>> Live from Las Vegas. It's the cute covering knowledge sixteen Brought to you by service. Now here your host, Dave, Alon and Jeffrey. >> Welcome back to knowledge. Sixteen. Everybody, This is the Cube, Cuba Silicon Angles Flagship program. We go out to the events and we extract the signal from the noise We're here. This is Day two for us. Will be going wall to wall for three days. That knowledge sixteen hashtag No. Sixteen. Chris Beatty is Here's the CEO. Relatively new CEO. It's service now. Chris, Thanks for coming on the Cube. It's going to be here. So you are hosting the CEO Decisions event Yesterday >> I was an event. We had a lot of CEOs, a lot of energy in the room, you know, one of the main main themes. Wass. You know, technology change happens all the time, but really one of the leadership challenge is right and what courage is required of leaders to really break through the status quo and get to that next level. We talked a lot about the importance of getting the right culture right within it, and that's a and what it really means to have a service mindset right throughout the enterprise. And as our vocabulary becomes the same inside it and across all the departments, right, as a leader, how do you enact that change so really a lot about the human element, as opposed to, you know, the technology part of it? >> Yes. So a lot of discussions over the past several service now knowledge comes in one year, Frank said. He sort of threw down the gauntlet and CEOs. They have to be business leaders. No longer Is that just a technology roll? Others have come on. The Cuban said. Well, you know, CEOs role. They gotta choose. They're gonna choose a technical path or a business path or data path. Even Chief Date officer. What do you thoughts on the >> I mean, >> there's a >> lot of press about the role. The CEO, right? And if you go back years and anything from Seo's dead, it is a relevant right. It's going the way of the dodo bird. Teo CEOs Morse strategic than ever, disrupting and creating new business models. I think the answer is somewhere in between, and it's probably changes, you know, depending on the day of the week. Right. So CEOs have a base job which is running, you know, the technology infrastructure of any company running the applications. But I do agree with Frank in terms of CEOs up, leveling their responsibilities and taking on the responsibility for more. I could tell you what I take responsibility for, right And yes, it's I t. But the overall velocity of our business. How fast can we run with everything Hiring employees, closing our books. Every single process in the company is powered by an IT platform, right? And so high tea is really in a unique position, and it has a bird's eye view of the organization to really help. Dr Velocity and Velocity is everything. How can you outflank your competition? The other thing I see think CEOs need to take responsibility for is maximizing the productivity of every single employee in the company. Right now, if you take that on, you start to look at things a little bit differently. It's not about projects, it's really about outcomes. And you know what measurable things are we delivering? And last and certainly not least, I think, the responsibility for customer experiences again. Customer experiences are powered by platform CEOs have the ability that influence every single one of those experiences and make it great and more and more as we look towards the future with things like automated bots and augmented reality customer. Your actions are going to become human to platform, and that's going to increase its relevance in that >> so and thinking about CIA imperatives of, you know, the bromide of eighty percent of the dollars we spend is on keeping the lights on twenty percent of innovation of That's a real number, No, but nobody seems to argue with it. Yeah, you >> hear that number a lot, but I think the good organizations actually do measure that number so they actually they will know what their number is and that service. Now we've done a lot of work, so our ratio is actually sixty percent run the business forty percent on innovation, and we're driving that down. So it's uneven. Fifty fifty split. I think that where you don't want to go is spending too little time on what I call the utility computing because that's the fabric that gets work done right. It's everything from networking and email and all those basic services you still need to have. Those aren't going anywhere collaboration services. >> I'd like to split it up into a little finer grain. I wonder if you could comment run the business grow the business transformed the business. Now maybe you're maybe you're always transforming your business, I don't know. But in >> terms of have to be >> in terms of but specific spending on initiatives to transform the business is that a reasonable, reasonable way to look at your portfolio was >> absolutely right. And I think if you're not doing things that transform your business, you're you're not acting with enough urgency. So my view on it is identify the big rocks right that we need to knock down, make sure we make room for those, even if it's at the cost of the grow or run part of the budget. Because if you're not getting those things done again, back to that getting left behind things were moving too quick. You got to keep pace. So make room for the transformation somehow, and that means squeezing every bit of automation that you can. How did the run part of the business, which is something I've used service now for in my past. I used to be a customer. I bought the platform twice over before I joined the company, and we did it a lot, and I'm doing it now, now that I'm at service now, >> that's one of Frank's requirements to become a CEO. I think. How >> do you >> measure that? That split. You said you're sixty today. Like to be a fifty, a lot of CEOs going. I have no idea how to measure that. I look at my projects are, but guess how do you do it? >> And it's tough we actually use. Not surprisingly, are Ownit Financial Management module to do that. And so technology's technology would we take all of our G L data and we map it to a taxonomy of business services in certain business services we know are not transformative, but they're a run part of the business, and we do that mapping once than every month. We can look at actuals against it. We can look at our unit costs, but the other begin put his projects right, which is again also in our platform, so able to look at those two things together and data driven segmentation of our spend too many times I see ninety organizations. They do it as one time exercise as part of annual planning. Then they don't look at it again until the next year. Annual planning. But there's a lot of runway in between and decisions we're making every day, which you should be making based upon data. But instead you're doing on perhaps nine months ago information. >> So you essentially categorize the business process, the business services as run or Growler training farm and on an ongoing basis. >> Absolutely. And you do the math and the most dynamic part of it, his projects. So every one of our projects, when we look at our portfolio, we look at our project portfolio by business areas, the sales marketing HR finance so on. But then we also do categorize our portfolio by Is this just sort of keep the lights on activity? But it's a project we still need to dio, or is it growing the business in somewhere? Is it truly helping us transform the way we operate >> on reasonable people? Khun, sit down and agree on sort of what those look like and >> short, and we also adjust accordingly. Also, do a top down allocation of what percentage do we want to go into each bucket, and that's not the same for each area because different parts of our business are different maturity cars, different pressures on them. I wouldn't want to be very transfer meitiv with RGL, right? That's not an area I want to innovate on. But with our sales and marketing organization, absolutely. We want to be in high innovation. Hi, experimentation, whatever we can do to help dry. >> So that's a top down bottom up exercise with the executive team says Okay, >> sideways inputs from everywhere. You know, one of the things I think CEOs it is a coming to fund CEOs to dio is manage spend. But more importantly, where people spending their time right, that's inarguably a fixed costs. We have a set of people where they spending their time and are they spending their time on the right things? And if you get that right, the rest could get a lot easier. >> So Secretary Gates last night speaking Teo, you know, maybe roughly one hundred CEOs and your your CEO decisions Conference gave the thumbs down on consensus management, and I sense just a little bit of discomfort in the room because CEOs is a hard job. But you serve a lot of different masters if you will, and as well you've got heads of application development you got, you know, architects, you got the business to serve, and so there's a lot of consensus building. And so he got questions on How do you do it? What was your reaction to that? Your colleagues, You know, which >> one was your science? They asked him a question. And because he said Consensus building doesn't work into an outside person looking in, it would seem like by nature. Everything in the government is consensus oriented. He had a lot of examples actually, where he did things against his own team's conviction, but he felt like that change was necessary. So it's two things I think Dr Gates has dealt with monumental organizations, right? Texas A and M is the smallest organization of those the CIA and the D. O D. Department of Defense has three million people, so the scale is unlike what most enterprise CEOs are leaders have seen. So when when he talked about not being consensus oriented, he viewed it as a requirement, and I actually agree with him. If you're trying to disrupt the status quo, you can't be consensus oriented. I don't think you'LL move fast enough, and most of time you won't get very far. So I think it's incumbent upon leaders to be the ones that break the status quo and say, We've got to change. And But what? What Dr Gates did describe is that if people are informed about why, from their leader enough, even if they disagree, they can get on board. And he brought up numerous examples of where he had conversations with Congress and people within the d. O d about change. He wanted to drive, and even though they were very opposed to it, they got on board because they intellectually could understand why. And over time, he won over hearts and minds >> about your priorities. So you come in relatively new tow service now. So first of all first impressions, any any surprises, pleasant or unpleasant? And what your priorities. >> So coming in no surprises. I had had a lot of admiration for the company as a customer, and now that I'm here, I love the culture. The culture is very execution oriented, get stepped on, very customer focused. You know, when we when we talk about our go to market, we really talk a lot about what's going to be most important for our customers. What pressures are customers under what problems can be solved for him? It's really not a discussion around squeezing. You know, the maximum margin out of each customer, which I think is fantastic way drive pretty hard. But but we're also very team oriented culture, so that's been great. My priorities at service. Now, when I think about my six strategic themes that I'm focused on growth eyes hugely important that service now. Right now, it's a lot of time I spend, fails and marketing effectiveness and innovation. And what can we do to drive, help, drive growth from a night perspective? Working with our partner organization, helping our partners? I do business with us easier things like partner portals and things like that. Ah, velocity. I mentioned earlier driving velocity through every department at the Enterprise at service now and really maniacally going after business process automation. And the great thing is, we have a platform that makes it easy, right and Ivax full access to that platform. So self service catalogs and knowledge base, but really going department by department saying, How do we do that? Analytics. Obviously we want to continue to measure and improve our business. But we're starting to do a lot more with Predictive Analytics, right? And how can we use data to really predict next best actions in a variety of arenas? Uh, security is the gift that keeps on giving for every CEO never ending. It's >> just one of those things that'll Teo you got, you >> got, you got to accept it and then really focus on team, right? I think talent and team and culture hugely important. You could have the best plans, you know, on paper. But if you don't have the right talent and culture within your team to get it done, I don't think you're getting very far operational. Rigor is a big one for me and a Metrix based approach to managing our business and driving outcomes. So when I look at projects that I execute for the organization on time and on budget, that's fine. That's table stakes. Really. What I'm after is on benefit, right? Are we delivering the benefits that we said we were going to get? And last, but certainly not least a part of my job is now on now. What? What we mean by now? On now is me being our best in first customer. And that's a very strategic level, working with product management to help them, you know, with roadmap features and things like that that I think all of our CEO's would need also upgrading early. So hopefully we can iron out the bugs before all of our customers and then consuming our own your products and implement it internally, learning the lessons within our four walls that we can inform our fields they could help our customers. >> How about on benefit? What percentage of projects are on benefit? That's another one of these things. Seventy percent of the projects fail. It was a number one on the market research, even >> that even that's a problem that fail is identified as not being on time or on. But right now, I view that is interesting but not compelling. Are you delivering the outcome? And so we're early. I've only been at service now six months, but I know in the past, through rigor and even making it a metric that's important have gotten to an eighty five percent hit rate on benefit. Certainly you could do better, but some of the benefits we have realised, with our platform eighty three percent increase in productivity. Leveraging R R R R application, but examples outside of Ice D, where we've eliminated forty five hundred hours of work from our financial close by putting email and manual checklist on your platform. Eighty five percent reduction in time that we spent hours spent on on boarding new employees. I mean, the list goes on and on, but it's a requirement in my organisation. When you're doing a project, you gotta have an outcome and set an aspirational outcome. Because if you talk about ten percent improvement and anything, that's sort of easy to get it. If you tell yourself I need to get a seventy percent improvement, it forces you to really rethink things and think differently. And I think that's our job. Is leaders to set those set the bar really high and then sharp teams have the resources to go after it. >> So even if you're late and over budget, if you get that, I didn't say that I later over, but I was asked, so that's got three. So that's a that's a prerequisite to be on time and on budget, >> and we're not perfect, but our target is to be ninety five percent on time, ninety five percent on budget, knowing you're gonna have five percent, you know, wiggle room and ninety five percent on benefit. >> What is on. So when you talk to the board, switch topics about security, what should be on the CEO's checklist for communicating to the board about security? So So >> I think it's really about risk, right? And what risks do we think we have? What's the likelihood of those risks? And what's the plan to mitigate those risk? I don't think security should be talked about in a This is Donner. That's done because you're never really done right. It's risk management, and the bad guys continue to innovate faster than the good guys. So what's your current security posture? What's the state of your risks and how are you mitigating them and in what time frame you know the stuff about? You know, we have a deal. P. We have ideas. We have I ps. I mean, the list of acronyms is interesting at a more tactical level, but at a board level, I think it's really risk management. >> So I promise I wanted before Ortiz talk about mitigating risk. But is there a place for a narrative that says you'd only mitigate so much? You're going to get penetrated. It's how you respond absolutely is critical. And I can I, as the CEO can lead that response or whomever is the >> appropriate person? I think you you have to do everything you possibly can Teo secure your perimeter. But it's known that you are going to get breach. Just a fact. So then it really becomes How quickly can you identify the fact that you have anomalous activity happening on your network of data? How quickly can you mitigate it? And in the past, when I was at various sign JD issue, a lot of that was manual right You have. You know, you have a piece of bad malware on the Enterprise. You may even know what assets. Um, it's on where you think you know. Usually I think you know, and then you really find out later where it's gone. But tying those assets to risk meaning what? Business services, it is it my CFO's laptop? Or is it? You know, the the you know, the person in AP. So you treated a little bit differently. And is it the infrastructure that supports our badge reader? Or is it our ear piece system? Right, So that's the missing piece. And I do thank our security organization and our our business unit, Shawn, because they've actually built a solution. Help solve that where you can go from security incident. Piece of Alberto Asset to Business service to employ within minutes, which that used to be half a day, at least half a day is a long time in a security incident. >> Yeah, so there's that magic number of whatever it is two hundred five days to detect a penetration? Yes, very. Do you feel like your organization can compress that? Is that a viable metric to be focused on? >> It's certainly a viable metric to focus on in terms of knowledge, off again anomalous activity. I don't think we're near two hundred five days, but absolutely we are focused on it because we need to secure not only our data but the data that our customers in trust without trust, >> meaning you feel as though you could detect much in a much shorter time frame, and they have some interesting. You haven't depending >> on the wrist right? Without getting into a lot of the details. >> Yeah, So we'll see you. But implicit in that is that you have a sense of the value of your data, your assets your I p what you're saying you've got a pretty good visibility on. >> Is that right? Yeah, we d'Oh. We spent a lot of time making sure our security posture is solid again customers and trust us with their data. We take that responsibility very seriously. >> Not speaking for service now, but just general knowledge of your colleagues Do you feel as though the lack of ability to value data assets negatively affect people's ability? T appropriately spend resources >> on security? It's tough because one of the first things you need to do in security say, what do I need to secure first? And then you say, OK, well, that's my core. I pee. Where's my core I pee stored? I would argue that a lot of companies don't even know because it's scattered on different file shares and different servers, and then you don't know whether people are putting it on box or drop box or one of the many storied sites out there so keep key. First step, I think for a lot of organizations is really just getting a handle on where their I P is. >> Right? All right, Count Chris, Thank you very much. Appreciate you coming on last. Give the last word. Uh, knowledge sixteen for you. What's the kind of bumper sticker? Is the truck's pulling away from its been awesome. I mean, >> just talking with customers and fellow CEOs. You know, we're all in this journey together towards this service enabled enterprise, but it is about leadership and just courage to bust through this current status quo that were in within the enterprise to get to that next level of efficiency. >> Thanks a lot of fun. Well, congratulations on the new role on DH hosting at a hostel conference just caught the tail end of it. But it looked like great energy >> because a lot of >> had some really good discussions with some of your colleagues. So really great coming on. Thank you. Alright. Keep right there, buddy. That's the Cuba bit back from knowledge. Sixteen, Las Vegas. Right after this >> every once in a while.

brian lily is here he's the cio of Equinix Brian thanks for coming on thanks I'm happy to be here that's so you've heard the keynote this morning yes you heard the excellent messaging Franklin was just on very crisp it seems like there's a passionate audience here so first of all let's start with with equinix you guys are you know interesting company you're sort of at the heart of a lot of this cloud action tell us more about equinix well Equinix is a global data center provider we have 97 data centers around the world in 15 countries and we have over 500 cloud providers that host with us around the world and we're network neutral which is really besides sort of being high-end operational reliability etc we have 900 carriers in our facilities so if you're a cloud provider a content provider and you want to provide information access in the lowest latency highest reliability way to eyeballs all over the world Equinix is the place to be you have a mega global footprint fact we were at the AWS some of the few weeks ago the Moscone Equinix kept coming up you know we had a number of company that netapp on they talked about their partnership with you another another number of other companies that are working with you to get for instance close to some of the Amazon data centers and provide that that presence and that low latency and so you guys are really you know crushing it in the cloud talk a little bit about what you're doing with with with service now you know this whole notion that I t is all these disparate processes and running on spreadsheets is was that kind of what your operation was like free service now or described a little bit yeah I'd be happy to it was exactly like that so I've been it I've been in equinix four and a half years and when I came we had really we had done some significant organic growth we'd acquired some companies in Europe and Asia and and really hadn't pulled that all together and so we had six or seven disparate systems everybody was on their own process and and actually a service now had this great marketing program it was called cloud for clunkers and the clunker I think was they were specifically talking about but it was cloud for clunkers and and I thought that was kind of catchy and my colleague I have a goal that everybody that reports to me directly becomes a CIO and the CIO of JDS Uniphase Chris Beatty he had implemented services out very sign after I had left and he said Brian whatever you've put into whatever you're doing stop go with service now you'll never regret it and it was the best advice ever got so I got to give props to Chris implemented it and now we have one global instance that we're running all around the world all of our information I have a CIO dashboard where we're now all demand all demand coming into IT comes in through service now we have a google-like interface I can track projects incidents events problems requests our entire change management process is run through there so we're actually one hundred percent compliant with that so how did you do before you said you had six or seven different systems try to do all this stuff that's right and we had manual I mean we had manual effort right so so the itl does sort of your classical break fix I need help was done on one system the server team was done on a different system the network team on a third system email was have a you know so so when it came time you know sometimes your guys come to you and say hey I need some I need some heads I'm dying here I'm like show me the data baby show me the data and they couldn't do it or they stopped work for 56 days to gather the data to prove to me that they needed more head count well well now we we have metrics that are that are actually amazing we know we know exactly what our SLA Czar against each incident problem requests whatever by group we know it by by region we know where we have hotspots we know where we should automate to address things I mean we actually are running it like a business now which we couldn't do before so how about visibility to things like the application portfolio or the project portfolio just ServiceNow help you you know give you line of sight into those sort of critical initiatives yeah so so we started with the infrastructure and I think most companies start with infrastructure it's maybe a little more straightforward and so we started there but but then the apps guys it was kind of nice to see the out sky saw the infrastructure guys starting to manage their business like a business and often I don't know if you know but in that sort of in the in the IT organization the apps guys are closer the business infrastructure guys are sort of the guys you know under the hood or behind the curtain don't pay attention them mechanics mechanic they were mechanics well they actually were running their business like the head of infrastructure for me was acting like the CIO I mean he had command of the business we call it at equinix you have to have command of whatever business you're running and the apps guy said you know I want that so so we actually did a couple things we changed our interface to the business to us to be through service now it used to be for projects for application projects it had a different mechanism we move that now to a very clean form in service now that we we built and so now all application demand comes in all of our business systems analysis for both support and projects manage now their business and service now so now they both come to me with their dashboards with the demand coming into the team's by functional area if it's if it's apps we can see that finance is heavily asking for apps versus operations or sales or marketing so we actually now I go to the east staff meeting I report to the CEO and I go in with data that says look here's the portfolio of applications we have here's the request you're asking me to do let's prioritize these together I have a recommendation based on what i think is impact and business value but at the end of the day I'm the steward of the company's money it's not my money so you know but but now we have the visibility we can have the conversation we couldn't have the conversation because I really is a business value conversation I'm so that's that's impressive so Jeff summers brian is a CIO there's so many transformative things happening right now there's there's cloud there's computing power as a service you guys were quite dialed in without since you had a lot of that infrastructure but as a CIO with all the transformative opportunities that you have how are you prioritizing thing and how does this fall within those priority priorities when you're making the changes to your business and implementing new technologies that's a great quote thats a great question because the CIO is that I talked to and it's pretty interesting they're pulling their hair out but yeah I was 642 lat a hair before I joined idea uh-huh a CIO colleague of mine he we had this exact conversation because he goes you know he came over actually came over to see our implementation wanted to talk through how we had gotten there and sort of our journey was service now and and he said you know I really want to be where you guys are and he says we just haven't bubbled up in the priority yet because they're so busy either fixing or dealing with just organic growth or whatever so it's a really good question we we try and have a balance we have you know clearly operations of our data centers comes first so so that consumed so anything we can do there too and we're doing some really interesting innovation there with big data we've built some reference architectures with Accenture specifically around helping us manage that data center platform then sales and marketing I mean clearly got to bring revenue in the door and so the last but not least is finance legal HR and IT but but at the end of the day I try and do i call it the cio sprinkle where you know you even if you put large clumps of money or resources here you got a sprinkle a little bit everywhere and and service now was sort of our sprinkle where I said we have to do this to run efficiently as a global organization and and it was really the best decision I ever made and what's interesting is is now the business sort of looks over our shoulder and says hey hey what is that and we've now implemented service now for our HR function for our finance Shared Services Center for facilities now several different business functions want what we have so yeah we implemented it for us but it's we're spreading it yeah the other thing is because your data center Frank talked about the lights out aspect of as many processes as you can without people clearly running a big data center the less people you have running around those machines the better so with that as a reference within your own business you know how effective have you been using this this platform to kind of take people out of all these processes well I think I think we have so we we have a program called equinix on Equinix and what it is is it's how we use our own global platform to run our own business and you know we've got distributed because you can get real economies of scale if you distribute as opposed to just clumping into large data centers you can actually even if you have one of those you can have small footprints all over the world and increase performance and network hubbing and all that so we've done that for us well we don't necessarily have IT people in all those locations so we we've implemented a couple of things one is monitoring tool called science logic very very good very good tool that we've integrated with service now so all of our incident event monitoring is done on science logic but it integrates into service now so we have and I'll show this later today we have a incident p1 scroller we're right into service now these tickets are automatically open they scroll in front of everybody we have them on the wall absolutely we so in a go to door knock and everybody is aware of them and now that's a part of our sort of hands-off in these remote locations in particular but it just helped us manage our business again commander the business CIO has to have it so is that how it works with you mentioned HR is you have some other HR system sure there it's peoplesoft their workday whatever it is that you use work dank workday good love workday how you to hell awesome I do to their smoking hot yeah and getting it right I said happening so it's okay so you use workday so how does get just like that example how does the service now you know integrate with the workday how does that all work so so I think in most we're not a huge enterprise where over 3,000 employees now and we are global but I think as you start to of any scale you start to centralize into shared services so it you know in a previous company of mine it was called HR front line at equinix called HR direct and what this is it's a you know think of it as a small help desk for HR questions so if you have a question about benefits or pay or whatever you can call this number or you can submit an email to HR direct a tektronix calm and and we've taken those male aliases and and put that right into service now so they see and can track all the requests and what they've used so so it's it's in that sense of stand-alone how it's integrated is is they do a couple of things with the data the first thing they do is they say wow this question keeps getting asked how do we improve our FAQ s improve our communications to the employees because actually the data is there the information is there but they're not getting it so it helps them with their faq second is is sometimes it could be related to a workday piece of data that is wrong about the employee or whatever and and so then they can go and actually update workday so today we don't I don't believe we've got it integrated other than work days our source of truth for employees and so it with Active Directory actually is integrated with service now so we have all of our employees who can submit requests or who can act as technicians in the system I Brian so running low on time but last question I have is what advice would you give to your CIO peers that are thinking about you know automating their their their service management and kind of struggling with all these disparate systems people that are in a similar situation is you what advice would you give them maybe things that you would have done differently help help your peers out here sure I I would say this is something that is sort of table stakes you have to do this and if you have to do this start with something you know you can get your arms around so in our case I think why we're successful is is we started with number one sort of a Service Catalog like what are the services that you offer as a CIO that you're going to offer the business and mask the complexity of who provides those services to the end-user don't make them choose they know they want a computer they don't know which group so mass that you can marry that together I think the other thing is is as a CIO you've got to be a leader it's just like the sales exec who says to the rep you must put the data into salesforce com but then they never use it right so if you're the CIO I mean I've told my guys if it's not in service now don't even come talk to me don't even talk to me so now we run our project meetings out of it we run our our metrics meetings out of it you got to be a leader and and number one is demand that the data is in their number to demand that we have one process one system one set of processes consistent you're going to get people say well it's different in Germany it's different in Singapore baloney delivering IT is delivering IT that's my advice right fantastic listen thanks for stopping by the cube really appreciate the advice the insides the energy all right Jeff Frick and I'll be right back we're live at Las Vegas the knowledge conference this is service now's big event big customer event this cube silicon angles flagship telecast keep it right there boom right back with our next guest