on top. We are actively seeing almost everybody participating significantly. >> Stu, let's hear your thoughts on this. You guys are both, I view you guys both as experts and influencers in this networking ecosystem, so I got to ask you both a question. CNCF has gotten a lot of traction with funding, sponsorships are off the charts, you're seeing massive tractions, Stu, where you also see that KubeCon Cloud Native, but you have native clouds, I call them native clouds, in Amazon and then soon-to-be enterprises that want to run software-defined networking. So the question is do you see the same kind of support going for your group as CNCF's getting? Is it just fashionable at this point, CNCF? Why isn't the networking getting as much love at least from a sponsorship standpoint. >> Let's define love. So if you define love as the 2017 ONS, which is our largest networking summit, we grew that 10%, everything was off the charts. The feedback, the content-- >> John: The attendance growth or sponsorships? >> Attendance, sponsorships, CFPs were 5x oversubscribed. Call for papers, for submissions, 5x oversubscribed. So we had a hard time picking the best of the best. ONS 2018 is going to be here in LA, we've already started getting requests on, you know, so we're the same boat. >> So you feel good. >> We feel good. >> Not about this, like you're winning. >> No, but I tell you-- >> There'll be positive numbers we know from the hype scale horses, Stu, answer your question and then maybe you guys can comment. So is it a matter of that there's more buzz in positioning involved in the hype side of CNCF now, and there's just meat and potatoes being done in the networking world, Stu? Cause you and I both know, if no one has nothing to say, they've got to kind of market themselves. >> So John, think back to five years ago, how much hype and buzz there was around SDN. John, you and I interviewed like Martin Casado, he just bought for $1.4 billion, all these startups, lots of VC investment, so I think we're further down the maturity curve. Now networking's always-- >> John: People going to work, they're doing their job. >> It's real, it's in production-- >> It's funny-- >> It's not parb, I always say when you move from PowerPoint to production, real things happen. >> I always say, if there's going to be sizzle, I better see some steak on the grill, so what's happening is steak is cooking right now. >> And John, so one of the things we say, networking, no offense to all my friends in networking, networking is never sexy. >> Oh, come on Stu, networking is totally sexy. >> I always say it's cool again. >> Networking has never lost its edge. >> It absolutely is majorly important, but Arpit, take us in, you know, Kubernetes is hot, containers get a lot of buzz and everything. Networking, critical piece of making sure that this works, feels like, I think back to the virtualization days, it took us 10 years to kind of solve those things that that abstraction layer broke. It feels like networking is further ahead than it was, it's moving faster, we understand it's not something that's just kind of oh we'll let the networking guys get to it eventually. Networking and security, which often has that networking tie are front and center now. >> Very good point, and I think what you have to also sort of step back and look at is what are the problems that need to be solved from an end user perspective? So the hardest networking problems at the data plane control layers, check. Next big problem that remain to be solved was orchestration, data analytics, and things like that. Check, solve, with ONAP. Now the next problems that need to be solved are containerization of enterprise app, which is where Kubernetes and... and then how does containerization work with networking? That's all the C&I, the interfaces. I would say next year, you will start to see the interworking and the blend of these "hot projects" where they can all come together. >> Stu, you were there in 2010, I looked right in the camera and said to Dave Vellante, storage is not as sexy. And Dave called it snoreage, cause snoreage is boring. (Stu laughs) >> And at that time, the storage industry went on a run. And we well-documented that. Sexy is, networking is sexy. And I think that we-- >> I call it cool. >> And I just tweeted, 25g is a good indicator of a 20 year run, and networking is the big kahuna as Pat Gelsinger said in IoT, so I think, Stu, I think it's going to be very apparent, sexy. I just don't see a lot of amplifications, so you don't see a lot of people marketing the sizzle. I think, being done I would agree, but Stu, there's more buzz and hype on the CNCF side than networking. >> That's fair. I think it is always as you said, it's the initial phase of any project that gets a lot of clicks and a lot of interest, and people want to know about it. A lot of the buzz is around, just awareness. The classic marketing cycle, and I think we're past that. It was therefore ONAP in January, we're past that. >> Alright, so here's the question, final question. So the steak is coming off the grill in our metaphor here, what are people-- what is that product, what's happening, what is the big deliverable right now from a networking standpoint that people can bet on and know that they can cross the bridge into the future with it. >> You will see a visible difference, you as in an end user, an enterprise, or a residential consumer. You will see a significant difference in terms of how you get services. It's as simple as that. Why? Because it's all automated. Network on-demand, disaster recovery, video conference services. Why did over-the-top players, why were they so successful? If you need a Gmail ID, you go in, you get one. It's right there. Try getting a T1 line five years ago. That would be six weeks, six months. So with the automation in place, the models are converging. >> So provisionings are automatically happening-- >> Provisionings, service, and then the thing that you will not see but you will see in the services impact, is the closed loop automation that has all the analytics built in. Huge, huge. I mean, network is the richest source, and by the way, I'll come back next year and I'll tell you why we are cool again. Because all of a sudden, it's like oh my god look at that data and the analytics that the network is giving me. What can I do with it? You can do AI, you can do machine learning, you can do all these things. >> Well, we're looking forward to it, the eye of the storm is kind of happening now I think in networking, Stu and I always have debates about this, cause we see a lot of great action. Question is, let's see the proof points, you guys are doing some good work. Thanks for sharing, Arpit, really appreciate, General Manager of Networking at Linux Foundation. It's theCUBE, more live coverage from Los Angeles, the Open Source Summit North America. I'm John Furrier, Stu Miniman, be back with more live coverage after this short break. (techno music)

>> Announcer: Live from Santa Clara, California, it's The Cube. Covering open networking summit 2017. Brought to you by the Linux foundation. >> Welcome back. We are live in Santa Clara at the open networking summit 2017. Been coming here for a couple years, it's a lot of open source going on in storage, for a long time, a lot of open source going on in compute for a long time, and you know, networking was kind of the last one, but we had Martin Casado on on earlier today. He says it's 10 years since he started Nicira. And now, it's a billion dollar revenue run raid inside vmware, so I think the software defined networking is pretty real. We're excited for this next segment, Scott Raynovich, been cohosting all day, good to see you again, Scott. But we're kind of shifting, we're going to add to open networking, we're going to add to open, not compute, but OpenStack, I get them all mixed up, we were just-- >> It's all infrastructure, it's all in the family. >> All right, so our next guest here, representing the OpenStack foundation, is Ildiko Vancsa, get that right? She is the ecosystem technical lead for OpenStack, welcome. And Lisa-Marie Namphy, she's now officially the OpenStack ambassador, which if you follow her on Twitter, you would have known that a long time ago. >> For the U.S. There's several others globally, but for the U.S., yeah. >> So first off, welcome. >> Thank you. >> And what is the OpenStack team doing here at open networking summit? >> So OpenStack itself is a multipurpose generated cloud platform, so we are not just looking into enterprise, IT use cases, but also trying to address the telecom and NFV space. And this is the conference where we are finding many of our ecosystem member companies represented, and we are also learning what's new in the networking space, what are the challenges of tomorrow and how we can start to address them today. >> Right, 'cause the telco is a very active space for OpenStack as well, correct, there's been a good market segment for you. >> Yes, it is an emerging area. I would say we have more and more telecommunications company around and they are also more and more involved in open source. Because I think it's kind of clear that they are also using open source for a while now, but using open source and participating in open source, those are two different things. So this kind of mindset change and transition towards participating In these communities and going out to the public field and do software development there and collaborate with each other and the enterprise IT segment as well, this is what is happening today and it is really great to see it. >> Host: Great, great. >> And you've seen more and more telco's participating in the OpenStack summits, there was an NFV day, I think, even going all the way back to the Atlanta summit. And certainly, in Barcelona, Ildiko was actually doing one of the main stage key notes, which was very focused on telco. And some of the main sponsors of this upcoming summit are telco's. So there's definitely a nice energy between telco and OpenStack. >> Now, why do you think the telco is just the one that's kind of getting ahead of the curve in terms of the adoption? >> Scalable low class clouds. (all laugh) >> Right, and we had John Donovan from AT&T said today that they're either rapidly approaching or going to hit, very soon, more than 50% of software defined networking within the AT&T network. So if there's any questions as to whether it's real or still in POC's, I think that pretty much says it's in production and running. >> I'm doing a lot more of that, so I also run the OpenStack user group for the San Francisco bay area and have been for the last three years, and if we're not talking about Kupernetes, or Docker and OpenStack, we're talking about networking. And tonight, actually, we're going to, the open contrail team is talking about some of the stuff they're doing with open contrail and containers and sort of just to piggyback off of this conference. And next week, as well, we're talking about the network functionality in Kupernetes at OpenStack, if you want to run in down to the OpenStack cloud. So it's a huge focus and the user group can't get enough of it. >> and your guys' show is coming up very, very soon. >> The OpenStack summit? >> Yes. >> Oh, absolutely, May 8th through 11th in Boston, Massachusetts. >> Host: Like right around the corner. >> Yeah. >> The incredible moving show, right? It keeps going and going and going. >> Yeah, yeah, there's going to be 6,000 plus people there. There was just some recent press releases about some of the keynotes that are happening there. There's a huge focus on, you know, I keep calling this the year of the user, the year of OpenStack adoption. And we're really, throughout the meetups, we're really doing a lot to try to showcase those use cases. So Google will be one that's onstage talking about some really cool stuff they're doing with OpenStack, some machine learning, just really intelligent stuff they're working on, and that's going to be a great keynote that we're looking forward to. Harvard will be up on there, you know, not just big name foundation members, but a lot of use cases that you'll see presented. >> So why do you think this is the year, what's kind of the breakthrough that it is the year of the user, would you say? >> Well, I think that just the reliability of OpenStack. I think enterprises are getting more comfortable. There are very large clouds running on OpenStack, more in Asia and in Europe and Ildiko can probably talk about it, particularly some of the telco related ones. But you know, the adoption is there and you see more stability around there, more integration with other, I don't know what to call it, emerging technologies like containers, like AI, like IOT. So there's a big push there, but I think enterprises have just, they have adopted it. And there's more expertise out there. We've focused a lot on the administrators. There's the COA, the certified administrator of, you know, OpenStack administrator exam you can take. So the operators have come a long way and they're really helping the customers out there get OpenStack clouds up and running. So I just think, you know, it's seven years now, into it, right, so we got to turn the corner. >> So there have been some growing pains with OpenStack, so what can you tell us about the metrics today versus, say, three or four years ago in terms of total installations, maybe breakdown of telecom versus enterprise, what kind of metrics do you have you there? >> I'll let you take that one. >> We are running, continuously running a user survey and we are seeing growing numbers in the telecom area. I'm not prepared with the numbers from the top of my head, but we are definitely seeing more and more adoption in the telecom space like how you mentioned AT&T, they are one of the largest telecom operators onboard in the community, and they are also very active, showing a pretty great example of how to adopt the software and how to participate in the community to make the software more and more NFV ready and ready for the telecom use cases. We also have, as Lisa-Marie just mentioned, the China area and Asia are coming up as well, like we have China Mobile and China Telecom onboard as well. Or Huawei, so we have telecom operators and telecom vendors as well, around the community. And we are also collaborating with other communities, so like who you see around OPNFV, OpenDaylight, and so forth. We are collaborating with them to see how we can integrate OpenStack into a larger environment as part of the full NFV stack. If you look into the ETSI NFV architectural framework, OpenStack is on the infrastructure layer. The NFV infrastructure and virtual infrastructure manager components are covered with OpenStack services mostly. So you also need to look into, then, how you can run on top of the hardware that the telecom industry is expecting in a data center and how to onboard the virtual network functions on top of that, how to put D management and orchestration components on top of OpenStack, and how the integration works out. So we are collaborating with these communities and what is really exciting about the Upcoming summit is that we are transforming the event a little bit. So this time, it will not be purely OpenStack focused, but it will be more like an open infrastructure, even. We are running open source days, so we will have representation from the communities I mentioned and we will also have Kubernetes onboard, for example, to show how we are collaborating with the representatives of the container technologies. We will also have Cloud Foundry and a few more communities around, so it will be a pretty interesting event and we are just trying to show the big picture that how OpenStack and all these other components of this large ecosystem are operating together. And that is going to be a super cool part of the summit, so the summit is May 8th through 11th and on May 9th, the CNCF, the Linux foundation, actually, behind this, the CNCF day, they're calling it Kupernetes day. And the whole day will be dedicated, there will be a whole track dedicated to Kupernetes, basically. And so they did another call for papers and it's like a little mini conference inside the conference. So that's kind of what I was saying about the adoption of other technologies. I'm sure the OpenStack foundation is putting those numbers together that you asked about and probably Jonathan or Bryce will stand onstage on the first day and talk about them. But what I think is more interesting and what I would encourage people to go, there's a Superuser magazine. Superuser does a great job telling the stories of what's happening out there, and some of these use cases, and who's adopting this technology and what they're doing with it. And those stories are more interesting than just, you know, the numbers. Because you can do anything with numbers and statistics, but these actual user stories are really cool so I encourage readers to go out to Superuser magazine and check that out. >> It's like, Lego uses it. >> There you go. >> I had to check real fast. >> Lot of information on there. They do a good job of that. >> Lego alligators. >> So you talked about this day with the Linux foundation, is there increasing amounts of cooperation between OpenStack and Linux foundation? Given all the projects that seem to be blossoming. >> Yeah, I don't even know that it needed to increase, there's always been nice energy between the two. There is, you know, Eileen Evans, who we know very well, was on the board of both, the first woman on both boards. She was my colleague for many years at Hewlett-Packard. She's still on the Linux foundation board and there's been a lot of synergy between those foundations. They've always worked closely together, especially things like the Cloud Foundry foundation that came out of the Linux foundation has always worked very closely with OpenStack, the OpenStack foundation, and the board members, and it's all one big happy family. We're all open source, yeah. >> And you talked about the enterprises being, you know, they've been using open source for a long time, Linux has been around forever. They're really more adopting kind of an open source ethos in terms of their own contributions back and participating back in. So you see just increased adoption, really, of using the open source vehicle as a way to do better innovation, better product development, and to get involved, get back to their engineers to get involved in something beyond just their day job. >> It is definitely a tendency that is happening, so it's not just AT&T, like, I can mention, for example, NTT DoCoMo, who now has engineers working on OpenStack code. They are a large operator in Japan. And it is really not something, I think, that a few years back, they would've imagined that they will just participate in an open source community. I've been involved with OPNFV for, I think, two years now, or two and a half. I'm an OPNFV ambassador as well, I'm trying to focus on the cross-community collaboration. And OPNFV is an environment where you can find many telecom operators and vendors. And it was a really interesting journey to see them, how they get to know open source more and more and how they learned how this is working and how working in public is like and what the benefits are. And I remember when a few people from, for example, DoCoMo came to OPNFV and they were, like, a little bit more shy, just exploring what's happening. And then like a half year later when they started to do OpenStack contributions, they had code batches merged into OpenStack, they added new functionalities, they kind of became advocates of open source. And they were like telling everywhere that open source is the way to go and this is what everyone should be doing and why it is so great to collaborate with other operators out in the public so you can address the common pain points together, rather than everyone is working on it behind closed doors and trying to invent the same wheel at the same time, separately. >> Right. >> So that was a really, really Interesting journey. And I think more and more companies are following this example. And not just coming and giving feedback, but also more and more participating and doing coding documentation work in the community. >> And I think if I can understand, what I think, also, the question you might have been asking, there wasn't a ton of python developers in the beginning and everybody's like how do we get these OpenStack developers in the company, you know, it was this huge shortage. And Linux was the little hanging fruit, it's like well, why do we just hire some Linux developers and then teach them python, and that's how a lot of OpenStack knowledge came into companies. So that was the trend. And I think enough companies, enough enterprises do see the value of something like OpenStack or Linux or Kupernetes or whatever the project has, Docker, to actually dedicate enough full time employees to be doing just that for as long as it makes sense and then maybe it's another technology. But we saw that for years, right, with OpenStack, huge companies. And there still are. Not always the same companies, depending on what a company needs and where they are, they absolutely find value in contributing back to this community. >> Okay, and you said you got a meetup tonight? >> I do, yeah. >> Give a plug for the meetup. >> Juniper, it's open contrail talking about open contrailing and containers. And it's at Juniper here in Sunnyville, so if you go to meetup.com/openstack, that's our user group. We're the first ones, we got that one. So meetup.com/openstack is the Silicon Valley, San Francisco bay area user group. And then next week, we're talking about networking and Kupernetes. >> All right, it's always good to be above the fold, that's for sure. All right, Ildiko, Lisa-Marie, great to see you again and thanks for stopping by, and we'll see you in Boston, if not before. >> Absolutely, we'll both be quite busy, we have four, both four presentations each, it's going to be a nutty week. So I'm looking forward to seeing you guys in Boston, always a pleasure, thanks for inviting us. >> Absolutely, all right, thanks for stopping by. With Scott Raynovich, I'm Jeff Frick, you're watching The Cube from open networking summit 2017. We'll be back after this short break, thanks for watching.

(upbeat electronic music) >> Everyone, welcome to our special Mobile World Congress 2017 coverage. I'm John Furrier here in theCUBE for two days of wall-to-wall coverage. Monday and Tuesday, February 27th and 28th, and we have on the phone right now, Lynn Comp, who's the Senior Director of the Network Platforms Group within Intel, part of the team doing the whole network transformation. The big announcements that went out prior to Mobile World Congress and hitting the ground on Monday and Tuesday of all next week in Barcelona. Lynn, great to have you on the phone. Thanks for taking the time to walk through some of the big announcements. >> Lynn: Thanks, John, for having us. It's a really exciting Mobile World Congress. We're seeing more and more of the promise of the next generation networks starting to take solution form from ingredient form a couple years ago, so it's a great, great time to be in this business. >> So 5G is happening now. You're seeing it in the network and the cloud and at the client, that you guys use the word "client" but essentially, it's the people with their smartphones and devices, wearables, AIs, and now the client is now cars, and flying drones and potentially, whatever else is connected to the Internet as an Internet of things. This has been a really big moment and I think I want to take some time to kind of unpack with you some of the complexities and kind of what's going on under the hood because 4G to 5G is a huge step up in the announcement and capabilities, and it's not just another device. There's really unique intellectual property involved, there's more power, there's a market leadership in the ecosystem, and really is a new way for service providers to achieve profitability, and get those products that are trying to connect, that need more power, more bandwidth, more capabilities. Can you take a minute just to talk about the key announcements impacting Mobile World Congress from Intel's perspective this week in your area? >> Lynn: Yeah, so we had a group of announcements that came out. Everything from solutions labs where operators are invited in to work with Nokia and Intel starting out to start working through what does it mean to try and manage a network that includes unlicensed and licensed spectrum and all these different usage models, very different model for them, to Ericsson, an initiative with GE and Honeywell and Intel, that is in Innovator's Initiative, where companies are invited to come in in the ecosystem. An early start working through what does it mean to have this kind of network capability? If you think what happened, 2G, 3G, to 4G, you start looking at the iPhone, been around for 10 years, and you've seen how the uses have changed, and how application developers have come up with completely new ways of doing things, like, who would have thought about crowdsourcing traffic patterns for driving directions? We all wanted it years ago, but it was just recently that we were able to have that on a smartphone. They're trying to unleash that with pretty unique companies. I mean, GE and Honeywell, UC Berkeley, you wouldn't necessarily think of them as being first on innovating new usage models for a wireless network, but with something like 5G, with all of these diverse use cases, you end up with a completely different ecosystem, really wanting to come in early and take advantage of the potential that's there. >> Lynn, talk about this end-to-end store because one of the things that got hidden in all the news, and certainly SiliconANGLE covered it, as well as, there was a great article in Fortune about it, but kind of talk about more of the 5G versus Qualcomm, that was kind of the big story that, the battle of the chips, if you will, and the big 5G angle there, but there's more to it and one thing that caught my attention was this end-to-end architecture, and it wasn't just Intel. You guys are a big part of that as an ingredient, but it's not just Intel, and what does that mean, end-to-end, 'cause I can see the wireless pieces and overlaying connecting devices, but where's the end-to-end fit in? Can you give some color on that? >> Lynn: Absolutely. You know what's really fascinating is you've got Intel and we've been in the cloud and heard of the genesis of what would become the consumer and the enterprise cloud from the very start, and so what we've been doing in working in that end-to-end arena is taking things like virtualization, which has allowed these service providers and enterprises to slice up compute resources and instead of having something that's completely locked and dedicated on one workload, they can create slices of different applications that all sit on the same hardware and share it, and so if you look, years ago, many of the service providers, cloud and enterprise, they were looking at utilization rights as maybe 15% of the compute power of a server, and now, a lot of them are aiming for 75 to 85% utilization, and that's just a crazy amount of (mumbles) so bringing that to this market that in traditional, we had single purpose boxes, there's various detections for one thing, but that creates a business challenge if you need to do more than one thing, so really what we're showing, for example, at Mobile World Congress, it's something that we call FlexRAN, and it's an example of how to run a radio area network on a standard server on the technology, and it does implement that network slicing. Its's very similar to the virtualization and the compute slicing, but taking advantage of it to use different bandwidths and different rates for different scenarios, whether IoT or smartphones, or even connected cars. >> So I got to ask you about, the big question I get is, first of all, thanks for that, but the big question I get is, this isn't turning into an app show, we're Mobile World Congress, and apps are everything from cars to just phone apps to network apps, et cetera, and the question that everyone's asking is, we need more bandwidth, and certainly, 5G addresses that, but the service providers are saying, "Do we really need all that power? And "When is it coming?" "What's the timing of all this?" So, specific question to you is, Lynn, is what is Intel doing to accelerate the network transformation for the service providers to get 5G ready, 'cause that seems to be the main theme as the orientation of where the progress bar is relative to is it ready for primetime, is it here and now, is it out in the future, is this kind of a pre-announcement, so there's kind of some confusion. Clarify that up. Where's the progress bar and how is Intel accelerating network transformation for folks in the service provider vis-a-vis 5G-ready? >> Lynn: So there's a couple things. So let me start with the accelerating piece because it also relates to the end-to-end piece. When you look at the way that networks have been constructed all the way, end-to-end, it has traditionally been a very, very limited set of solution providers, and they tend to survive pretty granular, pretty high-granular functions, so the appliance, the full appliance, software, hardware, everything, and I would look at some of the smartphones up until you could put new applications on it, as appliances, it did voice, and so, we have this service provider begging us for many years, "Give us an ecosystem that looks like server and PC. "I want a building block ecosystem. "I want to be able to take advantage of fast and free wires "in software and hardware. "I need people to come innovate, "like they go innovate on Amazon," and so building an ecosystem, so Intel Network Builders is something that was started about three years ago, and we had, oh, half dozen to maybe 12 different vendors who were part of it, mostly software vendors. Since then, we have 250-plus number and they range from service providers like GT and Telefonica all the way to the hardware vendors like Cisco and Ericsson, and then the software vendors that you would expect. So that's one thing that we've been really working, for a few years now, on giving these operators building block approaches, supporting them in open source. We had a big announcement from AT&T, talking about how they're putting about seven millions lines of code into the Linux Foundation, and its code has been deployed in their network already, so pretty big departure from normal practice, and then today, we had an announcement that came out, where not only did AT&T and Bell Canada and Orange in that community. Now we've got China Mobile, China Telecom, and a project called Open-O, also joining forces. If you were to map out the topics for these operators, we've got almost all of the top ten. They are joining this project to completely change the way that they run their networks, and that translates into the kind of innovation, the kind of applications that consumers love, that they're already getting out of the cloud, now they can begin to get that piece of innovation and creativity in the network as well. So the building block approach seems to be your strategy for the ecosystem. What's the challenge to keep that rolling and cohesive? How are you guys going to foster that growth on the ecosystem? You guys going to be doing a lot of joint marketing, funding, projects, and (chuckles) how are you going to foster that continuing growth? >> Lynn: Well there's a couple, it's such an opportunity-rich environment right now. Even things that you would assume would be normal and kind of standard practice, like standardized benchmarking, because you want apples-to-apples performance comparison. Well that's something that this industry really hasn't had. We've done very conceptualized testing, so we're working with the operators in a project called OPNSG to make sure that the operators have a uniform way, even if it's synthetic benchmark, but they at least understand this synthetic benchmark has this kind of performance, so they start really being able to translate and have the vendors do comparisons on paper, and they can actually do better comparisons without having to do six months of testing, so that's a really big deal. The other thing that I do want to also say about 5G is we're in a pre-standards world right now. ITU and 3GPP will have standards dropped in 2018 and 2020 is when it will be final, but every time that you're looking at a new wireless standard, there's a lot of pretrials that are happening, and that's because you want to test before you state everything has to work a specific way, so there was a trial just announced in December, with Erisson, AT&T in Austin, Texas in the Intel offices, and so if you happen to be in that office, you're starting to be able to experiment with what you could possibly get out of 5G. You'll see more of that with the Olympics in 2018 and 2020, where you've got, Japan and Korea have said we're going to have 5G at those Olympics. >> So I got to ask you some of the questions that we are going to have some guests on here in theCUBE in the Palo Alto coverage around NFV, network function virtualization, plays right into the software-defined networking virtualization world, so why is NFV and SDN so vital to the network transformation? Why now and what's happening in those two areas, and what's the enabler? >> Lynn: The enabler really started about 10 years ago, the real inspiration for it, when we were all in a world of packet processing engines and network processors, and we had some people in our research labs that realized that a lot of the efficiency in doing packet processing quickly came from parallelism, and we knew there were about two or three years to wait, but that was when multi-core came out, and so this thing called data plane development kit was born. We've referred to it as DPDK. It's now an industry organization, not an Intel invention anymore. The industry's starting to foster it. Now is really when the operators realized, "I can run a network on a general purpose processor." (coughs) Excuse me, so they can use cores for running operating systems and applications, of course, they always do that for compute cores, but they can also use the compute cores for passing packets back and forth. The line rates that we're getting are astonishing. 160 gigabits per second, which at the time, we were getting six million packets per second. Very unimpressive 10 years ago, but now, for many of those applications, we're at line rate, so that allows you to then separate the hardware and the software, which is where virtualization comes in, and when you do that, you aren't actually embedding software and hardware together in creating an appliance that, if you needed to do a software update, you might as well update the hardware, too, 'cause there's absolutely no new software load that can happen unless you're in an environment with virtualization or something like containers. So that's why NFV, network function virtualization is important. Gives the operator the ability to use general purpose processors for more than one thing, and have the ability to have future proofing of workloads where a new application or a new use becomes really popular, you don't have to issue new hardware, they just need to spin up the new virtual machine and be able to put function in it. >> So that, I got-- >> Lynn: If you went back and, we were talking about 5G and all of this new way of managing the network, now management in orchestration, it's really important but SDN is also really critical, both for cloud and for comm, because it gives you one map of the connections on the network, so you know what is connected where, and it gives you the ability to remotely change how the servers or how the hardware is connected together. If you were going to ask the CIO, "What's your biggest problem today?" they would tell you that it's almost impossible for them to be able to spin up a fully functional, new application that meets all the security protocols because they don't have a network map of everything that's connected to everything. They don't really have an easy way to be able to issue a command and then have all of the reconfigurations happen. A lot of the information's embedded in router tables. >> Yeah. >> Lynn: So it makes it very, very hard to take advantage of a really complicated network connection map, and be agile. That's where SDN comes in. It just kind of like a command control center, whereas NFV gives them the ability to have agility and spin up new functions very quickly. >> Yeah, and certainly that's where the good security part of the action is. Lynn, I want to get your final thoughts on the final question is this Mobile World Congress, it really encapsulates years and years in the industry of kind of a tipping point, and this is kind of my observation, and I want to get your thoughts on this and reaction to it, is the telcos and the service providers are finally at a moment where there's been so much pressure on the business model. We heard this, you can go on back many, many years ago, "Oh, over the top, " and you're starting to see more and more pressure. This seems to be the year that people have a focus on seeing a straight and narrow set of solutions, building blocks and a ecosystem that poised to go to the next level, where there can be a business model that actually can scale, whether it's scaling the edge, or having the core of the network work well, and up and down the stack. Can you talk about the key challenges that these service providers have to do to address that key profitability equation that being a sustainable entity rather than being the pipes? >> Lynn: Well it comes down to being able to respond to the needs of the user. I will refer to a couple demos that we have in the data center section of our booth, and one of them is so impressive to China Telecom that have put together on complete commercial off-the-shelf hardware that a cloud vendor might use. A demo that shows 4K video running from a virtualized, fixed wireline connection, so one of the cable kind of usage. Now 4K video goes over a virtualized environment from a cable-like environment, to what we call virtual INF, and that's the way that you get different messages passed between different kinds of systems. So INF is wireless, so they've got 4K video from cable out to a wireless capability, running in a virtualized environment at performance in hardware that can be used in the cloud, it could be used in communication service providers 'cause it's general purpose. That kind of capability gives a company like China Telecom the flexibility they need, so with 5G, it's the usage model for 5G that's most important. Turns out to be fixed wireless, because it's so expensive for them to deploy in fiber, well, they have the ability to do it and they can spin it up, maybe not in real time, but certainly, it's not going to take a three-month rollout. >> Yes, and-- >> Lynn: So hopefully, that gives you one example. >> Well that's great enablement 'cause in a lot of execution, well, I thought it gave me one more idea for a question, so since I have my final, final question for you is, what are you most excited about 'cause you sounded super excited with that demo. What other exciting things are happening in the Intel demo area from Intel that's exciting for you, that you could share with the folks listening and watching? >> Lynn: So, I used to never be a believer in augmented reality. (John chuckling) I thought, who's going to walk around with goggles, it's just silly, (coughs) it seemed to me like a toy and maybe I shouldn't admit that on a radio show but I became a believer, and I started to really understand how powerful it could be when Pokemon Go took over all the world in over the summer, to this, an immersive experience, and it's sort of reality, but you're interacting with a brand, or in the booth, we have a really cool virtual reality demo and it was with Nokia next and it's showing 5G network transformation. The thing about virtual reality, we have to really have low latency for it to feel real, quote-unquote, and so, it harnesses the power that we can see just emerging with 5G, and then we get this really great immersive experience, so that, I think, is one that innovate how popular brands like Disney or Disney World or Disneyland, that immersive experience, so I think we're just starting to scratch the surface on the opportunities there. >> Lynn, thanks so much for spending the time. Know you got to go and run. Thanks so much for the commentary. We are low latency here inside theCUBE, bringing you all the action. It's a good title for a show, low latency. Really fast, bringing all the action. Lynn, thanks so much for sharing the color and congratulations on your success at Mobile World Congress and looking forward to getting more post-show, post-mortem after the event's over. Thanks for taking the time. We'll be back with more coverage of Mobile World Congress for a special CUBE live in studio in Palo Alto, covering all the action in Barcelona on Monday and Tuesday, 27th and 28th. I'm John Furrier. Wrap it with more after this short break, thanks for watching. (upbeat electronic music) (bright electronic music)