>>Good morning or good afternoon or good evening, depending on where you are and welcome to this session, reduce claims, fraud, we're data, very excited to have you all here. My name is Winnie castling and I'm Cloudera as managing director for the insurance vertical. First and foremost, we want to let you know that we know insurance. We have done it for a long time. Collectively, personally, I've done it for over 30 years. And, you know, as a proof of that, we want to let you know that we insure, we insure as well as we do data management work for the top global companies in the world, in north America, over property casualty, general insurance health, and, um, life and annuities. But besides that, we also take care of the data needs for some smaller insurance companies and specialty companies. So if you're not one of the huge Glomar conglomerates in the world, you are still perfectly fine with us. >>So >>Why are we having this topic today? Really digital claims and digital claims management is accelerating. And that's based on a couple of things. First and foremost, customers are asking for it. Customers are used to doing their work more digitally over the last descending year or two. And secondly, with the last year or almost two, by now with the changes that we made in our work processes and in society at large around cuvettes, uh, both regulators, as well as companies have enabled digital processing and the digital journey to a degree that they've never done before. Now that had some really good impacts for claims handling. It did meant that customers were more satisfied. They felt they have more control over their processes in the cloud and the claims experience. It also reduced in a lot of cases, both in commercial lines, as well as in personal lines, the, um, the, the time periods that it took to settle on a claim. However, um, the more digital you go, it, it opened up more access points for fraud, illicit activities. So unfortunately we saw indicators of fraud and fraud attempts, you know, creeping up over the last time period. So we thought it was a good moment to look at, you know, some use cases and some approaches insurers can take to manage that even better than they already >>Are. >>And this is how we plan to do that. And this is how we see this in action. On the left side, you see progress of data analytics and data utilization, um, around, in this case, we're talking about claims fraud, but it's a generic picture. And really what it means is most companies that start with data affords pretty much start around data warehousing and we eliminate analytics and all around BI and reporting, which pretty much is understanding what we know, right? The data that we already have utilizing data to understand better what we know already. Now, when we move to the middle blue collar, we get into different types of analytics. We get into exploratory data science, we get to predictions and we start getting in the space of describing what we can learn from what we know, but also start moving slowly into predicting. So first of all, learn and gather insights of what we already know, and then start augmenting with that with other data sets and other findings, so that we can start predicting for the future, what might happen. >>And that's the point where we get to AI, artificial intelligence and machine learning, which will help us predict which of our situations and claims are most likely to have a potential fraud or abuse scenario attached to it. So that's the path that insurers and other companies take in their data management and analytics environments. Now, if you look at the right side of this light, you see data complexity per use cases in this case in fraud. So the bubbles represent the types of data that are being used, or the specific faces that we discussed on the left side. So for reporting, we used a TPA data, policy verification, um, claims file staff data, that it tends to be heavily structured and already within the company itself. And when you go to the middle to the more descriptive basis, you start getting into unstructured data, you see a lot of instructor texts there, and we do a use case around that later. >>And this really enables us to better understand what the scenarios are that we're looking at and where the risks are around. In our example today, fraud, abuse and issues of resources. And then the more you go to the upper right corner, you see the outside of the baseball field, people refer to it, you see new unstructured data sources that are being used. You tend to see the more complex use cases. And we're looking at picture analysis, we're looking at voice analysis there. We're looking at geolocation. That's quite often the first one we look at. So this slide actually shows you the progress and the path in complexity and in utilization of data and analytical tool sets to manage data fraud, fraud, use cases, optimally. >>Now how we do that and how we look at at a Cloudera is actually not as complicated as, as this slight might want to, um, to, to give you an impression. So let's start at the left side at the left side, you see the enterprise data, which is data that you as an organization have, or that you have access to. It doesn't have to be internal data, but quite often it is now that data goes into a data journey, right? It gets collected first. It gets manipulated and engineered so that people can do something with it. It gets stored something, you know, people need to have access to it. And then they get into analytical capabilities who are inside gathering and utilization. Now, especially for insurance companies that all needs to be underpinned by a very, very strong security and governance, uh, environment. Because if not the most regulated industry in the world, insurance is awfully close. >>And if it's not the most regulated one, it's a close second. So it's critically important that insurers know, um, where the data is, who has access to it for Rodriguez, uh, what is being used for so terms like lineage, transparency are crucial, crucially important for insurance. And we manage that in the shared data experience. So it goes over the whole Cloudera platform and every application or tool or experience you use would include Dao. And on the right side, you see the use cases that tend to be deployed around claims and claims fraud, claims, fraud management. So over the last year or so, we've seen a lot of use cases around upcoding people get one treatment or one fix on a car, but it gets coded as a more expensive one. That's a fraud scenario, right? We see also the more classical fraud things and we see anti money laundering. So those are the types of use cases on the right side that we are supporting, um, on the platform, uh, around, um, claims fraud. >>And this is an example of how that actually looks like now, this is a one that it's actually a live one of, uh, a company that had, um, claims that dealt with health situations and being killers. So that obviously is relevant for health insurers, but you also see it in, um, in auto claims and counterclaims, right, you know, accidents. There are a lot of different claims scenarios that have health risks associated with it. And what we did in this one is we joined tables in a complex schema. So we have to look at the claimant, the physician, the hospital, all the providers that are involved procedures that are being deployed. Medically medicines has been utilized to uncover the full picture. Now that is a hard effort in itself, just for one claim and one scenario. But if you want to see if people are abusing, for example, painkillers in this scenario, you need to do that over every instant that is member. >>This claimant has, you know, with different doctors, with different hospitals, with different pharmacies or whatever that classically it's a very complicated and complex, um, the and costly data operation. So nowadays that tends to be done by graph databases, right? So you put fraud rings within a graph database and walk the graph. And if you look at it here in batch, you can see that in this case, that is a member that was shopping around for being killers and went through different systems and different providers to get, um, multiple of the same big LR stat. You know, obviously we don't know what he or she did with it, but that's not the intent of the system. And that was actually a fraud and abuse case. >>So I want to share some customer success stories and recent, uh, AML and fraud use cases. And we have a couple of them and I'm not going to go in an awful lot of detail, um, about them because we have some time to spend on one of them immediately after this. But one of them for example, is voice analytics, which is a really interesting one. And on the baseball slide that I showed you earlier, that would be a right upper corner one. And what happened there is that an insurance company utilized the, uh, the voice records they got from the customer service people to try to predict which one were potentially fraud list. And they did it in two ways. They look at actually the contents of what was being said. So they looked at certain words that were being used certain trigger words, but they also were looking at tone of voice pitch of voice, uh, speed of talking. >>So they try to see trends there and hear trends that would, um, that would bring them for a potential bad situation. Now good and bad news of this proof of concept was it's. We learned that it's very difficult just because every human is different to get an indicator for bad behavior out of the pitch or the tone or the voice, you know, or those types of nonverbal communication in voice. But we did learn that it was easier to, to predict if a specific conversation needed to be transferred to somebody else based on emotion. You know, obviously as we all understand life and health situations tend to come with emotions, or so people either got very sad or they got very angry or so the proof of concept didn't really get us to a firm understanding of potential driverless situation, but it did get us to a much better understanding of workflow around, um, claims escalation, um, in customer service to route people, to the right person, depending on what they need. >>And that specific time, another really interesting one was around social media, geo open source, all sorts of data that we put together. And we linked to the second one that I listed on slide here that was an on-prem deployment. And that was actually an analysis that regulators were asking for in a couple of countries, uh, for anti money laundering scams, because there were some plots out there that networks of criminals would all buy the low value policies, surrendered them a couple of years later. And in that way, God criminal money into the regular amount of monetary system whitewashed the money and this needed some very specific and very, very complex link analysis because there were fairly large networks of criminals that all needed to be tied together, um, with the actions, with the policies to figure out where potential pain points were. And that also obviously included ecosystems, such as lawyers, administrative offices, all the other things, no, but most, you know, exciting. >>I think that we see happening at the moment and we, we, you know, our partner, if analytics just went live with this with a large insurer, is that by looking at different types that insurers already have, um, unstructured data, um, um, their claims nodes, um, repour its claims, filings, um, statements, voice records, augmented with information that they have access to, but that's not their ours such as geo information obituary, social media Boyd on the cloud. And we can analyze claims much more effectively and efficiently for fraud and litigation and alpha before. And the first results over the last year or two showcasing a significant degree is significant degrees in claims expenses and, um, and an increase at the right moment of what a right amount in claims payments, which is obviously a good thing for insurers. Right? So having said all of that, I really would like to give Sri Ramaswami, the CEO of infinite Lytics, the opportunity to walk you through this use case and actually show you how this looks like in real life. So Sheree, here >>You go. So >>Insurers often ask us this question, can AI help insurance companies, lower loss expenses, litigation, and help manage reserves better? We all know that insurance industry is majority. Majority of it is unstructured data. Can AI analyze all of this historically and look for patterns and trends to help workflows and improve process efficiencies. This is exactly why we brought together industry experts at infill lyrics to create the industries where very first pre-trained and prebuilt insights engine called Charlie, Charlie basically summarizes all of the data structured and unstructured. And when I say unstructured, I go back to what money basically traded. You know, it is including documents, reports, third-party, um, it reports and investigation, uh, interviews, statements, claim notes included as well at any third party enrichment that we can legally get our hands on anything that helps the adjudicate, the claims better. That is all something that we can include as part of the analysis. And what Charlie does is takes all of this data and very neatly summarizes all of this. After the analysis into insights within our dashboard, our proprietary naturally language processing semantic models adds the explanation to our predictions and insights, which is the key element that makes all of our insights >>Actually. So >>Let's just get into, um, standing what these steps are and how Charlie can help, um, you know, with the insights from the historical patterns in this case. So when the claim comes in, it comes with a lot of unstructured data and documents that the, uh, the claims operations team have to utilize to adjudicate, to understand and adjudicate the claim in an efficient manner. You are looking at a lot of documents, correspondences reports, third party reports, and also statements that are recorded within the claim notes. What Charlie basically does is crunches all, all of this data removes the noise from that and brings together five key elements, locations, texts, sentiments, entities, and timelines in the next step. >>In the next step, we are basically utilizing Charlie's built-in proprietary, natural language processing models to semantically understand and interpret all of that information and bring together those key elements into curated insights. And the way we do that is by building knowledge, graphs, and ontologies and dictionaries that can help understand the domain language and convert them into insights and predictions that we can display on the dash. Cool. And if you look at what has been presented in the dashboard, these are KPIs and metrics that are very interesting for a management staff or even the operations. So the management team can basically look at the dashboard and start with the summarized data and start to then dig deeper into each of the problematic areas and look at patterns at that point. And these patterns that we learn from not only from what the system can provide, but also from the historic data can help understand and uncover some of these patterns in the newer claims that are coming in so important to learn from the historic learnings and apply those learnings in the new claims that are coming in. >>Let's just take a very quick example of what this is going to look like a claims manager. So here the claims manager discovers from the summarized information that there are some problems in the claims that basically have an attorney involved. They have not even gone into litigation and they still are, you know, I'm experiencing a very large, um, average amount of claim loss when they compare to the benchmark. So this is where the manager wants to dig deeper and understand the patterns behind it from the historic data. And this has to look at the wealth of information that is sitting in the unstructured data. So Charlie basically pulls together all these topics and summarizes these topics that are very specific to certain losses combined with entities and timelines and sentiments, and very quickly be able to show to the manager where the problematic areas are and what are those patterns leading to high, severe claims, whether it's litigation or whether it's just high, severe indemnity payments. >>And this is where the managers can adjust their workflows based on what we can predict using those patterns that we have learned and predict the new claims, the operations team can also leverage Charlie's deep level insights, claim level insights, uh, in the form of red flags, alerts and recommendations. They can also be trained using these recommendations and the operations team can mitigate the claims much more effectively and proactively using these kind of deep level insights that need to look at unstructured data. So at the, at the end, I would like to say that it is possible for us to achieve financial benefits, leveraging artificial intelligence platforms like Charlie and help the insurers learn from their historic data and being able to apply that to the new claims, to work, to adjust their workflows efficiently. >>Thank you very much for you. That was very enlightening as always. And it's great to see that actually, some of the technology that we all work so hard on together, uh, comes to fruition in, in cost savings and efficiencies and, and help insurers manage potential bad situations, such as claims fraud batter, right? So to close this session out as a next step, we would really urge you to a Sasha available data sources and advanced or predictive fraud prevention capabilities aligned with your digital initiatives to digital initiatives that we all embarked on over the last year are creating a lot of new data that we can use to learn more. So that's a great thing. If you need to learn more at one to learn more about Cloudera and our insurance work and our insurance efforts, um, you to call me, uh, I'm very excited to talk about this forever. So if you want to give me a call or find a place to meet when that's possible again, and schedule a meeting with us, and again, we love insurance. We'll gladly talk to anyone until they say in parts of the United States, the cows come home about it. And we're dad. I want to thank you all for attending this session and hanging in there with us for about half an hour. And I hope you have a wonderful rest of the day. >>Good afternoon, I'm wanting or evening depending on where you are and welcome to this breakout session around insurance, improve underwriting with better insights. >>So first and >>Foremost, let's summarize very quickly, um, who we're with and what we're talking about today. My name is goonie castling, and I'm the managing director at Cloudera for the insurance vertical. And we have a sizeable presence in insurance. We have been working with insurance companies for a long time now, over 10 years, which in terms of insurance, it's maybe not that long, but for technology, it really is. And we're working with, as you can see some of the largest companies in the world and in the continents of the world. However, we also do a significant amount of work with smaller insurance companies, especially around specialty exposures and the regionals, the mutuals in property, casualty, general insurance, life, annuity, and health. So we have a vast experience of working with insurers. And, um, we'd like to talk a little bit today about what we're seeing recently in the underwriting space and what we can do to support the insurance industry in there. >>So >>Recently what we have been seeing, and it's actually accelerated as a result of the recent pandemic that we all have been going through. We see that insurers are putting even more emphasis on accounting for every individual customers with lotta be a commercial clients or a personal person, personal insurance risk in a dynamic and a B spoke way. And what I mean with that is in a dynamic, it means that risks and risk assessments change very regularly, right? Companies go into different business situations. People behave differently. Risks are changing all the time and the changing per person they're not changing the narrow generically my risk at a certain point of time in travel, for example, it might be very different than any of your risks, right? So what technology has started to enable is underwrite and assess those risks at those very specific individual levels. And you can see that insurers are investing in that capability. The value of, um, artificial intelligence and underwriting is growing dramatically. As you see from some of those quotes here and also risks that were historically very difficult to assess such as networks, uh, vendors, global supply chains, um, works workers' compensation that has a lot of moving parts to it all the time and anything that deals with rapidly changing risks, exposures and people, and businesses have been supported more and more by technology such as ours to help, uh, gone for that. >>And this is a bit of a difficult slide. So bear with me for a second here. What this slide shows specifically for underwriting is how data-driven insights help manage underwriting. And what you see on the left side of this slide is the progress in make in analytical capabilities. And quite often the first steps are around reporting and that tends to be run from a data warehouse, operational data store, Starsky, Matt, um, data, uh, models and reporting really is, uh, quite often as a BI function, of course, a business intelligence function. And it really, you know, at a regular basis informs the company of what has been taken place now in the second phase, the middle dark, the middle color blue. The next step that is shore stage is to get into descriptive analytics. And what descriptive analytics really do is they try to describe what we're learning in reporting. >>So we're seeing sorts and events and sorts and findings and sorts of numbers and certain trends happening in reporting. And in the descriptive phase, we describe what this means and you know why this is happening. And then ultimately, and this is the holy grill, the end goal we like to get through predictive analytics. So we like to try to predict what is going to happen, uh, which risk is a good one to underwrite, you know, watch next policy, a customer might need or wants water claims as we discuss it. And not a session today, uh, might become fraud or lists or a which one we can move straight through because they're not supposed to be any issues with it, both on the underwriting and the claims side. So that's where every insurer is shooting for right now. But most of them are not there yet. >>Totally. Right. So on the right side of this slide specifically for underwriting, we would, we like to show what types of data generally are being used in use cases around underwriting, in the different faces of maturity and analytics that I just described. So you will see that on the reporting side, in the beginning, we start with rates, information, quotes, information, submission information, bounding information. Um, then if you go to the descriptive phase, we start to add risk engineering information, risk reports, um, schedules of assets on the commercial side, because some are profiles, uh, as a descriptions, move into some sort of an unstructured data environment, um, notes, diaries, claims notes, underwriting notes, risk engineering notes, transcripts of customer service calls, and then totally to the other side of this baseball field looking slide, right? You will see the relatively new data sources that can add tremendous value. >>Um, but I'm not Whitely integrated yet. So I will walk through some use cases around these specifically. So think about sensors, wearables, you know, sensors on people's bodies, sensors, moving assets for transportation, drone images for underwriting. It's not necessary anymore to send, uh, an inspection person and inspector or risk, risk inspector or engineer to every building, you know, be insurers now, fly drones over it, to look at the roofs, et cetera, photos. You know, we see it a lot in claims first notice of loss, but we also see it for underwriting purposes that policies out there. Now that pretty much say sent me pictures of your five most valuable assets in your home and we'll price your home and all its contents for you. So we start seeing more and more movements towards those, as I mentioned earlier, dynamic and bespoke types of underwriting. >>So this is how Cloudera supports those initiatives. So on the left side, you see data coming into your insurance company. There are all sorts of different data. There are, some of them are managed and controlled by you. Some orders you get from third parties, and we'll talk about Della medics in a little bit. It's one of the use cases. They move into the data life cycle, the data journey. So the data is coming into your organization. You collected, you store it, you make it ready for utilization. You plop it either in an operational environment for processing or in an analytical environment for analysis. And then you close on the loop and adjusted from the beginning if necessary, no specifically for insurance, which is if not the most regulated industry in the world it's coming awfully close, and it will come in as a, a very admirable second or third. >>Um, it's critically important that that data is controlled and managed in the correct way on the old, the different regulations that, that we are subject to. So we do that in the cloud era Sharon's data experiment experience, which is where we make sure that the data is accessed by the right people. And that we always can track who did watch to any point in time to that data. Um, and that's all part of the Cloudera data platform. Now that whole environment that we run on premise as well as in the cloud or in multiple clouds or in hybrids, most insurers run hybrid models, which are part of the data on premise and part of the data and use cases and workloads in the clouds. We support enterprise use cases around on the writing in risk selection, individualized pricing, digital submissions, quote processing, the whole quote, quote bound process, digitally fraud and compliance evaluations and network analysis around, um, service providers. So I want to walk you to some of the use cases that we've seen in action recently that showcases how this work in real life. >>First one >>Is to seize that group plus Cloudera, um, uh, full disclosure. This is obviously for the people that know a Dutch health insurer. I did not pick the one because I happen to be dodged is just happens to be a fantastic use case and what they were struggling with as many, many insurance companies is that they had a legacy infrastructure that made it very difficult to combine data sets and get a full view of the customer and its needs. Um, as any insurer, customer demands and needs are rapidly changing competition is changing. So C-SAT decided that they needed to do something about it. And they built a data platform on Cloudera that helps them do a couple of things. It helps them support customers better or proactively. So they got really good in pinging customers on what potential steps they need to take to improve on their health in a preventative way. >>But also they sped up rapidly their, uh, approvals of medical procedures, et cetera. And so that was the original intent, right? It's like serve the customers better or retain the customers, make sure what they have the right access to the right services when they need it in a proactive way. As a side effect of this, um, data platform. They also got much better in, um, preventing and predicting fraud and abuse, which is, um, the topic of the other session we're running today. So it really was a good success and they're very happy with it. And they're actually starting to see a significant uptick in their customer service, KPIs and results. The other one that I wanted to quickly mention is Octo. As most of you know, Optune is a very, very large telemedics provider, telematics data provider globally. It's been with Cloudera for quite some time. >>This one I want to showcase because it showcases what we can do with data in mass amounts. So for Octo, we, um, analyze on Cloudera 5 million connected cars, ongoing with 11 billion data points. And really what they're doing is the creating the algorithms and the models and insurers use to, um, to, um, run, um, tell them insurance, telematics programs made to pay as you drive pay when you drive, pay, how you drive. And this whole telemedics part of insurance is actually growing very fast too, in, in, still in sort of a proof of concept mini projects, kind of initiatives. But, um, what we're succeeding is that companies are starting to offer more and more services around it. So they become preventative and predictive too. So now you got to the program staff being me as a driver saying, Monique, you're hopping in the car for two hours. >>Now, maybe it's time you take a break. Um, we see that there's a Starbucks coming up on the ride or any coffee shop. That's part of a bigger chain. Uh, we know because you have that app on your phone, that you are a Starbucks user. So if you stop there, we'll give you a 50 cents discount on your regular coffee. So we start seeing these types of programs coming through to, again, keep people safe and keep cars safe, but primarily of course the people in it, and those are the types of use cases that we start seeing in that telematic space. >>This looks more complicated than it is. So bear with me for a second. This is a commercial example because we see a data work. A lot of data were going on in commercial insurance. It's not Leah personal insurance thing. Commercial is near and dear to my heart. That's where I started. I actually, for a long time, worked in global energy insurance. So what this one wheelie explains is how we can use sensors on people's outfits and people's clothes to manage risks and underwrite risks better. So there are programs now for manufacturing companies and for oil and gas, where the people that work in those places are having sensors as part of their work outfits. And it does a couple of things. It helps in workers' comp underwriting and claims because you can actually see where people are moving, what they are doing, how long they're working. >>Some of them even tracks some very basic health-related information like blood pressure and heartbeat and stuff like that, temperature. Um, so those are all good things. The other thing that had to us, it helps, um, it helps collect data on the specific risks and exposures. Again, we're getting more and more to individual underwriting or individual risk underwriting, who insurance companies that, that ensure these, these, um, commercial, commercial, um, enterprises. So they started giving discounts if the workers were sensors and ultimately if there is an unfortunate event and it like a big accident or big loss, it helps, uh, first responders very quickly identify where those workers are. And, and, and if, and how they're moving, which is all very important to figure out who to help first in case something bad happens. Right? So these are the type of data that quite often got implements in one specific use case, and then get broadly moved to other use cases or deployed into other use cases to help price risks, betters better, and keep, you know, risks, better control, manage, and provide preventative care. Right? >>So these were some of the use cases that we run in the underwriting space that are very excited to talk about. So as a next step, what we would like you to do is considered opportunities in your own companies to advance risk assessment specific to your individual customer's need. And again, customers can be people they can be enterprises to can be other any, any insurable entity, right? The please physical dera.com solutions insurance, where you will find all our documentation assets and thought leadership around the topic. And if you ever want to chat about this, please give me a call or schedule a meeting with us. I get very passionate about this topic. I'll gladly talk to you forever. If you happen to be based in the us and you ever need somebody to filibuster on insurance, please give me a call. I'll easily fit 24 hours on this one. Um, so please schedule a call with me. I promise to keep it short. So thank you very much for joining this session. And as a last thing, I would like to remind all of you read our blogs, read our tweets. We'd our thought leadership around insurance. And as we all know, insurance is sexy.

>>Welcome to our industry. Drill-downs from manufacturing. I'm here with Michael Gerber, who is the managing director for automotive and manufacturing solutions at cloud era. And in this first session, we're going to discuss how to drive transportation efficiencies and improve sustainability with data connected trucks are fundamental to optimizing fleet performance costs and delivering new services to fleet operators. And what's going to happen here is Michael's going to present some data and information, and we're gonna come back and have a little conversation about what we just heard. Michael, great to see you over to you. >>Oh, thank you, Dave. And I appreciate having this conversation today. Hey, um, you know, this is actually an area connected trucks. You know, this is an area that we have seen a lot of action here at Cloudera. And I think the reason is kind of important, right? Because, you know, first of all, you can see that, you know, this change is happening very, very quickly, right? 150% growth is forecast by 2022. Um, and the reasons, and I think this is why we're seeing a lot of action and a lot of growth is that there are a lot of benefits, right? We're talking about a B2B type of situation here. So this is truck made truck makers providing benefits to fleet operators. And if you look at the F the top fleet operator, uh, the top benefits that fleet operators expect, you see this in the graph over here. >>Now almost 80% of them expect improved productivity, things like improved routing rates. So route efficiencies and improve customer service decrease in fuel consumption, but better technology. This isn't technology for technology sake, these connected trucks are coming onto the marketplace because Hey, it can provide for Mendez value to the business. And in this case, we're talking about fleet operators and fleet efficiencies. So, you know, one of the things that's really important to be able to enable this right, um, trucks are becoming connected because at the end of the day, um, we want to be able to provide fleet deficiencies through connected truck, um, analytics and machine learning. Let me explain to you a little bit about what we mean by that, because what, you know, how this happens is by creating a connected vehicle analytics machine learning life cycle, and to do that, you need to do a few different things, right? >>You start off of course, with connected trucks in the field. And, you know, you can have many of these trucks cause typically you're dealing at a truck level and at a fleet level, right? You want to be able to do analytics and machine learning to improve performance. So you start off with these trucks. And the first you need to be able to do is connect to those products, right? You have to have an intelligent edge where you can collect that information from the trucks. And by the way, once you conducted the, um, this information from the trucks, you want to be able to analyze that data in real-time and take real-time actions. Now what I'm going to show you the ability to take this real-time action is actually the result of your machine learning license. Let me explain to you what I mean by that. >>So we have this trucks, we start to collect data from it right at the end of the day. Well we'd like to be able to do is pull that data into either your data center or into the cloud where we can start to do more advanced analytics. And we start with being able to ingest that data into the cloud, into that enterprise data lake. We store that data. We want to enrich it with other data sources. So for example, if you're doing truck predictive maintenance, you want to take that sensor data that you've connected collected from those trucks. And you want to augment that with your dealership, say service information. Now you have, you know, you have sensor data and there was salting repair orders. You're now equipped to do things like predict one day maintenance will work correctly for all the data sets that you need to be able to do that. >>So what do you do here? Like I said, you adjusted your storage, you're enriching it with data, right? You're processing that data. You're aligning say the sensor data to that transactional system data from your, uh, from your, your pair maintenance systems, you know, you're bringing it together so that you can do two things you can do. First of all, you could do self-service BI on that date, right? You can do things like fleet analytics, but more importantly, what I was talking to you about before is you now have the data sets to be able to do create machine learning models. So if you have the sensor right values and the need, for example, for, for a dealership repair, or as you could start to correlate, which sensor values predicted the need for maintenance, and you could build out those machine learning models. And then as I mentioned to you, you could push those machine learning models back out to the edge, which is how you would then take those real-time action. >>I mentioned earlier as that data that then comes through in real-time, you're running it against that model, and you can take some real time actions. This is what we are, this, this, this, this analytics and machine learning model, um, machine learning life cycle is exactly what Cloudera enables this end-to-end ability to ingest, um, stroke, you know, store it, um, put a query, lay over it, um, machine learning models, and then run those machine learning models. Real-time now that's what we, that's what we do as a business. Now when such customer, and I just wanted to give you one example, um, a customer that we have worked with to provide these types of results is Navistar and Navistar was kind of an early, early adopter of connected truck analytics. And they provided these capabilities to their fleet operators, right? And they started off, uh, by, um, by, you know, connecting 475,000 trucks to up to well over a million now. >>And you know, the point here is with that, they were centralizing data from their telematics service providers, from their trucks, from telematics service providers. They're bringing in things like weather data and all those types of things. Um, and what they started to do was to build out machine learning models, aimed at predictive maintenance. And what's really interesting is that you see that Navistar, um, made tremendous strides in reducing the need or the expense associated with maintenance, right? So rather than waiting for a truck to break and then fixing it, they would predict when that truck needs service, condition-based monitoring and service it before it broke down so that you could do that in a much more cost-effective manner. And if you see the benefits, right, they, they reduced maintenance costs 3 cents a mile, um, from the, you know, down from the industry average of 15 cents a mile down to 12 cents cents a mile. >>So this was a tremendous success for Navistar. And we're seeing this across many of our, um, um, you know, um, uh, truck manufacturers. We were working with many of the truck OEMs and they are all working to achieve, um, you know, very, very similar types of, um, benefits to their customers. So just a little bit about Navistar. Um, now we're gonna turn to Q and a, Dave's got some questions for me in a second, but before we do that, if you want to learn more about our, how we work with connected vehicles and autonomous vehicles, please go to our lives or to our website, what you see up, uh, up on the screen, there's the URLs cloudera.com for slash solutions for slash manufacturing. And you'll see a whole slew of, um, um, lateral and information, uh, in much more detail in terms of how we connect, um, trucks to fleet operators who provide analytics, use cases that drive dramatically improved performance. So with that being said, I'm going to turn it over to Dave for questions. >>Thank you. Uh, Michael, that's a great example. You've got, I love the life cycle. You can visualize that very well. You've got an edge use case you do in both real time inference, really at the edge. And then you're blending that sensor data with other data sources to enrich your models. And you can push that back to the edge. That's that lifecycle. So really appreciate that, that info. Let me ask you, what are you seeing as the most common connected vehicle when you think about analytics and machine learning, the use cases that you see customers really leaning into. >>Yeah, that's really, that's a great question. They, you know, cause you know, everybody always thinks about machine learning. Like this is the first thing you go, well, actually it's not right for the first thing you really want to be able to go around. Many of our customers are doing slow. Let's simply connect our trucks or our vehicles or whatever our IOT asset is. And then you can do very simple things like just performance monitoring of the, of the piece of equipment in the truck industry, a lot of performance monitoring of the truck, but also performance monitoring of the driver. So how has the, how has the driver performing? Is there a lot of idle time spent, um, you know, what's, what's route efficiencies looking like, you know, by connecting the vehicles, right? You get insights, as I said into the truck and into the driver and that's not machine learning. >>Right. But that, that, that monitoring piece is really, really important. The first thing that we see is monitoring types of use cases. Then you start to see companies move towards more of the, uh, what I call the machine learning and AI models, where you're using inference on the edge. And then you start to see things like, uh, predictive maintenance happening, um, kind of route real-time, route optimization and things like that. And you start to see that evolution again, to those smarter, more intelligent dynamic types of decision-making, but let's not, let's not minimize the value of good old fashioned monitoring that site to give you that kind of visibility first, then moving to smarter use cases as you, as you go forward. >>You know, it's interesting. I'm, I'm envisioning when you talked about the monitoring, I'm envisioning a, you see the bumper sticker, you know, how am I driving this all the time? If somebody ever probably causes when they get cut off it's snow and you know, many people might think, oh, it's about big brother, but it's not. I mean, that's yeah. Okay, fine. But it's really about improvement and training and continuous improvement. And then of course the, the route optimization, I mean, that's, that's bottom line business value. So, so that's, I love those, uh, those examples. Um, I wonder, I mean, one of the big hurdles that people should think about when they want to jump into those use cases that you just talked about, what are they going to run into, uh, you know, the blind spots they're, they're going to, they're going to get hit with, >>There's a few different things, right? So first of all, a lot of times your it folks aren't familiar with the kind of the more operational IOT types of data. So just connecting to that type of data can be a new skill set, right? That's very specialized hardware in the car and things like that. And protocols that's number one, that that's the classic, it OT kind of conundrum that, um, you know, uh, many of our customers struggle with, but then more fundamentally is, you know, if you look at the way these types of connected truck or IOT solutions started, you know, oftentimes they were, the first generation were very custom built, right? So they were brittle, right? They were kind of hardwired. And as you move towards, um, more commercial solutions, you had what I call the silo, right? You had fragmentation in terms of this capability from this vendor, this capability from another vendor, you get the idea, you know, one of the things that we really think that we need with that, that needs to be brought to the table is first of all, having an end to end data management platform, that's kind of integrated, it's all tested together. >>You have the data lineage across the entire stack, but then also importantly, to be realistic, we have to be able to integrate to, um, industry kind of best practices as well in terms of, um, solution components in the car, how the hardware and all those types things. So I think there's, you know, it's just stepping back for a second. I think that there is, has been fragmentation and complexity in the past. We're moving towards more standards and more standard types of art, um, offerings. Um, our job as a software maker is to make that easier and connect those dots. So customers don't have to do it all on all on their own. >>And you mentioned specialized hardware. One of the things we heard earlier in the main stage was your partnership with Nvidia. We're talking about, you know, new types of hardware coming in, you guys are optimizing for that. We see the it and the OT worlds blending together, no question. And then that end to end management piece, you know, this is different from your right, from it, normally everything's controlled or the data center, and this is a metadata, you know, rethinking kind of how you manage metadata. Um, so in the spirit of, of what we talked about earlier today, uh, uh, other technology partners, are you working with other partners to sort of accelerate these solutions, move them forward faster? >>Yeah, I'm really glad you're asking that because we actually embarked on a product on a project called project fusion, which really was about integrating with, you know, when you look at that connected vehicle life cycle, there are some core vendors out there that are providing some very important capabilities. So what we did is we joined forces with them to build an end-to-end demonstration and reference architecture to enable the complete data management life cycle. Cloudera is Peter piece of this was ingesting data and all the things I talked about being storing and the machine learning, right? And so we provide that end to end. But what we wanted to do is we wanted to partner with some key partners and the partners that we did with, um, integrate with or NXP NXP provides the service oriented gateways in the car. So that's a hardware in the car when river provides an in-car operating system, that's Linux, right? >>That's hardened and tested. We then ran ours, our, uh, Apache magnify, which is part of flood era data flow in the vehicle, right on that operating system. On that hardware, we pump the data over into the cloud where we did them, all the data analytics and machine learning and, and builds out these very specialized models. And then we used a company called Arabic equity. Once we both those models to do, you know, they specialize in automotive over the air updates, right? So they can then take those models and update those models back to the vehicle very rapidly. So what we said is, look, there's, there's an established, um, you know, uh, ecosystem, if you will, of leaders in this space, what we wanted to do is make sure that our, there was part and parcel of this ecosystem. And by the way, you mentioned Nvidia as well. We're working closely with Nvidia now. So when we're doing the machine learning, we can leverage some of their hardware to get some further acceleration in the machine learning side of things. So, uh, yeah, you know, one of the things I always say about this types of use cases, it does take a village. And what we've really tried to do is build out that, that, uh, an ecosystem that provides that village so that we can speed that analytics and machine learning, um, lifecycle just as fast as it can be. This >>Is again another great example of, of data intensive workloads. It's not your, it's not your grandfather's ERP. That's running on, you know, traditional, you know, systems it's, these are really purpose-built, maybe they're customizable for certain edge use cases. They're low cost, low, low power. They can't be bloated, uh, ended you're right. It does take an ecosystem. You've got to have, you know, API APIs that connect and, and that's that, that takes a lot of work and a lot of thoughts. So that, that leads me to the technologies that are sort of underpinning this we've talked we've we talked a lot in the cube about semiconductor technology, and now that's changing and the advancements we're seeing there, what do you see as the, some of the key technical technology areas that are advancing this connected vehicle machine learning? >>You know, it's interesting, I'm seeing it in a few places, just a few notable ones. I think, first of all, you know, we see that the vehicle itself is getting smarter, right? So when you look at, we look at that NXP type of gateway that we talked about that used to be kind of a, a dumb gateway. That was really all it was doing was pushing data up and down and provided isolation, um, as a gateway down to the, uh, down from the lower level subsistence. So it was really security and just basic, um, you know, basic communication that gateway now is becoming what they call a service oriented gate. So it can run. It's not that it's bad desk. It's got memories that always, so now you could run serious compute in the car, right? So now all of these things like running machine learning, inference models, you have a lot more power in the corner at the same time. >>5g is making it so that you can push data fast enough, making low latency computing available, even on the cloud. So now you now you've got credible compute both at the edge in the vehicle and on the cloud. Right. And, um, you know, and then on the, you know, on the cloud, you've got partners like Nvidia who are accelerating, it's still further through better GPU based compute. So I mean the whole stack, if you look at it, that that machine learning life cycle we talked about, no, David seems like there's improvements and EV every step along the way, we're starting to see technology, um, optimum optimization, um, just pervasive throughout the cycle. >>And then real quick, it's not a quick topic, but you mentioned security. If it was seeing a whole new security model emerge, there is no perimeter anymore in this use case like this is there. >>No there isn't. And one of the things that we're, you know, remember where the data management platform platform and the thing we have to provide is provide end-to-end link, you know, end end-to-end lineage of where that data came from, who can see it, you know, how it changed, right? And that's something that we have integrated into from the beginning of when that data is ingested through, when it's stored through, when it's kind of processed and people are doing machine learning, we provide, we will provide that lineage so that, um, you know, that security and governance is a short throughout the, throughout the data learning life cycle, it >>Federated across in this example, across the fleet. So, all right, Michael, that's all the time we have right now. Thank you so much for that great information. Really appreciate it, >>Dave. Thank you. And thank you. Thanks for the audience for listening in today. Yes. Thank you for watching. >>Okay. We're here in the second manufacturing drill down session with Michael Gerber. He was the managing director for automotive and manufacturing solutions at Cloudera. And we're going to continue the discussion with a look at how to lower costs and drive quality in IOT analytics with better uptime. And look, when you do the math, that's really quite obvious when the system is down, productivity is lost and it hits revenue and the bottom line improve quality drives, better service levels and reduces loss opportunities. Michael. Great to see you >>Take it away. All right. Thank you so much. So I'd say we're going to talk a little bit about connected manufacturing, right. And how those IOT IOT around connected manufacturing can do as Dave talked about improved quality outcomes for manufacturing improve and improve your plant uptime. So just a little bit quick, quick, little indulgent, quick history lesson. I promise to be quick. We've all heard about industry 4.0, right? That is the fourth industrial revolution. And that's really what we're here to talk about today. First industrial revolution, real simple, right? You had steam power, right? You would reduce backbreaking work. Second industrial revolution, massive assembly line. Right. So think about Henry Ford and motorized conveyor belts, mass automation, third industrial revolution. Things got interesting, right? You started to see automation, but that automation was done, essentially programmed a robot to do something. It did the same thing over and over and over irrespective about it, of how your outside operations, your outside conditions change fourth industrial revolution, very different breakfast. >>Now we're connecting, um, equipment and processes and getting feedback from it. And through machine learning, we can make those, um, those processes adaptive right through machine learning. That's really what we're talking about in the fourth industrial revolution. And it is intrinsically connected to data and a data life cycle. And by the way, it's important, not just for a little bit of a slight issue. There we'll issue that, but it's important, not for technology sake, right? It's important because it actually drives and very important business outcomes. First of all, quality, right? If you look at the cost of quality, even despite decades of, of, of, of, uh, companies, um, and manufacturers moving to improve while its quality promise still accounted to 20% of sales, right? So every fifth of what you meant or manufactured from a revenue perspective, you've got quality issues that are costing you a lot. >>Plant downtime, cost companies, $50 billion a year. So when we're talking about using data and these industry 4.0 types of use cases, connected data types of use cases, we're not doing it just merely to implement technology. We're doing it to move these from drivers, improving quality, reducing downtime. So let's talk about how a connected manufacturing data life cycle, what like, right, because this is actually the business that cloud era is, is in. Let's talk a little bit about that. So we call this manufacturing edge to AI, this, this analytics life cycle, and it starts with having your plants, right? Those plants are increasingly connected. As I said, sensor prices have come down two thirds over the last decade, right? And those sensors have connected over the internet. So suddenly we can collect all this data from your, um, ma manufacturing plants. What do we want to be able to do? >>You know, we want to be able to collect it. We want to be able to analyze that data as it's coming across. Right? So, uh, in scream, right, we want to be able to analyze it and take intelligent real-time actions. Right? We might do some simple processing and filtering at the edge, but we really want to take real-time actions on that data. But, and this is the inference part of things, right? Taking the time. But this, the ability to take these real-time actions, um, is actually the result of a machine learning life cycle. I want to walk you through this, right? And it starts with, um, ingesting this data for the first time, putting it into our enterprise data lake, right in that data lake enterprise data lake can be either within your data center or it could be in the cloud. You've got, you're going to ingest that data. >>You're going to store it. You're going to enrich it with enterprise data sources. So now you'll have say sensor data and you'll have maintenance repair orders from your maintenance management systems. Right now you can start to think about do you're getting really nice data sets. You can start to say, Hey, which sensor values correlate to the need for machine maintenance, right? You start to see the data sets. They're becoming very compatible with machine learning, but so you, you bring these data sets together. You process that you align your time series data from your sensors to your timestamp data from your, um, you know, from your enterprise systems that your maintenance management system, as I mentioned, you know, once you've done that, we could put a query layer on top. So now we can start to do advanced analytics query across all these different types of data sets. >>But as I mentioned, you, and what's really important here is the fact that once you've stored long histories that say that you can build out those machine learning models I talked to you about earlier. So like I said, you can start to say, which sensor values drove the need, a correlated to the need for equipment maintenance for my maintenance management systems, right? And you can build out those models and say, Hey, here are the sensor values of the conditions that predict the need for Maples. Once you understand that you can actually then build out those models for deploy the models out the edge, where they will then work in that inference mode that we talked about, I will continuously sniff that data as it's coming and say, Hey, which are the, are we experiencing those conditions that PR that predicted the need for maintenance? If so, let's take real-time action, right? >>Let's schedule a work order or an equipment maintenance work order in the past, let's in the future, let's order the parts ahead of time before that piece of equipment fails and allows us to be very, very proactive. So, you know, we have, this is a, one of the Mo the most popular use cases we're seeing in terms of connecting connected manufacturing. And we're working with many different manufacturers around the world. I want to just highlight. One of them is I thought it's really interesting. This company is bought for Russia, for SIA, for ACA is the, um, is the, was, is the, um, the, uh, a supplier associated with Peugeot central line out of France. They are huge, right? This is a multi-national automotive parts and systems supplier. And as you can see, they operate in 300 sites in 35 countries. So very global, they connected 2000 machines, right. >>Um, and then once be able to take data from that. They started off with learning how to ingest the data. They started off very well with, um, you know, with, uh, manufacturing control towers, right? To be able to just monitor data firms coming in, you know, monitor the process. That was the first step, right. Uh, and, you know, 2000 machines, 300 different variables, things like, um, vibration pressure temperature, right? So first let's do performance monitoring. Then they said, okay, let's start doing machine learning on some of these things to start to build out things like equipment, um, predictive maintenance models or compute. And what they really focused on is computer vision while the inspection. So let's take pictures of, um, parts as they go through a process and then classify what that was this picture associated with the good or bad Bali outcome. Then you teach the machine to make that decision on its own. >>So now, now the machine, the camera is doing the inspections. And so they both had those machine learning models. They took that data, all this data was on-prem, but they pushed that data up to the cloud to do the machine learning models, develop those machine learning models. Then they push the machine learning models back into the plants where they, where they could take real-time actions through these computer vision, quality inspections. So great use case. Um, great example of how you can start with monitoring, moved to machine learning, but at the end of the day, or improving quality and improving, um, uh, equipment uptime. And that is the goal of most manufacturers. So with that being said, um, I would like to say, if you want to learn some more, um, we've got a wealth of information on our website. You see the URL in front of you, please go there and you'll learn. There's a lot of information there in terms of the use cases that we're seeing in manufacturing, a lot more detail, and a lot more talk about a lot more customers we'll work with. If you need that information, please do find it. Um, with that, I'm going to turn it over to Dave, to Steve. I think you had some questions you want to run by. >>I do, Michael, thank you very much for that. And before I get into the questions, I just wanted to sort of make some observations that was, you know, struck by what you're saying about the phases of industry. We talk about industry 4.0, and my observation is that, you know, traditionally, you know, machines have always replaced humans, but it's been around labor and, and the difference with 4.0, and what you talked about with connecting equipment is you're injecting machine intelligence. Now the camera inspection example, and then the machines are taking action, right? That's, that's different and, and is a really new kind of paradigm here. I think the, the second thing that struck me is, you know, the cost, you know, 20% of, of sales and plant downtime costing, you know, many tens of billions of dollars a year. Um, so that was huge. I mean, the business case for this is I'm going to reduce my expected loss quite dramatically. >>And then I think the third point, which we turned in the morning sessions, and the main stage is really this, the world is hybrid. Everybody's trying to figure out hybrid, get hybrid, right. And it certainly applies here. Uh, this is, this is a hybrid world you've got to accommodate, you know, regardless of, of where the data is. You've gotta be able to get to it, blend it, enrich it, and then act on it. So anyway, those are my big, big takeaways. Um, so first question. So in thinking about implementing connected manufacturing initiatives, what are people going to run into? What are the big challenges that they're going to, they're going to hit, >>You know, there's, there's, there, there's a few of the, but I think, you know, one of the ones, uh, w one of the key ones is bridging what we'll call the it and OT data divide, right. And what we mean by the it, you know, your, it systems are the ones, your ERP systems, your MES systems, right? Those are your transactional systems that run on relational databases and your it departments are brilliant, are running on that, right? The difficulty becomes an implementing these use cases that you also have to deal with operational technology, right? And those are, um, all of the, that's all the equipment in your manufacturing plant that runs on its proprietary network with proprietorial pro protocols. That information can be very, very difficult to get to. Right. So, and it's, it's a much more unstructured than from your OT. So th the key challenge is being able to bring these data sets together in a single place where you can start to do advanced analytics and leverage that diverse data to do machine learning. Right? So that is one of the, if I boil it down to the single hardest thing in this, uh, in this, in this type of environment, nectar manufacturing is that that operational technology has kind of run on its own in its own world. And for a long time, the silos, um, uh, the silos a, uh, bound, but at the end of the day, this is incredibly valuable data that now can be tapped, um, um, to, to, to, to move those, those metrics we talked about right around quality and uptime. So a huge, >>Well, and again, this is a hybrid team and you, you've kind of got this world, that's going toward an equilibrium. You've got the OT side and, you know, pretty hardcore engineers. And we know, we know it. A lot of that data historically has been analog data. Now it's getting, you know, instrumented and captured. Uh, so you've got that, that cultural challenge. And, you know, you got to blend those two worlds. That's critical. Okay. So, Michael, let's talk about some of the use cases you touched on, on some, but let's peel the onion a bit when you're thinking about this world of connected manufacturing and analytics in that space, when you talk to customers, you know, what are the most common use cases that you see? >>Yeah, that's a good, that's a great question. And you're right. I did allude to a little bit earlier, but there really is. I want people to think about, there's a spectrum of use cases ranging from simple to complex, but you can get value even in the simple phases. And when I talk about the simple use cases, the simplest use cases really is really around monitoring, right? So in this, you monitor your equipment or monitor your processes, right? And you just make sure that you're staying within the bounds of your control plan, right. And this is much easier to do now. Right? Cause some of these sensors are a more sensors and those sensors are moving more and more towards internet types of technology. So, Hey, you've got the opportunity now to be able to do some monitoring. Okay. No machine learning, but just talking about simple monitoring next level down, and we're seeing is something we would call quality event forensic analysis. >>And now on this one, you say, imagine I've got warranty plans in the, in the field, right? So I'm starting to see warranty claims kick up. And what you simply want to be able to do is do the forensic analysis back to what was the root cause of within the manufacturing process that caused it. So this is about connecting the dots. What about warranty issues? What were the manufacturing conditions of the day that caused it? Then you could also say which other tech, which other products were impacted by those same conditions. And we call those proactively rather than, and, and selectively rather than say, um, recalling an entire year's fleet of the car. So, and that, again, also not machine learning, we're simply connecting the dots from a warranty claims in the field to the manufacturing conditions of the day, so that you could take corrective actions, but then you get into a whole slew of machine learning, use dates, you know, and that ranges from things like Wally or say yield optimization. >>We start to collect sensor values and, um, manufacturing yield, uh, values from your ERP system. And you're certain start to say, which, um, you know, which on a sensor values or factors drove good or bad yield outcomes, and you can identify those factors that are the most important. So you, um, you, you measure those, you monitor those and you optimize those, right. That's how you optimize your, and then you go down to the more traditional machine learning use cases around predictive maintenance. So the key point here, Dave is, look, there's a huge, you know, depending on a customer's maturity around big data, you could start simply with, with monitoring, get a lot of value, start then bringing together more diverse data sets to do things like connect the.analytics then and all the way then to, to, to the more advanced machine learning use cases, there's this value to be had throughout. >>I remember when the, you know, the it industry really started to think about, or in the early days, you know, IOT and IOT. Um, it reminds me of when, you know, there was, uh, the, the old days of football field, we were grass and, and the new player would come in and he'd be perfectly white uniform, and you had it. We had to get dirty as an industry, you know, it'll learn. And so, so I question it relates to other technology partners that you might be working with that are maybe new in this space that, that to accelerate some of these solutions that we've been talking about. >>Yeah. That's a great question. And it kind of goes back to one of the things I alluded to alluded upon earlier. We've had some great partners, a partner, for example, litmus automation, whose whole world is the OT world. And what they've done is for example, they built some adapters to be able to catch it practically every industrial protocol. And they've said, Hey, we can do that. And then give a single interface of that data to the Idera data platform. So now, you know, we're really good at ingesting it data and things like that. We can leverage say a company like litmus that can open the flood gates of that OT data, making it much easier to get that data into our platform. And suddenly you've got all the data you need to, to, to implement those types of, um, industry for porno, our analytics use cases. And it really boils down to, can I get to that? Can I break down that it OT, um, you know, uh, a barrier that we've always had and, and bring together those data sets that we can really move the needle in terms of improving manufacturing performance. >>Okay. Thank you for that last question. Speaking to moving the needle, I want to li lead this discussion on the technology advances. I'd love to talk tech here. Uh, what are the key technology enablers and advancers, if you will, that are going to move connected manufacturing and machine learning forward in this transportation space. Sorry, manufacturing. Yeah. >>Yeah. I know in the manufacturing space, there's a few things, first of all, I think the fact that obviously I know we touched upon this, the fact that sensor prices have come down and have become ubiquitous that number one, we can, we've finally been able to get to the OT data, right? That's that's number one, you know, numb number two, I think, you know, um, we, we have the ability that now to be able to store that data a whole lot more efficiently, you know, we've got, we've got great capabilities to be able to do that, to put it over into the cloud, to do the machine learning types of workloads. You've got things like if you're doing computer vision, while in analyst respect GPU's to make those machine learning models much more, uh, much more effective, if that 5g technology that starts to blur at least from a latency perspective where you do your computer, whether it be on the edge or in the cloud, you've, you've got more, the super business critical stuff. >>You probably don't want to rely on, uh, any type of network connection, but from a latency perspective, you're starting to see, uh, you know, the ability to do compute where it's the most effective now. And that's really important. And again, the machine learning capabilities, and they believed a book to build a GP, you know, GPU level machine learning, build out those models and then deployed by over the air updates to, to your equipment. All of those things are making this, um, there's, you know, the advanced analytics and machine learning, uh, data life cycle just faster and better. And at the end of the day, to your point, Dave, that equipment and processor getting much smarter, uh, very much more quickly. Yeah, we got >>A lot of data and we have way lower cost, uh, processing platforms I'll throw in NP use as well. Watch that space neural processing units. Okay. Michael, we're going to leave it there. Thank you so much. Really appreciate your time, >>Dave. I really appreciate it. And thanks. Thanks for, uh, for everybody who joined us. Thanks. Thanks for joining today. Yes. Thank you for watching. Keep it right there.

>>Hi today, I'm going to talk about network analytics and what that means for, for telecommunications as we go forward. Um, thinking about, uh, 5g, what the impact that's likely to have on, on network analytics and the data requirement, not just to run the network and to understand the network a little bit better. Um, but also to, to inform the rest of the operation of the telecommunications business. Um, so as we think about where we are in terms of network analytics and what that is over the last 20 years, the telecommunications industry has evolved its management infrastructure, uh, to abstract away from some of the specific technologies in the network. So what do we mean by that? Well, uh, in the, in the initial, uh, telecommunications networks were designed, there were management systems that were built in, um, eventually fault management systems, uh, assurance systems, provisioning systems, and so on were abstracted away. >>So it didn't matter what network technology had, whether it was a Nokia technology or Erickson technology or Huawei technology or whatever it happened to be. You could just look at your fault management system, understand where false, what happened as we got into the last sort of 10, 15 years or so. Telecommunication service providers become became more sophisticated in terms of their approach to data analytics and specifically network analytics, and started asking questions about why and what if in relation to their network performance and network behavior. And so network analytics as a, as a bit of an independent function was born and over time, more and more data began to get loaded into the network analytics function. So today just about every carrier in the world has a network analytics function that deals with vast quantities of data in big data environments that are now being migrated to the cloud. >>As all telecommunications carriers are migrating as many it workloads as possible, um, to the cloud. So what are the things that are happening as we migrate to the cloud that drive, uh, uh, enhancements in use cases and enhancements and scale, uh, in telecommunications network analytics? Well, 5g is the big thing, right? So 5g, uh, it's not just another G in that sense. I mean, in some cases, in some senses, it is 5g means greater bandwidth, lower latency and all those good things. So, you know, we can watch YouTube videos with less interference and, and less sluggish bandwidth and so on and so forth. But 5g is really about the enterprise and enterprise services. Transformation, 5g is more secure, kind of a network, but 5g is also a more pervasive network 5g, a fundamentally different network topology than previous generations. So there's going to be more masts and that means that you can have more pervasive connectivity. >>Uh, so things like IOT and edge applications, autonomous cars, smart cities, these kinds of things, um, are all much better served because you've got more masks that of course means that you're going to have a lot more data as well. And we'll get to that. The second piece is immersive digital services. So with more masks, with more connectivity, with lower latency with higher man, the potential, uh, is, is, is, is immense for services innovation. And we don't know what those services are going to be. We know that technologies like augmented reality, virtual reality, things like this have great potential. Um, but we, we have yet to see where those commercial applications are going to be, but the innovation and the innovation potential for 5g is phenomenal. Um, it certainly means that we're going to have a lot more, uh, edge devices, um, uh, and that again is going to lead to an increase in the amount of data that we have available. >>And then the idea of pervasive connectivity when it comes to smart, smart cities, uh, autonomous, autonomous currents, um, uh, integrated traffic management systems, um, all of this kind of stuff, those of those kind of smart environments thrive where you've got this kind of pervasive connectivity, this persistent, uh, connection to the network. Um, again, that's going to drive, um, um, uh, more innovation. And again, because you've got these new connected devices, you're going to get even more data. So this rise, this exponential rise in data is really what's driving the change in, in network analytics. And there are four major vectors that are driving this increase in data in terms of both volume and in terms of speed. So the first is more physical elements. So we said already that 5g networks are going to have a different apology. 5g networks will have more devices, more and more masks. >>Um, and so with more physical elements in the network, you're going to get more physical data coming off those physical networks. And so that needs to be aggregated and collected and managed and stored and analyzed and understood when, so that we can, um, have a better understanding as to why things happened the way they do, why the network behaves in which they do in, in, in, in ways that it does and why devices that are connected to the network. And ultimately of course, consumers, whether they be enterprises or retail customers, um, behave in the way they do in relation to their interaction within our edge nodes and devices, we're going to have a, uh, an explosion in terms of the number of devices. We've already seen IOT devices with your different kinds of trackers and, uh, and, and sensors that are hanging off the edge of the network, whether it's to make buildings smarter car smarter, or people smarter, um, in, in terms of having the, the, the measurements and the connectivity and all that sort of stuff. >>So the numbers of devices on the agent beyond the age, um, are going to be phenomenal. One of the things that we've been trying to with as an industry over the last few years is where does the telco network end, and where does the enterprise, or even the consumer network begin. You used to be very clear that, you know, the telco network ended at the router. Um, but now it's not, it's not that clear anymore because in the enterprise space, particularly with virtualized networking, which we're going to talk about in a second, um, you start to see end to end network services being deployed. Um, uh, and so are they being those services in some instances are being managed by the service provider themselves, and in some cases by the enterprise client, um, again, the line between where the telco network ends and where the enterprise or the consumer network begins, uh, is not clear. >>Uh, so, so those edge, the, the, the proliferation of devices at the age, um, uh, in terms of, um, you know, what those devices are, what the data yield is and what the policies are, their need to govern those devices, um, in terms of security and privacy, things like that, um, that's all going to be really, really important virtualized services. We just touched on that briefly. One of the big, big trends that's happening right now is not just the shift of it operations onto the cloud, but the shift of the network onto the cloud, the virtualization of network infrastructure, and that has two major impacts. First of all, it means that you've got the agility and all of the scale, um, uh, benefits that you get from migrating workloads to the cloud, the elasticity and the growth and all that sort of stuff. But arguably more importantly for the telco, it means that with a virtualized network infrastructure, you can offer entire networks to enterprise clients. >>So if you're selling to a government department, for example, is looking to stand up a system for certification of, of, you know, export certification, something like that. Um, you can not just sell them the connectivity, but you can sell them the networking and the infrastructure in order to serve that entire end to end application. You could sentence, you could offer them in theory, an entire end-to-end communications network, um, and with 5g network slicing, they can even have their own little piece of the 5g bandwidth that's been allocated against the carrier, um, uh, and, and have a complete end to end environment. So the kinds of services that can be offered by telcos, um, given virtualize network infrastructure, uh, are, are many and varied. And it's a, it's a, it's a, um, uh, an outstanding opportunity. But what it also means is that the number of network elements virtualized in this case is also exploding. >>That means the amount of data that we're getting on, uh, informing us as to how those network elements are behaving, how they're performing, um, uh, is, is, is going to go up as well. And then finally, AI complexity. So on the demand side, um, while historically, uh, um, network analytics, big data, uh, has been, has been driven by, um, returns in terms of data monetization, uh, whether that's through cost avoidance, um, or service assurance, uh, or even revenue generation through data monetization and things like that. AI is transforming telecommunications and every other industry, the potential for autonomous operations, uh, is extremely attractive. And so understanding how the end-to-end telecommunication service delivering delivery infrastructure works, uh, is essential, uh, as a training ground for AI models that can help to automate a huge amount of telecommunications operating, um, processes. So the AI demand for data is just going through the roof. >>And so all of these things combined to mean big data is getting explosive. It is absolutely going through the roof. So that's a huge thing that's happening. So as telecommunications companies around the world are looking at their network analytics infrastructure, which was initially designed for service insurance primarily, um, and how they migrate that to the cloud. These things are impacting on those decisions because you're not just looking at migrating a workload to operate in the cloud that used to work in the, in the data center. Now you're looking at, um, uh, migrating a workload, but also expanding the use cases in that work and bear in mind, many of those, those are going to need to remain on prem. So they'll need to be within a private cloud or at best a hybrid cloud environment in order to satisfy a regulatory jurisdictional requirements. So let's talk about an example. >>So LGU plus is a Finastra fantastic service provider in Korea. Um, huge growth in that business over the last, uh, over the last 10, 15 years or so. Um, and obviously most people will be familiar with LG, the electronics brand, maybe less so with, uh, with LG plus, but they've been doing phenomenal work. And we're the first, uh, business in the world who launch commercial 5g in 2019. And so a huge milestone that they achieved. And at the same time they deploy the network real-time analytics platform or in rep, uh, from a combination of Cloudera and our partner calmer. Now, um, there were a number of things that were driving, uh, the requirement for it, for the, for the analytics platform at the time. Um, clearly the 5g launch was that was the big thing that they had in mind, but there were other things that re so within the 5g launch, um, uh, they were looking for, for visibility of services, um, and service assurance and service quality. >>So, you know, what services have been launched? How are they being taken up? What are the issues that are arising, where are the faults happening? Um, where are the problems? Because clearly when you launch a new service, but then you want to understand and be on top of the issues as they arise. Um, so that was really, really important. The second piece was, and, you know, this is not a new story to any telco in the world, right. But there are silos in operation. Uh, and so, um, taking advantage of, um, or eliminating redundancies through the process, um, of, of digital transformation, it was really important. And so particular, the two silos between wired and the wireless sides of the business come together so that there would be an integrated network management system, um, for, uh, for LGU plus, as they rolled out 5g. So eliminating redundancy and driving cost savings through the, the integration of the silos is really, really important. >>And that's a process and the people thing every bit, as much as it is a systems and a data thing. So, um, another big driver and the fourth one, you know, we've talked a little bit about some of these things, right? 5g brings huge opportunity for enterprise services, innovation. So industry 4.0 digital experience, these kinds of use cases, um, are very important in the south Korean marketing and in the, um, in the business of LGU plus. And so, uh, um, looking at AI and how can you apply AI to network management? Uh, again, there's a number of use cases, really, really exciting use cases that have gone live now, um, in LG plus since, uh, since we did this initial deployment and they're making fantastic strides there, um, big data analytics for users across LGU plus, right? So it's not just for, um, uh, it's not just for the immediate application of 5g or the support or the 5g network. >>Um, but also for other data analysts and data scientists across the LGU plus business network analytics, while primarily it's primary it's primary use case is around network management, um, LGU plus, or, or network analytics, um, has applications across the entire business, right? So, um, you know, for customer churn or next best offer for understanding customer experience and customer behavior really important there for digital advertising, for product innovation, all sorts of different use cases and departments within the business needed access to this information. So collaboration sharing across the network, the real-time network analytics platform, um, it was very important. And then finally, as I mentioned, LG group is much bigger than just LG plus it's because the electronics and other pieces, and they had launched a major group wide digital transformation program in 2019, and still being a part of that was, well, some of them, the problems that they were looking to address. >>Um, so first of all, the integration of wired and wireless data service data sources, and so getting your assurance data sources, your network, data sources, uh, and so on integrated with is really, really important scale was massive for them. Um, you know, they're talking about billions of transactions in under a minute, uh, being processed, um, and hundreds of terabytes per day. So, uh, you know, phenomenal scale, uh, that needed to be available out of the box as it were, um, real time indicators and alarms. And there was lots of KPIs and thresholds set that, you know, w to make, make it to meet certain criteria, certain standards, um, customer specific, real time analysis of 5g, particularly for the launch root cause analysis, an AI based prediction on service, uh, anomalies and service service issues was, was, was a core use case. Um, as I talked about already the provision of service of data services across the organization, and then support for 5g, uh, served the business service, uh, impact, uh, was extremely important. >>So it's not just understand well, you know, that you have an outage in a particular network element, but what is the impact on the business of LGU plus, but also what is the impact on the business of the customer, uh, from an outage or an anomaly or a problem on, on, on the network. So being able to answer those kinds of questions really, really important, too. And as I said, between Cloudera and Kamarck, uh, uh, and LGU plus, uh, really themselves an intrinsic part of the solution, um, uh, this is, this is what we, we ended up building. So a big complicated architecture space. I really don't want to go into too much detail here. Um, uh, you can see these things for yourself, but let me skip through it really quickly. So, first of all, the key data sources, um, you have all of your wireless network information, other data sources. >>This is really important because sometimes you kind of skip over this. There are other systems that are in place like the enterprise data warehouse that needed to be integrated as well, southbound and northbound interfaces. So we get our data from the network and so on, um, and network management applications through file interfaces. CAFCA no fire important technologies. And also the RDBMS systems that, uh, you know, like the enterprise data warehouse that we're able to feed that into the system. And then northbound, um, you know, we spoke already about me making network analytics services available across the enterprise. Um, so, uh, you know, uh, having both the file and the API interface available, um, for other systems and other consumers across the enterprise is very important. Um, lots of stuff going on then in the platform itself to petabytes and persistent storage, um, Cloudera HDFS, 300 nodes for the, the raw data storage, um, uh, and then, uh, could do for real time storage for real-time indicator analysis, alarm generation, um, uh, and other real time, um, processes. >>Uh, so there, that was the, the core of the solution, uh, spark processes for ETL key quality indicators and alarming, um, and also a bunch of work done around, um, data preparation, data generation for transferal to, to third party systems, um, through the northbound interfaces, um, uh, Impala, API queries, um, for real-time systems, uh, there on the right hand side, and then, um, a whole bunch of clustering classification, prediction jobs, um, through the, uh, the, the, the, the ML processes, the machine learning processes, uh, again, another key use case, and we've done a bunch of work on that. And, um, I encourage you to have a look at the Cloudera website for more detail on some of the work that we did here. Um, so this is some pretty cool stuff. Um, and then finally, just the upstream services, some of these there's lots more than, than, than simply these ones, but service assurance is really, really important. So SQM cm and SED grade. So the service quality management customer experience, autonomous controllers, uh, really, really important consumers of, of the, of the real-time analytics platform, uh, and your conventional service assurance, um, functions like faulted performance management. Uh, these things are as much consumers of the information and the network analytics platform as they are providers of data to the network, uh, analytics >>Platform. >>Um, so some of the specific use cases, uh, that, uh, have been, have been stood up and that are delivering value to this day and lots of more episodes, but these are just three that we pulled out. Um, so first of all, um, uh, sort of specific monitoring and customer quality analysis, Karen response. So again, growing from the initial 5g launch and then broadening into broader services, um, understanding where there are the, where there are issues so that when people complaining, when people have an issue, um, that, um, uh, that we can answer the, the concerns of the client, um, in a substantive way, um, uh, AI functions around root cause analysis or understanding why things went wrong when they went wrong. Um, uh, and also making recommendations as to how to avoid those occurrences in the future. Uh, so we know what preventative measures can be taken. Um, and then finally the, uh, the collaboration function across LGU plus extremely important and continues to be important to this day where data is shared throughout the enterprise, through the API Lira through file interfaces and other things, and through interface integrations with, uh, with upstream systems. >>So, um, that's kind of the, the, uh, real quick run through of LGU plus the numbers are just stave staggering. Um, you know, we've seen, uh, upwards of a billion transactions in under 40 seconds being, um, uh, being tested. Um, and, and we've gone beyond those thresholds now, already, um, and we're started and, and, and, and this isn't just a theoretical sort of a benchmarking test or something like that. We're seeing these kinds of volumes of data and not too far down the track. So, um, with those things that I mentioned earlier with the proliferation of, of, um, of network infrastructure, uh, in the 5g context with virtualized elements, with all of these other bits and pieces are driving massive volumes of data towards the, uh, the, the, the network analytics platform. So phenomenal scale. Um, this is just one example we work with, with service providers all over the world is over 80% of the top 100 telecommunication service providers run on Cloudera. >>They use Cloudera in the network, and we're seeing those customers, all migrating legacy cloud platforms now onto CDP onto the Cloudera data platform. Um, they're increasing the, the, the jobs that they do. So it's not just warehousing, not just ingestion ETL, and moving into things like machine learning. Um, and also looking at new data sources from places like NWTF the network data analytics function in 5g, or the management and orchestration layer in, in software defined networks, network, function, virtualization. So, you know, new use cases coming in all the time, new data sources coming in all the time growth in, in, in, in the application scope from, as we say, from edge to AI. Um, and so it's, it's really exciting to see how the, the, the, the footprint is growing and how, uh, the applications in telecommunications are really making a difference in, in facilitating, um, network transformation. And that's covering that. That's me covered for today. I hope you found that helpful, um, by all means, please reach out, uh, there's a couple of links here. You can follow me on Twitter. You can connect to the telecommunications page, reach out to me directly at Cloudera. I'd love to answer your questions, um, uh, and, uh, and talk to you about how big data is transforming networks, uh, and how network transformation is, is accelerating telcos, uh, throughout >>Jamie Sharath with Liga data, I'm primarily on the delivery side of the house, but I also support our new business teams. I'd like to spend a minute really just kind of telling you about the legal data, where basically a Silicon valley startup, uh, started in 2014, and, uh, our lead iron, our executive team, basically where the data officers at Yahoo before this, uh, we provide managed data services, and we provide products that are focused on telcos. So we have some experience in non telco industry, but our focus for the last seven years or so is specifically on telco. So again, something over 200 employees, we have a global presence in north America, middle east Africa, Asia, and Europe. And we have folks in all of those places, uh, I'd like to call your attention to the, uh, the middle really of the screen there. So here is where we have done some partnership with Cloudera. >>So if you look at that and you can see we're in Holland and Jamaica, and then a lot to throughout Africa as well. Now, the data fabric is the product that we're talking about. And the data fabric is basically a big data type of data warehouse with a lot of additional functionality involved. The data fabric is comprised of, uh, some something called a flare, which we'll talk about in a minute below there, and then the Cloudera data platform underneath. So this is how we're partnering together. We, uh, we, we have this tool and it's, uh, it's functioning and delivering in something over 10 up. So flare now, flare is a piece of that legal data IP. The rest is there. And what flare does is that basically pulls in data, integrates it to an event streaming platform. It's, uh, it is the engine behind the data fabric. >>Uh, it's also a decisioning platform. So in real time, we're able to pull in data. We're able to run analytics on it, and we're able to alert are, do whatever is needed in a real-time basis. Of course, a lot of clients at this point are still sending data in batch. So it handles that as well, but we call that a CA picture Sanchez. Now Sacho is a very interesting app. It's an AI analytics app for executives. What it is is it runs on your mobile phone. It ties into your data. Now this could be the data fabric, but it couldn't be a standalone product. And basically it allows you to ask, you know, human type questions to say, how are my gross ads last week? How are they comparing against same time last week before that? And even the same time 60 days ago. So as an executive or as an analyst, I can pull it up and I can look at it instantly in a meeting or anywhere else without having to think about queries or anything like that. >>So that's pretty much for us at legal data, not really to set the context of where we are. So this is a traditional telco environments. So you see the systems of record, you see the cloud, you see OSS and BSS data. So one of the things that the next step above which calls we call the system of intelligence of the data fabric does, is it mergers that BSS and OSS data. So the longer we have any silos or anything that's separated, it's all coming into one area to allow business, to go in or allow data scientists go in and do that. So if you look at the bottom line, excuse me, of the, uh, of the system of intelligence, you can see that flare is the tools that pulls in the data. So it provides even streaming capabilities. It preserves entity states, so that you can go back and look at it state at any time. >>It does stream analytics that is as the data is coming in, it can perform analytics on it. And it also allows real-time decisioning. So that's something that, uh, that's something that business users can go in and create a system of, uh, if them's, it looks very much like the graph database, where you can create a product that will allow the user to be notified if a certain condition happens. So for instance, a bundle, so a real-time offer or user is succinct to run out of is ongoing, and an offer can be sent to him right on the fly. And that's set up by the business user as opposed to programmers, uh, data infrastructure. So the fabric has really three areas. That data is persistent, obviously there's the data lake. So the data lake stores that level of granularity that is very deep years and years of history, data, scientists like that, uh, and, uh, you know, for a historical record keeping and requirements from the government, that data would be stored there. >>Then there's also something we call the business semantics layer and the business semantics layer contains something over 650 specific telco KPIs. These are initially from PM forum, but they also are included in, uh, various, uh, uh, mobile operators that we've delivered at. And we've, we've grown that. So that's there for business data lake is there for data scientists, analytical stores, uh, they can be used for many different reasons. There are a lot of times RDBMS is, are still there. So these, this, this basically platform, this cloud they're a platform can tie into analytical data stores as well via flair access and reporting. So graphic visualizations, API APIs are a very key part of it. A third-party query tools, any kind of grid tools can be used. And those are the, of course, the, uh, the ones that are highly optimized and allow, you know, search of billions of records. >>And then if you look at the top, it's the systems of engagement, then you might vote this use cases. So teleco reporting, hundreds of KPIs that are, that are generated for users, segmentation, basically micro to macro segmentation, segmentation will play a key role in a use case. We talked about in a minute monetization. So this helps teleco providers monetize their specific data, but monetize it in. Okay, how to, how do they make money off of it, but also how might you leverage this data to engage with another client? So for instance, in some where it's allowed a DPI is used, and the fabric tracks exactly where each person goes each, uh, we call it a subscriber, goes within his, uh, um, uh, internet browsing on the, on the four or 5g. And, uh, the, all that data is stored. Uh, whereas you can tell a lot of things where the segment, the profile that's being used and, you know, what are they propensity to buy? Do they spend a lot of time on the Coca-Cola page? There are buyers out there that find that information very valuable, and then there's signs of, and we spoke briefly about Sanchez before that sits on top of the fabric or it's it's alone. >>So, so the story really that we want to tell is, is one, this is, this is one case out of it. This is a CVM type of case. So there was a mobile operator out there that was really offering, you know, packages, whether it's a bundle or whether it's a particular tool to subscribers, they, they were offering kind of an abroad approach that it was not very focused. It was not depending on the segments that were created around the profiling earlier, uh, the subscriber usage was somewhat dated and this was causing a lot of those. A lot of those offers to be just basically not taken and, and not, not, uh, audited. Uh, there was limited segmentation capabilities really before the, uh, before the, uh, fabric came in. Now, one of the key things about the fabric is when you start building segments, you can build that history. >>So all of that data stored in the data lake can be used in terms of segmentation. So what did we do about that? The, the, the envy and, oh, the challenge this, uh, we basically put the data fabric in and the data fabric was running Cloudera data platform and that, uh, and that's how we team up. Uh, we facilitated the ability to personalize campaign. So what that means is, uh, the segments that were built and that user fell within that segment, we knew exactly what his behavior most likely was. So those recommendations, those offers could be created then, and we enable this in real time. So real-time ability to even go out to the CRM system and gather further information about that. All of these tools, again, we're running on top of the Cloudera data platform, uh, what was the outcome? Willie, uh, outcome was that there was a much more precise offer given to the client that is, that was accepted, no increase in cross sell and upsell subscriber retention. >>Uh, our clients came back to us and pointed out that, uh, it was 183% year on year revenue increase. Uh, so this is a, this is probably one of the key use cases. Now, one thing to really mention is there are hundreds and hundreds of use cases running on the fabric. And I would even say thousands. A lot of those have been migrated. So when the fabric is deployed, when they bring the Cloudera and the legal data solution in there's generally a legacy system that has many use cases. So many of those were, were migrated virtually all of them in pen, on put on the cloud. Uh, another issue is that new use cases are enabled again. So when you get this level of granularity and when you have campaigns that can now base their offers on years of history, as opposed to 30 days of history, the campaigns campaign management response systems, uh, are, are, uh, are enabled quite a bit to do all, uh, to be precise in their offers. Okay. >>Okay. So this is a technical slide. Uh, one of the things that we normally do when we're, when we're out there talking to folks, is we talk and give an overview and that last little while, and then we give a deep technical dive on all aspects of it. So sometimes that deep dive can go a couple of hours. I'm going to do this slide and a couple of minutes. So if you look at it, you can see over on the left, this is the, uh, the sources of the data. And they go through this tool called flare that runs on the cloud. They're a data platform, uh, that can either be via cues or real-time cues, or it can be via a landing zone, or it can be a data extraction. You can take a look at the data quality that's there. So those are built in one of the things that flare does is it has out of the box ability to ingest data sources and to apply the data quality and validation for telco type sources. >>But one of the reasons this is fast to market is because throughout those 10 or 12, uh, opcos that we've done with Cloudera, where we have already built models, so models for CCN, for air for, for most mediation systems. So there's not going to be a type of, uh, input that we haven't already seen are very rarely. So that actually speeds up deployment very quickly. Then a player does the transformations, the, uh, the metrics, continuous learning, we call it continuous decisioning, uh, API access. Uh, we, uh, you know, for, for faster response, we use distributed cash. I'm not going to go too deeply in there, but the layer in the business semantics layer again, are, are sitting on top of the Cloudera data platform. You see the Kafka CLU, uh, Q1, the right as well. >>And all of that, we're calling the fabric. So the fabric is Cloudera data platform and the cloud and flair and all of this runs together. And, and by the way, there've been many, many, many, many hundreds of hours testing flare with Cloudera and, uh, and the whole process, the results, what are the results? Well, uh, there are, there are four I'm going to talk about, uh, we saw the one for the, it was called my pocket pocket, but it's a CDM type, a use case. Uh, the subscribers of that mobile operator were 14 million plus there was a use case for 24 million plus that a year on year revenue was 130%, uh, 32 million plus for 38%. These are, um, these are different CVM pipe, uh, use cases, as well as network use cases. And then there were 44%, uh, telco with 76 million subscribers. So I think that there are a lot more use cases that we could talk about, but, but in this case, this is the ones we're looking at, uh, again, 183%. This is something that we find consistently. And these figures come from our, uh, our actual end client. How do we unlock the full potential of this? Well, I think to start is to arrange a meeting and, uh, it would be great to, to, uh, for you to reach out to me or to Anthony. Uh, we're working at the junction on this, and we can set up a, uh, we can set up a meeting and we can go through this initial meeting. And, uh, I think that's the very beginning. Uh, again, you can get additional information from Cloudera website and from the league of data website, Anthony, that's the story. Thank you. >>No, that's great. Jeremy, thank you so much. It's a, it's, it's wonderful to go deep. And I know that there are hundreds of use cases being deployed in MTN, um, but great to go deep on one. And like you said, it can, once you get that sort of architecture in place, you can do so many different things. The power of data is tremendous, but it's great to be able to see how you can, how you can track it end to end from collecting the data, processing it, understanding it, and then applying it in a commercial context and bringing actual revenue back into the business. So there is your ROI straight away. Now you've got a platform that you can transform your business on. That's, that's, it's a tremendous story, Jamie, and thank you for your part. Sure. Um, that's a, that's, that's our story for today. Like Jamie says, um, please do flee, uh, feel free to reach out to us. Um, the, the website addresses are there and our contact details, and we'd be delighted to talk to you a little bit more about some of the other use cases, perhaps, um, and maybe about your own business and, uh, and how we might be able to make it, make it perform a little better. So thank you.

>>Hi, this is Cindy Mikey, vice president of industry solutions at caldera. Joining me today is chef is Molly, our solution engineer for the public sector. Today. We're going to talk about speed to insight. Why using machine learning in the public sector, specifically around fraud, waste and abuse. So topic for today, we'll discuss machine learning, why the public sector uses it to target fraud, waste, and abuse, the challenges. How do we enhance your data and analytical approaches the data landscape analytical methods and shad we'll go over reference architecture and a case study. So by definition, fraud, waste and abuse per the government accountability office is fraud. Isn't an attempt to obtain something about value through unwelcome misrepresentation waste is about squandering money or resources and abuse is about behaving improperly or unreasonably to actually obtain something of value for your personal benefit. So as we look at fraud, um, and across all industries, it's a top of mind, um, area within the public sector. >>Um, the types of fraud that we see is specifically around cyber crime, uh, looking at accounting fraud, whether it be from an individual perspective to also, uh, within organizations, looking at financial statement fraud, to also looking at bribery and corruption, as we look at fraud, it really hits us from all angles, whether it be from external perpetrators or internal perpetrators, and specifically from the research by PWC, the key focus area is we also see over half of fraud is actually through some form of internal or external, uh, perpetrators again, key topics. So as we also look at a report recently by the association of certified fraud examiners, um, within the public sector, the us government, um, in 2017, it was identified roughly $148 billion was attributable to fraud, waste and abuse. Specifically about 57 billion was focused on reported monetary losses and another 91 billion on areas where that opportunity or the monetary basis had not yet been measured. >>As we look at breaking those areas down again, we look at several different topics from permit out payment perspective. So breaking it down within the health system, over $65 billion within social services, over $51 billion to procurement fraud to also, um, uh, fraud, waste and abuse that's happening in the grants and the loan process to payroll fraud, and then other aspects, again, quite a few different topical areas. So as we look at those areas, what are the areas that we see additional type of focus, there's a broad stroke areas. What are the actual use cases that our agencies are using the data landscape? What data, what analytical methods can we use to actually help curtail and prevent some of the, uh, the fraud waste and abuse. So, as we look at some of the analytical processes and analytical use crate, uh, use cases in the public sector, whether it's from, uh, you know, the taxation areas to looking at, you know, social services, uh, to public safety, to also the, um, our, um, uh, additional agency methods, we're gonna use focused specifically on some of the use cases around, um, you know, fraud within the tax area. >>Uh, we'll briefly look at some of the aspects of, um, unemployment insurance fraud, uh, benefit fraud, as well as payment and integrity. So fraud has it it's, um, uh, underpinnings inquiry, like you different on government agencies and difficult, different analytical methods, and I usage of different data. So I think one of the key elements is, you know, you can look at your, your data landscape on specific data sources that you need, but it's really about bringing together different data sources across a different variety, a different velocity. So, uh, data has different dimensions. So we'll look at structured types of data of semi-structured data, behavioral data, as well as when we look at, um, you know, predictive models. We're typically looking at historical type information, but if we're actually trying to look at preventing fraud before it actually happens, or when a case may be in flight, which is specifically a use case that shad is going to talk about later is how do I look at more of that? >>Real-time that streaming information? How do I take advantage of data, whether it be, uh, you know, uh, financial transactions we're looking at, um, asset verification, we're looking at tax records, we're looking at corporate filings. Um, and we can also look at more, uh, advanced data sources where as we're looking at, um, investigation type information. So we're maybe going out and we're looking at, uh, deep learning type models around, uh, you know, semi or that, uh, behavioral, uh, that's unstructured data, whether it be camera analysis and so forth. So for quite a different variety of data and the, the breadth and the opportunity really comes about when you can integrate and look at data across all different data sources. So in a looking at a more extensive, uh, data landscape. So specifically I want to focus on some of the methods, some of the data sources and some of the analytical techniques that we're seeing, uh, being used, um, in the government agencies, as well as opportunities, uh, to look at new methods. >>So as we're looking at, you know, from a, um, an audit planning or looking at, uh, the opportunity for the likelihood of non-compliance, um, specifically we'll see data sources where we're maybe looking at a constituents profile, we might actually be investigating the forms that they've provided. We might be comparing that data, um, or leveraging internal data sources, possibly looking at net worth, comparing it against other financial data, and also comparison across other constituents groups. Some of the techniques that we use are some of the basic natural language processing, maybe we're going to do some text mining. We might be doing some probabilistic modeling, uh, where we're actually looking at, um, information within the agency to also comparing that against possibly tax forms. A lot of times it's information historically has been done on a batch perspective, both structured and semi-structured type information. And typically the data volumes can be low, but we're also seeing those data volumes on increase exponentially based upon the types of events that we're dealing with, the number of transactions. >>Um, so getting the throughput, um, and chef's going to specifically talk about that in a moment. The other aspect is, as we look at other areas of opportunity is when we're building upon, how do I actually do compliance? How do I actually look at conducting audits, uh, or potential fraud to also looking at areas of under-reported tax information? So there you might be pulling in some of our other types of data sources, whether it's being property records, it could be data that's being supplied by the actual constituents or by vendors to also pulling in social media information to geographical information, to leveraging photos on techniques that we're seeing used is possibly some sentiment analysis, link analysis. Um, how do we actually blend those data sources together from a natural language processing? But I think what's important here is also the method and the looking at the data velocity, whether it be batch, whether it be near real time, again, looking at all types of data, whether it's structured semi-structured or unstructured and the key and the value behind this is, um, how do we actually look at increasing the potential revenue or the, um, under reported revenue? >>Uh, how do we actually look at stopping fraudulent payments before they actually occur? Um, also looking at increasing the amount of, uh, the level of compliance, um, and also looking at the potential of prosecution of fraud cases. And additionally, other areas of opportunity could be looking at, um, economic planning. How do we actually perform some link analysis? How do we bring some more of those things that we saw in the data landscape on customer, or, you know, constituent interaction, bringing in social media, bringing in, uh, potentially police records, property records, um, other tax department, database information. Um, and then also looking at comparing one individual to other individuals, looking at people like a specific, like a constituent, are there areas where we're seeing, uh, >>Um, other >>Aspects of, of fraud potentially being occurring. Um, and also as we move forward, some of the more advanced techniques that we're seeing around deep learning is looking at computer vision, um, leveraging geospatial information, looking at social network entity analysis, uh, also looking at, uh, agent-based modeling techniques, where we're looking at simulation Monte Carlo type techniques that we typically see in the financial services industry, actually applying that to fraud, waste, and abuse within the, uh, the public sector. Um, and again, that really, uh, lends itself to a new opportunities. And on that, I'm going to turn it over to chef to talk about, uh, the reference architecture for, uh, doing these buckets. >>Thanks, Cindy. Um, so I'm gonna walk you through an example, reference architecture for fraud detection using, uh, Cloudera's underlying technology. Um, and you know, before I get into the technical details, uh, I want to talk about how this would be implemented at a much higher level. So with fraud detection, what we're trying to do is identify anomalies or novelists behavior within our datasets. Um, now in order to understand what aspects of our incoming data represents anomalous behavior, we first need to understand what normal behavior is. So in essence, once we understand normal behavior, anything that deviates from it can be thought of as an anomaly, right? So in order to understand what normal behavior is, we're going to need to be able to collect store and process a very large amount of historical data. And so incomes, clutters platform, and this reference architecture that needs to be for you. >>So, uh, let's start on the left-hand side of this reference architecture with the collect phase. So fraud detection will always begin with data collection. We need to collect large amounts of information from systems that could be in the cloud. It could be in the data center or even on edge devices, and this data needs to be collected so we can create our normal behavior profiles. And these normal behavioral profiles would then in turn, be used to create our predictive models for fraudulent activity. Now, uh, thinking, uh, to the data collection side, one of the main challenges that many organizations face, uh, in this phase, uh, involves using a single technology that can handle, uh, data that's coming in all different types of formats and protocols and standards with different velocities and velocities. Um, let me give you an example. Uh, we could be collecting data from a database that gets updated daily, uh, and maybe that data is being collected in Agra format. >>At the same time, we can be collecting data from an edge device that's streaming in every second, and that data may be coming in Jason or a binary format, right? So this is a data collection challenge that can be solved with cluttered data flow, which is a suite of technologies built on a patch NIFA in mini five, allowing us to ingest all of this data, do a drag and drop interface. So now we're collecting all of this data, that's required to map out normal behavior. The next thing that we need to do is enrich it, transform it and distribute it to, uh, you know, downstream systems for further process. Uh, so let's, let's walk through how that would work first. Let's taking Richmond for, uh, for enrichment, think of adding additional information to your incoming data, right? Let's take, uh, financial transactions, for example, uh, because Cindy mentioned it earlier, right? >>You can store known locations of an individual in an operational database, uh, with Cloudera that would be HBase. And as an individual makes a new transaction, their geolocation that's in that transaction data can be enriched with previously known locations of that very same individual. And all of that enriched data can be later used downstream for predictive analysis, predictable. So the data has been enrich. Uh, now it needs to be transformed. We want the data that's coming in, uh, you know, Avro and Jason and binary and whatever other format to be transformed into a single common format. So it can be used downstream for stream processing. Uh, again, this is going to be done through clutter and data flow, which is backed by NIFA, right? So the transformed semantic data is then going to be stricted to Kafka and coffin. It's going to serve as that central repository of syndicated services or a buffer zone, right? >>So coffee is going to pretty much provide you with, uh, extremely fast resilient and fault tolerance storage. And it's also gonna give you the consumer APIs that you need that are going to enable a wide variety of applications to leverage that enriched and transformed data within your buffer zone, uh, allowed that, you know, 17. So you can store that data in a distributed file system, give you that historical context that you're going to need later on for machine learning, right? So the next step in the architecture is to leverage a cluttered SQL stream builder, which enables us to write, uh, streaming SQL jobs on top of Apache Flink. So we can, uh, filter, analyze and, uh, understand the data that's in the Kafka buffer in real time. Uh I'll you know, I'll also add like, you know, if you have time series data, or if you need a lab type of cubing, you can leverage kudu, uh, while EDA or, you know, exploratory data analysis and visualization, uh, can all be enabled through clever visualization technology. >>All right, so we've filtered, we've analyzed and we've explored our incoming data. We can now proceed to train our machine learning models, uh, which will detect anomalous behavior in our historically collected data set, uh, to do this, we can use a combination of supervised unsupervised, uh, even deep learning techniques with neural networks. And these models can be tested on new incoming streaming data. And once we've gone ahead and obtain the accuracy of the performance, the scores that we want, we can then take these models and deploy them into production. And once the models are productionalized or operationalized, they can be leveraged within our streaming pipeline. So as new data is ingested in real-time knife, I can query these models to detect if the activity is anomalous or fraudulent. And if it is, they can alert downstream users and systems, right? So this in essence is how fraudulent activity detection works. >>Uh, and this entire pipeline is powered by clutters technology, right? And so, uh, the IRS is one of, uh, clutter's customers. That's leveraging our platform today and implementing, uh, a very similar architecture, uh, to detect fraud, waste, and abuse across a very large set of historical facts, data. Um, and one of the neat things with the IRS is that they've actually recently leveraged the partnership between Cloudera and Nvidia to accelerate their spark based analytics and their machine learning, uh, and the results have been nothing short of amazing, right? And in fact, we have a quote here from Joe and salty who's, uh, you know, the technical branch chief for the research analytics and statistics division group within the IRS with zero changes to our fraud detection workflow, we're able to obtain eight times to performance simply by adding GPS to our mainstream big data servers. This improvement translates to half the cost of ownership for the same workloads, right? So embedding GPU's into the reference architecture I covered earlier has enabled the IRS to improve their time to insights by as much as eight X while simultaneously reducing their underlying infrastructure costs by half, uh, Cindy back to you >>Chef. Thank you. Um, and I hope that you found, uh, some of the, the analysis, the information that Sheva and I have provided, um, to give you some insights on how cloud era is actually helping, uh, with the fraud waste and abuse challenges within the, uh, the public sector, um, specifically looking at any and all types of data, how the clutter platform is bringing together and analyzing information, whether it be you're structured you're semi-structured to unstructured data, both in a fast or in a real-time perspective, looking at anomalies, being able to do some of those on detection, uh, looking at neural network analysis, time series information. So next steps we'd love to have additional conversation with you. You can also find on some additional information around, I have caught areas working in the, the federal government by going to cloudera.com solutions slash public sector. And we welcome scheduling a meeting with you again, thank you for joining us Sheva and I today. We greatly appreciate your time and look forward to future progress. >>Good day, everyone. Thank you for joining me. I'm Sydney. Mike joined by Rick Taylor of Cloudera. Uh, we're here to talk about predictive maintenance for the public sector and how to increase assets, service, reliability on today's agenda. We'll talk specifically around how to optimize your equipment maintenance, how to reduce costs, asset failure with data and analytics. We'll go into a little more depth on, um, what type of data, the analytical methods that we're typically seeing used, um, the associated, uh, Brooke, we'll go over a case study as well as a reference architecture. So by basic definition, uh, predictive maintenance is about determining when an asset should be maintained and what specific maintenance activities need to be performed either based upon an assets of actual condition or state. It's also about predicting and preventing failures and performing maintenance on your time on your schedule to avoid costly unplanned downtime. >>McKinsey has looked at analyzing predictive maintenance costs across multiple industries and has identified that there's the opportunity to reduce overall predictive maintenance costs by roughly 50% with different types of analytical methods. So let's look at those three types of models. First, we've got our traditional type of method for maintenance, and that's really about our corrective maintenance, and that's when we're performing maintenance on an asset, um, after the equipment fails. But the challenges with that is we end up with unplanned. We end up with disruptions in our schedules, um, as well as reduced quality, um, around the performance of the asset. And then we started looking at preventive maintenance and preventative maintenance is really when we're performing maintenance on a set schedule. Um, the challenges with that is we're typically doing it regardless of the actual condition of the asset, um, which has resulted in unnecessary downtime and expense. Um, and specifically we're really now focused on pre uh, condition-based maintenance, which is looking at leveraging predictive maintenance techniques based upon actual conditions and real time events and processes. Um, within that we've seen organizations, um, and again, source from McKenzie have a 50% reduction in downtime, as well as an overall 40% reduction in maintenance costs. Again, this is really looking at things across multiple industries, but let's look at it in the context of the public sector and based upon some activity by the department of energy, um, several years ago, >>Um, they've really >>Looked at what does predictive maintenance mean to the public sector? What is the benefit, uh, looking at increasing return on investment of assets, reducing, uh, you know, reduction in downtime, um, as well as overall maintenance costs. So corrective or reactive based maintenance is really about performing once there's been a failure. Um, and then the movement towards, uh, preventative, which is based upon a set schedule or looking at predictive where we're monitoring real-time conditions. Um, and most importantly is now actually leveraging IOT and data and analytics to further reduce those overall downtimes. And there's a research report by the, uh, department of energy that goes into more specifics, um, on the opportunity within the public sector. So, Rick, let's talk a little bit about what are some of the challenges, uh, regarding data, uh, regarding predictive maintenance. >>Some of the challenges include having data silos, historically our government organizations and organizations in the commercial space as well, have multiple data silos. They've spun up over time. There are multiple business units and note, there's no single view of assets. And oftentimes there's redundant information stored in, in these silos of information. Uh, couple that with huge increases in data volume data growing exponentially, along with new types of data that we can ingest there's social media, there's semi and unstructured data sources and the real time data that we can now collect from the internet of things. And so the challenge is to collect all these assets together and begin to extract intelligence from them and insights and, and that in turn then fuels, uh, machine learning and, um, and, and what we call artificial intelligence, which enables predictive maintenance. Next slide. So >>Let's look specifically at, you know, the, the types of use cases and I'm going to Rick and I are going to focus on those use cases, where do we see predictive maintenance coming into the procurement facility, supply chain, operations and logistics. Um, we've got various level of maturity. So, you know, we're talking about predictive maintenance. We're also talking about, uh, using, uh, information, whether it be on a, um, a connected asset or a vehicle doing monitoring, uh, to also leveraging predictive maintenance on how do we bring about, uh, looking at data from connected warehouses facilities and buildings all bring on an opportunity to both increase the quality and effectiveness of the missions within the agencies to also looking at re uh, looking at cost efficiency, as well as looking at risk and safety and the types of data, um, you know, that Rick mentioned around, you know, the new types of information, some of those data elements that we typically have seen is looking at failure history. >>So when has that an asset or a machine or a component within a machine failed in the past? Uh, we've also looking at bringing together a maintenance history, looking at a specific machine. Are we getting error codes off of a machine or assets, uh, looking at when we've replaced certain components to looking at, um, how are we actually leveraging the assets? What were the operating conditions, uh, um, pulling off data from a sensor on that asset? Um, also looking at the, um, the features of an asset, whether it's, you know, engine size it's make and model, um, where's the asset located on to also looking at who's operated the asset, uh, you know, whether it be their certifications, what's their experience, um, how are they leveraging the assets and then also bringing in together, um, some of the, the pattern analysis that we've seen. So what are the operating limits? Um, are we getting service reliability? Are we getting a product recall information from the actual manufacturer? So, Rick, I know the data landscape has really changed. Let's, let's go over looking at some of those components. Sure. >>So this slide depicts sort of the, some of the inputs that inform a predictive maintenance program. So, as we've talked a little bit about the silos of information, the ERP system of record, perhaps the spares and the service history. So we want, what we want to do is combine that information with sensor data, whether it's a facility and equipment sensors, um, uh, or temperature and humidity, for example, all this stuff is then combined together, uh, and then use to develop machine learning models that better inform, uh, predictive maintenance, because we'll do need to keep, uh, to take into account the environmental factors that may cause additional wear and tear on the asset that we're monitoring. So here's some examples of private sector, uh, maintenance use cases that also have broad applicability across the government. For example, one of the busiest airports in Europe is running cloud era on Azure to capture secure and correlate sensor data collected from equipment within the airport, the people moving equipment more specifically, the escalators, the elevators, and the baggage carousels. >>The objective here is to prevent breakdowns and improve airport efficiency and passenger safety. Another example is a container shipping port. In this case, we use IOT data and machine learning, help customers recognize how their cargo handling equipment is performing in different weather conditions to understand how usage relates to failure rates and to detect anomalies and transport systems. These all improve for another example is Navistar Navistar, leading manufacturer of commercial trucks, buses, and military vehicles. Typically vehicle maintenance, as Cindy mentioned, is based on miles traveled or based on a schedule or a time since the last service. But these are only two of the thousands of data points that can signal the need for maintenance. And as it turns out, unscheduled maintenance and vehicle breakdowns account for a large share of the total cost for vehicle owner. So to help fleet owners move from a reactive approach to a more predictive model, Navistar built an IOT enabled remote diagnostics platform called on command. >>The platform brings in over 70 sensor data feeds for more than 375,000 connected vehicles. These include engine performance, trucks, speed, acceleration, cooling temperature, and break where this data is then correlated with other Navistar and third-party data sources, including weather geo location, vehicle usage, traffic warranty, and parts inventory information. So the platform then uses machine learning and advanced analytics to automatically detect problems early and predict maintenance requirements. So how does the fleet operator use this information? They can monitor truck health and performance from smartphones or tablets and prioritize needed repairs. Also, they can identify that the nearest service location that has the relevant parts, the train technicians and the available service space. So sort of wrapping up the, the benefits Navistar's helped fleet owners reduce maintenance by more than 30%. The same platform is also used to help school buses run safely. And on time, for example, one school district with 110 buses that travel over a million miles annually reduce the number of PTOs needed year over year, thanks to predictive insights delivered by this platform. >>So I'd like to take a moment and walk through the data. Life cycle is depicted in this diagram. So data ingest from the edge may include feeds from the factory floor or things like connected vehicles, whether they're trucks, aircraft, heavy equipment, cargo vessels, et cetera. Next, the data lands on a secure and governed data platform. Whereas combined with data from existing systems of record to provide additional insights, and this platform supports multiple analytic functions working together on the same data while maintaining strict security governance and control measures once processed the data is used to train machine learning models, which are then deployed into production, monitored, and retrained as needed to maintain accuracy. The process data is also typically placed in a data warehouse and use to support business intelligence, analytics, and dashboards. And in fact, this data lifecycle is representative of one of our government customers doing condition-based maintenance across a variety of aircraft. >>And the benefits they've discovered include less unscheduled maintenance and a reduction in mean man hours to repair increased maintenance efficiencies, improved aircraft availability, and the ability to avoid cascading component failures, which typically cost more in repair cost and downtime. Also, they're able to better forecast the requirements for replacement parts and consumables and last, and certainly very importantly, this leads to enhanced safety. This chart overlays the secure open source Cloudera platform used in support of the data life cycle. We've been discussing Cloudera data flow, the data ingest data movement and real time streaming data query capabilities. So data flow gives us the capability to bring data in from the asset of interest from the internet of things. While the data platform provides a secure governed data lake and visibility across the full machine learning life cycle eliminates silos and streamlines workflows across teams. The platform includes an integrated suite of secure analytic applications. And two that we're specifically calling out here are Cloudera machine learning, which supports the collaborative data science and machine learning environment, which facilitates machine learning and AI and the cloud era data warehouse, which supports the analytics and business intelligence, including those dashboards for leadership Cindy, over to you, Rick, >>Thank you. And I hope that, uh, Rick and I provided you some insights on how predictive maintenance condition-based maintenance is being used and can be used within your respective agency, bringing together, um, data sources that maybe you're having challenges with today. Uh, bringing that, uh, more real-time information in from a streaming perspective, blending that industrial IOT, as well as historical information together to help actually, uh, optimize maintenance and reduce costs within the, uh, each of your agencies, uh, to learn a little bit more about Cloudera, um, and our, what we're doing from a predictive maintenance please, uh, business@cloudera.com solutions slash public sector. And we look forward to scheduling a meeting with you, and on that, we appreciate your time today and thank you very much.

>>Uh, hi, I'm Joe Rodriguez, managing director of financial services at Cloudera. Uh, welcome to the fight fraud with a data session, uh, at Cloudera, we believe that fighting fraud with, uh, uh, begins with data. Um, so financial services is Cloudera's largest industry vertical. We have approximately 425 global financial services customers, uh, which consists of 82 out of a hundred of the largest global banks of which we have 27 that are globally systemic banks, uh, four out of the five top, uh, stock exchanges, uh, eight out of the top 10 wealth management firms and all four of the top credit card networks. So as you can see most financial services institutions, uh, utilize Cloudera for data analytics and machine learning, uh, we also have over 20 central banks and a dozen or so financial regulators. So it's an incredible footprint which gives Cloudera lots of insight into the many innovations, uh, that our customers are coming up with. Uh, criminals can steal thousands of dollars before a fraudulent transaction is detected. So the cost of, uh, to purchase a, your account data is well worth the price to fraudsters. Uh, according to Experian credit and debit card account information sells on the dark web for a mere $5 with the CVV number and up to $110. If it comes with all the bank information, including your name, social security number, date of birth, uh, complete account numbers and, and other personal data. >>Um, our customers have several key data and analytics challenges when it comes to fighting financial crime. The volume of data that they need to deal with is, is huge and growing exponentially. Uh, all this data needs to be evaluated in real time. Uh, there is, uh, there are new sources of, of streaming data that need to be integrated with existing, uh, legacy data sources. This includes, um, biometrics data and enhanced, uh, authentication, uh, video surveillance call center data. And of course all that needs to be integrated with existing legacy data sources. Um, there is an analytics arms race between the banks and the criminals and the criminal networks never stop innovating. They also we'll have to deal with, uh, disjointed security and governance, security and governance policies are often set per data source, uh, or application requiring redundant work, work across workloads. And, and they have to deal with siloed environments, um, the specialized nature of platforms and people results in disparate data sources and data management processes, uh, this duplicates efforts and, uh, divides the, the business risk and crime teams, limiting collaboration opportunities between CDP enhances financial crime solutions, uh, to be holistic by eliminating data gaps between siloed solutions with, uh, an enterprise data approach, uh, advanced, uh, data analytics and machine learning, uh, by deploying an enterprise wide data platform, you reduce siloed divisions between business risk and crime teams and enable better collaboration through industrialized machine learning. >>Uh, you tighten up the loop between, uh, detection and new fraud patterns. Cloudera provides the data platform on which a best of breed applications can run and leverage integrated machine learning cloud Derrick stands rather than replaces your existing fraud modeling applications. So Oracle SAS Actimize to, to name a few, uh, integrate with an enterprise data hub to scale the data increased speed and flexibility and improve efficacy of your entire fraud system. It also centralizes the fraud workload on data that can be used for other use cases in applications like enhanced KYC and a customer 360 4 example. >>I just, I wanted to highlight a couple of our partners in financial crime prevention, uh, semi dine, and Quintex, uh, uh, so send me nine provides fraud simulation using agent-based modeling, uh, machine learning techniques, uh, to generate synthetic transaction data. This data simulates potential fraud scenarios in a cost-effective, uh, GDPR compliant, virtual environment, significantly improved financial crime detection systems, semi dine identifies future fraud topologies, uh, from millions of, of simulations that can be used to dynamically train, uh, new machine learning algorithms for enhanced fraud identification and context, um, uh, connects the dots within your data, using dynamic entity resolution, and advanced network analytics to create context around your customers. Um, this enables you to see the bigger picture and automatically assesses potential criminal beads behavior. >>Now let's go some of our, uh, customers, uh, and how they're using cloud caldera. Uh, first we'll talk about, uh, United overseas bank, or you will be, um, you'll be, is a leading full service bank in, uh, in Asia. It, uh, with, uh, a network of more than 500 offices in, in 19 countries and territories in Asia, Pacific, Western Europe and north America UA, um, UOB built a modern data platform on Cloudera that gives it the flexibility and speed to develop new AI and machine learning solutions and to create a data-driven enterprise. Um, you'll be set up, uh, set up it's big data analytics center in 2017. Uh, it was Singapore's first centralized big data unit, uh, within a bank to deepen the bank's data analytic capabilities and to use data insights to enhance, uh, the banks, uh, uh, performance essential to this work was implementing a platform that could cost efficiently, bring together data from dozens of separate systems and incorporate a range of unstructured data, including, uh, voice and text, um, using Cloudera CDP and machine learning. >>UOB gained a richer understanding of its customer preferences, uh, to help make their, their banking experience simpler, safer, and more reliable. Working with Cloudera UOB has a big data platform that gives business staff and data scientists faster access to relevant and quality data for, for self-service analytics, machine learning and, uh, emerging artificial intelligence solutions. Um, with new self-service analytics and machine learning driven insights, you'll be, uh, has realized improvements in, in digital banking, asset management, compliance, AML, and more, uh, advanced AML detection capabilities, help analysts detect suspicious transactions either based on hidden relationships of shell companies and, uh, high risk individuals, uh, with, uh, Cloudera and machine learning, uh, technologies. You you'll be, uh, was able to enhance AML detection and reduce the time to identify new links from months 2, 3, 3 weeks. >>Excellent mass let's speak about MasterCard. So MasterCard's principle businesses to process payments between banks and merchants and the credit issuing banks and credit unions of the purchasers who use the MasterCard brand debit and credit cards to make purchases MasterCard chose Cloudera enterprise for fraud detection, and to optimize their DW infrastructure, delivering deepens insights and best practices in big data security and compliance. Uh, next let's speak about, uh, bank Rakka yet, uh, in Indonesia or Bri. Um, it, VRI is one of the largest and oldest banks in Indonesia and engages in the provision of general banking services. Uh, it's headquartered in Jakarta Indonesia. Uh, Bri is well known for its focus on financing initiatives and serves over 75 million customers through it's more than 11,000 offices and rural service outposts. Uh, Bri required better insight to understand customer activity and identify fraudulent transactions. Uh, the bank needed a solid foundation that allowed it to leverage the power of advanced analytics, artificial intelligence, and machine learning to gain better understanding of customers and the market. >>Uh, Bri used, uh, Cloudera enterprise data platform to build an agile and reliable, predictive augmented intelligence solution, uh, to enhance its credit scoring system and to address the rising concern around data security from regulators, uh, and customers, uh, Bri developed a real-time fraud detection service, uh, powered by Cloudera and Kafka. Uh, Bri's data scientists developed a machine learning model for fraud detection by creating a behavioral scoring model based on customer savings, uh, loan transactions, deposits, payroll and other financial, um, uh, real-time time data. Uh, this led to improvements in its fraud detection and credit scoring capabilities, as well as the development of a, of a new digital microfinancing product, uh, with the enablement of real-time fraud detection, VRI was able to reduce the rate of fraud by 40%. Uh, it improved, uh, relationship manager productivity by two and a half fold. Uh, it improved the credit score scoring system to cut down on micro-financing loan processing times from two weeks to two days to now two minutes. So fraud prevention is a good area to start with a data focus. If you haven't already, it offers a quick return on investment, uh, and it's a focused area. That's not too entrenched across the company, uh, to learn more about fraud prevention, uh, go to kroger.com and to schedule, and you should schedule a meeting with Cloudera, uh, to learn even more. Uh, and with that, thank you for listening and thank you for your time. >>Welcome to the customer. Obsession begins with data session. Uh, thank you for, for attending. Um, at Cloudera, we believe that a custom session begins with, uh, with, with data, um, and, uh, you know, financial services is Cloudera is largest industry vertical. We have approximately 425 global financial services customers, uh, which consists of 82 out of a hundred of the largest global banks of which we have 27 that are globally systemic banks, uh, four out of the five top stock exchanges, eight out of the 10 top wealth management firms and all four of the top credit card networks. Uh, so as you can see most financial services institutions utilize Cloudera for data analytics and machine learning. Uh, we also have over 20 central banks and it doesn't or so financial regulators. So it's an incredible footprint, which glimpse Cloudera, lots of insight into the many innovations that our customers are coming up with. >>Customers have grown more independent and demanding. Uh, they want the ability to perform many functions on their own and, uh, be able to do it. Uh, he do them on their mobile devices, uh, in a recent Accenture study, more than 50% of customers, uh, are focused on, uh, improving their customer experience through more personalized offers and advice. The study found that 75% of people are actually willing to share their data for better personalized offers and more efficient and intuitive services to get it better, better understanding of your customers, use all the data available to develop a complete view of your customer and, uh, and better serve them. Uh, this also breaks down, uh, costly silos, uh, shares data in, in accordance with privacy laws and assists with regulatory advice. It's so different organizations are going to be at different points in their data analytics and AI journey. >>Uh, there are several degrees of streaming and batch data, both structured and unstructured. Uh, you need a platform that can handle both, uh, with common, with a common governance layer, um, near real time. And, uh, real-time sources help make data more relevant. So if you look at this graphic, looking at it from left to right, uh, normal streaming and batch data comes from core banking and, uh, and lending operations data in pretty much a structured format as financial institutions start to evolve. Uh, they start to ingest near real-time streaming data that comes not only from customers, but also from, from newsfeeds for example, and they start to capture more behavioral data that they can use to evolve their models, uh, and customer experience. Uh, ultimately they start to ingest more real time streaming data, not only, um, standard, uh, sources like market and transaction data, but also alternative sources such as social media and connected sources, such as wearable devices, uh, giving them more, more data, better data, uh, to extract intelligence and drive personalized actions based on data in real time at the right time, um, and use machine learning and AI, uh, to drive anomaly detection and protect and predict, uh, present potential outcomes. >>So this is another way to look at it. Um, this slide shows the progression of the big data journey as it relates to a customer experience example, um, the dark blue represents, um, visibility or understanding your customer. So we have a data warehouse and are starting to develop some analytics, uh, to know your customer and start to provide a better customer 360 experience. Uh, the medium blue area, uh, is a customer centric or where we learn, uh, the customer's behavior. Uh, at this point we're improving our analytics, uh, gathering more customer centric information to perform, uh, some more exploratory, uh, data sciences. And we can start to do things like cross sell or upsell based on the customer's behavior, which should improve, uh, customer retention. The light blue area is, uh, is proactive customer inter interactions, or where we now have the ability, uh, to predict customers needs and wants and improve our interaction with the customer, uh, using applied machine learning and, and AI, uh, the Cloudera data platform, um, you know, business use cases require enabling, uh, the end-to-end journey, which we referred to as the data life cycle, uh, what the data life cycle, what is the data life cycle that our customers want, uh, to take their data through, to enable the end to end data journey. >>If you ask our customers, they want different types of analytics, uh, for their diverse user bases to help them implement their, their, their use cases while managed by a centralized security and governance later layer. Uh, in other words, um, the data life cycle to them provides multifunction analytics, uh, at each stage, uh, within the data journey, uh, that, uh, integrated and centralized, uh, security, uh, and governance, for example, uh, enterprise data consists of real time and transactional type type data. Examples include, uh, click stream data, web logs, um, machine generated, data chat bots, um, call center interactions, uh, transactions, uh, within legacy applications, market data, et cetera. We need to manage, uh, that data life cycle, uh, to provide real enterprise data insights, uh, for use cases around enhanced them, personalized customer experience, um, customer journey analytics next best action, uh, sentiment and churn analytics market, uh, campaign optimization, uh, mortgage, uh, processing optimization and so on. >>Um, we bring a diverse set of data then, um, and then enrich it with other data about our customers and products, uh, provide reports and dashboards such as customer 360 and use predictions from machine models to provide, uh, business decisions and, and offers of, uh, different products and services to customers and maintain customer satisfaction, um, by using, um, sentiment and churn analytics. These examples show that, um, the whole data life cycle is involved, um, and, uh, is in continuous fashion in order to meet these types of use cases, uh, using a single cohesive platform that can be, uh, that can be served by CDP, uh, the data, the Cloudera data platform. >>Okay. Uh, let's talk about, uh, some of the experiences, uh, from our customers. Uh, first we'll talk about Bunco suntan there. Um, is a major global bank headquartered in Spain, uh, with, uh, major operations and subsidiaries all over Europe and north and, and south America. Uh, one of its subsidiaries, something there UK wanted to revolutionize the customer experience with the use of real time data and, uh, in app analytics, uh, for mobile users, however, like many financial institutions send them there had a, he had a, had a large number of legacy data warehouses spread across many business use, and it's within consistent data and different ways of calculating the same metrics, uh, leading to different results. As a result, the company couldn't get the comprehensive customer insights it needed. And, uh, and business staff often worked on multiple versions of the truth. Sometime there worked with Cloudera to improve a single data platform that could support all its workloads, including self-service analytics, uh, operational analytics and data science processes, processing processing, 10 million transactions daily or 30,000 transactions per second at peak times. >>And, uh, bringing together really, uh, nearly two to two petabytes of data. The platform provides unprecedented, uh, customer insight and business value across the organization, uh, over 80 cents. And there has realized impressive, uh, benefits spanning, uh, new revenues, cost savings and risk reductions, including creating analytics for, for corporate customers with near real-time shopping behavior, um, and, and helping identify 7,000 new corporate, uh, customer prospects, uh, reducing capital expenditures by, uh, 3.2 million annually and decreasing operating expenses by, uh, 650,000, um, enabling marketing to realize, uh, 2.4 million in annual savings on, on cash, on commercial transactions, um, and protecting 3.7 million customers from financial crime impacts through 95, new proactive control alerts, improving risk and capital calculations to reduce the amount of money. It must set aside, uh, as part of a, as part of risk mandates. Uh, for example, in one instance, the risk team was able to release a $5.2 million that it had withheld for non-performing credit card loans by properly identifying healthy accounts miscategorized as high risk next, uh, let's uh, talk about, uh, Rabobank. >>Um, Rabobank is one of the largest banks in the Netherlands, uh, with approximately 8.3 million customers. Uh, it was founded by farmers in the late 19th century and specializes in agricultural financing and sustainability oriented banking, uh, in order to help its customers become more self-sufficient and, uh, improve their financial situations such as debt settlement, uh, rebel bank needed to access, uh, to a varied mix of high quality, accurate, and timely customer data, the talent, uh, to provide this insight, however, was the ability to execute sophisticated and timely data analytics at scale Rabobank was also faced with the challenge of, uh, shortening time to market. Uh, it needed easier access to customer data sets to ensure that they were using and receiving the right financial support at the right time with, with, uh, data quality and speed of processing. Um, highlighted as two vital areas of improvement, Rabobank was looking to incorporate, um, or create new data in an environment that would not only allow the organization to create a centralized repository of high quality data, but also allow them to stream and, uh, conduct data analytics on the fly, uh, to create actionable insights and deliver a strong customer experience bank level Cloudera due to its ability to cope with heavy pressures on data processing and its capability of ingesting large quantities of real time streaming data. >>They were able to quickly create a new data lake that allowed for faster queries of both historical and real time data to analyze customer loan repayment patterns, uh, to up to the minute transaction records, um, Robert bank and, and its customers could now immediately access, uh, the valuable data needed to help them understand, um, the status of their financial situation in this enabled, uh, rebel bank to spot financial disasters before they happened, enabling them to gain deep and timely insights into which customers were at risk of defaulting on loans. Um, having established the foundation of a modern data architecture Rabobank is now able to run sophisticated machine learning algorithms and, uh, financial models, uh, to help customers manage, um, financial, uh, obligations, um, including, uh, long repayments and are able to generate accurate, uh, current real liquidity. I refuse, uh, next, uh, let's uh, speak about, um, uh, OVO. >>Uh, so OVO is the leading digital payment rewards and financial services platform in Indonesia, and is present in 115 million devices across the company across the country. Excuse me. Um, as the volume of, of products within Obos ecosystem increases, the ability to ensure marketing effectiveness is critical to avoid unnecessary waste of time and resources, unlike competitors, uh, banks, w which use traditional mass marketing, uh, to reach customers over, oh, decided to embark on a, on a bold new approach to connect with customers via, uh, ultra personalized marketing, uh, using the Cloudera stack. The team at OVO were able to implement a change point detection algorithm, uh, to discover customer life stage changes. This allowed OVO, uh, to, uh, build a segmentation model of one, uh, the contextual offer engine Bill's recommendation algorithms on top of the product, uh, including collaborative and context-based filters, uh, to detect changes in consumer consumption patterns. >>As a result, OVO has achieved a 15% increase in revenue, thanks to this, to this project, um, significant time savings through automation and eliminating the chance of human error and have reduced engineers workloads by, by 30%. Uh, next let's talk about, uh, bank Bri, uh, bank Bri is one of the largest and oldest, uh, banks in Indonesia, um, engaging in, in general banking services, uh, for its customers. Uh, they are headquartered in, in Jakarta Indonesia, uh, PR is a well-known, uh, for its, uh, focused on micro-financing initiative initiatives and serves over 75 million customers through more than 11,000 offices and rural outposts, um, Bri needed to gain better understanding of their customers and market, uh, to improve the efficiency of its operations, uh, reduce losses from non-performing loans and address the rising concern around data security from regulators and consumers, uh, through enhanced fraud detection. This would require the ability to analyze the vast amounts of, uh, historical financial data and use those insights, uh, to enhance operations and, uh, deliver better service. >>Um, Bri used Cloudera's enterprise data platform to build an agile and reliable, uh, predictive augmented intelligence solution. Uh, Bri was now able to analyze 124 years worth of historical financial data and use those insights to enhance its operations and deliver better services. Um, they were able to, uh, enhance their credit scoring system, um, the solution analyzes customer transaction data, and predicts the probability of a customer defaulting on, on payments. Um, the following month, it also alerts Bri's loan officers, um, to at-risk customers, prompting them to take the necessary action to reduce the likelihood of the net profit lost, uh, this resulted in improved credit, improved credit scoring system, uh, that cut down the approval of micro financing loans, uh, from two weeks to two days to, to two minutes and, uh, enhanced fraud detection. >>All right. Uh, this example shows a tabular representation, uh, the evolution of a customer retention use case, um, the evolution of data and analytics, uh, journey that, uh, that for that use case, uh, from aware, uh, text flirtation, uh, to optimization, to being transformative, uh, with every level, uh, data sources increase. And, uh, for the most part, uh, are, are less, less standard, more dynamic and less structured, but always adding more value, more insights into the customer, uh, allowing us to continuously improve our analytics, increase the velocity of the data we ingest, uh, from, from batch, uh, to, uh, near real time, uh, to real-time streaming, uh, the volume of data we ingest continually increases and we progress, uh, the value of the data on our customers, uh, is continuously improving, allowing us to interact more proactively and more efficiently. And, and with that, um, I would, uh, you know, ask you to consider and assess if you are using all the, uh, the data available to understand, uh, and service your customers, and to learn more about, about this, um, you know, visit cloudera.com and schedule a meeting with Cloudera to learn more. And with that, thank you for your time. And thank you for listening.

>>Thank you and good morning or afternoon, everyone, depending on where you're coming to us from and welcome to today's breakout session, fast data, a retail industry business imperative. My name is Brent Bedell, global managing director of retail, consumer bids here at Cloudera and today's hosts joining today. Joining me today is our feature speaker Brian Hill course managing partner from RSR. We'll be sharing insights and implications from recently completed research across retailers of all sizes in vertical segments. At the end of today's session, I'll share a brief overview on what I personally learned from retailers and how Cloudera continues to support retail data analytic requirements, and specifically around streaming data, ingest analytics, automation for customers around the world. There really is the next step up in terms of what's happening with data analytics today. So let's get started. So I thought it'd be helpful to provide some background first on how Clare to Cloudera is supporting and retail industry leaders specifically how they're leveraging Cloudera for leading practice data analytics use cases primarily across four key business pillars. >>And these will be very familiar to, to those in the industry. Personalize interactions of course, plays heavily into e-commerce and marketing, whether that's developing customer profiles, understanding the OB omni-channel journey, moving into the merchandising line of business focused on localized promotional planning, forecasting demand, forecast accuracy, then into supply chain where inventory visibility is becoming more and more critical today, whether it's around fulfillment or just understanding where your stuff is from a customer perspective. And obviously in and outbound route optimization right now, as retailers are taking control of actual delivery, whether it's to a physical store location or to the consumer. And then finally, uh, which is pretty exciting to me as a former store operator, you know, what's happening with physical brick and mortar right now, especially for traditional retailers. Uh, the whole re-imagining of stores right now is on fire in a lot of focus because, you know, frankly, this is where fulfillment is happening. >>Um, this is where customers, you know, still 80% of revenue is driven through retail, through physical brick and mortar. So right now store operations is getting more focused and I would say it probably is had and decades. Uh, and a lot of has to do for us with IOT data and analytics in the new technologies that really help, uh, drive, uh, benefits for retailers from a brick and mortar standpoint. And then, and then finally, um, you know, to wrap up before handing off to Brian, um, as you'll see, you know, all of these, these lines of businesses are raw, really experiencing the need for speed, uh, you know, fast data. So we're, we're moving beyond just discovery analytics. You don't things that happened five, six years ago with big data, et cetera. And we're really moving into real time capabilities because that's really where the difference makers are. >>That's where the competitive differentiation as across all of these, uh, you know, lines of business and these four key pillars within retail, um, the dependency on fast data is, is evident. Um, and it's something that we all read, you know, you know, in terms of those that are students of the industry, if you will, um, you know, that we're all focused on in terms of bringing value to the individual, uh, lines of business, but more importantly to the overall enterprise. So without further ado, I, I really want to, uh, have Brian speak here as a, as a third party analyst. You know, he, he's close in touch with what's going on, retail talking to all the solution providers, all the key retailers about what's important, what's on their plate. What are they focusing on right now in terms of fast data and how that could potentially make a difference for them going forward? So, Brian, uh, off to you, >>Well, thanks, Brent. I appreciate the introduction. And I was thinking, as you were talking, what is fast data? Well, data is fast. It is fast data it's stuff that comes at you very quickly. When I think about the decision cycles in retail, they were, they were, they were time phased and there was a time when we could only make a decision perhaps once a month and then met once a week and then once a day, and then intraday fast data is data that's coming at you and something approaching real time. And we'll explain why that's important in just a second. But first I want to share with you just a little bit about RSR. We've been in business now for 14 years. And what we do is we studied the business use cases that drive the adoption of technology in retail. We come from the retail industry, I was a retail technologist, my entire working life. >>And so we started this company. So I'm, I have a built in bias, of course, and that is that the difference between the winners in the retail world and in fact, in the entire business world and everybody else is how they value the strategic importance of information, and really that's where the battle is being fought today. We'll talk a little bit about that. So anyway, uh, one other thing about RSR research, our research is free to the entire world. Um, we don't, we don't have a paywall. You have to get behind. All you have to do is sign into our website, uh, identify yourself and all of our research, including these two reports that we're showing on the screen now are available to you. And we'd love to hear your comments. So when we talk about data, there's a lot of business implications to what we're trying to do with fast data and as being driven by the real world. >>Uh, we saw a lot of evidence of that during the COVID pandemic in 2020, when people had to make many decisions very, very quickly, for example, a simple one. Uh, do I redirect my replenishments to store B because store a is impacted by the pandemic, those kinds of things. Uh, these two drawings are actually from a book that came out in 1997. It was a really important book for me personally is by a guy named Steven Hegel. And it was the name of the book was the adaptive enterprise. When you think about your business model, um, and you think about the retail business model, most of those businesses are what you see on the left. First of all, the mission of the business doesn't change much at all. It changes once in a generation or maybe once in a lifetime, um, but it it's established quite early. >>And then from that point on it's, uh, basically a wash rinse and repeat cycle. You do the things that you do over and over and over again, year in and year out season in and season out. And the most important piece of information that you have is the transaction data from the last cycle. So a Brent knows this from his experience as a, as a retailer, the baseline for next year's forecast is last year's performance. And this is transactional in nature. It's typically pulled from your ERP or from your best of breed solution set on the right is where the world is really going. And before we get into the details of this, I'll just use a real example. I'm I'm sure like, like me, you've watched the path of hurricanes as they go up to the Florida coast. And one of the things you might've noticed is that there's several different possible paths. >>These are models, and you'll hear a lot about models. When you talk to people in the AI world, these are models based on lots and lots of information that they're getting from Noah and from the oceanographic people and all those kinds of folks to understand the likely path of the hurricane, based on their analysis, the people who watch these things will choose the most likely paths and they will warn communities to lock down and do whatever they need to do. And then they see as the, as the real hurricane progresses, they will see if it's following that path, or if it's varying, it's going down a different path and based on that, they will adapt to a new model. And that is what I'm talking about here now that not everything is of course is life and death as, as a hurricane. But it's basically the same concept what's happening is you have your internal data that you've had since this, a command and control model that we've mentioned on the left, and you're taking an external data from the world around you, and you're using that to make snap decisions or quick decisions based on what you see, what's observable on the outside, back to my COVID example, um, when people were tracking the path of the pandemic through communities, they learn that customers or consumers would favor certain stores to pick up their, what they needed to get. >>So they would avoid some stores and they would favor other stores. And that would cause smart retailers to redirect the replenishments on very fast cycles to those stores where the consumers are most likely to be. They also did the same thing for employees. Uh, they wanted to know where they could get their employees to service these customers. How far away were they, were they in a community that was impacted or were they relatively safe? These are the decisions that were being made in real time based on the information that they were getting from the marketplace around them. So, first of all, there's a context for these decisions. There's a purpose and the bounds of the adaptive structure, and then there's a coordination of capabilities in real time. And that creates an internal feedback loop, but there's also an external feedback loop. This is more of an ecosystem view. >>And based on those two, those two inputs what's happening internally, what your performance is internally and how your community around you is reacting to what you're providing. You make adjustments as necessary. And this is the essence of the adaptive enterprise. Engineers might call this a sense and respond model. Um, and that's where retail is going. But what's essential to that is information and information, not just about the products that you sell or the stores that you sell it in, or the employees that you have on the sales floor or the number of market baskets you've completed in the day, but something much, much more. Um, if you will, a twin, a digital twin of the physical assets of your business, all of your physical assets, the people, the products, the customers, the buildings, the rolling stock, everything, everything. And if you can create a digital equivalent of a physical thing, you can then analyze it. >>And if you can analyze it, you can make decisions much, much more quickly. So this is what's happening with the predict pivot based on what you see, and then, because it's an intrinsically more complicated model to automate, decision-making where it makes sense to do so. That's pretty complicated. And I talk about new data. And as I said earlier, the old data is all transactional in nature. Mostly about sales. Retail has been a wash in sales data for as long as I can remember throw, they throw most of it away, but they do keep enough to create the forecast the next for the next business cycle. But there's all kinds of new information that they need to be thinking about. And a lot of this is from the outside world. And a lot of this is non-transactional nature. So let's just take a look at some of them, competitive information. >>Those are always interested in what the competitor is up to. What are they promoting? How well are they they doing, where are they? What kind of traffic are they generating sudden and stuff, significant changes in customer behaviors and sentiment COVID is a perfect example of something that would cause this consumers changing their behaviors very quickly. And we have the ability to, to observe this because in a great majority of cases, nowadays retailers have observed that customers start their, uh, shopping journey in the digital space. As a matter of fact, Google recently came out and said, 60%, 63% of all, all sales transactions begin in the digital domain. Even if many of them end up in the store. So we have the ability to observe changes in consumer behavior. What are they looking at? When are they looking at it? How long do they spend looking at it? >>What else are they looking at while they're, while they're doing that? What are the, what is the outcome of that market metrics? Certainly what's going on in the marketplace around you? A good idea. Example of this might be something related to a sporting event. If you've planned based on normal demand and for, for your store. And there's a big sporting event, like a football match or a baseball game, suddenly you're going to see a spike in demand. So understanding what's going on in the market is really important. Location, demographics and psychographics, demographics have always been important to retailers, but now we're talking about dynamic demographics, what customers, or what consumers are, are in your market, in something approaching real time, psychographics has more to do with their attitudes. What kind of folks are, are, are in them in a particular marketplace? What do they think about what do they favor? >>And all those kinds of interesting deep tales, real-time environmental and social incidents. Of course, I mentioned hurricanes. And so that's fairly, self-evident disruptive events, sporting events, et cetera. These are all real. And then we get the real time internet of things. These are, these are RFID sensors, beacons, video, et cetera. There's all kinds of stuff. And this is where, yeah, it's interesting. This is where the supply chain people will start talking about the difference, little twin to their physical world. If you can't say something, you can manage it. And retailers want to be able to manage things in real time. So IOT, along with it, the analytics and the data that's generated is really, really important for them going forward, community health. We've been talking a lot about that, the progression of the flu, et cetera, et cetera, uh, business schedules, commute patterns, school schedules, and whether these are all external data that are interesting to retailers and can help them to make better operational in something approaching real time. >>I mentioned the automation of decision making. This is a chart from Gardner, and I'd love to share with you. It's a really good one because it describes very simply what we're talking about. And it also describes where the inflection of new technology happens. If you look on the left there's data, we have lots and lots of data. We're getting more data all the time, retailers for a long time. Now, since certainly since the seventies or eighties have been using data to describe what happened, this is the retrospective analysis that we're all very familiar with, uh, data cubes and those kinds of things. And based on that, the human makes some decisions about what they're going to do going forward. Um, sometime in the not too distant past, this data was started to be used to make diagnostic decisions, not only what happened, but why did it happen? >>And me might think of this as, for example, if sales were depressed for a certain product, was it because we had another product on sale that day, that's a good example of fairly straightforward diagnostics. We then move forward to what we might think of as predictive analytics. And this was based on what happened in the past and why it happened in the past. This is what's likely to happen in the future. You might think of this as, for example, halo effect or, or the cannibalization effect of your category plans. If you're, if you happen to be a grocer and based on that, the human will make a decision as to what they need to do next then came along AI, and I don't want to oversell AI here. AI is a new way for us to examine lots and lots of data, particularly unstructured data AI. >>If I could simplify it to its maximum extent, it essentially is a data tool that allows you to see patterns in data, which might be interesting. It's very good at sifting through huge data sets of unstructured data and detecting statistically significant patterns. It gets deeper than that, of course, because it uses math instead of rules. So instead of an if then, or else a statement that we might've used with our structured data, we use the math to detect these patterns in unstructured data. And based on those, we can make some models. For example, uh, my guy in my, in my, uh, just turned 70 on my 70 year old man, I'm a white guy. I live in California. I have a certain income and a certain educational level. I'm likely to behave in this way based on a model that's pretty simplistic. But based on that, you can see that. >>And when another person who meets my psychographics, my demographics, my age group, my income level and all the rest, um, you, they might, they might be expected to make a certain action. And so this is where prescriptive really comes into play. Um, AI makes that possible. And then finally, when you start to think about moving closer to the customer on something, approaching a personalized level, a one-to-one level, you, you suddenly find yourself in this situation of having to make not thousands of decisions, but tens of millions of decisions. And that's when the automation of decision-making really gets to be pretty important. So this is all interesting stuff, and I don't want to oversell it. It's exciting. And it's new. It's just the latest turn of the technology screw. And it allows us to use this new data to basically automate decision-making in the business, in something approaching real time so that we can be much, much more responsive to real-time conditions in the marketplace. >>Very exciting. So I hope this is interesting. This is a piece of data from one of our recent pieces of research. Uh, this happens to be from a location analytics study. We just published last week and we asked retailers, what are the big challenges what's been going on in the last 12 months for them? And what's likely to be happening for them in the next few years. And it's just fascinating because it speaks to the need for faster decision-making there. The challenges in the last 12 months were all related to COVID. First of all, fulfilling growing online demand. This is a very, very real time issue that we all had to deal with. But the next one was keeping forecasts in sync with changing demand. And this is one of those areas where retailers are now finding themselves, needing to look at that exoticness for that external data that I mentioned to you last year, sales were not a good predictor of next year of sales. >>They needed to look at sentiment. They needed to look at the path of the disease. They needed to look at the availability of products, alternate sourcing, global political issues. All of these things get to be pretty important and they affect the forecast. And then finally managing a supply them the movement of the supply through the supply chain so that they could identify bottlenecks now, point to one of them, which we can all laugh at now because it's kind of funny. It wasn't funny at the time we ran out of toilet paper, toilet paper was a big problem. Now there is nothing quite as predictable as toilet paper, it's tied directly to the size of the population. And yet we ran out and the thing we didn't expect when the COVID pandemic hit was that people would panic. And when people panic, they do funny things. >>One of the things I do is buy up all the available toilet paper. I'm not quite sure why that happened. Um, but it did happen and it drained the supply chain. So retailers needed to be able to see that they needed to be able to find alternative sources. They needed to be able to do those kinds of things. This gets to the issue of visibility, real time data, fast data tomorrow's challenge. It's kind of interesting because one of the things that they've retailers put at the top of their list is improved inventory productivity. Uh, the reason that they are interested in this is because then we'll never spend as much money, anything as they will on inventory. And they want the inventory to be targeted to those places where it is most likely to be consumed and not to places where it's least likely to be consumed. >>So this is trying to solve the issue of getting the right product at the right place at the right time to the right consumer and retailers want to improve this because the dollars are just so big, but in this complex, fast moving world that we live in today, it's this requires something approaching real-time visibility. They want to be able to monitor the supply chain, the DCS and the warehouses. And they're picking capacity. We're talking about each of us, we're talking about each his level. Decision-making about what's flowing through the supply chain all the way from the, from the manufacturing doctor, the manufacturer through to consumption. There's two sides of the supply chain and retailers want to look at it, you'll hear retailers and, and people like me talk about the digital twin. This is where this really becomes important. And again, the digital twin is, is enabled by IOT and AI analytics. >>And finally they need to re to increase their profitability for online fulfillment. Uh, this is a huge issue, uh, for some grocers, the volume of online orders went from less than 10% to somewhere north of 40%. And retailers did in 2020, what they needed to do to fulfill those customer orders in the, in the year of the pandemic, that now the expectation that consumers have have been raised significantly. They now expect those, those features to be available to them all the time. And many people really liked them. Now retailers need to find out how to do it profitably. And one of the first things they need to do is they need to be able to observe the process so that they can find places to optimize. This is out of our recent research and I encourage you to read it. >>And when we think about the hard one wisdoms that retailers have come up with, we think about these things better visibility has led to better understanding, which increases their reaction time, which increases their profitability. So what are the opportunities? This is the first place that you'll see something that's very common. And in our research, we separate over performers, who we call retail winners from everybody else, average and under-performers, and we've noticed throughout the life of our company, that retail winners, don't just do all the same things that others do. They tend to do other things. And this shows up in this particular graph, this again is from the same study. So what are the opportunities to, to address these challenges? I mentioned to you in the last slide, first of all, strategic placement of inventory throughout the supply chain to better fulfill customer needs. This is all about being able to observe the supply chain, get the inventory into a position where it can be moved quickly to fast changing demand. >>And on the consumer side, a better understanding and reacting to unplanned events that can drive a dramatic change in customer behavior. Again, this is about studying the data, analyzing the data and reacting to the data that comes before the sales transaction. So this is observing the path to purchase observing things that are happening in the marketplace around the retailer, so that they can respond very quickly, a better understanding of the dramatic changes in customer preference and path to purchase. As they engage with us. One of the things we, all we all know about consumers now is that they are in control and the literally the entire planet is the assortment that's available to them. If they don't like the way they're interacting with you, they will drop you like a hot potato and go to somebody else. And what retailers fear justifiably is the default response to that is to just see if they can find it on Amazon. >>You don't want this to happen if you're a retailer. So we want to observe how we are interacting with consumers and how well we are meeting their needs, optimizing omni-channel order fulfillment to improve profitability. We've already mentioned this, uh, retailers did what they needed to do to offer new fulfillment options to consumers. Things like buy online pickup curbside, buy online pickup in store, buy online, pick up at a locker, a direct to consumer all of those things. Retailers offer those in 2020 because the consumers demand it and needed it. So when retailers are trying to do now is to understand how to do that profitably. And finally, this is important. It never goes away. Is the reduction of waste shrink within the supply chain? Um, I'm embarrassed to say that when I was a retail executive in the nineties, uh, we were no more certain of consumer demand than anybody else was, but we, we wanted to commit to very high service levels for some of our key county categories somewhere approaching 95%. >>And we found the best way to do that was to flood the supply chain with inventory. Uh, it sounds irresponsible now, but in those days, that was a sure-fire way to make sure that the customer had what she was looking for when she looked for it. You can't do that in today's world. Money is too tight and we can't have that, uh, inventory sitting around and move to the right places. Once we discovered what the right place is, we have to be able to predict, observe and respond in something much closer to your time. One of the next slide, um, the simple message here, again, a difference between winners and everybody else, the messages, if you can't see it, you can't manage it. And so we asked retailers to identify, to what extent an AI enabled supply chain can help their company address some issues. >>Look at the differences here. They're shocking identifying network bottlenecks. This is the toilet paper story I told you about over half of retail winners, uh, feel that that's very important. Only 19% of average and under performers, no surprise that their average and under-performers visibility into available to sell inventory anywhere within the enterprise, 58% of winners and only 32% of everybody else. And you can go on down the list, but you get the just retail winners, understand that they need to be able to see their assets and something approaching real time so that they can make the best decisions possible going forward in something approaching real time. This is the world that we live in today. And in order to do that, you need to be able to number one, see it. And number two, you need to be able to analyze it. And number three, you have to be able to make decisions based on what you saw, just some closing observations on. >>And I hope this was interesting for you. I love talking about this stuff. You can probably tell I'm very passionate about it, but the rapid pace of change in the world today is really underscoring the importance. For example, of location intelligence, as a key component of helping businesses to achieve sustainable growth, greater operational effectiveness and resilience, and ultimately your success. So this is really, really critical for retailers to understand and successfully evolving businesses need to accommodate these new consumer shopping behaviors and changes in how products are brought to the market. So that, and in order to do that, they need to be able to see people. They need to be able to see their assets, and they need to be able to see their processes in something approaching real time, and then they need to analyze it. And based on what they've uncovered, they need to be able to make strategic and operational decision making very quickly. This is the new world we live in. It's a real-time world. It's a, it's a sense and respond world and it's the way forward. So, Brent, I hope that was interesting for you. I really enjoyed talking about this, as I said, we'd love to hear a little bit more. >>Hey, Brian, that was excellent. You know, I always love me love hearing from RSR because you're so close to what retailers are talking about and the research that your company pulls together. Um, you know, one of the higher level research articles around, uh, fast data frankly, is the whole notion of IOT, right? And he does a lot of work in this space. Um, what I find fascinating based off the recent research is believe it or not, there's $1.2 trillion at stake in retail per year, between now and 2025. Now, how is that possible? Well, part of it is because the Kinsey captures not only traditional retail, but also QSRs and entertainment then use et cetera. That's considered all of retail, but it's a staggering number. And it really plays to the effect that real-time can have on individual enterprises. In this case, we're talking of course, about retail. >>So a staggering number. And if you think about it from streaming video to sensors, to beacons, RFID robotics, autonomous vehicles, retailers are testing today, even pizza delivery, you know, autonomous vehicle. Well, if you think about it, it shouldn't be that shocking. Um, but when they were looking at 12 different industries, retail became like the number three out of 12, and there's a lot of other big industries that will be leveraging IOT in the next four years. So, um, so retailers in the past have been traditionally a little stodgy about their spend in data and analytics. Um, I think retailers in general have got the religion that this is what it's going to take to compete in today's world, especially in a global economy. And in IOT really is the next frontier, which is kind of the definition of fast data. Um, so I, I just wanted to share just a few examples or exemplars of, of retailers that are leveraging Cloudera technology today. >>So now, so now the paid for advertisement at the end of this, right? So, so, you know, so what bringing to market here. So, you know, across all retail, uh, verticals, you know, if we look at, you know, for example, a well-known global mass virtual retailer, you know, they're leveraging Cloudera data flow, which is our solution to move data from point to point in wicked fast space. So it's open source technology that was originally developed by the NSA. So, um, it is best to class movement of data from an ingest standpoint, but we're also able to help the roundtrip. So we'll pull the sensor data off all the refrigeration units for this particular retailer. They'll hit it up against the product lifecycle table. They'll understand, you know, temperature fluctuations of 10, 20 degrees based on, you know, fresh food products that are in the store, what adjustments might need to be made because frankly store operators, they'll never know refrigeration don't know if a cooler goes down and they'll have to react quickly, but they won't know that 10, 20 degree temperature changes have happened overnight. >>So this particular customer leverages father a data flow understand temperature, fluctuations the impact on the product life cycle and the round trip communication back to the individual department manager, let's say a produce department manager, deli manager, meat manager, Hey, you had, you know, a 20 degree drop in temperature. We suggest you lower the price on these products that we know are in that cooler, um, for the next couple of days by 20%. So you don't have to worry, tell me about freshness issues and or potential shrink. So, you know, the grocery with fresh product, if you don't sell it, you smell it, you throw it away. It's lost to the bottom line. So, you know, critically important and, you know, tremendous ROI opportunity that we're helping to enable there, uh, from a, a leading global drugstore retailer. So this is more about data processing and, you know, we're excited to, you know, the recent partnership with the Vidia. >>So fast data, isn't always at the edge of IOT. It's also about workloads. And in retail, if you are processing your customer profiles or segmentation like intra day, you will ever achieve personalization. You will never achieve one-on-one communications with readers killers or with customers. And why is that? Because customers in many cases are touching your brand several times a week. So taking you a week or longer to process your segmentation schemes, you've already lost and you'll never achieve personalization in frack. In fact, you may offend customers by offering. You might push out based on what they just bought yesterday. You had no idea of it. So, you know, that's what we're really excited about. Uh, again, with, with the computation speed, then the video brings to, to Cloudera, we're already doing this today already, you know, been providing levels, exponential speed and processing data. But when the video brings to the party is course GPU's right, which is another exponential improvement, uh, to processing workloads like demand forecast, customer profiles. >>These things need to happen behind the scenes in the back office, much faster than retailers have been doing in the past. Um, that's just the world we all live in today. And then finally, um, you know, proximity marketing standpoint, or just from an in-store operation standpoint, you know, retailers are leveraging Cloudera today, not only data flow, but also of course our compute and storage platform and ML, et cetera, uh, to understand what's happening in store. It's almost like the metrics that we used to look at in the past in terms of conversion and traffic, all those metrics are now moving into the physical world. If you can leverage computer vision in streaming video, to understand how customers are traversing your store, how much time they're standing in front of the display, how much time they're standing in checkout line. Um, you can now start to understand how to better merchandise the store, um, where the hotspots are, how to in real time improve your customer service. >>And from a proximity marketing standpoint, understand how to engage with the customer right at the moment of truth, right? When they're right there, um, in front of a particular department or category, you know, of course leveraging mobile devices. So that's the world of fast data in retail and just kind of a summary in just a few examples of how folks are leveraging Cloudera today. Um, you know, from an overall platform standpoint, of course, father as an enterprise data platform, right? So, you know, we're, we're helping to the entire data life cycle. So we're not a data warehouse. Um, we're much more than that. So we have solutions to ingest data from the edge from IOT leading practice solutions to bring it in. We also have experiences to help, you know, leverage the analytic capabilities of, uh, data engineering, data science, um, analytics and reporting. Uh, we're not, uh, you know, we're not, we're not encroaching upon the legacy solutions that many retailers have today. >>We're providing a platform, this open source that helps weave all of this mess together that existed retail today from legacy systems because no retailer, frankly, is going to rip and replace a lot of stuff that they have today. Right. And the other thing that Cloudera brings to market is this whole notion of on-prem hybrid cloud and multi-cloud right. So our whole, our whole culture has been built around open source technology as the company that provides most of the source code to the Apache network around all these open source technologies. Um, we're kind of religious about open source and lack of vendor lock-in, uh, maybe to our fault. Uh, but as a company, we pull that together from a data platform standpoint. So it's not a rip and replace situation. It's like helping to connect legacy systems, data and analytics, um, you know, weaving that whole story together to be able to solve this whole data life cycle from beginning to end. >>And then finally, you know, just, you know, I want to thank everyone for joining today's session. I hope you found it informative. I can't say Brian killed course enough. Um, you know, he's my trusted friend in terms of what's going on in the industry. He has much broader reach of course, uh, in talking to a lot of our partners in, in, in, in other, uh, technology companies out there as well. But I really appreciate everyone joining the session and Brian, I'm going to kind of leave it open to you to, you know, any closing comments that you might have based on, you know, what we're talking about today in terms of fast data and retail. >>First of all, thank you, Brent. Um, and this is an exciting time to be in this industry. Um, and I'll just leave it with this. The reason that we are talking about these things is because we can, the technology has advanced remarkably in the last five years. Some of this data has been out there for a lot longer than that in it, frankly wasn't even usable. Um, but what we're really talking about is increasing the cycle time for decisions, making them go faster and faster so that we can respond to consumer expectations and delight them in ways that that make us a trusted provider of their life, their lifestyle needs. So this is really a good time to be a retailer, a real great time to be servicing the retail technology community. And I'm glad to be a part of it. And I was glad to be working with you. So thank you, Brian. >>Yeah, of course, Brian, and one of the exciting things for me to not being in the industry, as long as I have and being a former retailer is it's really exciting for me to see retailers actually spending money on data and it for a change, right? They've all kind of come to this final pinnacle of this is what it's going to take to compete. Um, you know, you know, and I talked to, you know, a lot of colleagues, even, even salespeople within Cloudera, I like, oh, retail, very stodgy, you know, slow to move. That's not the case anymore. Um, you know, religion is everyone's, everyone gets the religion of data and analytics and the value of that. And what's exciting for me to see as all this infusion of immense talent within the industry years ago, Brian, I mean, you know, retailers are like, you know, pulling people from some of the, you know, the greatest, uh, tech companies out there, right? From a data science data engineering standpoint, application developers, um, retail is really getting this legs right now in terms of, you know, go to market and in the leverage of data and analytics, which to me is very exciting. Well, >>You're right. I mean, I, I became a CIO around the time that, uh, point of sale and data warehouses were starting to happen data cubes and all those kinds of things. And I never thought I would see a change that dramatic, uh, as the industry experience back in those days, 19 89, 19 90, this changed doors that, but the good news is again, as the technology is capable, uh, it's, it's, we're talking about making technology and information available to, to retail decision-makers that consumers carry around in their pocket purses and pockets is there right now today. Um, so the, the, the question is, are you going to utilize it to win or are you going to get beaten? That's really what it boils down to. Yeah, >>For sure. Uh, Hey, thanks everyone. We'll wrap up. I know we ran a little bit long, but, uh, appreciate, uh, everyone, uh, hanging in there with us. We hope you enjoyed the session. The archive contact information is right there on the screen. Feel free to reach out to either Brian and I. You can go to cloudera.com. Uh, we even have, you know, joint sponsored papers with RSR. You can download there as well as eBooks and other assets that are available if you're interested. So thanks again, everyone for joining and really appreciate you taking the time. >>Hello everyone. And thanks for joining us today. My name is Brent Bedell, managing director retail, consumer goods here at Cloudera. Cloudera is very proud to be partnering with companies like three soft to provide data and analytic capabilities for over 200 retailers across the world and understanding why demand forecasting could be considered the heartbeat of retail. And what's at stake is really no mystery to most, to most retailers. And really just a quick level set before handing this over to my good friend, uh, Camille three soft, um, you know, IDC Gartner. Um, many other analysts have kind of summed up an average, uh, here that I thought would be important to share just to level set the importance of demand forecasting or retail. And what's at stake. I mean the combined business value for retailers leveraging AI and IOT. So this is above and beyond. What demand forecasting has been in the past is a $371 billion opportunity. >>And what's critically important to understand about demand forecasting. Is it directly impacts both the top line and the bottom line of retail. So how does it affect the top line retailers that leverage AI and IOT for demand forecasting are seeing average revenue increases of 2% and think of that as addressing the in stock or out of stock issue in retail and retail is become much more complex now, and that is no longer just brick and mortar, of course, but it's fulfillment centers driven by e-commerce. So inventory is now having to be spread over multiple channels. Being able to leverage AI and IOT is driving 2% average revenue increases. Now, if you think about the size of most retailers or the average retailer that on its face is worth millions of dollars of improvement for any individual retailer on top of that is balancing your inventory, getting the right product in the right place and having productive inventory. >>And that is the bottom line. So the average inventory reduction, leveraging AI and IOT as the analyst have found, and frankly, having spent time in this space myself in the past a 15% average inventory reduction is significant for retailers not being overstocked on product in the wrong place at the wrong time. And it touches everything from replenishment to out-of-stocks labor planning and customer engagement for purposes of today's conversation. We're going to focus on inventory and inventory optimization and reducing out-of-stocks. And of course, even small incremental improvements. I mentioned before in demand forecast accuracy have millions of dollars of direct business impact, especially when it comes to inventory optimization. Okay. So without further ado, I would like to now introduce Dr. Camille Volker to share with you what his team has been up to. And some of the amazing things that are driving at top retailers today. So over to you, Camille, >>Uh, I'm happy to be here and I'm happy to speak to you, uh, about, uh, what we, uh, deliver to our customers. But let me first, uh, introduce three soft. We are a 100 person company based in Europe, in Southern Poland. Uh, and we, uh, with 18 years of experience specialized in providing what we call a data driven business approach, uh, to our customers, our roots are in the solutions in the services. We originally started as a software house. And on top of that, we build our solutions. We've been automation that you get the software for biggest enterprises in Poland, further, we understood the meaning of data and, and data management and how it can be translated into business profits. Adding artificial intelligence on top of that, um, makes our solutions portfolio holistic, which enables us to realize very complex projects, which, uh, leverage all of those three pillars of our business. However, in the recent time, we also understood that services is something which only the best and biggest companies can afford at scale. And we believe that the future of retail, uh, demon forecasting is in the product solutions. So that's why we created occupy our AI platform for data driven retail. That also covers this area that we talked about today. >>I'm personally proud to be responsible for our technology partnerships with other on Microsoft. Uh, it's a great pleasure to work with such great companies and to be able to, uh, delivered a solution store customers together based on the common trust and understanding of the business, uh, which cumulates at customer success at the end. So why, why should you analyze data at retail? Why is it so important? Um, it's kind of obvious that there is a lot of potential in the data per se, but also understanding the different areas where it can be used in retail is very important. We believe that thanks to using data, it's basically easier to the right, uh, the good decisions for the business based on the facts and not intuition anymore. Those four areas that we observe in retail, uh, our online data analysis, that's the fastest growing sector, let's say for those, for those data analytics services, um, which is of course based on the econ and, uh, online channels, uh, availability to the customer. >>Pandemic only speeds up this process of engagement of the customers in that channel, of course, but traditional offline, um, let's say brick and mortar shops. Uh, they still play the biggest role for most of the retailers, especially from the FMCG sector. However, it's also very important to remember that there is plenty of business, uh, related questions that meet that need to be answered from the headquarter perspective. So is it actually, um, good idea to open a store in a certain place? Is it a good idea to optimize a stock with Saturday in producer? Is it a good idea to allocate the goods to online channel in specific way, those kinds of questions they are, they need to be answered in retail every day. And with that massive amount of factors coming into that question, it's really not, not that easy to base, only on the intuition and expert knowledge, of course, uh, as Brent mentioned at the beginning, the supply chain and everything who's relates to that is also super important. We observe our customers to seek for the huge improvements in the revenue, just from that one single area as well. Okay. >>So let me present you a case study of one of our solutions, and that was the lever to a leading global grocery retailer. Uh, the project started with the challenge set of challenges that we had to conquer. And of course the most important was how to limit overstocks and out of stocks. Uh, that's like the holy grail in of course, uh, how to do it without flooding the stores with the goods and in the same time, how to avoid empty shelves, um, from the perspective of the customer, it was obvious that we need to provide a very well, um, a very high quality of sales forecast to be able to ask for, uh, what will be the actual sales of the individual product in each store, uh, every day, um, considering huge role of the perishable goods in the specific grocery retailer, it was a huge challenge, uh, to provide a solution that was able to analyze and provide meaningful information about what's there in the sales data and the other factors we analyzed on daily basis at scale, however, uh, our holistic approach implementing AI with data management, uh, background, and these automation solutions all together created a platform that was able to significantly increase, uh, the sales for our customer just by minimizing out of stocks. >>In the same time we managed to not overflow the stock, the shops with the goods, which actually decreased losses significantly, especially on the fresh fruit. >>Having said that this results of course translate into the increase in revenue, which can be calculated in hundreds of millions of dollars per year. So how the solution actually works well in its principle, it's quite simple. We just collect the data. We do it online. We put that in our data lake, based on the cloud, there are technology, we implement our artificial intelligence models on top of it. And then based on the aggregated information, we create the forecast and we do it every day or every night for every single product in every single store. This information is sent to the warehouses and then the automated replenishment based on the forecast is on the way the huge and most important aspect of that is the use of the good tools to do the right job. Uh, having said that you can be sure that there is too many information in this data, and there is actually two-minute forecast created every night that any expert could ever check. >>This means our solution needs to be, uh, very robust. It needs to provide information with high quality and high porosity. There is plenty of different business process, which is on our forecast, which need to be delivered on time for every product in each individual shop observing the success of this project and having the huge market potential in mind, we decided to create our QB, which can be used by many retailers who don't want to create a dedicated software for that. We'll be solving this kind of problem. Occupy is, uh, our software service offering, which is enabling retailers to go data driven path management. >>We create occupant with retailers, for retailers, uh, implementing artificial intelligence, uh, on top of data science models created by our experts, uh, having data, data analysis in place based on data management tools that we use we've written first, um, attitude. The uncertain times of pandemic clearly shows that it's very important to apply correction factors, which are sometimes required because we need to respond quickly to the changes in the sales characteristics. That's why occupy B is open box solution, which means that you basically can implement that in your organization. We have without changing the process internally, it's all about mapping your process into this into the system, not the other way around the fast trends and products, collection possibilities allow the retailers to react to any changes, which are pure in the sales every day. >>Also, it's worth to mention that really it's not only FMCG. And we believe that different use cases, which we observed in fashion health and beauty, common garden pharmacies and electronics, flavors of retail are also very meaningful. They also have one common thread. That's the growing importance of e-commerce. That's why we didn't want to leave that aside of occupant. And we made everything we can to implement a solution, which covers all of the needs. When you think about the factors that affect sales, there is actually huge variety of data and that we can analyze, of course, the transactional data that every dealer possesses like sales data from sale from, from e-commerce channel also, uh, averaging numbers from weeks, months, and years makes sense, but it's also worth to mention that using the right tool that allows you to collect that data from also internal and external sources makes perfect sense for retail. Uh, it's very hard to imagine a competitive retailer that is not analyzing the competitor's activity, uh, changes in weather or information about some seasonal stores, which can be very important during the summer during the holidays, for example. Uh, but on the other hand, um, having that information in one place makes the actual benefit and environment for the customer. >>Okay. Demon forecasting seems to be like the most important and promising use case. We can talk about when I think about retail, but it's also their whole process of replenishment that can cover with different sets of machine learning models. And they done management tools. We believe that analyzing data from different parts of the retail, uh, replenishment process, uh, can be achieved with implementing a data management solution based on caldera products and with adding some AI on top of it, it makes perfect sense to focus on not only demand forecasting, but also further use cases down the line when it comes to the actual benefits from implementing solutions for demand management, we believe it's really important to analyze them holistically. First is of course, out of stocks, memorization, which can be provided by simply better sales focus, but also reducing overstocks by better inventory management can be achieved in, in the same time. Having said that we believe that analyzing data without any specific new equipment required in point of sales is the low hanging fruit that can be easily achieved in almost every industry in almost every regular customer. >>Hey, thanks, Camille, having worked with retailers in this space for a couple of decades, myself, I was really impressed by a couple of things and they might've been understated, frankly. Um, the results of course, I mean, you, you know, as I kind of set up this session, you doubled the numbers on the statistics that the analysts found. So obviously in customers you're working with, um, you know, you're, you're doubling average numbers that the industry is having and, and most notably how the use of AI or occupy has automated so many manual tasks of the past, like tour tuning, item profiles, adding new items, et cetera. Uh, and also how quickly it felt like, and this is my, my core question. Your team can cover, um, or, or provide the solution to, to not only core center store, for example, in grocery, but you're covering fresh products. >>And frankly, there are, there are solutions out on the market today that only focus on center store non-perishable department. So I was really impressed by the coverage that you're able to provide as well. So can you articulate kind of what it takes to get up and running and your overall process to roll out the solution? I feel like based on what you talked about, um, and how you were approaching this in leveraging AI, um, that you're, you're streamlining processes of legacy demand, forecasting solutions that required more manual intervention, um, how quickly can you get people set up and what is the overall process like to get started with soft? >>Yeah, it's usually it takes three to six months, uh, to onboard a new customer to that kind of solution. And frankly it depends on the data that the customer, uh, has. Uh, usually it's different, uh, for smaller, bigger companies, of course. Uh, but we believe that it's very important to start with a good foundation. The platform needs to be there, the platform that is able to, uh, basically analyze or process different types of data, structured, unstructured, internal, external, and so on. But when you have this platform set, it's all about starting ingesting data there. And usually for a smaller companies, it's easier to start with those, let's say, low hanging fruits. So the internal data, which is there, this data has the highest veracity is already easy to start with, to work with them because everyone in the organization understands this data for the bigger companies. It might be important to ingest also kind of more unstructured data, some kind of external data that need to be acquired. So that may, that may influence the length of the process. But we usually start with the customers. We have, uh, workshops. That's very important to understand their business because not every deal is the same. Of course, we believe that the success of our customers comes also due to the fact that we train those models, those AI models individually to the needs of our >>Totally understand and POS data, every retailer has right in, in one way shape or form. And it is the fundamental, uh, data point, whether it's e-comm or the brick and mortar data, uh, every retailer has that data. So that, that totally makes sense. But what you just described was bunts. Um, there are, there are legacy and other solutions out there that this could be a, a year or longer process to roll out to the number of stores, for example, that you're scaling to. So that's highly impressive. And my guess is a lot of the barriers that have been knocked down with your solution are the fact that you're running this in the cloud, um, you know, on, from a compute standpoint on Cloudera from a public cloud stamp point on Microsoft. So there's, there's no, it intervention, if you will, or hurdles in preparation to get the database set up and in all of the work, I would imagine that part of the time-savings to getting started, would that be an accurate description? >>Yeah, absolutely. Uh, in the same time, this actually lowering the business risks, because we simply take data and put that into the data lake, which is in the cloud. We do not interfere with the existing processes, which are processing this data in the combined. So we just use the same data. We just already in the company, we ask some external data if needed, but it's all aside of the current customers infrastructure. So this is also a huge gain, as you said, right? >>And you're meeting customers where they are. Right. So, as I said, foundationally, every retailer POS data, if they want to add weather data or calendar event data or, you know, want incorporate a course online data with offline data. Um, you have a roadmap and the ability to do that. So it is a building block process. So getting started with, for data, uh, as, as with POS online or offline is the foundational component, which obviously you're very good at. Um, and then having that ability to then incorporate other data sets is critically important because that just improves demand, forecast accuracy, right. By being able to pull in those, those other data sources, if you will. So Camille, I just have one final question for you. Um, you know, there, there are plenty of not plenty, but I mean, there's enough demand forecasting solutions out on the market today for retailers. One of the things that really caught my eye, especially being a former retailer and talking with retailers was the fact that you're, you're promoting an open box solution. And that is a key challenge for a lot of retailers that have, have seen black box solutions come and go. Um, and especially in this space where you really need direct input from the, to continue to fine tune and improve forecast accuracy. Could you give just a little bit more of a description or response to your approach to open box versus black box? >>Yeah, of course. So, you know, we've seen in the past the failures of the projects, um, based on the black box approach, uh, and we believe that this is not the way to go, especially with this kind of, uh, let's say, uh, specialized services that we provide in meaning of understanding the customer's business first and then applying the solution, because what stands behind our concept in occupy is the, basically your process in the organization as a retailer, they have been optimized for years already. That's where retailers put their, uh, focus for many years. We don't want to change that. We are not able to optimize it properly. For sure as it combined, we are able to provide you a tool which can then be used for mapping those very well optimized process and not to change them. That's our idea. And the open box means that in every process that you will map in the solution, you can then in real time monitor the execution of those processes and see what is the result of every step. That way we create truly explainable experience for our customers, then okay, then can easily go for the whole process and see how the forecast, uh, was calculated. And what is the reason for a specific number to be there at the end of the day? >>I think that is, um, invaluable. Um, can be, I really think that is a differentiator and what three soft is bringing to market with that. Thanks. Thanks everyone for joining us today, let's stay in touch. I want to make sure to leave, uh, uh, Camille's information here. Uh, so reach out to him directly or feel free at any, any point in time, obviously to reach out to me, um, again, so glad everyone was able to join today, look forward to talking to you soon.

>> Welcome to our industry drill down. This is for manufacturing. I'm here with Michael Ger, who is the managing director for automotive and manufacturing solutions at Cloudera. And in this first session, we're going to discuss how to drive transportation efficiencies and improve sustainability with data. Connected trucks are fundamental to optimizing fleet performance, costs, and delivering new services to fleet operators. And what's going to happen here is Michael's going to present some data and information, and we're going to come back and have a little conversation about what we just heard. Michael, great to see you! Over to you. >> Oh, thank you, Dave. And I appreciate having this conversation today. Hey, you know, this is actually an area, connected trucks, you know, this is an area that we have seen a lot of action here at Cloudera. And I think the reason is kind of important, right? Because you know, first of all, you can see that, you know, this change is happening very, very quickly, right? 150% growth is forecast by 2022 and the reasons, and I think this is why we're seeing a lot of action and a lot of growth, is that there are a lot of benefits, right? We're talking about a B2B type of situation here. So this is truck made, truck makers providing benefits to fleet operators. And if you look at the, the top fleet operator, the top benefits that fleet operators expect, you see this in, in the, in the graph over here, now almost 80% of them expect improved productivity, things like improved routing, right? So route efficiencies, improved customer service, decrease in fuel consumption, better better technology. This isn't technology for technology's sake, these connected trucks are coming onto the marketplace because, hey, it can provide tremendous value to the business. And in this case, we're talking about fleet operators and fleet efficiencies. So, you know, one of the things that's really important to be able to enable us, right, trucks are becoming connected because at the end of the day, we want to be able to provide fleet efficiencies through connected truck analytics and machine learning. Let me explain to you a little bit about what we mean by that, because what, you know, how this happens is by creating a connected vehicle, analytics, machine-learning life cycle, and to do that, you need to do a few different things, right? You start off, of course, with connected trucks in the field. And, you know, you could have many of these trucks because typically you're dealing at a truck level and at a fleet level, right? You want to be able to do analytics and machine learning to improve performance. So you start off with these trucks. And the first thing you need to be able to do is connect to those trucks, right? You have to have an intelligent edge where you can collect that information from the trucks. And by the way, once you collect the, this information from the trucks, you want to be able to analyze that data in real-time and take real-time actions. Now what I'm going to show you, the ability to take this real-time action, is actually the result of your machine-learning lifecycle. Let me explain to you what I mean by that. So we have these trucks, we start to collect data from it, right? At the end of the day what we'd like to be able to do is pull that data into either your data center or into the cloud, where we can start to do more advanced analytics. And we start with being able to ingest that data into the cloud, into that enterprise data lake. We store that data. We want to enrich it with other data sources. So for example, if you're doing truck predictive maintenance, you want to take that sensor data that you've connected, collected from those trucks. And you want to augment that with your dealership, say, service information. Now you have, you know, you have sensor data and the resulting repair orders. You're now equipped to do things like predict when maintenance will work, all right. You've got all the data sets that you need to be able to do that. So what do you do? Like I said, you're ingested, you're storing, you're enriching it with data, right? You're processing that data. You're aligning, say, the sensor data to that transactional system data from your, from your your repair maintenance systems; you're, you're bringing it together so that you can do two things. You can do, first of all, you could do self-service BI on that data, right? You can do things like fleet analytics, but more importantly, what I was talking to you about before is you now have the data sets to be able to do create machine learning models. So if you have the sensor values and the need, for example, for, for a dealership repair, or is, you could start to correlate which sensor values predicted the need for maintenance, and you could build out those machine learning models. And then as I mentioned to you, you could push those machine learning models back out to the edge, which is how you would then take those real-time actions I mentioned earlier. As that data that then comes through in real-time, you're running it again against that model. And you can take some real-time actions. This is what we, this is this, this, this analytics and machine learning model, machine learning life cycle is exactly what Cloudera enables. This end-to-end ability to ingest data; store, you know, store it, put a query lay over it, create machine learning models, and then run those machine learning models in real time. Now that's what we, that's what we do as a business. Now one such customer, and I just want to give you one example of a customer that we have worked with to provide these types of results is Navistar. And Navistar was kind of an early, early adopter of connected truck analytics, and they provided these capabilities to their fleet operators, right? And they started off by, by, you know, connecting 475,000 trucks to up to well over a million now. And you know, the point here is that they were centralizing data from their telematics service providers, from their trucks' telematics service providers. They're bringing in things like weather data and all those types of things. And what they started to do was to build out machine learning models aimed at predictive maintenance. And what's really interesting is that you see that Navistar made tremendous strides in reducing the need, or the expense associated with maintenance, right? So rather than waiting for a truck to break and then fixing it, they would predict when that truck needs service, condition-based monitoring, and service it before it broke down, so that you can do that in a much more cost-effective manner. And if you see the benefits, right, they reduce maintenance costs 3 cents a mile from the, you know, down from the industry average of 15 cents a mile down to 12 cents cents a mile. So this was a tremendous success for Navistar. And we're seeing this across many of our, you know, truck manufacturers. We're, we're working with many of the truck OEMs, and they are all working to achieve very, very similar types of benefits to their customers. So just a little bit about Navistar. Now, we're going to turn to Q and A. Dave's got some questions for me in a second, but before we do that, if you want to learn more about our, how we work with connected vehicles and autonomous vehicles, please go to our web, to our website. What you see up, up on the screen. There's the URL. It's cloudera.com forward slash solutions, forward slash manufacturing. And you'll see a whole slew of collateral and information in much more detail in terms of how we connect trucks to fleet operators who provide analytics. Use cases that drive dramatically improved performance. So with that being said, I'm going to turn it over to Dave for questions. >> Thank you, Michael. That's a great example you've got. I love the life cycle. You can visualize that very well. You've got an edge use case you do in both real time inference, really, at the edge. And then you're blending that sensor data with other data sources to enrich your models. And you can push that back to the edge. That's that life cycle. So really appreciate that, that info. Let me ask you, what are you seeing as the most common connected vehicle when you think about analytics and machine learning, the use cases that you see customers really leaning into? >> Yeah, that's really, that's a great question, Dave, you know, cause, you know, everybody always thinks about machine learning like this is the first thing you go to. Well, actually it's not, right? For the first thing you really want to be able to go down, many of our customers are doing, is look, let's simply connect our trucks or our vehicles or whatever our IOT asset is, and then you can do very simple things like just performance monitoring of the, of the piece of equipment. In the truck industry, a lot of performance monitoring of the truck, but also performance monitoring of the driver. So how is the, how is the driver performing? Is there a lot of idle time spent? You know, what's, what's route efficiency looking like? You know, by connecting the vehicles, right? You get insights, as I said, into the truck and into the driver and that's not machine learning even, right? But, but that, that monitoring piece is really, really important. So the first thing that we see is monitoring types of use cases. Then you start to see companies move towards more of the, what I call the machine learning and AI models, where you're using inference on the edge. And then you start to see things like predictive maintenance happening, kind of route real-time, route optimization and things like that. And you start to see that evolution again, to those smarter, more intelligent dynamic types of decision-making. But let's not, let's not minimize the value of good old fashioned monitoring, that's to give you that kind of visibility first, then moving to smarter use cases as you, as you go forward. >> You know, it's interesting, I'm I'm envisioning, when you talked about the monitoring, I'm envisioning, you see the bumper sticker, you know, "How am I driving?" The only time somebody ever probably calls is when they get cut off it's and you know, I mean, people might think, "Oh, it's about big brother," but it's not. I mean, that's yeah okay, fine. But it's really about improvement and training and continuous improvement. And then of course the, the route optimization. I mean, that's, that's bottom line business value. So, so that's, I love those, those examples. >> Great! >> I wonder, I mean, what are the big hurdles that people should think about when they want to jump into those use cases that you just talked about, what are they going to run into? You know, the blind spots they're, they're going to, they're going to to get hit with. >> There's a few different things, right? So first of all, a lot of times your IT folks aren't familiar with the kind of the more operational IOT types of data. So just connecting to that type of data can be a new skill set, right? There's very specialized hardware in the car and things like, like that and protocols. That's number one. That's the classic IT OT kind of conundrum that, you know, many of our customers struggle with. But then, more fundamentally, is, you know, if you look at the way these types of connected truck or IOT solutions started, you know, oftentimes they were, the first generation were very custom built, right? So they were brittle, right? They were kind of hardwired. Then as you move towards more commercial solutions, you had what I call the silo problem, right? You had fragmentation in terms of this capability from this vendor, this capability from another vendor. You get the idea. You know, one of the things that we really think that we need that we, that needs to be brought to the table, is, first of all, having an end to end data management platform. It's kind of an integrated, it's all tested together, you have a data lineage across the entire stack. But then also importantly, to be realistic, we have to be able to integrate to industry kind of best practices as well in terms of solution components in the car, the hardware and all those types of things. So I think there's, you know, it's just stepping back for a second, I think that there is, has been fragmentation and complexity in the past. We're moving towards more standards and more standard types of offerings. Our job as a software maker is to make that easier and connect those dots, so customers don't have to do it all on all on their own. >> And you mentioned specialized hardware. One of the things we heard earlier in the main stage was your partnership with Nvidia. We're talking about new types of hardware coming in. You guys are optimizing for that. We see the IT and the OT worlds blending together, no question. And then that end-to-end management piece, you know, this is different from, your right, from IT, normally everything's controlled, you're in the data center. And this is a metadata, you know, rethinking kind of how you manage metadata. So in the spirit of, of what we talked about earlier today, other technology partners, are you working with other partners to sort of accelerate these solutions, move them forward faster? >> Yeah, I'm really glad you're asking that, Dave, because we actually embarked on a product on a project called Project Fusion, which really was about integrating with, you know, when you look at that connected vehicle lifecycle, there are some core vendors out there that are providing some very important capabilities. So what we did is we joined forces with them to build an end-to-end demonstration and reference architecture to enable the complete data management life cycle. Now Cloudera's piece of this was ingesting data and all the things I talked about in storing and the machine learning, right? And so we provide that end to end. But what we wanted to do is we wanted to partner with some key partners. And the partners that we did integrate with were NXP. NXP provides the service-oriented gateways in the car, so that's the hardware in the car. Wind River provides an in-car operating system. That's Linux, right? That's hardened and tested. We then ran ours, our, our Apache MiNiFi, which is part of Cloudera data flow, in the vehicle, right on that operating system, on that hardware. We pumped the data over into the cloud where we did the, all the data analytics and machine learning, and built out these very specialized models. And then we used a company called Airbiquity, once we built those models, to do, you know, they specialize in automotive over-the-air updates, right? So they can then take those models, and update those models back to the vehicle very rapidly. So what we said is, look, there's, there's an established, you know, ecosystem, if you will, of leaders in this space. What we wanted to do is make sure that Cloudera was part and parcel of this ecosystem. And by the way, you mentioned Nvidia as well. We're working close with Nvidia now. So when we're doing the machine learning, we can leverage some of their hardware to get some still further acceleration in the machine learning side of things. So yeah, you know, one of the things I, I, I always say about these types of use cases, it does take a village. And what we've really tried to do is build out that, that, that an ecosystem that provides that village so that we can speed that analytics and machine learning lifecycle just as fast as it can be. >> This is, again, another great example of data intensive workloads. It's not your, it's not your grandfather's ERP that's running on, you know, traditional, you know, systems, it's, these are really purpose built, maybe they're customizable for certain edge-use cases. They're low cost, low, low power. They can't be bloated. And you're right, it does take an ecosystem. You've got to have, you know, APIs that connect and, and that's that, that takes a lot of work and a lot of thought. So that, that leads me to the technologies that are sort of underpinning this. We've talked, we've talked a lot on The Cube about semiconductor technology, and now that's changing, and the advancements we're seeing there. What, what do you see as some of the key technology areas that are advancing this connected vehicle machine learning? >> You know, it's interesting, I'm seeing it in, in a few places, just a few notable ones. I think, first of all, you know, we see that the vehicle itself is getting smarter, right? So when you look at, we look at that NXP type of gateway that we talked about. That used to be kind of a, a dumb gateway that was, really all it was doing was pushing data up and down, and provided isolation as a gateway down to the, down from the lower level subsystems. So it was really security and just basic, you know, basic communication. That gateway now is becoming what they call a service oriented gateway. So it can run. It's not, it's got disc, it's got memory, it's got all this. So now you could run serious compute in the car, right? So now all of these things like running machine-learning inference models, you have a lot more power in the car. At the same time, 5G is making it so that you can push data fast enough, making low latency computing available, even on the cloud. So now, now you've got incredible compute both at the edge in the vehicle and on the cloud, right? And, you know, and then on the, you know, on the cloud, you've got partners like Nvidia, who are accelerating it still further through better GPU-based computing. So, I mean the whole stack, if you look at that, that machine learning life cycle we talked about, you know, Dave, it seems like there's improvements in every, in every step along the way, we're starting to see technology optim, optimization just pervasive throughout the cycle. >> And then, you know, real quick, it's not a quick topic, but you mentioned security. I mean, we've seen a whole new security model emerge. There is no perimeter anymore in this, in a use case like this is there? >> No, there isn't. And one of the things that we're, you know, remember we're the data management plat, platform, and the thing we have to provide is provide end-to-end, you know, end-to-end lineage of where that data came from, who can see it, you know, how it changed, right? And that's something that we have integrated into, from the beginning of when that data is ingested, through when it's stored, through when it's kind of processed and people are doing machine learning; we provide, we will provide that lineage so that, you know, that security and governance is assured throughout the, throughout that data learning life's level. >> And federated across, in this example, across the fleet, so. All right, Michael, that's all the time we have right now. Thank you so much for that great information. Really appreciate it. >> Dave, thank you. And thanks for the audience for listening in today. >> Yes, thank you for watching. Keep it right there.

>> Okay. We want to pick up on a couple of themes that Mick discussed, you know, supercharging your business with AI, for example, and this notion of getting hybrid right. So right now we're going to turn the program over to Rob Bearden, the CEO of Cloudera and Manuvir Das who's the head of enterprise computing at NVIDIA. And before I hand it off to Rob, I just want to say for those of you who follow me at the Cube, we've extensively covered the transformation of the semiconductor industry. We are entering an entirely new era of computing in the enterprise and it's being driven by the emergence of data intensive applications and workloads. No longer will conventional methods of processing data suffice to handle this work. Rather, we need new thinking around architectures and ecosystems. And one of the keys to success in this new era is collaboration between software companies like Cloudera and semiconductor designers like NVIDIA. So let's learn more about this collaboration and what it means to your data business. Rob, take it away. >> Thanks Mick and Dave. That was a great conversation on how speed and agility is everything in a hyper competitive hybrid world. You touched on AI as essential to a data first strategy in accelerating the path to value and hybrid environments. And I want to drill down on this aspect. Today, every business is facing accelerating change. Everything from face-to-face meetings to buying groceries has gone digital. As a result, businesses are generating more data than ever. There are more digital transactions to track and monitor now. Every engagement with coworkers, customers and partners is virtual. From website metrics to customer service records and even onsite sensors. Enterprises are accumulating tremendous amounts of data and unlocking insights from it is key to our enterprises success. And with data flooding every enterprise, what should the businesses do? At Cloudera, we believe this onslaught of data offers an opportunity to make better business decisions faster and we want to make that easier for everyone, whether it's fraud detection, demand forecasting, preventative maintenance, or customer churn. Whether the goal is to save money or produce income, every day that companies don't gain deep insight from their data is money they've lost. And the reason we're talking about speed and why speed is everything in a hybrid world and in a hyper competitive climate, is that the faster we get insights from all of our data, the faster we grow and the more competitive we are. So those faster insights are also combined with the scalability and cost benefit that cloud provides. And with security and edge to AI data intimacy, that's why the partnership between Cloudera and NVIDIA together means so much. And it starts with a shared vision, making data-driven decision-making a reality for every business. And our customers will now be able to leverage virtually unlimited quantities and varieties of data to power an order of magnitude faster decision-making. And together we turbo charged the enterprise data cloud to enable our customers to work faster and better, and to make integration of AI approaches a reality for companies of all sizes in the cloud. We're joined today by NVIDIA's Manduvir Das, and to talk more about how our technologies will deliver the speed companies need for innovation in our hyper competitive environment. Okay, Manuvir, thank you for joining us. Over to you now. >> Thank you Rob, for having me. It's a pleasure to be here on behalf of NVIDIA. We're so excited about this partnership with Cloudera. You know, when, when NVIDIA started many years ago, we started as a chip company focused on graphics. But as you know, over the last decade, we've really become a full stack, accelerated computing company where we've been using the power of GPU hardware and software to accelerate a variety of workloads, AI being a prime example. And when we think about Cloudera, and your company, your great company, there's three things we see Rob. The first one is that for the companies that were already transforming themselves by the use of data, Cloudera has been a trusted partner for them. The second thing we've seen is that when it comes to using your data, you want to use it in a variety of ways with a powerful platform, which of course you have built over time. And finally, as we've heard already, you believe in the power of hybrid, that data exists in different places and the compute needs to follow the data. Now, if you think about NVIDIA's mission going forward to democratize accelerated computing for all companies, our mission actually aligns very well with exactly those three things. Firstly, you know, we've really worked with a variety of companies to date who have been the early adopters using the power acceleration by changing their technology and their stacks. But more and more we see the opportunity of meeting customers where they are with tools that they're familiar with, with partners that they trust. And of course, Cloudera being a great example of that. The second part of NVIDIA's mission is we focused a lot in the beginning on deep learning where the power of GPU is really shown through. But as we've gone forward, we found that GPU's can accelerate a variety of different workloads from machine learning to inference. And so again, the power of your platform is very appealing. And finally, we know that AI is all about data, more and more data. We believe very strongly in the idea that customers put their data, where they need to put it. And the compute, the AI compute, the machine learning compute, needs to meet the customer where their data is. And so that matches really well with your philosophy, right? And, and Rob, that's why we were so excited to do this partnership with you. It's come to fruition. We have a great combined stack now for the customer and we already see people using it. I think the IRS is a fantastic example where, literally, they took the workflow they had, they took the servers they had, they added GPUs into those servers. They did not change anything. And they got an eight times performance improvement for their fraud detection workflows, right? And that's the kind of success we're looking forward to with all customers. So the team has actually put together a great video to show us what the IRS is doing with this technology. Let's take a look. >> How you doing? My name's Joe Ansaldi. I'm the branch chief of the technical branch in RAS. It's actually the research division, research and statistical division of the IRS. Basically, the mission that RAS has is we do statistical and research on all things related to taxes, compliance issues, fraud issues, you know, anything that you can think of basically, we do research on that. We're running into issues now that we have a lot of ideas to actually do data mining on our big troves of data, but we don't necessarily have the infrastructure or horsepower to do it. So our biggest challenge is definitely the, the infrastructure to support all the ideas that the subject matter experts are coming up with in terms of all the algorithms they would like to create. And the diving deeper within the algorithm space, the actual training of those algorithms, the number of parameters each of those algorithms have. So that's, that's really been our challenge now. The expectation was that with NVIDIA and Cloudera's help and with the cluster, we actually build out to test this on the actual fraud detection algorithm. Our expectation was we were definitely going to see some speed up in computational processing times. And just to give you context, the size of the data set that we were, the SME was actually working her algorithm against was around four terabytes. If I recall correctly, we had a 22 to 48 times speed up after we started tweaking the original algorithm. My expectations, quite honestly, in that sphere, in terms of the timeframe to get results, was it that you guys actually exceeded them. It was really, really quick. The definite now term, short term, what's next is going to be the subject matter expert is actually going to take our algorithm run with that. So that's definitely the now term thing we want to do. Going down, go looking forward, maybe out a couple of months, we're also looking at procuring some A-100 cards to actually test those out. As you guys can guess, our datasets are just getting bigger and bigger and bigger, and it demands to actually do something when we get more value added out of those data sets is just putting more and more demands on our infrastructure. So, you know, with the pilot, now we have an idea with the infrastructure, the infrastructure we need going forward and then also just our in terms of thinking of the algorithms and how we can approach these problems to actually code out solutions to them. Now we're kind of like the shackles are off and we can just run a, you know, run to our heart's desire, wherever our imaginations takes our SMEs to actually develop solutions. Now have the platforms to run them on. Just kind of to close out, we really would be remiss, I've worked with a lot of companies through the year and most of them been spectacular. And you guys are definitely in that category, the whole partnership, as I said, a little bit early, it was really, really well, very responsive. I would be remiss if I didn't thank you guys. So thank you for the opportunity. Doing fantastic. and I'd have to also, I want to thank my guys. my staff, Raul, David worked on this, Richie worked on this, Lex and Tony just, they did a fantastic job and I want to publicly thank them for all the work they did with you guys and Chev, obviously also is fantastic. So thank you everyone. >> Okay. That's a real great example of speed and action. Now let's get into some follow up questions guys, if I may, Rob, can you talk about the specific nature of the relationship between Cloudera and NVIDIA? Is it primarily go to market or are you doing engineering work? What's the story there? >> It's really both. It's both go to market and engineering The engineering focus is to optimize and take advantage of NVIDIA's platform to drive better price performance, lower cost, faster speeds, and better support for today's emerging data intensive applications. So it's really both. >> Great. Thank you. Manuvir, maybe you could talk a little bit more about why can't we just use existing general purpose platforms that are, that are running all this ERP and CRM and HCM and you know, all the, all the Microsoft apps that are out there. What, what do NVIDIA and Cloudera bring to the table that goes beyond the conventional systems that we've known for many years? >> Yeah. I think Dave, as we've talked about the asset that the customer has is really the data, right? And the same data can be utilized in many different ways. Some machine learning, some AI, some traditional data analytics. So, the first step here was really to take a general platform for data processing, Cloudera data platform, and integrate with that. Now NVIDIA has a software stack called rapids, which has all of the primitives that make different kinds of data processing go fast on GPU's. And so the integration here has really been taking rapids and integrating it into a Cloudera data platform so that regardless of the technique the customer is using to get insight from the data, the acceleration will apply in all cases. And that's why it was important to start with a platform like Cloudera rather than a specific application. >> So, I think this is really important because if you think about, you know, the software defined data center brought in, you know, some great efficiencies, but at the same time, a lot of the compute power is now going towards doing things like networking and storage and security offloads. So the good news, the reason this is important is because when you think about these data intensive workloads, we can now put more processing power to work for those, you know, AI intensive things. And so that's what I want to talk about a little bit, maybe a question for both of you, maybe Rob, you could start. You think about AI that's done today in the enterprise. A lot of it is modeling in the cloud, but when we look at a lot of the exciting use cases, bringing real-time systems together, transaction systems and analytics systems, and real-time AI inference, at least even at the edge, huge potential for business value. In a consumer, you're seeing a lot of applications with AI biometrics and voice recognition and autonomous vehicles and the liking. So you're putting AI into these data intensive apps within the enterprise. The potential there is enormous. So what can we learn from sort of where we've come from, maybe these consumer examples and Rob, how are you thinking about enterprise AI in the coming years? >> Yeah, you're right. The opportunity is huge here, but you know, 90% of the cost of AI applications is the inference. And it's been a blocker in terms of adoption because it's just been too expensive and difficult from a performance standpoint. And new platforms like these being developed by Cloudera and NVIDIA will dramatically lower the cost of enabling this type of workload to be done. And what we're going to see the most improvements will be in the speed and accuracy for existing enterprise AI apps like fraud detection, recommendation engine, supply chain management, drug province. And increasingly the consumer led technologies will be bleeding into the enterprise in the form of autonomous factory operations. An example of that would be robots. That AR, VR and manufacturing so driving better quality. The power grid management, automated retail, IOT, you know, the intelligent call centers, all of these will be powered by AI, but really the list of potential use cases now are going to be virtually endless. >> I mean, Manufir, this is like your wheelhouse. Maybe you could add something to that. >> Yeah. I mean, I agree with Rob. I mean he listed some really good use cases, you know, The way we see this at NVIDIA, this journey is in three phases or three steps, right? The first phase was for the early adopters. You know, the builders who assembled use cases, particular use cases like a chat bot from the ground up with the hardware and the software. Almost like going to your local hardware store and buying piece parts and constructing a table yourself right now. Now, I think we are in the first phase of the democratization. For example, the work we do with Cloudera, which is for a broader base of customers, still building for a particular use case, but starting from a much higher baseline. So think about, for example, going to Ikea now and buying a table in a box, right. And you still come home and assemble it, but all the parts are there, the instructions are there, there's a recipe you just follow and it's easy to do, right? So that's sort of the phase we're in now. And then going forward, the opportunity we really look forward to for the democratization, you talked about applications like CRM, et cetera. I think the next wave of democratization is when customers just adopt and deploy the next version of an application they already have. And what's happening is that under the covers, the application is infused by AI and it's become more intelligent because of AI and the customer just thinks they went to the store and bought a table and it showed up and somebody placed it in the right spot. Right? And they didn't really have to learn how to do AI. So these are the phases. And I think we're very excited to be going there. >> You know, Rob, the great thing about, for your customers is they don't have to build out the AI. They can, they can buy it. And just in thinking about this, it seems like there are a lot of really great and even sometimes narrow use cases. So I want to ask you, you know, staying with AI for a minute, one of the frustrations, and Mick I talked about this, the GIGO problem that we've all, you know, studied in college, you know, garbage in, garbage out. But, but the frustrations that users have had is really getting fast access to quality data that they can use to drive business results. So do you see, and how do you see AI maybe changing the game in that regard, Rob, over the next several years? >> So yeah, the combination of massive amounts of data that had been gathered across the enterprise in the past 10 years with an open APIs are dramatically lowering the processing costs that perform at much greater speed and efficiency. And that's allowing us as an industry to democratize the data access while at the same time delivering the federated governance and security models. And hybrid technologies are playing a key role in making this a reality and enabling data access to be quote, hybridized, meaning access and treated in a substantially similar way, irrespective of the physical location of where that data actually resides. >> And that's great. That is really the value layer that you guys are building out on top of all this great infrastructure that the hyperscalers have have given us. You know, a hundred billion dollars a year that you can build value on top of, for your customers. Last question, and maybe Rob, you could, you could go first and then Manuvir, you could bring us home. Where do you guys want to see the relationship go between Cloudera and NVIDIA? In other words, how should we as outside observers be, be thinking about and measuring your project, specifically in the industry's progress generally? >> Yes. I think we're very aligned on this and for Cloudera, it's all about helping companies move forward, leverage every bit of their data and all the places that it may be hosted and partnering with our customers, working closely with our technology ecosystem of partners, means innovation in every industry and that's inspiring for us. And that's what keeps us moving forward. >> Yeah and I agree with Rob and for us at NVIDIA, you know, we, this partnership started with data analytics. As you know, Spark is a very powerful technology for data analytics. People who use Spark rely on Cloudera for that. And the first thing we did together was to really accelerate Spark in a seamless manner. But we're accelerating machine learning. We're accelerating artificial intelligence together. And I think for NVIDIA it's about democratization. We've seen what machine learning and AI have done for the early adopters and help them make their businesses, their products, their customer experience better. And we'd like every company to have the same opportunity.

(upbeat music) >> Welcome to transforming ideas into insights, presented with theCUBE and made possible by Cloudera. My name is Dave Vellante from theCUBE and I'll be your host for today. In the next hundred minutes, you're going to hear how to turn your best ideas into action using data and we're going to share the real-world examples of 12 industry use cases that apply modern data techniques to improve customer experience, reduce fraud, drive manufacturing efficiencies, better forecast retail demand, transform analytics, improve public sector service and so much more. How we use data is rapidly evolving. That is the language that we use to describe data. I mean, for example, we don't really use the term big data as often as we used to, rather we use terms like, digital transformation and digital business. But you think about it. What is a digital business? How is that different from just a business? Well, a digital business is a data business and it differentiates itself by the way it uses data to compete. So whether we call it data, big data or digital, our belief is we're entering the next decade of a world that puts data at the core of our organizations. And as such, the way we use insights is also rapidly evolving. You know, of course we get value from enabling humans to act with confidence on let's call it near perfect information or capitalize on non-intuitive findings, but increasingly insights are leading to the development of data products and services that can be monetized. Or as you'll hear in our industry examples, data is enabling machines to take cognitive actions on our behalf. Examples are everywhere in the forms of apps and products and services, all built on data. Think about a real time fraud detection, know your customer and finance, personal health apps that monitor our heart rates. Self-service investing, filing insurance claims on our smart phones and so many examples. IOT systems that communicate and act machine to machine. Real-time pricing actions, these are all examples of products and services that drive revenue, cut costs or create other value and they all rely on data. Now, while many business leaders sometimes express frustration that their investments in data, people and process and technologies haven't delivered the full results they desire. The truth is that the investments that they've made over the past several years should be thought of as a step on the data journey. Key learnings and expertise from these efforts are now part of the organizational DNA that can catapult us into this next era of data transformation and leadership. One thing is certain, the next 10 years of data and digital transformation won't be like the last 10. So let's into it. Please join us in the chat. You can ask questions. You can share your comments. Hit us up on Twitter. Right now, it's my pleasure to welcome Mick Holliston and he's the president of Cloudera. Mick, great to see you. >> Great to see you as well, Dave. >> Hey, so I call it the new abnormal, right? The world is kind of out of whack. Offices are reopening again. We're seeing travel coming back. There's all this pent up demand for cars and vacations, line cooks at restaurants. Everything that we consumers have missed, but here's the one thing, it seems like the algorithms are off. Whether it's retail's fulfillment capabilities, airline scheduling, their pricing algorithms, commodity prices, we don't know. Is inflation transitory? Is it a long-term threat, trying to forecast GDP? It seems like we have to reset all of our assumptions and Mick, I feel a quality data is going to be a key here. How do you see the current state of the industry in the role data plays to get us into a more predictable and stable future? >> Well, I can sure tell you this, Dave, out of whack is definitely right. I don't know if you know or not, but I happened to be coming to you live today from Atlanta and as a native of Atlanta, I can tell you there's a lot to be known about the airport here. It's often said that whether you're going to heaven or hell, you got to change planes in Atlanta and after 40 minutes waiting on an algorithm to be right for baggage claim last night, I finally managed to get some bag and to be able to show up, dressed appropriately for you today. Here's one thing that I know for sure though, Dave. Clean, consistent and safe data will be essential to getting the world and businesses as we know it back on track again. Without well-managed data, we're certain to get very inconsistent outcomes. Quality data will be the normalizing factor because one thing really hasn't changed about computing since the dawn of time, back when I was taking computer classes at Georgia Tech here in Atlanta and that's what we used to refer to as garbage in, garbage out. In other words, you'll never get quality data-driven insights from a poor dataset. This is especially important today for machine learning and AI. You can build the most amazing models and algorithms, but none of it will matter if the underlying data isn't rock solid. As AI is increasingly used in every business app, you must build a solid data foundation. >> Mick, let's talk about hybrid. Every CXO that I talked to, they're trying to get hybrid right. Whether it's hybrid work, hybrid events, which is our business, hybrid cloud. How are you thinking about the hybrid everything, what's your point of view? >> With all those prescriptions of hybrid and everything, there was one item you might not have quite hit on, Dave and that's hybrid data. >> Oh yeah, you're right, Mick, I did miss that. What do you mean by hybrid data? >> Well, Dave, in Cloudera, we think hybrid data is all about the juxtaposition of two things, freedom and security. Now, every business wants to be more agile. They want the freedom to work with their data, wherever it happens to work best for them, whether that's on premises, in a private cloud, in public cloud or perhaps even in a new open data exchange. Now, this matters to businesses because not all data applications are created equal. Some apps are best suited to be run in the cloud because of their transitory nature. Others may be more economical if they're running a private cloud. But either way, security, regulatory compliance and increasingly data sovereignty are playing a bigger and more important role in every industry. If you don't believe me, just watch or read a recent news story. Data breaches are at an all time high and the ethics of AI applications are being called into question everyday. And understanding lineage of machine learning algorithms is now paramount for every business. So how in the heck do you get both the freedom and security that you're looking for? Well, the answer is actually pretty straightforward. The key is developing a hybrid data strategy. And what do you know, Dave, that's the business Cloudera is in. On a serious note, from Cloudera's perspective, adopting a hybrid data strategy is central to every business' digital transformation. It will enable rapid adoption of new technologies and optimize economic models, while ensuring the security and privacy of every bit of data. >> Okay, Mick, I'm glad you brought in that notion of hybrid data because when you think about things, especially remote work, it really changes a lot of the assumptions. You talked about security, the data flows are going to change. You got the economics, the physics, the local laws come into play, so what about the rest of hybrid? >> Yeah, that's a great question, Dave and certainly, Cloudera itself as a business and all of our customers are feeling this in a big way. We now have the overwhelming majority of our workforce working from home. And in other words, we've got a much larger surface area from a security perspective to keep in mind, the rate and pace of data, just generating a report that might've happened very quickly and rapidly on the office ethernet may not be happening quite so fast in somebody's rural home in the middle of Nebraska somewhere. So it doesn't really matter whether you're talking about the speed of business or securing data, any way you look at it, hybrid I think is going to play a more important role in how work is conducted and what percentage of people are working in the office and are not, I know our plans, Dave, involve us kind of slowly coming back to work, beginning this fall. And we're looking forward to being able to shake hands and see one another again for the first time, in many cases, for more than a year and a half. But yes, hybrid work and hybrid data are playing an increasingly important role for every kind of business. >> Thanks for that. I wonder if we could talk about industry transformation for a moment because it's a major theme of course, of this event. So, here's how I think about it. I mean, some industries have transformed. You think about retail, for example, it's pretty clear. Although, every physical retail brand I know has not only beefed up its online presence, but they also have an Amazon war room strategy because they're trying to take greater advantage of that physical presence. And reverse, we see Amazon building out physical assets, so there's more hybrid going on. But when you look at healthcare, for example, it's just starting with such highly regulated industry. It seems that there's some hurdles there. Financial services is always been data savvy, but you're seeing the emergence of FinTech and some other challenges there in terms of control of payment systems. In manufacturing, the pandemic highlighted, America's reliance on China as a manufacturing partner and supply chain. And so my point is, it seems at different industries, they're in different stages of transformation, but two things look really clear. One, you got to put data at the core of the business model, that's compulsory. It seems like embedding AI into the applications, the data, the business process, that's going to become increasingly important. So how do you see that? >> Wow, there's a lot packed into that question there, Dave. But yeah, at Cloudera, I happened to be leading our own digital transformation as a technology company and what I would tell you there that's been an interesting process. The shift from being largely a subscription-based model to a consumption-based model requires a completely different level of instrumentation in our products and data collection that takes place in real-time, both for billing for our customers and to be able to check on the health and wellness, if you will, of their Cloudera implementations. But it's clearly not just impacting the technology industry. You mentioned healthcare and we've been helping a number of different organizations in the life sciences realm, either speed the rate and pace of getting vaccines to market or we've been assisting with testing process that's taken place. Because you can imagine the quantity of data that's been generated as we've tried to study the efficacy of these vaccines on millions of people and try to ensure that they were going to deliver great outcomes and healthy and safe outcomes for everyone. And Cloudera has been underneath a great deal of that type of work. And the financial services industry you pointed out, we continue to be central to the large banks, meeting their compliance and regulatory requirements around the globe. And in many parts of the world, those are becoming more stringent than ever. And Cloudera solutions are helping those kinds of organizations get through those difficult challenges. You also happened to mention public sector and in public sector, we're also playing a key role in working with government entities around the world and applying AI to some of the most challenging missions that those organizations face. And while I've made the kind of pivot between the industry conversation and the AI conversation, what I'll share with you about AI, I touched upon a little bit earlier. You can't build great AI, you can't build great ML apps unless you've got a strong data foundation underneath. It's back to that garbage in, garbage out comment that I made previously. And so, in order to do that, you've got to have a great hybrid data management platform at your disposal to ensure that your data is clean and organized and up to date. Just as importantly from that, that's kind of the freedom side of things. On the security side of things, you've got to ensure that you can see who's touched not just the data itself, Dave, but actually the machine learning models. And organizations around the globe are now being challenged. It's kind of on the topic of the ethics of AI to produce model lineage in addition to data lineage. In other words, who's had access to the machine learning models? When and where and at what time and what decisions were made perhaps, by the humans, perhaps by the machines that may have led to a particular outcome? So, every kind of business that is deploying AI applications should be thinking long and hard about whether or not they can track the full lineage of those machine learning models, just as they can track the lineage of data. So, lots going on there across industries. Lots going on as those various industries think about how AI can be applied to their businesses. >> It's a pretty interesting concept you're bringing into the discussion, the hybrid data, sort of, I think new to a lot of people. And this idea of model lineage is a great point because people want to talk about AI ethics, transparency of AI. When you start putting those models into machines to do real-time inferencing at the edge, it starts to get really complicated. I wonder if we could talk, we're still on that theme of industry transformation. I felt like coming into the pre-pandemic, there was just a lot of complacency. Yeah, digital transformation and a lot of buzz words and then we had this forced march to digital, but people are now being more planful, but there's still a lot of sort of POC limbo going on. How do you see that? Can you help accelerate that and get people out of that state? >> There definitely is a lot of a POC limbo or I think some of us internally have referred to as POC purgatory, just getting in that phase, not being able to get from point A to point B in digital transformation. And for every industry, transformation, change in general, is difficult and it takes time and money and thoughtfulness. But like with all things, what we've found is small wins work best and done quickly. So trying to get to quick, easy successes where you can identify a clear goal and a clear objective and then accomplish it in rapid fashion is sort of the way to build your way towards those larger transformative efforts. To say it another way, Dave, it's not wise to try to boil the ocean with your digital transformation efforts, as it relates to the underlying technology here and to bring it home a little bit more practically, I guess I would say. At Cloudera, we tend to recommend that companies begin to adopt cloud infrastructure, for example, containerization. And they begin to deploy that on-prem and then they start to look at how they may move those containerized workloads into the public cloud. That'll give them an opportunity to work with the data and the underlying applications themselves, right close to home. In place, they can kind of experiment a little bit more safely and economically and then determine which workloads are best suited for the public cloud and which ones should remain on prem. That's a way in which a hybrid data strategy can help get a digital transformation accomplished, but kind of starting small and then drawing fast from there on customer's journey to the cloud. >> Well Mick, we've covered a lot of ground. Last question, what do you want people to leave this event, this session with and thinking about sort of the next era of data that we're entering? >> Well, it's a great question, but I think it could be summed up in two words. I want them to think about a hybrid data strategy. So, really hybrid data is a concept that we're bringing forward on this show really, for the first time, arguably. And we really do think that it enables customers to experience what we refer to, Dave, as the power of ANT. That is freedom and security and in a world where we're all still trying to decide whether each day when we walk out, each building we walk into, whether we're free to come in and out with a mask, without a mask, that sort of thing, we all want freedom, but we also also want to be safe and feel safe for ourselves and for others. And the same is true of organization's IT strategies. They want the freedom to choose, to run workloads and applications in the best and most economical place possible, but they also want to do that with certainty that they're going to be able to deploy those applications in a safe and secure way that meets the regulatory requirements of their particular industry. So, hybrid data we think is key to accomplishing both freedom and security for your data and for your business as a whole. >> Nick, thanks so much, great conversation. I really appreciate the insights that you're bringing to this event, into the industry, really. Thank you for your time. >> You bet, Dave, pleasure being with you.

>> Okay, we continue now with the theme of turning ideas into insights so ultimately you can take action. We heard earlier that public cloud first doesn't mean public cloud only. And a winning strategy comprises data, irrespective of physical location on prem, across multiple clouds at the edge where real-time inference is going to drive a lot of incremental value. Data is going to help the world come back to normal we heard, or at least semi normal as we begin to better understand and forecast demand and supply imbalances and economic forces. AI is becoming embedded into every aspect of our business, our people, our processings, and applications. And now we're going to get into some of the foundational principles that support the data and insights centric processes, which are fundamental to digital transformation initiatives. And it's my pleasure to welcome two great guests, Michelle Goetz, who's a Cube alum and VP and principal analyst at Forrester, and doin' some groundbreaking work in this area. And Cindy Maike who is the vice president of industry solutions and value management at Cloudera. Welcome to both of you. >> Welcome, thank you. >> Thanks Dave. >> All right Michelle, let's get into it. Maybe you could talk about your foundational core principles. You start with data. What are the important aspects of this first principle that are achievable today? >> It's really about democratization. If you can't make your data accessible, it's not usable. Nobody's able to understand what's happening in the business and they don't understand what insights can be gained or what are the signals that are occurring that are going to help them with decisions, create stronger value or create deeper relationships with their customers due to their experiences. So it really begins with how do you make data available and bring it to where the consumer of the data is rather than trying to hunt and peck around within your ecosystem to find what it is that's important. >> Great thank you for that. So, Cindy, I wonder in hearing what Michelle just said, what are your thoughts on this? And when you work with customers at Cloudera, are there any that stand out that perhaps embody the fundamentals that Michelle just shared? >> Yeah, there's quite a few. And especially as we look across all the industries that were actually working with customers in. A few that stand out in top of mind for me is one is IQVIA. And what they're doing with real-world evidence and bringing together data across the entire healthcare and life sciences ecosystems, bringing it together in different shapes and formats, making it accessible by both internally, as well as for the entire extended ecosystem. And then for SIA, who's working to solve some predictive maintenance issues within, they're are a European car manufacturer and how do they make sure that they have efficient and effective processes when it comes to fixing equipment and so forth. And then also there's an Indonesian based telecommunications company, Techsomel, who's bringing together over the last five years, all their data about their customers and how do they enhance a customer experience, how do they make information accessible, especially in these pandemic and post pandemic times. Just getting better insights into what customers need and when do they need it? >> Cindy, platform is another core principle. How should we be thinking about data platforms in this day and age? Where do things like hybrid fit in? What's Cloudera's point of view here? >> Platforms are truly an enabler. And data needs to be accessible in many different fashions, and also what's right for the business. When I want it in a cost and efficient and effective manner. So, data resides everywhere, data is developed and it's brought together. So you need to be able to balance both real time, our batch, historical information. It all depends upon what your analytical workloads are and what types of analytical methods you're going to use to drive those business insights. So putting in placing data, landing it, making it accessible, analyzing it, needs to be done in any accessible platform, whether it be a public cloud doing it on-prem or a hybrid of the two is typically what we're seeing being the most successful. >> Great, thank you. Michelle let's move on a little bit and talk about practices and processes, the next core principles. Maybe you could provide some insight as to how you think about balancing practices and processes while at the same time managing agility. >> Yeah, it's a really great question 'cause it's pretty complex when you have to start to connect your data to your business. The first thing to really gravitate towards is what are you trying to do. And what Cindy was describing with those customer examples is that they're all based off of business goals, off of very specific use cases. That helps kind of set the agenda about what is the data and what are the data domains that are important to really understanding and recognizing what's happening within that business activity and the way that you can affect that either in near time or real time, or later on, as you're doing your strategic planning. What that's balancing against is also being able to not only see how that business is evolving, but also be able to go back and say, "Well, can I also measure the outcomes from those processes and using data and using insight? Can I also get intelligence about the data to know that it's actually satisfying my objectives to influence my customers in my market? Or is there some sort of data drift or detraction in my analytic capabilities that are allowing me to be effective in those environments?" But everything else revolves around that and really thinking succinctly about a strategy that isn't just data aware, what data do I have and how do I use it? But coming in more from that business perspective, to then start to be data driven, recognizing that every activity you do from a business perspective leads to thinking about information that supports that and supports your decisions. And ultimately getting to the point of being insight driven, where you're able to both describe what you want your business to be with your data, using analytics to then execute on that fluidly and in real time. And then ultimately bringing that back with linking to business outcomes and doing that in a continuous cycle where you can test and you can learn, you can improve, you can optimize and you can innovate. Because you can see your business as it's happening. And you have the right signals and intelligence that allow you to make great decisions. >> I like how you said near time or real time, because it is a spectrum. And at one end of the spectrum, autonomous vehicles. You've got to make a decision in real time but near real-time, or real-time, it's in the eyes of the beholder if you will. It might be before you lose the customer or before the market changes. So it's really defined on a case by case basis. I wonder Michelle, if you could talk about in working with a number of organizations I see folks, they sometimes get twisted up in understanding the dependencies that technology generally, and the technologies around data specifically can sometimes have on critical business processes. Can you maybe give some guidance as to where customers should start? Where can we find some of the quick wins and high returns? >> It comes first down to how does your business operate? So you're going yo take a look at the business processes and value stream itself. And if you can understand how people, and customers, partners, and automation are driving that step by step approach to your business activities, to realize those business outcomes, it's way easier to start thinking about what is the information necessary to see that particular step in the process, and then take the next step of saying what information is necessary to make a decision at that current point in the process? Or are you collecting information, asking for information that is going to help satisfy a downstream process step or a downstream decision? So constantly making sure that you are mapping out your business processes and activities, aligning your data process to that helps you now rationalize do you need that real time, near real time, or do you want to start creating greater consistency by bringing all of those signals together in a centralized area to eventually oversee the entire operations and outcomes as they happen? It's the process, and the decision points, and acting on those decision points for the best outcome that really determines are you going to move in more of a real-time streaming capacity, or are you going to push back into more of a batch oriented approach? Because it depends on the amount of information and the aggregate of which provides the best insight from that. >> Got it. Let's, bring Cindy back into the conversation here. Cindy, we often talk about people, process, and technology and the roles they play in creating a data strategy that's logical and sound. Can you speak to the broader ecosystem and the importance of creating both internal and external partners within an organization? >> Yeah. And that's kind of building upon what Michelle was talking about. If you think about datas and I hate to use the phrase almost, but the fuel behind the process and how do you actually become insight-driven. And you look at the capabilities that you're needing to enable from that business process, that insight process. Your extended ecosystem on how do I make that happen? Partners and picking the right partner is important because a partner is one that actually helps you implement what your decisions are. So looking for a partner that has the capability that believes in being insight-driven and making sure that when you're leveraging data within your process that if you need to do it in a real-time fashion, that they can actually meet those needs of the business. And enabling on those process activities. So the ecosystem looking at how you look at your vendors, and fundamentally they need to be that trusted partner. Do they bring those same principles of value, of being insight driven? So they have to have those core values themselves in order to help you as a business person enable those capabilities. >> So Cindy I'm cool with fuel, but it's like super fuel when you talk about data. 'Cause it's not scarce, right? You're never going to run out. (Dave chuckling) So Michelle, let's talk about leadership. Who leads? What does so-called leadership look like in an organization that's insight driven? >> So I think the really interesting thing that is starting to evolve as late is that organizations, enterprises are really recognizing that not just that data is an asset and data has value, but exactly what we're talking about here, data really does drive what your business outcomes are going to be. Data driving into the insight or the raw data itself has the ability to set in motion what's going to happen in your business processes and your customer experiences. And so, as you kind of think about that, you're now starting to see your CEO, your CMO, your CRO coming back and saying, I need better data. I need information that's representative of what's happening in my business. I need to be better adaptive to what's going on with my customers. And ultimately that means I need to be smarter and have clearer forecasting into what's about ready to come. Not just one month, two months, three months, or a year from now, but in a week or tomorrow. And so that is having a trickle down effect to then looking at two other types of roles that are elevating from technical capacity to more business capacity. You have your chief data officer that is shaping the experiences with data and with insight and reconciling what type of information is necessary with it within the context of answering these questions and creating a future fit organization that is adaptive and resilient to things that are happening. And you also have a chief digital officer who is participating because they're providing the experience and shaping the information and the way that you're going to interact and execute on those business activities. And either running that autonomously or as part of an assistance for your employees and for your customers. So really to go from not just data aware to data-driven, but ultimately to be insight driven, you're seeing way more participation and leadership at that C-suite level and just underneath, because that's where the subject matter expertise is coming in to know how to create a data strategy that is tightly connected to your business strategy. >> Great, thank you. Let's wrap, and I've got a question for both of you, maybe Cindy, you could start and then Michelle bring us home. A lot of customers, they want to understand what's achievable. So it's helpful to paint a picture of a maturity model. I'd love to go there, but I'm not going to get there anytime soon, but I want to take some baby steps. So when you're performing an analysis on an insight driven organization, Cindy what do you see as the major characteristics that define the differences between sort of the early beginners sort of fat middle, if you will, and then the more advanced constituents? >> Yeah, I'm going to build upon what Michelle was talking about is data as an asset. And I think also being data aware and trying to actually become insight driven. Companies can also have data, and they can have data as a liability. And so when you're data aware, sometimes data can still be a liability to your organization. If you're not making business decisions on the most recent and relevant data, you're not going to be insight-driven. So you've got to move beyond that data awareness, where you're looking at data just from an operational reporting. But data's fundamentally driving the decisions that you make as a business. You're using data in real time. You're leveraging data to actually help you make and drive those decisions. So when we use the term you're data-driven, you can't just use the term tongue-in-cheek. It actually means that I'm using the recent, the relevant, and the accuracy of data to actually make the decisions for me, because we're all advancing upon, we're talking about artificial intelligence and so forth being able to do that. If you're just data aware, I would not be embracing on leveraging artificial intelligence. Because that means I probably haven't embedded data into my processes. Yes, data could very well still be a liability in your organization, so how do you actually make it an asset? >> Yeah I think data aware it's like cable ready. (Dave chuckling) So Michelle, maybe you could add to what Cindy just said and maybe add as well any advice that you have around creating and defining a data strategy. >> So every data strategy has a component of being data aware. This is like building the data museum. How do you capture everything that's available to you? How do you maintain that memory of your business? Bringing in data from your applications, your partners, third parties, wherever that information is available, you want to ensure that you're capturing it and you're managing and you're maintaining it. And this is really where you're starting to think about the fact that it is an asset, it has value. But you may not necessarily know what that value is yet. If you move into a category of data driven, what starts to shift and change there is you're starting to classify label, organize the information in context of how you're making decisions and how you do business. It could start from being more proficient from an analytic purpose. You also might start to introduce some early stages of data science in there. So you can do some predictions and some data mining to start to weed out some of those signals. And you might have some simple types of algorithms that you're deploying to do a next next best action, for example. And that's what data-driven is really about. You're starting to get value out of it. The data itself is starting to make sense in context of your business, but what you haven't done quite yet, which is what insight driven businesses are, is really starting to take away the gap between when you see it, know it, and then get the most value and really exploit what that is at the time when it's right, so in the moment. We talk about this in terms of perishable insights, data and insights are ephemeral. And we want to ensure that the way that we're managing that and delivering on that data and insights is in time with our decisions and the highest value outcome we're going to have, that that insight can provide us. So are we just introducing it as data-driven organizations where we could see spreadsheets and PowerPoint presentations and lots of mapping to help make longer strategic decisions, or are those insights coming up and being activated in an automated fashion within our business processes that are either assisting those human decisions at the point when they're needed, or an automated decisions for the types of digital experiences and capabilities that we're driving in our organization. So it's going from, I'm a data hoarder if I'm data aware to I'm interested in what's happening as a data-driven organization and understanding my data. And then lastly being insight driven is really where light between business, data and insight, there is none, it's all coming together for the best outcomes. >> Right, it's like people are acting on perfect or near perfect information. Or machines are doing so with a high degree of confidence. Great advice and insights, and thank you both for sharing your thoughts with our audience today, it was great to have you. >> Thank you. >> Thank you. >> Okay, now we're going to go into our industry deep dives. There are six industry breakouts. Financial services, insurance, manufacturing, retail communications, and public sector. Now each breakout is going to cover two distinct use cases for a total of essentially 12 really detailed segments. Now each of these is going to be available on demand, but you can scan the calendar on the homepage and navigate to your breakout session of choice. Or for more information, click on the agenda page and take a look to see which session is the best fit for you and then dive in. Join the chat and feel free to ask questions or contribute your knowledge, opinions, and data. Thanks so much for being part of the community, and enjoy the rest of the day. (upbeat music)

>>Okay. Now we're going to dig into the data landscape and cloud of course. And talk a little bit more about that with drew Allen. He's a managing director at Accenture drew. Welcome. Great to see you. Thank you. So let's talk a little bit about, you know, you've been in this game for a number of years. Uh, you've got a particular expertise in, in, in data and finance and insurance. I mean, you think about it within the data and analytics world, even our language is changing. You know, we don't say talk about big data so much anymore. We, we talk more about digital, you know, or, or, or data-driven when you think about sort of where we've come from and where we're going, what are the puts and takes that you have with regard to what's going on in the business today? >>Well, thanks for having me. Um, you know, I think some of the trends we're seeing in terms of challenges and puts some takes are that a lot of companies are already on this digital transformation journey. Um, they focused on customer experience is kind of table stakes. Everyone wants to focus on that and kind of digitizing their channels. But a lot of them are seeing that, you know, a lot of them don't even own their, their channels necessarily. So like we're working with a big cruise line, right. And yes, they've invested in digitizing what they own, but a lot of the channels that they sell through, they don't even own, right. It's the travel agencies or third-party real sellers. So having the data to know where, you know, where those agencies are, that that's something that they've discovered. And so there's a lot of big focus on not just digitizing, but also really understanding your customers and going across products because a lot of the data has built, been built up in individual channels and in digital products. >>And so bringing that data together is something that customers that have really figured out in the last few years is a big differentiator. And what we're seeing too, is that a big trend that the data rich are getting richer. So companies that have really invested in data, um, are having, uh, an outside market share and outside earnings per share and outside revenue growth. And it's really being a big differentiator. And I think for companies just getting started in this, the thing to think about is one of the missteps is to not try to capture all the data at once. The average company has, you know, 10,000, 20,000 data elements individually, when you want to start out, you know, 500, 300 critical data elements, about 5% of the data of a company drives 90% of the business value. So focusing on, on those key critical data elements is really what you need to govern first and really invest in first. And so that's something we tell companies at the beginning of their data strategy is first focus on those critical data elements, really get a handle on governing that data, organizing that data and building data products around >>That data. You can't boil the ocean. Right. And so, and I, I feel like pre pandemic, there was a lot of complacency. Oh yeah, we'll get to that. You know, not on my watch, I'll be retired before that, you know, it becomes a minute. And then of course the pandemic was, I call it sometimes a forced March to digital. So in many respects, it wasn't planned. It just ha you know, you had to do it. And so now I feel like people are stepping back and saying, okay, let's now really rethink this and do it right. But is there, is there a sense of urgency, do you think? >>Absolutely. I think with COVID, you know, we were working with, um, a retailer where they had 12,000 stores across the U S and they had didn't have the insights where they could drill down and understand, you know, with the riots and with COVID was the store operational, you know, with the supply chain of they having multiple, uh, distributors, what did they have in stock? So there are millions of data points that you need to drill down, down at the cell level, at the store level to really understand how's my business performing. And we like to think about it for like a CEO and his leadership team of like, think of it as a digital cockpit, right? You think about a pilot, they have a cockpit with all these dials and, um, dashboards, essentially understanding the performance of their business. And they should be able to drill down and understand for each individual, you know, unit of their work, how are they performing? That's really what we want to see for businesses. Can they get down to that individual performance to really understand how their businesses and >>The ability to connect those dots and traverse those data points and not have to go in and come back out and go into a new system and come back out. And that's really been a lot of the frustration where does machine intelligence and AI fit in? Is that sort of a dot connector, if you will, and an enabler, I mean, we saw, you know, decades of the, the AI winter, and then, you know, there's been a lot of talk about it, but it feels like with the amount of data that we've collected over the last decade and the, the, the low costs of processing that data now, it feels like it's, it's real. Where do you see AI fitting in? Yeah, >>I mean, I think there's been a lot of innovation in the last 10 years with, um, the low cost of storage and computing and these algorithms in non-linear, um, you know, knowledge graphs, and, um, um, a whole bunch of opportunities in cloud where what I think the, the big opportunity is, you know, you can apply AI in areas where a human just couldn't have the scale to do that alone. So back to the example of a cruise lines, you know, you may have a ship being built that has 4,000 cabins on the single cruise line, and it's going to multiple deaths that destinations over its 30 year life cycle. Each one of those cabins is being priced individually for each individual destination. It's physically impossible for a human to calculate the dynamic pricing across all those destinations. You need a machine to actually do that pricing. And so really what a machine is leveraging is all that data to really calculate and assist the human, essentially with all these opportunities where you wouldn't have a human being able to scale up to that amount of data >>Alone. You know, it's interesting. One of the things we talked to Mick Halston about earlier was just the everybody's algorithms are out of whack. You know, you look at the airline pricing, you look at hotels it's as a consumer, you would be able to kind of game the system and predict a, they can't even predict these days. And I feel as though that the data and AI are actually going to bring us back into some kind of normalcy and predictability, uh, w what do you see in that regard? >>Yeah, I think it's, I mean, we're definitely not at a point where when I talk to, you know, the top AI engineers and data scientists, we're not at a point where we have what they call broad AI, right? Where you can get machines to solve general knowledge problems, where they can solve one problem, and then a distinctly different problem, right? That's still many years away, but narrow AI, there's still tons of use cases out there that can really drive tons of business performance challenges, tons of accuracy challenges. So, for example, in the insurance industry, commercial lines, where I work a lot of the time, the biggest leakage of loss experience and pricing for commercial insurers is, um, people will go in as an agent and they'll select an industry to say, you know what, I'm a restaurant business. Um, I'll select this industry code to quote out a policy, but there's, let's say, you know, 12 dozen permutations, you could be an outdoor restaurant. >>You could be a bar, you could be a caterer, and all of that leads to different loss experience. So what this does is they built a machine learning algorithm. We've helped them do this, that actually at the time that they're putting in their name and address, it's crawling across the web and predicting in real time, you know, is this address actually, you know, a business that's a restaurant with indoor dining, does it have a bar is an outdoor dining, and it's that that's able to accurately more price the policy and reduce the loss experience. So there's a lot of that you can do, even with narrow AI that can really drive top line of business results. >>Yeah. I like that term narrow AI because getting things done is important. Let's talk about cloud a little bit because people talk about cloud first public cloud first doesn't necessarily mean public cloud only, of course. So where do you see things like what's the right operating model, the right regime hybrid cloud. We talked earlier about hybrid data help us squint through the cloud landscape. Yeah. >>I mean, I think for most right, most fortune 500 companies, they can't just their fingers and say, let's move all of our data centers to the cloud. They've got to move, you know, gradually. And it's usually a journey that's taking more than two to three plus years, even more than that in some cases. So they're half they have to move their data, uh, incrementally to the cloud. And what that means is that, that they have to move to a hybrid perspective where some of their data is on premise and some of it is publicly on the cloud. And so that's the term hybrid cloud essentially. And so what they've had to think about is from an intelligence perspective, the privacy of that data, where is it being moved? Can they reduce the replication of that data? Because ultimately you like, uh, replicating the data from on-premise to, to the cloud that introduces, you know, errors and data quality issues. So thinking about how do you manage, uh, you know, uh, on-premise and public cloud as a transition is something that Accenture thinks, thinks, and helps our clients do quite a bit. And how do you move them in a manner that's well-organized and well thought about? >>Yeah. So I've been a big proponent of sort of line of business lines of business becoming much more involved in, in the data pipeline, if you will, the data process, if you think about our major operational systems, they all have sort of line of business context in them. Then the salespeople, they know the CRM data and, you know, logistics folks. There they're very much in tune with ERP. I almost feel like for the past decade, the lines of business have been somewhat removed from the, the data team, if you will. And that, that seems to be changing. What are you seeing in terms of the line of line of business being much more involved in sort of end to end ownership if you will, if I can use that term of, uh, of the data and sort of determining things like helping determine anyway, the data quality and things of that nature. Yeah. >>I mean, I think this is where thinking about your data operating model and thinking about ideas of a chief data officer and having data on the CEO agenda, that's really important to get the lines of business, to really think about data sharing and reuse, and really getting them to, you know, kind of unlock the data because they do think about their data as a fiefdom data has value, but you've got to really get organizations in their silos to open it up and bring that data together because that's where the value is. You know, data doesn't operate. When you think about a customer, they don't operate in their journey across the business in silo channels. They don't think about, you know, I use only the web and then I use the call center, right? They think about that as just one experience. And that data is a single journey. >>So we like to think about data as a product. You know, you should think about a data in the same way. You think about your products as, as products, you know, data as a product, you should have the idea of like every two weeks you have releases to it. You have an operational resiliency to it. So thinking about that, where you can have a very product mindset to delivering your data, I think is very important for the success. And that's where kind of, there's not just the things about critical data elements and having the right platform architecture, but there's a soft stuff as well, like a product mindset to data, having the right data, culture, and business adoption and having the right value set mindset for, for data, I think is really, >>I think data as a product is a very powerful concept. And I think it maybe is uncomfortable to some people sometimes. And I think in the early days of big data, if you will, people thought, okay, data is a product going to sell my data, and that's not necessarily what you mean. You mean thinking about products or data that can fuel products that you can then monetize maybe as a product or as a, as, as a service. And I like to think about a new metric in the industry, which is how long does it take me to get from idea of I'm a business person. I have an idea for a data product. How long does it take me to get from idea to monetization? And that's going to be something that ultimately as a business person, I'm going to use to determine the success of my data team and my, my data architecture is, is that kind of thinking starting to really hit the marketplace. >>I mean, I insurers now are working, partnering with, you know, auto manufacturers to monetize, um, driver usage data, you know, on telematics to see, you know, driver behavior on how, you know, how auto manufacturers are using that data. That's very important to insurers, you know, so how an auto manufacturer can monetize that data is very important and also an insurance, you know, cyber insurance, um, are there news new ways we can look at how companies are being attacked with viruses and malware, and is there a way we can somehow monetize that information? So companies that are able to agily, you know, think about how can we, you know, collect this data, bring it together, think about it as a product, and then potentially, you know, sell it as a service is something that, um, company, successful companies are doing >>Great examples of data products, and it might be revenue generating, or it might be in the case of, you know, cyber, maybe it reduces my expected loss. Exactly. And it drops right to my bottom line. What's the relationship between Accenture and cloud era? Do you, I presume you guys meet at the customer, but maybe you could give us some insight as to yeah. So, >>Um, I I'm in the executive sponsor for, um, the Accenture cloud era partnership on the Accenture side. Uh, we do quite a lot of business together and, um, you know, Cloudera has been a great partner for us. Um, and they've got a great product in terms of the Cloudera data platform where, you know, what we do is as a big systems integrator for them, we help, um, you know, configure and we have a number of engineers across the world that come in and help in terms of, um, engineer architects and install, uh, cloud errors, data platform, and think about what are some of those, you know, value cases where you can really think about organizing data and bringing it together for all these different types of use cases. And really just as the examples we thought about. So the telematics, you know, um, in order to realize something like that, you're bringing in petabytes and huge scales of data that, you know, you just couldn't bring on a normal, uh, platform. You need to think about cloud. You need to think about speed of, of data and real-time insights and cloud errors, the right data platform for that. So, um, >>That'd be Cloudera ushered in the modern big data era. We, we kind of all know that, and it was, which of course early on, it was very services intensive. You guys were right there helping people think through there weren't enough data scientists. We've sort of all, all been through that. And of course in your wheelhouse industries, you know, financial services and insurance, they were some of the early adopters, weren't they? Yeah, >>Absolutely. Um, so, you know, an insurance, you've got huge amounts of data with loss history and, um, a lot with IOT. So in insurance, there's a whole thing of like sensorized thing in, uh, you know, taking the physical world and digitizing it. So, um, there's a big thing in insurance where, um, it's not just about, um, pricing out the risk of a loss experience, but actual reducing the loss before it even happens. So it's called risk control or loss control, you know, can we actually put sensors on oil pipelines or on elevators and, you know, reduce, um, you know, accidents before they happen. So we're, you know, working with an insurer to actually, um, listen to elevators as they move up and down and are there signals in just listening to the audio of an elevator over time that says, you know what, this elevator is going to need maintenance, you know, before a critical accident could happen. So there's huge applications, not just in structured data, but in unstructured data like voice and audio and video where a partner like Cloudera has a huge role apply. >>Great example of it. So again, narrow sort of use case for machine intelligence, but, but real value. True. We'll leave it like that. Thanks so much for taking some time. Thank you.

>>Hi, this is Cindy Mikey, vice president of industry solutions at Cloudera. Joining me today is chef is Molly, our solution engineer for the public sector. Today. We're going to talk about speed to insight. Why using machine learning in the public sector, specifically around fraud, waste and abuse. So topic for today, we'll discuss machine learning, why the public sector uses it to target fraud, waste, and abuse, the challenges. How do we enhance your data and analytical approaches the data landscape analytical methods and Shev we'll go over reference architecture and a case study. So by definition, fraud, waste and abuse per the government accountability office is fraud is an attempt to obtain something about a value through unwelcomed. Misrepresentation waste is about squandering money or resources and abuse is about behaving improperly or unreasonably to actually obtain something of value for your personal benefit. So as we look at fraud and across all industries, it's a top of mind, um, area within the public sector. >>Um, the types of fraud that we see is specifically around cyber crime, uh, looking at accounting fraud, whether it be from an individual perspective to also, uh, within organizations, looking at financial statement fraud, to also looking at bribery and corruption, as we look at fraud, it really hits us from all angles, whether it be from external perpetrators or internal perpetrators, and specifically from the research by PWC, the key focus area is we also see over half of fraud is actually through some form of internal or external are perpetrators again, key topics. So as we also look at a report recently by the association of certified fraud examiners, um, within the public sector, the us government, um, in 2017, it was identified roughly $148 billion was attributable to fraud, waste and abuse. Specifically of that 57 billion was focused on reported monetary losses and another 91 billion on areas where that opportunity or the monetary basis had not yet been measured. >>As we look at breaking those areas down again, we look at several different topics from an out payment perspective. So breaking it down within the health system, over $65 billion within social services, over $51 billion to procurement fraud to also, um, uh, fraud, waste and abuse that's happening in the grants and the loan process to payroll fraud, and then other aspects, again, quite a few different topical areas. So as we look at those areas, what are the areas that we see additional type of focus, there's broad stroke areas? What are the actual use cases that our agencies are using the data landscape? What data, what analytical methods can we use to actually help curtail and prevent some of the, uh, the fraud waste and abuse. So, as we look at some of the analytical processes and analytical use crate, uh, use cases in the public sector, whether it's from, uh, you know, the taxation areas to looking at social services, uh, to public safety, to also the, um, our, um, uh, additional agency methods, we're going to focus specifically on some of the use cases around, um, you know, fraud within the tax area. >>Uh, we'll briefly look at some of the aspects of unemployment insurance fraud, uh, benefit fraud, as well as payment and integrity. So fraud has its, um, uh, underpinnings in quite a few different on government agencies and difficult, different analytical methods and I usage of different data. So I think one of the key elements is, you know, you can look at your, your data landscape on specific data sources that you need, but it's really about bringing together different data sources across a different variety, a different velocity. So, uh, data has different dimensions. So we'll look at on structured types of data of semi-structured data, behavioral data, as well as when we look at, um, you know, predictive models, we're typically looking at historical type information, but if we're actually trying to lock at preventing fraud before it actually happens, or when a case may be in flight, which is specifically a use case, that shadow is going to talk about later it's how do I look at more of that? >>Real-time that streaming information? How do I take advantage of data, whether it be, uh, you know, uh, financial transactions we're looking at, um, asset verification, we're looking at tax records, we're looking at corporate filings. Um, and we can also look at more, uh, advanced data sources where as we're looking at, um, investigation type information. So we're maybe going out and we're looking at, uh, deep learning type models around, uh, you know, semi or that behavioral, uh, that's unstructured data, whether it be camera analysis and so forth. So quite a different variety of data and the, the breadth, um, and the opportunity really comes about when you can integrate and look at data across all different data sources. So in a sense, looking at a more extensive on data landscape. So specifically I want to focus on some of the methods, some of the data sources and some of the analytical techniques that we're seeing, uh, being used, um, in the government agencies, as well as opportunities, uh, to look at new methods. >>So as we're looking at, you know, from a, um, an audit planning or looking at, uh, the opportunity for the likelihood of non-compliance, um, specifically we'll see data sources where we're maybe looking at a constituents profile, we might actually be, um, investigating the forms that they've provided. We might be comparing that data, um, or leveraging internal data sources, possibly looking at net worth, comparing it against other financial data, and also comparison across other constituents groups. Some of the techniques that we use are some of the basic natural language processing, maybe we're going to do some text mining. We might be doing some probabilistic modeling, uh, where we're actually looking at, um, information within the agency to also comparing that against possibly tax forms. A lot of times it's information historically has been done on a batch perspective, both structured and semi-structured type information. And typically the data volumes can be low, but we're also seeing those data volumes increase exponentially based upon the types of events that we're dealing with, the number of transactions. >>Um, so getting the throughput, um, and chef's going to specifically talk about that in a moment. The other aspect is, as we look at other areas of opportunity is when we're building upon, how do I actually do compliance? How do I actually look at conducting audits, uh, or potential fraud to also looking at areas of under reported tax information? So there you might be pulling in some of our other types of data sources, whether it's being property records, it could be data that's being supplied by the actual constituents or by vendors to also pulling in social media information to geographical information, to leveraging photos on techniques that we're seeing used is possibly some sentiment analysis, link analysis. Um, how do we actually blend those data sources together from a natural language processing? But I think what's important here is also the method and the looking at the data velocity, whether it be batch, whether it be near real time, again, looking at all types of data, whether it's structured semi-structured or unstructured and the key and the value behind this is, um, how do we actually look at increasing the potential revenue or the, um, under reported revenue? >>Uh, how do we actually look at stopping fraudulent payments before they actually occur? Um, also looking at increasing the amount of, uh, the level of compliance, um, and also looking at the potential of prosecution of fraud cases. And additionally, other areas of opportunity could be looking at, um, economic planning. How do we actually perform some link analysis? How do we bring some more of those things that we saw in the data landscape on customer, or, you know, constituent interaction, bringing in social media, bringing in, uh, potentially police records, property records, um, other tax department, database information. Um, and then also looking at comparing one individual to other individuals, looking at people like a specific, like, uh, constituent, are there areas where we're seeing, uh, um, other aspects of, of fraud potentially being, uh, occurring. Um, and also as we move forward, some of the more advanced techniques that we're seeing around deep learning is looking at computer vision, um, leveraging geospatial information, looking at social network entity analysis, uh, also looking at, um, agent-based modeling techniques, where we're looking at simulation, Monte Carlo type techniques that we typically see in the financial services industry, actually applying that to fraud, waste, and abuse within the, the public sector. >>Um, and again, that really, uh, lends itself to a new opportunities. And on that, I'm going to turn it over to Chevy to talk about, uh, the reference architecture for doing these buckets. >>Sure. Yeah. Thanks, Cindy. Um, so I'm going to walk you through an example, reference architecture for fraud detection, using Cloudera as underlying technology. Um, and you know, before I get into the technical details, uh, I want to talk about how this would be implemented at a much higher level. So with fraud detection, what we're trying to do is identify anomalies or anomalous behavior within our datasets. Um, now in order to understand what aspects of our incoming data represents anomalous behavior, we first need to understand what normal behavior is. So in essence, once we understand normal behavior, anything that deviates from it can be thought of as an anomaly, right? So in order to understand what normal behavior is, we're going to need to be able to collect store and process a very large amount of historical data. And so incomes, clutters platform, and this reference architecture that needs to be for you. >>So, uh, let's start on the left-hand side of this reference architecture with the collect phase. So fraud detection will always begin with data collection. Uh, we need to collect large amounts of information from systems that could be in the cloud. It could be in the data center or even on edge devices, and this data needs to be collected so we can create from normal behavior profiles and these normal behavioral profiles would then in turn, be used to create our predictive models for fraudulent activity. Now, uh, uh, to the data collection side, one of the main challenges that many organizations face, uh, in this phase, uh, involves using a single technology that can handle, uh, data that's coming in all different types of formats and protocols and standards with different velocities and velocities. Um, let me give you an example. Uh, we could be collecting data from a database that gets updated daily, uh, and maybe that data is being collected in Agra format. >>At the same time, we can be collecting data from an edge device that's streaming in every second, and that data may be coming in Jace on or a binary format, right? So this is a data collection challenge that can be solved with cluttered data flow, which is a suite of technologies built on Apache NIFA and mini five, allowing us to ingest all of this data, do a drag and drop interface. So now we're collecting all of this data, that's required to map out normal behavior. The next thing that we need to do is enrich it, transform it and distribute it to know downstream systems for further process. Uh, so let's, let's walk through how that would work first. Let's taking Richmond for, uh, for enrichment, think of adding additional information to your incoming data, right? Let's take, uh, financial transactions, for example, uh, because Cindy mentioned it earlier, right? >>You can store known locations of an individual in an operational database, uh, with Cloudera that would be HBase. And as an individual makes a new transaction, their geo location that's in that transaction data, it can be enriched with previously known locations of that very same individual and all of that enriched data. It can be later used downstream for predictive analysis, predictable. So the data has been enrich. Uh, now it needs to be transformed. We want the data that's coming in, uh, you know, Avro and Jason and binary and whatever other format to be transformed into a single common format. So it can be used downstream for stream processing. Uh, again, this is going to be done through clutter and data flow, which is backed by NIFA, right? So the transformed semantic data is then going to be stimulated to Kafka and coffin is going to serve as that central repository of syndicated services or a buffer zone, right? >>So cough is, you know, pretty much provides you with, uh, extremely fast resilient and fault tolerance storage. And it's also going to give you the consumer API APIs that you need that are going to enable a wide variety of applications to leverage that enriched and transform data within your buffer zone. Uh, I'll add that, you know, 17, so you can store that data, uh, in a distributed file system, give you that historical context that you're going to need later on from machine learning, right? So the next step in the architecture is to leverage, uh, clutter SQL stream builder, which enables us to write, uh, streaming sequel jobs on top of Apache Flink. So we can, uh, filter, analyze and, uh, understand the data that's in the Kafka buffer zone in real-time. Uh, I'll, you know, I'll also add like, you know, if you have time series data, or if you need a lab type of cubing, you can leverage Q2, uh, while EDA or, you know, exploratory data analysis and visualization, uh, can all be enabled through clever visualization technology. >>All right, so we've filtered, we've analyzed, and we've our incoming data. We can now proceed to train our machine learning models, uh, which will detect anomalous behavior in our historically collected data set, uh, to do this, we can use a combination of supervised unsupervised, even deep learning techniques with neural networks. Uh, and these models can be tested on new incoming streaming data. And once we've gone ahead and obtain the accuracy of the performance, the X one, uh, scores that we want, we can then take these models and deploy them into production. And once the models are productionalized or operationalized, they can be leveraged within our streaming pipeline. So as new data is ingested in real time knife, I can query these models to detect if the activity is anomalous or fraudulent. And if it is, they can alert downstream users and systems, right? So this in essence is how fraudulent activity detection works. Uh, and this entire pipeline is powered by clutters technology. Uh, Cindy, next slide please. >>Right. And so, uh, the IRS is one of, uh, clutter as customers. That's leveraging our platform today and implementing a very similar architecture, uh, to detect fraud, waste, and abuse across a very large set of, uh, historical facts, data. Um, and one of the neat things with the IRS is that they've actually recently leveraged the partnership between Cloudera and Nvidia to accelerate their Spark-based analytics and their machine learning. Uh, and the results have been nothing short of amazing, right? And in fact, we have a quote here from Joe and salty who's, uh, you know, the technical branch chief for the research analytics and statistics division group within the IRS with zero changes to our fraud detection workflow, we're able to obtain eight times to performance simply by adding GPS to our mainstream big data servers. This improvement translates to half the cost of ownership for the same workloads, right? So embedding GPU's into the reference architecture I covered earlier has enabled the IRS to improve their time to insights by as much as eight X while simultaneously reducing their underlying infrastructure costs by half, uh, Cindy back to you >>Chef. Thank you. Um, and I hope that you found, uh, some of the, the analysis, the information that Sheva and I have provided, uh, to give you some insights on how cloud era is actually helping, uh, with the fraud waste and abuse challenges within the, uh, the public sector, um, specifically looking at any and all types of data, how the clutter a platform is bringing together and analyzing information, whether it be you're structured you're semi-structured to unstructured data, both in a fast or in a real-time perspective, looking at anomalies, being able to do some of those on detection methods, uh, looking at neural network analysis, time series information. So next steps we'd love to have an additional conversation with you. You can also find on some additional information around how called areas working in federal government, by going to cloudera.com solutions slash public sector. And we welcome scheduling a meeting with you again, thank you for joining us today. Uh, we greatly appreciate your time and look forward to future conversations. Thank you.

>>Speed is everything in a hyper competitive climate. The faster we get insights from data and get data products to market. The faster we grow and the more competitive we become, this is Dave Volante from the cutie inviting you to join us on Thursday, August 5th, for cloud areas, industry insights. We'll look at the biggest challenges facing businesses today, especially the need to access and leverage data at an accelerated velocity. You'll hear from industry leaders like Nick Collison, whose cloud era's president, Rob Bearden, the CEO of Cloudera, Michelle Goetz from Forrester. You'll hear from Nvidia and industry experts in insurance, manufacturing, retail, and public sector. Who can address your biggest concerns? Like how do I remove constraints and put data at the core of my business, streaming begins at 9:00 AM Pacific on the Q3 65. You're a leader in global enterprise tech coverage.

>>from >>around the globe. It's the Cube with digital coverage of AWS reinvent 2020 sponsored by Intel, AWS and our community partners. >>Everyone welcome back to the cubes Coverage of AWS reinvent 2020 virtual. This is the Cube virtual. I'm John for your host this year. We're not in person. We're doing remote interviews because of the pandemic. The whole events virtual over three weeks for this week would be having a lot of coverage in and out of what's going on with the news. All that stuff here happening on the Cube Our next guest is a featured segment. Brown Venkatesh, VP of Engineering at Cloudera. Welcome back to the Cube Cube Alumni. Last time you were on was 2018 when we had physical events. Great to see you, >>like good to be here. Thank you. >>S O. You know, Cloudera obviously modernized up with Horton works. That comedy has been for a while, always pioneering this abstraction layer originally with a dupe. Now, with data, all those right calls were made. Data is hot is a big part of reinvent. That's a big part of the theme, you know, machine learning ai ai edge edge edge data lakes on steroids, higher level services in the cloud. This is the focus of reinvents. The big conversations Give us an update on cloud eras. Data platform. What's that? What's new? >>Absolutely. You are really speaking of languages. Read with the whole, uh, data lake architecture that you alluded to. It's uploaded. This mission has always been about, you know, we want to manage how the world's data that what this means for our customers is being ableto aggregate data from lots of different sources into central places that we call data lakes on. Then apply lots of different types of passing to it to direct business value that would cdp with Florida data platform. What we have essentially done is take those same three core tenants around data legs multifunctional takes on data stewardship of management to add on a bunch off cloud native capabilities to it. So this was fundamentally I'm talking about things like disaggregated storage and compute by being able to now not only take advantage of H d efs, but also had a pretty deep, fundamental level club storage. But this is the form factor that's really, really good for our customers. Toe or to operate that from a TCO perspective, if you're going to manage hundreds of terabytes of data like like a lot of a lot of customers do it. The second key piece that we've done with CDP has to do with us embracing containers and communities in a big way on primer heritages around which machines and clusters and things of that nature. But in the cloud context, especially in the context, off managed community services like Amazon CKs, this Lexus spin apart traditional workloads, Sequels, park machine learning and so on. In the context of these Cuban exiles containerized environments which lets customers spin these up in seconds. They're supposed to, you know, tens of minutes on as they're passing, needs grow and shrink. They can actually scale much, much faster up and down to, you know, to make sure that they have the right cost effective footprint for their compute e >>go ahead third piece. >>But the turkey piece of all of this right is to say, along with like cloud native orchestration and cloud NATO storage is that we've embraced this notion of making sure that you actually have a robust data discovery story around it. so increasingly the data sets that you create on top off a platform like CDP. There themselves have value in other use cases that you want to make sure that these data sets are properly replicated. They're probably secure the public government. So you can go and analyze where the data set came from. Capabilities of security and provenance are increasingly more important to our customers. So with CDP, we have a really good story around that data stewardship aspect, which is increasingly important as you as you get into the cloud. And you have these sophisticated sharing scenarios. The >>you know, Clotaire has always had and Horton works. Both companies had strong technical chops. It's well document. Certainly the queues been toe all the events and covered both companies since the inception of 10 years ago. A big data. But now we're in cloud. Big data, fast data, little data, all data. This is what the cloud brings. So I want to get your thoughts on the number one focus of problem solving around cloud. I gotta migrate. Or do I move to the cloud immediately and be born there? Now we know the hyper scale is born in the cloud companies like the Dropbox in the world. They were born in the cloud and all the benefits and goodness came with that. But I'm gonna be pivoting. I'm a company at a co vid with a growth strategy. Lift and shift. Okay, that was It's over. Now that's the low hanging fruit that's use cases kind of done. Been there, done that. Is it migration or born in the cloud? Take us through your thoughts on what does the company do right now? >>E thinks it's a really good question. If you think off, you know where our customers are in their own data journey, right? So increasingly. You know, a few years ago, I would say it was about operating infrastructure. That's where their head was at, right? Increasingly, I think for them it's about deriving value from the data assets that they already have on. This typically means in a combining data from different sources the structure data, some restructure data, transactional data, non transactional, data event oriented data messaging data. They wanna bring all of that and analyze that to make sure that they can actually identify ways toe monetize it in ways that they had not thought about when they actually stored the data originally, right? So I think it's this drive towards increasing monetization of data assets that's driving the new use cases on the platform. Traditionally, it used to be about, you know, sequel analysts who are, if you are like a data scientist using a party's park. So it was sort of this one function that you would focus on with the data. But increasingly, we're seeing these air about, you know, these air collaborative use cases where you wanna have a little bit of sequel, a little bit of machine learning, a little bit off, you know, potentially real time streaming or even things like Apache fling that you're gonna use to actually analyze the data eso when this kind of an environment. But we see that the data that's being generated on Prem is extremely relevant to the use case, but the speed at which they want to deploy the use case. They really want to make sure that they can take advantage of the clouds, agility and infinite capacity to go do that. So it's it's really the answer is it's complicated. It's not so much about you know I'm gonna move my data platform that I used to run the old way from here to there. But it's about I got this use case and I got to stand this up in six weeks, right in the middle of the pandemic on how do I go do that on the data that has to come from my existing line of business systems. I'm not gonna move those over, but I want to make sure that I can analyze the data from their in some cohesive Does that make sense? >>Totally makes sense. And I think just to kind of bring that back for the folks watching. And I remember when CDP was launching the thes data platforms, it really was to replace the data warehouse is the old antiquated way of doing things. But it was interesting. It wasn't just about competing at that old category. It was a new category. So, yeah, you had to have some tooling some sequel, you know, to wrangle data and have some prefabricated, you know, data fenced out somewhere in some warehouse. But the value was the new use cases of data where you never know. You don't know where it's going to come until it comes right, because if you make it addressable, that was the idea of the data platform and data Lakes and then having higher level services. So s so to me. That's, I think, one distinction kind of new category coexisting and disrupting an old category data warehousing. Always bought into that. You know, there's some technical things spark Do all these elements on mechanisms underneath. That's just evolution. But income in incomes cloud on. I want to get your thoughts on this because one of the things that's coming out of all my interviews is speed, speed, speed, deploying high, high, large scale at very large speed. This is the modern application thinking okay to make that work, you gotta have the data fabric underneath. This has always been kind of the dream scenario, So it's kind of playing out. So one Do you believe in that? And to what is the relationship between Cloudera and AWS? Because I think that kind of interestingly points to this one piece. >>Absolutely. So I think that yeah, from my perspective, this is what we call the shared data experience that's central to see PP like the idea is that, you know, data that is generated by the business in one use case is relevant and valid in another use case that is central to how we see companies leveraging data or the second order monetization that they're after, Right? So I think this is where getting out off a traditional data warehouse like data side of context, being able to analyze all of the data that you have, I think is really, really important for many of our customers. For example, many of them increasingly hold what they call this like data hackathons right where they're looking at can be answered. This new question from all the data that we have that is, that is a type of use case that's really hard to enable unless you have a very cohesive, very homogeneous view off all of your data. When it comes to the cloud partners, right, Increasingly, we see that the cloud native services, especially for the core storage, compute and security services are extremely robust that they give us, you know, the scale and that's really truly unparalled in terms of how much data we can address, how quickly we can actually get access to compute on demand when we need it. And we can do all of this with, like, a very, very mature security and governance fabric that you can fit into. So we see that, you know, technologies like s three, for example, have come a long way on along the journey with Amazon on this over the last 78 years. But we both learned how to operate our work clothes. When you're running a terabytes scale, right, you really have to pay attention to matters like scale out and consistency and parallelism and all of these things. These matters significantly right? And it's taken a certain maturity curve that you have to go through to get there. The last part of that is that because the TCO is so optimized with the customer to operate this without any ops on their side, they could just start consuming data, even if it's a terabyte of data. So this means that now we have to have the smarts in the processing engines to think about things like cashing, for example very, very differently because the way you cash data that Zinn hedge defense is very different from how you would do that in the context of his three are similarly, the way you think about consistency and metadata is very, very different at that layer. But we made sure that we can abstract these differences out at the platform layer so that as an as it is an application consumer, you really get the same experience, whether you're running these analytics on clam or whether you're running them in the cloud. And that's really central to how I see this space evolving is that we want to meet the customer where they are, rather than forcing them to change the way they work because off the platform that they're simple. >>So could you take them in to explain some of the integrations with AWS and some customer examples? Because, um, you know, first of all, cost is a big concern on everyone's mind because, you know, it's still lower costs and higher value with the cloud anyway. But it could get away from you. So you know, you're constantly petabytes of scale. There's a lot of data moving around. That's one thing to integration with higher level services. Can you give where does explain how Claudia integration with Amazon? What's the relation of customer wants to know. Hey, you guys, you know, partnering, explain the partnership. And what does it mean for me? >>Absolutely. So the way we look at the partnership hit that one person and ghetto. It's really a four layer cake because the lowest layer is the core infrastructure services. We talked about storage and computing on security, and I am so on and so forth. So that layer is a very robust integration that goes back a few years. The next layer up from that has to do with increasingly, you know, as our customers use analytic experiences from Florida on, they want to combine that with data that's actually in the AWS compute experiences like the red Ship, for example. That's what the analytics layer uploaded the data warehouse offering and how that interrupts would be other services in Amazon that could be relevant. This is common file formats that open source well form it really help us in this context to make sure that they have a very strong level of interest at the analytics there. The third layer up from that has to do with consumption. Like if you're gonna bring an analyst on board. You want to make sure that all of their sequel, like analyst experiences, notebooks, things of that nature that's really strong. And club out of the third layer on the highest layer is really around. Data sharing. That's as aws new and technologies like that become more prevalent. Now. Customers want to make sure that they can have these data states that they have in the different clouds, actually in a robbery. So we provide ways for them, toe browse and search data, regardless of whether that data is on AWS or on traffic. And so that's how the fourth layer in the stack, the vertical slice running through all of these, that we have a really strong business relationship with them both on the on the on the commercial market side as well as in AWS marketplace. Right? So we can actually by having cdp be a part of it of the US marketplace. This means that if you have an enterprise agreement with with Amazon, you can actually pay for CDP toe the credit sexuality purchased. This is a very, very tight relationship that's designed again for these large scale speeds and feeds. Can the customer >>so just to get this right. So if I love the four layer cake icings the success of CDP love that birthday candles can be on top to when you're successful. But you're saying that you're going to mark with Amazon two ways marketplace listing and then also jointly with their enterprise field programs. That right? You say because they have this program you can bundle into the blanket pos or Pio processes That right can explain that again. >>S so if you think this'll states, if you're talking about are significant. So we want to make sure that, you know, we're really aligned with them in terms off our cloud migration strategy in terms of how the customer actually execute to what is a fairly you know, it's a complex deployment to deploy a large multiple functions did and existed takes time, right, So we're gonna make sure that we navigate this together jointly with the U. S. To make sure that from a best practices standpoint, for example, were very well aligned from a cost standpoint, you know what we're telling the customer architecturally is very rather nine. That's that's where I think really the heart of the engineering relationship between the two companies without. >>So if you want Cloudera on Amazon, you just go in. You can click to buy. Or if you got to deal with Amazon in terms of global marketplace deal, which they have been rolling out, I could buy there too, Right? All right, well, run. Thanks for the update and insight. Um, love the four layer cake love gets. See the modernization of the data platform from Cloudera. And congratulations on all the hard work you guys been doing with AWS. >>Thank you so much. Appreciate. >>Okay, good to see you. Okay, I'm John for your hearing. The Cube for Cube virtual for eight of us. Reinvent 2020 virtual. Thanks for watching.

from around the globe it's thecube with coverage of kubecon and cloudnativecon north america 2020 virtual brought to you by red hat the cloud native computing foundation and ecosystem partners hello and welcome back to the cube's coverage of kubecon plus cloud nativecon 2020 the virtual edition abinav joshi is here he's the senior product marketing manager for openshift at red hat and tom dean is the senior director of pro product management at cloudera gentlemen thanks for coming on thecube good to see you thank you very much for having us here hey guys i know you would be here it was great to have you and guys i know you're excited about the partnership and i definitely want to get in and talk about that but before we do i wonder if we could just set the tone you know what are you seeing in the market tom let's let's start with you i had a great deep dive a couple of weeks back with anupam singh and he brought me up to speed on what's new with cloudera but but one of the things we discussed was the accelerated importance of data putting data at the core of your digital business tom what are you seeing in the marketplace right now yeah absolutely so um overall we're still seeing a growing demand for uh storing and and processing massive massive amounts of data even in the past few months um where perhaps we see a little bit more variety is on by industry sector is on the propensity to adopt some of the latest and greatest uh technologies that are out there or that we we deliver to the market um so whether perhaps in the retail hospitality sector you may see a little bit more risk aversion around some of the latest tools then you you go to the healthcare industry as an example and you see we see a strong demand for our latest technologies uh with with everything that is that is going on um so overall um still a lot lots of demand around this space so abnormal i mean we just saw in ibm's earnings though the momentum of red hat you know growing in the mid teens and the explosion that we're seeing around containers and and obviously openshift is at the heart of that how the last nine months affected your customers priorities and what are you seeing yeah we've been a lot more busier like in the last few months because there's like a lot of use cases and if you look at the like a lot of the research and so on and we are seeing that from our customers as well that now the customers are actually speeding up the digital transformation right people say that okay kovac 19 has actually uh speeded up the digital transformation for a lot of our customers for the right reasons to be able to help the customers and so on so we are seeing a lot of attraction on like number of verticals and number of use cases beyond the traditional lab dev data analytics aiml messaging streaming edge and so on like lots of use cases in like a lot of different like industry verticals so there's a lot of momentum going on on openshift and the broader that portfolio as well yeah it's ironic the the timing of the pandemic but it sure underscores that this next 10 years is going to be a lot different than the last 10 years okay let's talk about some of the things that are new around data tom cloudera you guys have made a number of moves since acquiring hortonworks a little over two years ago what's new with uh with the cloudera data platform cdp sure so yes our latest therap uh platform is called cbp clara data platform last year we announced the public cloud version of cdp running on aws and then azure and what's new is just two months ago we announced the release of the version of this platform targeted at the data center and that's called cvp private cloud and really the focus of this platform this new version has been around solving some of the pain points that we see around agility or time to value and the ease of use of the platform and to give you some specific examples with our previous technology it could take a customer three months to provision a data warehouse if you include everything from obtaining the infrastructure to provisioning the warehouse loading the data setting security policies uh and fine-tuning the the software now with cbp private cloud we've been able to take those uh three months and turn it into three minutes so significant uh speed up in in that onboarding time and in time to valley and a key piece of this uh that enabled this this speed up was a revamping of the entire stack specifically the infrastructure and service services management layer and this is where the containerization of the platform comes in specifically kubernetes and red hat open shift that is a key piece of the puzzle that enables this uh order of magnitude uh improvement in time right uh now abner you think about uh red hat you think about cloudera of course hortonworks the stalwarts of of of open source you got kind of like birds of a feather how are red hat and cloudera partnering with each other you know what are the critical aspects of that relationship that people should be aware of yeah absolutely that's a very good question yeah so on the openshift side we've had a lot of momentum in the market and we have well over 2000 customers in terms of a lot of different verticals and the use cases that i talked about at the beginning of our conversation in terms of traditional and cloud native app dev databases data analytics like ai messaging and so on right and the value that you have with openshift and the containers kubernetes and devops like part of the solution being able to provide the agility flexibility scalability the cross cloud consistency like so all that that you see in a typical app dev world is directly applicable to fast track the data analytics and the ai projects as well and we've seen like a lot of customers and some of the ones that we can talk about in a public way like iix rbc bank hca healthcare boston children's bmw exxon mobil so all these organizations are being are able to leverage openshift to kind of speed up the ai projects and and help with the needs of the data engineers data scientists and uh and the app dev folks now from our perspective providing the best in class uh you say like experience for the customers at the platform level is key and we have to make sure that the tooling that the customers run on top of it uh gets the best in class the experience in terms of the day zero to day two uh management right and it's uh and and it's an ecosystem play for us and and and that's the way cloudera is the top isv in the space right when it comes to data analytics and ai and that was our key motivation to partner with cloudera in terms of bringing this joint solution to market and making sure that our customers are successful so the partnership is at all the different levels in the organization say both up and down as well as in the the engineering level the product management level the marketing level the sales level and at the support and services level as well so that way if you look at the customer journey in terms of selecting a solution uh putting it in place and then getting the value out of it so the partnership it actually spans across the entire spectrum yeah and tom you know i wonder if you could add anything there i mean it's not just about the public cloud with containers you're seeing obviously the acceleration of of cloud native principles on-prem in a hybrid you know across clouds it's sort of the linchpin containers really and kubernetes specifically linchpin to enable that what would you add to that discussion yeah as part of the partnership when we were looking for a vendor who could provide us that kubernetes layer we looked at our customer base and if you think about who clara is focused on we really go after that global the global 2000 firms out there these customers have very strict uh security requirements and they're often in these highly regulated uh industries and so when we looked at a customer's base uh we saw a lot of overlap and there was a natural good fit for us there but beyond that just our own technical evaluation of the solutions and also talking to uh to our own customers about who they do they see as a trusted platform that can provide enterprise grade uh features on on a kubernetes layer red hat had a clear leadership in in that front and that combined with our own uh long-standing relationship with our parent company ibm uh it made this partnership a natural good thing for us right and cloudera's always had a good relationship with ibm tom i want to stay with you if i can for a minute and talk about the specific joint solutions that you're providing with with red hat what are you guys bringing to customers in in terms of those solutions what's the business impact where's the value absolutely so the solution is called cbd or color data platform private cloud on red hat openshift and i'll describe three uh the three pillars that make up cbp uh first what we have is the five data analytic experiences and that is meant to cover the end to end data lifecycle in the first release we just came out two months ago we announced the availability of two of those five experiences we have data warehousing for bi analytics as well as machine learning and ai where we offer a collaborative data science data science tools for data scientists to come together do exploratory data analytics but also develop predictive models and push them to production going forward we'll be adding the remaining three uh experiences they include data engineering or transformations on uh on your data uh data flow for streaming analytics and ingest uh as well as operational database for uh real-time surveying of both structure and unstructured data so these five experiences have been re-banked right compared to our prior platform to target these specific use cases and simplify uh these data disciplines the second pillar that i'll talk about is the sdx or uh what what we call the shared data experience and what this is is the ability for these five experiences to have one global data set that they can all access with shared metadata security including fine grain permissions and a suite of governance tools that provide lineage provide auditing and business metadata so by having these shared data experiences our developers our users can build these multi-disciplinary workflows in a very straightforward way without having to create all this custom code and i can stitch you can stitch them together and the last pillar that i'll mention uh is the containerization of of the platform and because of containers because of kubernetes we're now able to offer that next level of agility isolation uh and infrastructure efficiency on the platform so give you a little bit more specific examples on the agility i mentioned going from three months to three minutes in terms of the speed up with i uh with uh containers we can now also give our users the ability to bring their own versions of their libraries and engines without colliding with another user who's sharing the platform that has been a big ask from our customers and last i'll mention infrastructure efficiency by re-architecting our services to running a microservices architecture we can now impact those servers in a much more efficient way we can also auto scale auto suspend bring all this as you mentioned bring all these cloud native concepts on premises and the end result of that is better infrastructure efficiency now our customers can do more with the same amount of hard work which overall uh reduces their their total spend on the solution so that's what we call cbp private cloud great thanks for that i mean wow we've seen really the evolution from the the wild west days of you know the early days of so-called big data ungoverned a lot of shadow data science uh maybe maybe not as efficient as as we'd like and but certainly today taking advantage of some of those capabilities dealing with the noisy neighbor problem enough i wonder if you could comment another question that i have is you know one of the things that jim whitehurst talked about when ibm acquired red hat was the scale that ibm could bring and what i always looked at in that context was ibm's deep expertise in vertical industries so i wonder what are some of the key industry verticals that you guys are targeting and succeeding in i mean yes there's the pandemic has some effects we talked about hospitality obviously airlines have to have to be careful and conserving cash but what are some of the interesting uh tailwinds that you're seeing by industry and some of the the more interesting and popular use cases yeah that's a very good question now in terms of the industry vertical so we are seeing the traction in like a number of verticals right and the top ones being the financial services like healthcare telco the automotive industry as well as the federal government are some of the key ones right and at the end of the day what what all the customers are looking at doing is be able to improve the experience of their customers with the digital services that they roll out right as part of the pandemic and so on as well and then being able to gain competitive edge right if you can have the services in your platform and make them kind of fresh and relevant and be able to update them on a regular basis that's kind of that's your differentiator these days right and then the next one is yeah if you do all this so you should be able to increase your revenue be able to save cost as well that's kind of a key one that you mentioned right that that a lot of the industries like the hospitality the airlines and so on are kind of working on saving cash right so if you can help them save the cost that's kind of key and then the last one is is being able to automate the business processes right because there's not like a lot of the manual processes so yeah if you can add in like a lot of automation that's all uh good for your business and then now if you look at the individual use cases in these different industry verticals what we're seeing that the use cases cannot vary from the industry to industry like if you look at the financial services the use cases like fraud detection being able to do the risk analysis and compliance being able to improve the customer support and so on are some of the key use cases the cyber security is coming up a lot as well because uh yeah nobody wants to be hacked and so and and so on yeah especially like in these times right and then moving on to healthcare and the life sciences right what we're seeing the use cases on being able to do the data-driven diagnostics and care and being able to do the discovery of drugs being able to say track kobit 19 and be able to tell that okay uh which of my like hospital is going to be full when and what kind of ppe am i going to need at my uh the the sites and so on so that way i can yeah and mobilize like as needed are some of the key ones that we are seeing on the healthcare side uh and then in terms of the automotive industry right that's where being able to speed up the autonomous driving initiatives uh being able to do uh the auto warranty pricing based on the history of the drivers and so on and then being able to save on the insurance cost is a big one that we are seeing as well for the insurance industries and then but more like manufacturing right being able to do the quality assurance uh at the shop floor being able to do the predictive maintenance on machinery and also be able to do the robotics process automation so like lots of use cases that customers are prioritizing but it's very verticalized it kind of varies from the vertical to a vertical but at the end of the day yeah it's all about like improving the customer experience the revenue saving cost and and being able to automate the business processes yeah that's great thank you for that i mean we we heard a lot about automation we were covering ansible fest i mean just think about fraud how much you know fraud detection has changed in the last 10 years it used to be you know so slow you'd have to go go through your financial statements to find fraud and now it's instantaneous cyber security is critical because the adversaries are very capable healthcare is a space where you know it's ripe for change and now of course with the pandemic things are changing very rapidly automotive another one an industry that really hasn't hadn't seen much disruption and now you're seeing with a number of things autonomous vehicles and you know basically software on wheels and insurance great example even manufacturing you're seeing you know a real sea change there so thank you for that description you know very often in the cube we like to look at joint engineering solutions that's a gauge of the substance of a partnership you know sometimes you see these barney deals you know there's a press release i love you you love me okay see you but but so i wonder if you guys could talk about specific engineering that you're doing tom maybe you could start sure yeah so on the on the engineering and product side um we've um for cbp private cloud we've we've changed our uh internal development and testing to run all on uh openshift uh internally uh and as part of that we we have a direct line to red hat engineering to help us solve any issues that that uh we run into so in the initial release we start with support of openshift43 we're just wrapping up uh testing of and we'll begin with openshift46 very soon on another aspect of their partnership is on being able to update our images to account for any security vulnerabilities that are coming up so with the guidance and help from red hat we've been we've standardized our docker images on ubi or the universal based image and that allows us to automatically get many of these security fixes uh into our into our software um the last point that i mentioned here is that it's not just about providing kubernetes uh red hat helps us with the end to end uh solution so there is also the for example bringing a docker registry into the picture or providing a secure vault for storing uh all the secrets so all these uh all these pieces combined make up the uh a strong complete solution actually the last thing i'll mention is is a support aspect which is critical to our customers in this model our customers can bring support tickets to cluberra but as soon as we determine that it may be an issue that uh related to red hat or openshift where we can use their help we have that direct line of communication uh and automated systems in the back end to resolve those support tickets uh quickly for our customers so those are some of the examples of what we're doing on the technical side great thank you uh enough we're out of time but i wonder if we could just close here i mean when we look at our survey data with our data partner etr we see containers container orchestration container management generally and again kubernetes specifically is the the number one area of investment for companies that has the most momentum in terms of where they're putting their efforts it's it's it's right up there and even ahead of ai and machine learning and even ahead of cloud which is obviously larger maybe more mature but i wonder if you can add anything and bring us home with this segment yeah absolutely and i think uh so uh one thing i want to add is like in terms of the engineering level right we also have like between cloudera and red hat the partnership and the sales and the go to market levels as well because once you build the uh the integration it yeah it has to be built out in the customer environments as well right so that's where we have the alignment um at the marketing level as well as the sales level so that way we can like jointly go in and do the customer workshops and make sure the solutions are getting deployed the right way right uh and also we have a partnership at the professional services level as well right where um the experts from both the orgs are kind of hand in hand to help the customers right and then at the end of the day if you need help with support and that's what tom talked about that we have the experts on the support side as well yeah and then so to wrap things up right uh so all the industry research and the customer conversation that we are having are kind of indicating that the organizations are actually increasing the focus on digital uh transformation with the data and ai being a key part of it and that's where this strategic partnership between cloudera and and red hat is going to play a big role to help our mutual customers uh through that our transition and be able to achieve the key goals that they set for their business great well guys thanks so much for taking us through the partnership and the integration work that you guys are doing with customers a great discussion really appreciate your time yeah thanks a lot dave really appreciate it really enjoyed the conversation all right keep it right there everybody you're watching thecube's coverage of cubecon plus cloud nativecon north america the virtual edition keep it right there we'll be right back

>> Well, thank you, Gary. Well, you know, reasonable people could debate when the so-called big data era started. But for me it was in the fall of 2010 when I was sleepwalking through this conference in Dallas. And the conference was focused on data being a liability. And the whole conversation was about, how do you mitigate the risks of things like work in process and smoking-gun emails. I got a call from my business partner, John Fard, he said to me, "get to New York and come and see the future of data. We're doing theCUBE at Hadoop World tomorrow." I subsequently I canceled about a dozen meetings that I had scheduled for the week. And with only one exception, every one of the folks I was scheduled to meet said, "what's a Hadoop?" Well, I flew through an ice storm across country. I got to the New York Hilton around 3:00 AM, and I met John in the Dark Bar. If any of you remember that little facility. And I caught a little shut eye. And then the next day I met some of the most interesting people in tech during that time. They were thinking a lot differently than we were used to. They looked at data through a prism of value. And they were finding new ways to do things like deal with fraud, they were building out social networks, they were finding novel marketing vectors and identifying new investment strategies. The other thing they were doing is, they were taking these little tiny bits of code and bring it to really large sets of data. And they were doing things that I hadn't really heard of like no schema-on-write. And they were transforming their organizations by looking at data not as a liability, but as a monetization opportunity. And that opened my eyes and theCUBE, like a lot of others bet its business on data. Now over the past decade, customers have built up infrastructure and have been accommodating a lot of different use cases. Things like offloading ETL, data protection, mining data, analyzing data, visualizing. And as you know, you no doubt realize this was at a time when the cloud was, you know, really kind of nascent. And it was really about startups and experimentation. But today, we've evolved from the wild west of 2010, and many of these customers they're leveraging the cloud for of course, ease of use and flexibility it brings, but also they're finding out it brings complexity and risk. I want to tell you a quick story. Recently it was interviewing a CIO in theCUBE and he said to me, "if you just shove all your workloads into the cloud, you might get some benefit, but you're also going to miss the forest to the trees. You have to change your operating model and expand your mind as to what is cloud and create a cloud light experience that spans your on premises, workloads, multiple public clouds, and even the edge. And you have to re-imagine your business and the possibilities that this new architecture this new platform can bring." So we're going to talk about some of this today in a little bit more detail and specifically how we can better navigate the data storm. And what's the role of hybrid cloud. I'm really excited to have two great guests. Manish Dasaur is the managing director in the North America lead for analytics and artificial intelligence at Accenture. Anupam Singh is the chief customer officer for Cloudera. Gentlemen, welcome to theCUBE, great to see you. >> Hi Dave good to see you again. >> All right, guys, Anupam and Manish, you heard my little monologue upfront Anupam we'll start with you. What would you? Anything you'd add, amend, emphasize? You know, share a quick story. >> Yeah, Dave thank you for that introduction. It takes me back to the days when I was an article employee and went to this 14 people meet up. Just a couple of pizza talking about this thing called Hadoop. And I'm just amazed to see that today we are now at 2000 customers, who are using petabytes of data to make extremely critical decisions. Reminds me of the fact that this week, a lot of our customers are busy thinking about elections and what effect it would have on their data pipeline. Will it be more data? Will it be more stressful? So, totally agree with you. And also agree that cloud, is almost still in early days in times of the culture of IT on how to use the cloud. And I'm sure we'll talk about that today in greater detail. >> Yeah most definitely Manish I wonder if we could get your perspective on this. I mean, back when Anupam was at Oracle you'd shove a bunch of, you know, data, maybe you could attach a big honking disc drive, you'd buy some Oracle licenses, you know, it was a Unix box. Everything went into this, you know, this God box and then things changed quite dramatically, which was awesome, but also complex. And you guys have been there from the beginning. What's your perspective on all this? >> Yeah, it's been fascinating just to watch the market and the technology evolve. And I think the urgency to innovate is really just getting started. We're seeing companies drive growth from 20% in cloud today, to 80% cloud in the next few years. And I think the emergence of capabilities like hybrid cloud, we really get upfront a lot of flexibility for companies who need the ability to keep some data in a private setting, but be able to share the rest of the data in a public setting. I think we're just starting to scratch the surface of it. >> So let's talk a little bit about what is a hybrid cloud Anupam I wonder if you could take this one let's start with you and then Manish we come back to you and to get the customer perspective as well. I mean, it is a lot of things to a lot of people, but what is it? Why do we need it? And you know, what's the value? >> Yeah, I could speak poetic about Kubernetes and containers et cetera. But given that, you know, we talk to customers a lot, all three of us from the customer's perspective, hybrid cloud is a lot about collaboration and ease of procurement. A lot of our customers, whether they're in healthcare, banking or telco, are being asked to make the data available to regulatory authority, to subsidiaries outside of their geography. When you need that data to be available in other settings, taking a from on-prem and making it available in public cloud, enables extreme collaboration, extreme shared data experience if you will, inside the company. So we think about hybrid like that. >> Manish anything you'd add? How are your customers thinking about it? >> I mean, in a very simple way, it's a structure that where we are allowing mixed computing storage and service environments that's made of on-prem structures, private cloud structures, and public cloud structures. We're often calling it multicloud or mixcloud. And I think the really big advantage is, this model of cloud computing is enabling our clients to gain the benefits of public cloud setting, while maintaining your own private cloud for sensitive and mission critical and highly regulated computing services. That's also allowing our clients and organizations to leverage the pay-as-you-go model, which is really quite impressive and attractive to them because then they can scale their investments accordingly. Clients can combine one or more public cloud providers together in a private cloud, multicloud platform. The cloud can operate independently of each other, communicate over an encrypted connection. This dynamic solution offers a lot of flexibility and scalability which I think is really important to our clients. >> So Manish I wonder if we would stay there. How do they, how do your customers decide? How do you help them decide, you know, what the right mix is? What the equilibrium is? How much should it be in on-prem? How much should be in public or across clouds? Or, you know, eventually, well the edge will I guess decide for us. But, how do you go through, what are the decision points there? >> Yeah, I think that's a great question Dave. I would say there's several factors to consider when developing a cloud strategy that's the right strategy for you. Some of the factors that come to my mind when contemplating it, one would be security. Are there data sets that are highly sensitive that you don't want leaving the premise, versus data sets that need to be in a more shareable solution. Another factor I'd consider is speed and flexibility. Is there a need to stand up and stand down capabilities based on the seasonality of the business or some short-term demands? Is there a need to add and remove scale from the infrastructure and that quick pivot and that quick reaction is another factor they should consider. The third one I'd probably put out there is cost. Large data sets and large computing capacities often much more scalable and cost effective than a cloud infrastructure so there's lots of advantages to think through there. And maybe lastly I'd share is the native services. A lot of the cloud providers enable a set of native services for ingestion, for processing, of modeling, for machine learning, that organizations can really take advantage of. I would say if you're contemplating your strategy right now, my coaching would be, get help. It's a team sport. So definitely leverage your partners and think through the pros and cons of the strategy. Establish a primary hyperscaler, I think that's going to be super key and maximize your value through optimizing the workload, the data placement and really scaling the running operations. And lastly, maybe Dave move quickly right? Each day that you wait, you're incurring technical debt in your legacy environment, that's going to increase the cost and barrier to entry when moving to the new cloud hybrid driver. >> Thank you for that. Anupam I wonder if we could talk a little bit about the business impact. I mean, in the early days of big data, yes, it was a heavy lift, but it was really transformative. When you go to hybrid cloud, is it really about governance and compliance and security and getting the right mix in terms of latency? Are there other, you know, business impacts that are potentially as transformative as we saw in the early days? What are your thoughts on that? >> Absolutely. It's the other business impacts that are interesting. And you know, Dave, let's say you're in the line of business and I come to you and say, oh, there's cost, there's all these other security governance benefits. It doesn't ring the bell for you. But if I say, Dave used to wait 32 weeks, 32 weeks to procure hardware and install software, but I can give you the same thing in 30 minutes. It's literally that transformative, right? Even on-prem, if I use cloud native technology, I can give something today within days versus weeks. So we have banks, we have a bank in Ohio that would take 32 weeks to rack up a 42 node server. Yes, it's very powerful, you have 42 nodes on it, 42 things stacked on it, but still it's taking too much time. So when you get cloud native technologies in your data center, you start behaving like the cloud and you're responsive to the business. The responsiveness is very important. >> That's a great point. I mean, in fact, you know, there's always this debate about is the cloud public cloud probably cost more expensive? Is it more expensive to rent than it is to own? And you get debates back and forth based on your perspective. But I think at the end of the day, what, Anupam you just talked about, it may oftentimes could dwarf, you know, any cost factors, if you can actually, you know, move that fast. Now cost is always a consideration. But I want to talk about the migration path if we can Manish. Where do, how should customers think about migrating to the cloud migration's a, an evil word. How should they think about migrating to the cloud? What's the strategy there? Where should they start? >> No I think you should start with kind of a use case in mind. I think you should start with a particular data set in mind as well. I think starting with what you're really seeking to achieve from a business value perspective is always the right lens in my mind. This is the decade of time technology and cloud to the fitness value, right? So if you start with, I'm seeking to make a dramatic upsell or dramatic change to my top line or bottom line, start with the use case in mind and migrate the data sets and elements that are relevant to that use case, relevant to that value, relevant to that unlock that you're trying to create, that I think is the way to prioritize it. Most of our clients are going to have tons and tons of data in their legacy environment. I don't think the right way to start is to start with a strategy that's going to be focused on migrating all of that. I think the strategy is start with the prioritized items that are tied to the specific value or the use case you're seeking to drive and focus your transformation and your migration on that. >> So guys I've been around a long time in this business and been an observer for awhile. And back in the mainframe days, we used to have a joke called CTAM. When we talk about moving data, it was called the Chevy truck access method. So I want to ask you Anupam, how do you move the data? Do you, it's like an Einstein saying, right? Move as much data as you need to, but no more. So what's going on in that front? what's happening with data movement, and, you know, do you have to make changes to the applications when you move data to the cloud? >> So there's two design patterns, but I love your service story because you know, when you have a 30 petabyte system and you tell the customer, hey, just make a copy of the data and everything will be fine. That will take you one and a half years to make the copies aligned with each other. Instead, what we are seeing is the biggest magic is workload analysis. You analyze the workload, you analyze the behavior of the users, and say so let's say Dave runs dashboards that are very complicated and Manish waits for compute when Dave is running his dashboard. If you're able to gather that information, you can actually take some of the noise out of the system. So you take selected sets of hot data, and you move it to public cloud, process it in public cloud maybe even bring it back. Sounds like science fiction, but the good news is you don't need a Chevy to take all that data into public cloud. It's a small amount of data. That's one reason the other pattern that we have seen is, let's say Manish needs something as a data scientist. And he needs some really specific type of GPUs that are only available in the cloud. So you pull the data sets out that Manish needs so that he can get the new silicone, the new library in the cloud. Those are the two patterns that if you have a new type of compute requirement, you go to public cloud, or if you have a really noisy tenant, you take the hot data out into public cloud and process it there. Does that make sense? >> Yeah it does and it sort of sets up this notion I was sort of describing upfront that the cloud is not just, you know, the public cloud, it's the spans on-prem and multicloud and even the edge. And it seems to me that you've got a metadata opportunity I'll call it and a challenge as well. I mean, there's got to be a lot of R and D going on right now. You hear people talking about cloud native and I wonder on Anupam if you could stay on that, I mean, what's your sense as to how, what the journey is going to look like? I mean, we're not going to get there overnight. People have laid out a vision of this sort of expanding cloud and I'm saying it's a metadata opportunity, but I, you know, how do you, the system has to know what workload to put where based on a lot of those factors that you guys were talking about. The governance, the laws of the land, the latency issues, the cost issues is, you know, how is the industry Anupam sort of approaching this problem and solving this problem? >> I think the biggest thing is to reflect all your security governance across every cloud, as well as on-prem. So let's say, you know, a particular user named Manish cannot access financial data, revenue data. It's important that that data as it goes around the cloud, if it gets copied from on-prem to the cloud, it should carry that quality with it. A big danger is you copy it into some optic storage, and you're absolutely right Dave metadata is the goal there. If you copy the data into an object storage and you lose all metadata, you lose all security, you lose all authorization. So we have invested heavily in something called shared data experience. Which reflects policies from on-prem all the way to the cloud and back. We've seen customers needing to invest in that, but some customers went all hog on the cloud and they realize that putting data just in these buckets of optic storage, you lose all the metadata, and then you're exposing yourself to some breach and security issues. >> Manish I wonder if we could talk about, thank you for that Anupam. Manish I wonder if we could talk about, you know, I've imagined a project, okay? Wherever I am in my journey, maybe you can pick your sort of sweet spot in the market today. You know, what's the fat middle if you will. What does a project look like when I'm migrating to the cloud? I mean, what are some of the, who are the stakeholders? What are some of the outer scope maybe expectations that I better be thinking about? What kind of timeframe? How should I tackle this and so it's not like a, you know, a big, giant expensive? Can I take it in pieces? What's the state-of-the-art of a project look like today? >> Yeah, lots of thoughts come to mind, Dave, when you ask that question. So there's lots to pack. As far as who the buyer is or what the project is for, this is out of migration is directly relevant to every officer in the C-suite in my mind. It's very relevant for the CIO and CTO obviously it's going to be their infrastructure of the future, and certainly something that they're going to need to migrate to. It's very important for the CFO as well. These things require a significant migration and a significant investment from enterprises, different kind of position there. And it's very relevant all the way up to the CEO. Because if you get it right, the truly the power it unlocks is illuminates parts of your business that allow you to capture more value, capture a higher share of wallet, allows you to pivot. A lot of our clients right now are making a pivot from going from a products organization to an as a service organization and really using the capabilities of the cloud to make that pivot happen. So it's really relevant kind of across the C-suite. As far as what a typical program looks like, I always coach my clients just like I said, to start with the value case in mind. So typically, what I'll ask them to do is kind of prioritize their top three or five use cases that they really want to drive, and then we'll land a project team that will help them make that migration and really scale out data and analytics on the cloud that are focused on those use cases. >> Great, thank you for that. I'm glad you mentioned the shift in the mindset from product to as a service. We're seeing that across the board now, even infrastructure players are jumping on the bandwagon and borrowing some sort of best practices from the SaaS vendors. And I wanted to ask you guys about, I mean, as you move to the cloud, one of the other things that strikes me is that you actually get greater scale, but there's a broader ecosystem as well. So we're kind of moving from a product centric world and with SaaS we've got this sort of platform centric, and now it seems like ecosystems are really where the innovation is coming from. I wonder if you guys could comment on that, maybe Anupam you could start. >> Yeah, many of our customers as I said right? Are all about sharing data with more and more lines of businesses. So whenever we talk to our CXO partners, our CRO partners, they are being asked to open up the big data system to more tenants. The fear is, of course, if you add more tenants to a system, it could get, you know, the operational actually might get violated. So I think that's a very important part as more and more collaboration across the company, more and more collaboration across industries. So we have customers who create sandboxes. These are healthcare customers who create sandbox environments for other pharma companies to come in and look at clinical trial data. In that case, you need to be able to create these fenced environments that can be run in public cloud, but with the same security that you expect up. >> Yeah thank you. So Manish this is your wheelhouse as Accenture. You guys are one of the top, you know, two or three or four organizations in the world in terms of dealing with complexity, you've got deep industry expertise, and it seems like some of these ecosystems as Anupam was just sort of describing it in a form are around industries, whether it's healthcare, government, financial services and the like. Maybe your thoughts on the power of ecosystems versus the, you know, the power of many versus the resources of one. >> Yeah, listen, I always talk about this is a team sport right? And it's not about doing it alone. It's about developing as ecosystem partners and really leveraging the power of that collective group. And I've been for as my clients to start thinking about, you know, the key thing you want to think about is how you migrate to becoming a data driven enterprise. And in order for you to get there, you're going to need ecosystem partners to go along the journey with you, to help you drive that innovation. You're going to need to adopt a pervasive mindset to data and democratization of that data everywhere in your enterprise. And you're going to need to refocus your decision-making based on that data, right? So I think partner ecosystem partnerships are here to stay. I think what we're going to see Dave is, you know, at the beginning of the maturity cycle, you're going to see the ecosystem expand with lots of different players and technologies kind of focused on industry. And then I think you'll get to a point where it starts to mature and starts to consolidate as ecosystem partners start to join together through acquisitions and mergers and things like that. So I think ecosystem is just starting to change. I think the key message that I would give to our clients is take advantage of that. There's too much complexity for any one person to kind of navigate through on your own. It's a team sport, so take advantage of all the partnerships you can create. >> Well, Manish one of the things you just said that it kind of reminds me, you said data data-driven, you know, organizations and, you know, if you look at the pre-COVID narrative around digital transformation, certainly there was a lot of digital transformation going on, but there was a lot of complacency too. I talked to a lot of folks, companies that say, "you know, we're doing pretty well, our banks kicking butt right now, we're making a ton of money." Or you know, all that stuff that's kind of not on my watch. I'll be retired before then. And then it was the old, "if it ain't broke, don't fix it." And then COVID breaks everything. And now if you're not digital, you're out of business. And so Anupam I'll start with you. I mean, to build a data-driven culture, what does that mean? That means putting data at the center of your organization, as opposed to around in stove pipes. And this, again, we talked about this, it sort of started in there before even the early parts of last decade. And so it seems that there's cultural aspects there's obviously technology, but there's skillsets, there's processes, you've got a data lifecycle and a data, what I sometimes call a data pipeline, meaning an end to end cycle. And organizations are having to rethink really putting data at the core. What are you seeing? And specifically as it relates to this notion of data-driven organization and data culture, what's working? >> Yeah three favorite stories, and you're a 100% right. Digital transformation has been hyperaccelerated with COVID right? So our telco customers for example, you know, Manish had some technical problems with bandwidth just 10 minutes ago. Most likely is going to call his ISP. The ISP will most likely load up a dashboard in his zip code and the reason it gives me stress, this entire story is because most likely it's starting on a big data system that has to collect data every 15 minutes, and make it available. Because you'll have a very angry Manish on the other end, if you can't explain when is the internet coming back, right? So, as you said this is accelerated. Our telco providers, our telco customers ability to ingest data, because they have to get it in 15 minute increments, not in 24 hour increments. So that's one. On the banking sector what we have seen is uncertainty has created more needs for data. So next week is going to be very uncertain all of us know elections are upcoming. We have customers who are preparing for that additional variable capacity, elastic capacity, so that if investment bankers start running hundreds and thousands of reports, they better be ready. So it's changing the culture at a very fundamental level, right? And my last story is healthcare. You're running clinical trials, but everybody wants access to the data. Your partners, the government wants access to the data, manufacturers wants access to the data. So again, you have to actualize digital transformation on how do you share very sensitive, private healthcare data without violating any policy. But you have to do it quick. That's what COVID has started. >> Thank you for that. So I want to come back to hybrid cloud. I know a lot of people in the audience are, want to learn more about that. And they have a mandate really to go to cloud generally but hybrid specifically. So Manish I wonder if you could share with us, maybe there's some challenges, I mean what's the dark side of hybrid. What should people be thinking about that they, you know, they don't want to venture into, you know, this way, they want to go that way. What are some of the challenges that you're seeing with customers? And how are they mitigating them? >> Yeah, Dave it's a great question. I think there's a few items that I would coach my clients to prioritize and really get right when thinking about making the migration happen. First of all, I would say integration. Between your private and public components that can be complex, it can be challenging. It can be complicated based on the data itself, the organizational structure of the company, the number of touches and authors we have on that data and several other factors. So I think it's really important to get this integration right, with some clear accountabilities build automation where you can and really establish some consistent governance that allows you to maintain these assets. The second one I would say is security. When it comes to hybrid cloud management, any transfers of data you need to handle the strict policies and procedures, especially in industries where that's really relevant like healthcare and financial services. So using these policies in a way that's consistent across your environment and really well understood with anyone who's touching your environment is really important. And the third I would say is cost management. All the executives that I talk about have to have a cost management angle to it. Cloud migration provides ample opportunities for cost reduction. However many migration projects can go over budget when all the costs aren't factored in, right? So your cloud vendors. You've got to be mindful of kind of the charges on accessing on premise applications and scaling costs that maybe need to be budgeted for and where if possible anticipated and really plan for. >> Excellent. So Anupam I wonder if we could go a little deeper on, we talked a little bit about this, but kind of what you put where, which workloads. What are you seeing? I mean, how are people making the choice? Are they saying, okay, this cloud is good for analytics. This cloud is good. Well, I'm a customer of their software so I'm going to use this cloud or this one is the best infrastructure and they got, you know, the most features. How are people deciding really what to put where? Or is it, "hey, I don't want to be locked in to one cloud. I want to spread my risk around. What are you seeing specifically? >> I think the biggest thing is just to echo what Manish said. Is business comes in and as a complaint. So most projects that we see on digital transformation and on public cloud adoption is because businesses complaining about something. It's not architectural goodness, it is not for just innovation for innovation's sake. So, the biggest thing that we see is what we call noisy neighbors. A lot of dashboards, you know, because business has become so intense, click, click, click, click, you're actually putting a lot of load on the system. So isolating noisy neighbors into a cloud is one of the biggest patterns that you've seen. It takes the noisiest tenant on your cluster, noisiest workload and you take them to public cloud. The other one is data scientists. They want new libraries, they want to work with GPU's. And to your point Dave, that's where you select a particular cloud. Let's say there's a particular type silicone that is available only in that cloud. That GPU is available only in that cloud or that particular artificial intelligence library is available only in a particular cloud. That's when customers say, Hey miss, they decided, why don't you go to this cloud while the main workload might still be running on them, right? That's the two patterns that we are seeing. >> Right thank you. And I wonder if we can end on a little bit of looking to the future. Maybe how this is all going to evolve over the next several years. I mean, I like to look at it at a spectrum at a journey. It's not going to all come at once. I do think the edge is part of that. But it feels like today we've got, you know, multi clouds are loosely coupled and hybrid is also loosely coupled, but we're moving very quickly to a much more integrated, I think we Manish you talked about integration. Where you've got state, you've got the control plane, you've got the data plane. And all this stuff is really becoming native to the respective clouds and even bring that on-prem and you've got now hybrid applications and much much tighter integration and build this, build out of this massively distributed, maybe going from it's a hyper-converged to hyper-distributed again including the edge. So I wonder Manish we could start with you. How are your customers thinking about the future? How are they thinking about, you know, making sure that they're not going down a path where that's going to, they're going to incur a lot of technical debt? I know there's sort of infrastructure is code and containers and that seems it seems necessary, but insufficient there's a lot of talk about, well maybe we start with a functions based or a serverless architecture. There's some bets that have to be made to make sure that you can future proof yourself. What are you recommending there Manish? >> Yeah, I, listen I think we're just getting started in this journey. And like I said, it's really exciting time and I think there's a lot of evolution in front of us that we're going to see. I, you know, I think for example, I think we're going to see hybrid technologies evolve from public and private thinking to dedicated and shared thinking instead. And I think we're going to see advances in capabilities around automation and computer federation and evolution of consumption models of that data. But I think we've got a lot of kind of technology modifications and enhancements ahead of us. As far as companies and how they future proof themselves. I would offer the following. First of all, I think it's a time for action, right? So I would encourage all my class to take action now. Every day spent in legacy adds to the technical debt that you're going to incur, and it increases your barrier to entry. The second one would be move with agility and flexibility. That's the underlying value of hybrid cloud structures. So organizations really need to learn how to operate in that way and take advantage of that agility and that flexibility. We've talked about creating partnerships in ecosystems I think that's going to be really important. Gathering partners and thought leaders to help you navigate through that complexity. And lastly I would say monetizing your data. Making a value led approach to how you viewed your data assets and force a function where each decision in your enterprise is tied to the value that it creates and is backed by the data that supports it. And I think if you get those things right, the technology and the infrastructure will serve. >> Excellent and Anupam why don't you bring us home, I mean you've got a unique combination of technical acumen and business knowledge. How do you see this evolving over the next three to five years? >> Oh, thank you Dave. So technically speaking, adoption of containers is going to steadily make sure that you're not aware even of what cloud you're running on that day. So the multicloud will not be a requirement even, it will just be obviated when you have that abstraction there. Contrarily, it's going to be a bigger challenge. I would echo what Manish said start today, especially on the cultural side. It is great that you don't have to procure hardware anymore, but that also means that many of us don't know what our cloud bill is going to be next month. It is a very scary feeling for your CIO and your CFO that you don't know how much you're going to to spend next month forget next year, right? So you have to be agile in your financial planning as much you have to be agile in your technical planning. And finally I think you hit on it. Ecosystems are what makes data great. And so you have to start from day one that if I am going on this cloud solution, is the data shareable? Am I able to create an ecosystem around that data? Because without that, it's just somebody running a report may or may not have value to the business. >> That's awesome, guys. Thanks so much for a great conversation. We're at a time and I want to wish everybody a terrific event. Let me now hand it back to Vanita. She's going to take you through the rest of the day. This is Dave Vellante for theCUBE, thanks. (smooth calm music)