>> Welcome to our Palo Alto studio, all of you coming in over the airwaves. It's a wonderful opportunity today to talk about something very important with Computer Associates or, CA Tech, as they're now known. And I want to highlight one point about the slide title, the title they chose for the day, we chose for the day, Cloud and Hybrid IT Analytics for Digital Business. One of the most interesting things that you're going to hear about today is that it's going to keep coming back to business challenges and business problems. At the end of the day that's what the focus needs to be on. While we certainly do want to do more with the technology we have and drive greater effectiveness and utilization out of the technology that we use in our digital business, increasingly the ability to tie technology decisions to business outcomes is possible and all IT professionals must make that effort, as well as all IT vendors, if the community is going to be successful. Now what I'm going to talk about specifically is how cloud monitoring plays inside this drive to increase the effectiveness of business through digital technologies. And to do that, I'm going to talk about a few things. The first thing I'm going to talk about is what is a digital business and how does it impact strategic technology capabilities? Now the reason why this is so important is because there's an enormous amount of conversation in the industry about digital businesses, multi-channel for digital businesses, customer experience for digital businesses, some other attribute. And while those are all examples or potential benefits of digital business, at its core digital business is something else. We want to articulate what that is because it informs all decisions that we're going to make about a lot of different things. The second thing I'm going to talk about is this notion of advanced analytics and how advanced analytics are crucial to not only achieving the outcomes of digital business but also to sustain the effort in the transformation process. And as you might expect, if we're going to use analytics to improve our effectiveness, then we have to be in a position to gather the data that we need from the variety of resources necessary to succeed with a digital business strategy. Those are the three things I'm going to talk about but let's start with this first one. What is digital business and how does it impact technology capabilities? Now to do that, I want to show you something that we're quite proud of here at Wikibon SiliconANGLE because we're a research firm and a company that's dedicated to helping communities make better decision. The power of digital community is clear. It's a very, very important resource, overall, inside any business. And what we do is we have a tool that we call CrowdChat. And the purpose of CrowdChat is to bring together members of the community and surface the best insights they have about their undertakings. Now I'm not using this to just pitch what CrowdChat is, I really want to talk through how this is a representation of the power of digital community. I want to point you to a few things in this slide. First off, note that it's, very importantly, this was from a CrowdChat that we did on 31 January 2017 but the thing to note here is a couple of things. Now let's see if I can click through them here. Well the first thing to note is that it reached 3.4 million people linked to the technology decision making. Think about that. Wikibon SiliconANGLE is not a huge company. We're a very focused company that strongly emphasizes the role that technology can play in helping to make decisions and improve business outcomes. But this CrowdChat reached 3.4 million decision makers as part of our ongoing effort. And it clearly is an indication, ultimately, that today customers, in fact, are at the center of what goes on within digital business decision making. So customers are at the centers of these crucial market information flows. Now this is going to be something we come back to over and over and over. It used to be that folks who sold stuff were the primary centers of what happened with the information flows of the industry. But through social media, tools like CrowdChat and others, today customers are in a much better position overall to establish their voices and share their insights about what works and what doesn't work. In many respects, that is the core focus of digital business. So that leads us to this question of what is digital business. Now I am a fan of Peter Drucker. It's hard to argue with Peter Drucker and it's one of the reasons I start with Peter Drucker is because people don't typically argue with me when I start there. And Peter Drucker famously said many years ago that the purpose of a business is to create and keep a customer. Now you can go on about what about shareholder value, what about employees, and those are all true things. There's no question that that's also important. But the fundamental keeps coming back that if you don't have customers and you don't provide a great experience for those customers, you're not going to have a business. So what's the difference between digital business and business? The biggest difference between digital business and business and in fact how we properly define the concept of digital business is that digital businesses apply data to create and keep customers. That's the basis of digital business. It's how do you use your data assets to differentiate your business and especially to provide a superior experience, a superior value proposition, and superior outcomes for your customers. That is the core of digital business. If you're using data to differentiate how you engage customers, how you provide that experience for customers, and how you improve their outcomes, then you are more digital business than you were yesterday. If you use more data, you are more digital business than your competition. So this is a way of properly thinking about the role of digital business. And to summarize it slightly differently, what we strongly believe is that what decision makers have to do over the course of the next number of years is find ways to put their data to work. That is the fundamental goal of an IT professional today. And increasing, increasingly the goal of many business professionals. Find ways to apply data so that you can increase the work the firm does for customers. That's kind of the simple thread we're trying to pull here. Data, put to work, superior customer experience. Now at the centerpiece of this simple prescriptive is an enormous amount of complexity. A lot of decisions that have to be made because most businesses are not organized around their data. Most businesses don't institutionalize the way they engage customers or perform their work based on what their data assets can provide. Most businesses are built around the hardware, at least if you're an IT person, they're built around the hardware assets or maybe even the application assets. But increasingly it's become incumbent on CIOs and IT leaders to recognize that the central value of the business, at least that they work with, is the data and how that data performs work for the business. So that leads to the second question. Given the enormity of data in the future of digital business, we have to ask the question, "Well what role "is advanced analytics playing to keep us on track "as we thing about, ultimately, driving forward "for a digital business?" Now we draw this picture out to customers to try to explain the things that they'll have to do to become an increasingly digital business. And it starts with this idea that a digital business transformation requires investment in new capabilities, new business capabilities that foster the role that digital assets can play within the business that simplify making decisions about where to put people and how to institutionalize work and ultimately help sustain the value of the data within the business over time. And a way to think about it is that any digital business has to establish the capabilities to better capture data create catalysts from data. Now what do we mean by that? We mean basically that data is a catalyst for action. Data can actually be the source of value if you're a media company, for example. But in most businesses data is a catalyst, the next best action, a better prediction of superior forecast, a faster and simpler, and less expensive report for compliance purposes. Data is a catalyst. So we capture it and we translate it into a catalyst that then can actually guide action. That's the simple set of capabilities that we have to deploy here. Capturing data, turning it into the catalysts that then have consequential impacts in front of customers, provides superior experience and better business. Now if we try to map those prescriptions for business capabilities onto industry buzzwords, here's what we end with. Capture Data, well that's the centerpiece of what the industrial internet of things is about, or the internet of things is about, if we're talking mainly about small devices in a consumer world. Capturing data is essential and IIoT is going to be crucial to that effort as well as mobile computing and other types of things. We like to talk about it sometimes is the internet of things and people. Big data and analytics should be properly thought of as helping businesses turn those streams of information into models and insights that can lead to action. So that's what the whole purpose of what big data analytics is all about. It's not to just capture more data and store more data, it's about using that data that comes from a lot of different locations and turning it into catalysts, sources of value within the business. And the final one is branded customer experience. At the end of the day, what we're talking about is how we're going to use digital technology to better engage our customers, better engage our partners, better engage our markets, and better engage our employees. And increasingly, as customers demonstrate a preference for greater utilization of digital technology in their lives, the whole notion of a branded experience is going to be tied back to how well we provide these essential digital capabilities to our customers in our markets. So analytics plays an incredibly important role here because we've always been pretty good at capturing data and we've always, we're getting better I guess I should say, at utilizing insights from that data that could be gleaned on an episodic basis and turning that into some insight for a customer. Usually really smart people in sales or marketing or manufacturing or product management play that role. But what we're talking about is operationalizing, turning data into value for customers on a continuous ongoing basis. And Analytics is crucial for that and analytics also is crucial to ensure that we could stay on track as we effect these transformations and transitions. Now I want to draw your attention, obviously, to an important piece as we go forward here. And that is this notion how do we capture that data so that it is appropriately prepped and set up so that we can create value from analytics. And that's going to be the basis of the third point that I'm going to talk about. Why is hybrid cloud monitoring emerging as a crucial transformation tool? Now monitoring has been around for a long time. We've been monitoring individual assets to ensure we get greater efficiency and utilization. CA's been a master of that for 30, 35 years. Increasingly though, we need to think about how systems come together in a lot of different ways to increase what we call the plasticity of the infrastructure. The ability of the infrastructure to not only scale but to reconfigure itself in response to the crucial new work that digital businesses have to perform. So how's that going to play out? It's become very popular within the industry to talk about how data is going to move to the cloud. And that's certainly going to happen. There's going to be a lot of data that ends up in the cloud. But as we think about the realities of moving data, data is not just an ephemeral thing. Data has real physical characteristics, real legal implications. And ultimately intellectual property is increasingly rendered in the form of data. And so we have to be very careful how we think about data being moved across the enterprise into any number of different locations. It's one of the most strategic decisions that a board of directors is going to make. How do we handle and take care of our data assets? Now I want to focus just on one element of that. Hopefully provide a simple proof point to make this argument. And that is, if we looked at how data is generated, for example, in an Edge setting. Say we looked at the cost of moving data from a wind farm. A relatively small straightforward wind farm with a number of different sensors. What does it cost to move that data to the cloud? And that's provided here. If we think about the real costs of data, the cost of moving data from an Edge situation, even in a relatively simple example, back to the cloud can be dramatic. Hundreds of thousands of dollars. Limitations based on latencies, concerns about traversing borders that have legal jurisdictions, and obviously also, as I said, the intellectual property realities. But the bottom line here is that it shows that it's going to be much cheaper to process the data in place, process the data close to where the action needs to be taken, than to move it all to the cloud. And we think that's going to become a regular feature of how we think about setting up infrastructure in business in the future. Increasingly, it's not going to be about moving data to the cloud only, we're going to have additional options about moving cloud and cloud services to the data. Increasingly this is going to be the tact that businesses are going to take. It's find ways to move that sense of control, that notion of quality of service, and that flexibility in how we provision infrastructure so that the cloud experience comes to where the event needs to take place. That going forward will be the centerpiece of a lot of technology decision making. It doesn't mean we're not going to move data to the cloud it just means that we're going to be smart about when we do it, how we do it, and understanding when it makes more sense to move the cloud or the cloud set of services closer to the event so that we can process it in place. Now this is a really crucial concern because it suggests there's going to be a greater distribution of data and not a greater centralization of data. And you can probably see where I'm going with this. Greater distribution of data ultimately means that there's going to be a lot more things that require that we have to have visibility into their performance, visibility into how they work. If it was all going to be in one place then we could let someone else actually handle a lot of those questions about what's going on, how is it working. But as our businesses become more digital and our data assets become more central to how we provide customer experience, it means that the resources that we use to generate value out of those assets have to be managed and monitored appropriately. Now we have done a lot of work around this and what our research pretty strongly shows is that over the next 10 years, we're going to see three things happen. First off, we're going to see a lot of investment in public cloud options both in the form of SaaS as well as infrastructure as a service. So that will continue. There's no question that we're going to see some of the big public cloud suppliers become more important. But our expectation also, is we will see significant net new investment in what we call true private cloud. The idea of moving those cloud services on premise so that we can support local events that need high quality data and that kind of capability. The second thing I want to point out here is that while we do expect to see significant net new efficiencies and how we run all these resources, if we look at the cost of labor over the course of operational labor over the course of the next decade, we do expect to see the cost go down about around 7%. So we will see greater productivity in the world of IT labor. But it's not going to crash like many people predict. And one of the reasons it's not going to crash is because of the incredible net new reports of digital assets. But the third thing to note here is that we are not going to see the type of massive dumping of traditional infrastructure that many people predict. There's too many assets, too much value already in place in a lot of systems, and instead what we're going to see is a blending of all of these different capabilities in a rational way so that the business can achieve the digital outcomes that it seeks. The challenge, though, over the course of the next decade, however, is going to be to find ways, while we're going to have all these different resources, be a feature of our technology plan, be a feature of how we run our business. Historically we've tended to think about these in silos and the monitoring challenge that we put in place was to better generate efficiencies out of an individual asset. Well as we go forward, increasingly we need to think about how not one resource works, but how all these resources work. It's time for business to think about the internet not as something that's external, but as the basis for their computing. The internet is a computer. How we slice it up for our business is a statement about how we're going to build a set of distributive capabilities but weave them together so that we have a set of resources that can, in fact, reflect the business needs and support business requirements. And monitoring becomes crucial to that because as we move forward the goal needs to be to be able to enfranchise, federate a lot of these distributive resources into a working coherent statement of how computing serves our business. And that's going to require an approach that is much more focused on how things come together and how things can be bought into a coherent whole as opposed just the efficiency of any single tool or any single device. That's where digital business has to go, how can we bring all of these resources together into a coherent whole that supports our business needs. And that is the goal of the next generation of monitoring is to make that possible. Okay, so as we think about what we've talked about we basically made a couple of points here. The first when we talked about what is digital business, the first point that I made is data is the digital business asset. That's what we're trying to do here is use data to improve the effectiveness of the outcomes that we seek for customers. Digital business elevates IT but forces real and material changes. The second point that I made is how are advanced analytics helping. Well analytics turns business, or turns data into business catalysts that ultimately guide and shape customer experience. Crucial point. And the last point that I want to make is when we think about cloud monitoring remember that if we move forward in the digital world, as you make choices, your brand fails when your infrastructure fails. So as a consequence for those of you who are in the midst of thinking about the future role that monitoring is going to play in your world, choose your suppliers carefully. It's not about having a tool for a device, it's about thinking about how all of this can be, how monitoring can bring a lot of different resources into a coherent picture to ensure that your business is able to process, compute, store, and effect dramatic improvements to customer experience across the entire infrastructure asset. And the last thought that I'll leave you with is that CA Tech has been one of the companies of the vanguard of thinking about how this is going to work over the next decade in the industry.