(bright upbeat music) >> Hello everyone. And we're back at AWS Re:Invent. You're watching theCUBE and we're here, day two. Actually we started Monday night and we got wall-to-wall coverage. We going all the way through Thursday, myself. I'm Dave Volante with the co-host, David Nicholson. Lisa Martin is also here. Of course, John Furrier. Partners, technologists, customers, the whole ecosystem. It's good to be back in the live event. Of course we have hybrid event as well a lot of people watching online. Anshu Sharma is here. He is the co-founder and CEO of Skyflow, new type of privacy company, really interested in this topic. Great to see you. Thanks for coming on. >> Thank you, thanks for bringing me here. >> It's timely, you know. Privacy, security, they're kind of two sides of the same coin. >> Yes. >> Why did you found Skyflow? >> Well, the idea for Skyflow really comes from my background in some ways. I spent my first nine years at Oracle, six years at Salesforce. And whether we were building databases or CRM products, customers would come to us and say, "Hey, you know, I have this very different type of data. It's things like social security numbers, frequent flyer card numbers, card numbers. You know, can you secure it better? Can you help me manage things like GDPR?" And to be honest, there was never a clear answer. There's a lot of technology solutions out there that do one thing at a time, you can walk around the booths here, there's like a hundred companies. And if you use all those hundred things correctly, maybe you could go tell your board that maybe a social security number is not going to be lost anymore. And I was like, "You know, we've simplified everything else. Why is it so hard to protect my social security number? It should be easy. It should be as easy as using Stripe or Twilio." And this idea just never went away and kept coming back till a few years ago, we learned about the Facebook privacy challenges, the Equifax challenges. And I was like, boy, it's the time. It's time to go do it now. >> You started the company in 2019. Right? >> Yes. >> I mean, your timing was pretty good, right? So what are the big sort of Uber trends that you're seeing? Obviously GDPR, the California Consumer Privacy Act. I heard this morning. Did you hear this? That like, if you post a picture on social media now without somebody's permission, you're now violating their privacy. It's like, you can see the smiles on Anshu's face. >> Its like every week, we're like every week, there's a new story that could be like, well, Skyflow. The new story is the question, the answer is Skyflow. But honestly I think what's happened is, the issue is put very simple. You know all we're trying to do is protect people's social security numbers, phone numbers, credit card numbers, things we hold dear. At the same time, it's complex. Like what does it mean to protect your social security number let's say? Does that mean I don't get to use it for filing your taxes? Well, I need your credit card number to process a payment. And we were like, this is just too complicated. Why, how do companies like Apple do it? How do companies like Netflix manage not have as many breaches as my hotel that barely has any data. And the answer is those companies actually have evolved to a completely different architecture, the zero trust data architecture. And that was our inspiration for starting this company. >> Yeah. I mean. How many times have you been asked to give your social security number? And you're like, why? why do you want it? What are you going to do with it? How do you protect it? And they go, "I don't know." >> You know, what's even, my favorite is like, you give your social security number to say TurboTax, how many days of the year do they need to use it? One. How many days of the year do they have it? And the thing is, it's a liability for those CTOs too. >> Yeah right. >> The CTO of Walgreens, the CTO of Intuit. They don't really want that social security number just so they can process your card once a year, or your social security number once a year. It's almost like we're forcing them to hold onto data. And then they have to bear the burden of having these stories. Like, you know, everybody wants to prevent a New York Times story that says, what Robin Hood had a breach, Twitter had a breach. >> So walk us through how Skyflow would address something like that. So take the, you know, take the make a generic version of TurboTax, social security members. There they are right now, they're sitting in a database somewhere. Hopefully there's some security wrapped around it in some way or another. What would you advise a customer like that to do? And what are you actually doing for them? >> So, look, it's very simple. You are not going to put your username passwords in a generic database. You're going to use something like OD Zero or Octa to do it. We're living in a world where we have polyglot data stores. Like there's a key value store. There's a time series database. There is a search database like Elastic. There's a log database like Splunk. But PII data, Somehow we think just fine. If it's in a hundred places and our answer is that we should do the same thing that companies like Apple, Netflix, Google, everybody, does. They take this data. They completely isolate it from the databases. And it gets stored in a custom data store in our case, that would be Skyflow. And essentially we'd give you encrypted tokens back and you can use these encrypted tokens that look like fake social security number. It's called a Format Preserving Encryption. So if you think about all the breakthroughs we've had in homomorphic encryption, on secure elements, like the way your phone works, the credit card number is stored in a secure element. So it's the same idea. There's a secure part of your data stack, which is Skyflow. That basically keeps the data always protected. And because we can compute and search on encrypted data, this is important, everybody can encrypt data at rest. Skyflow is the first company that's come out and said, "Look, you can keep your phone number and social security number, encrypted while I can run an aggregation query." So I can tell you what's the balance of your customer's account balance. And i can run that query without decrypting, a single row of data. The only other company I know that can do that internally is a certain Cupertino based company. >> So think about it. Anybody can walk something up to a certain degree, but allowing frictionless access at the same time. >> While it's encrypted. So how do you make that? Are you, is a strategy to make that a horizontal service? That I can put into my data protection service or my E-commerce service or whatever. >> It's a cloud-based service that runs on AWS and other clouds. We basically given instance just like, you'll get an instance of a post-grad store or you get an API handled to OD Zero. You basically instantiate Skyflow of what gets created. It can be in your AWS environment, dedicated VPC. So it's private to you and then you have a handle and then basically you just start using it. >> So how, how do you, what's the secret sauce? How do you do that? >> The secret source. Well, now that we filed the patents on it, I can reveal the secret sauce. So the holy grail of encryption right now, if you go talk to people at a leading company, is there's something called Fully Homomorphic Encryption. That's fundamentally the foundation on which things like Bitcoin are built actually. But the hard part about Fully Homomorphic Encryption is it works. You can actually do mathematical computations on it without decrypting the data, but it's about a million times slower. >> Yes slower, right. >> So nobody uses it. My insight was that we don't need to do multiplications and additions on phone numbers. You never take my phone number and divide by your social security number. (Dave laughing) These numbers are not numbers, they are data structures. So our insight was if you treat them as specialized data structures, we're all talking about basically about 80 different types of data across the globe. Every human being has an ID, date of birth, height, color of eyes. There's not that many fields. What we can do then is create specialized encryption schemes for each data type. We call this polymorphic data encryption. Poly means multiple. As a result of that, we can actually store the data encrypted and build indexes on it. Since we can index interpret data, it's kind of like, imagine you can run real-time queries on data that's encrypted. Every other data store, When you encrypt the data, it becomes invisible to database. And that's why we had to build this as a full stacked service. Just like the Snowflake guys had to start with the foundation of storage, rethink indexing, and build Snowflake. We did the same thing, except we built it for encrypted indexes Whereas they built it for encrypted, for regular data stores. >> So thinking, if you think about today's tech stack, it's evolving, right? The data protection and security are coming together. Where does this fit? Is it sort of now becoming a fundamental part of the-- >> We think every leading company, whether you're building a new brokerage application or you are the largest bank in the world, and we're talking to some of them right now. They're all going to have an internal service called a PII wall. This wall just like Apple and Google have their own internal walls. You're going to have a wall service in your service oriented architecture, essentially. And it's going to basically be the API. Every other application and database in your company is not going to store my social security number. The SSNs don't belong in 600 databases at a leading bank. They don't belong inside your customer support system. Think about what happened with Robinhood two weeks ago, right? Someone tricked one call center guy into giving the keys up, which is fine happens. But why did the call center guy have access to like a million email addresses? He's never used going to use that. So we think if you isolate the PII, every leading company is going to end up with a PII Wall, as part of their core architecture. Just like today, we have an Alt API, you have a Search API, you have a Logging API, you're going to have a PII API. And that's going to be part of your modern data stack. >> So okay. So this is definitely not a bolt on, right? It's going to be a fundamental company, just like security is, just like backup is. It's now, you got to have it. It's-- >> Yes. I mean, if you think about it, it just logically makes sense. Like you should be isolating this data. You don't keep your money and gold around at home. You put it either in a locker or a bank. I think the same applies for PII. We just haven't done it because companies would pay off a fine for $10,000 or a million dollars. And. >> Yeah. So you've recently raised $45 million to expand your efforts. Obviously that means that people are looking at this and saying there's opportunity, right? What does that look like when you think of growth, where during your go to market strategy at first you're convincing people that it's a good idea to do it. Do you think or hope for, hope one day that there's an inflection point where it's not that people are thinking, you know, let's do this because it's a good idea, but people are like, I have to do this because if I don't, it's irresponsible and I'm going to be penalized for not having it. It becomes something that isn't really a choice. It's something where you just do it. >> So, you know, when we were starting the company, we didn't even have a word to explain what we were trying to do. We would say things like what if there was a cloud service for XYZ. And, but over the last one year, I don't want to take credit for creating this market, but this market has been created in the last year and a half. And you know, we get tons of people, including some of the largest institutions emailing us, saying, "I'm looking to build a PII wall, API service inside my company. Can you tell me why your product meets that need?" And I thought that would take us three to five years to get there. And, you know, we've ended up creating a category, basically just like other companies have. And I think, you know, you don't get, I believe in market permission. You don't get to create a category. The market gives somebody the permission to create a category. Saying, "Look, this makes sense. Something like this should emerge." And if you're there at the right time, like you said. >> Yep. >> You get to take the opportunity. >> So where are you at as a company say for some, some capital is great. When do you scale? >> We're scaling now? So we just doubled our headcount in the last nine to 10 months. We're now 75 people. We think we'll be about 150 to 200 people in the next year. We are hiring across all regions. We just hired a head of Asia pack from segment.com. We just hired our first, you know, lead on international expansion. And in the US, we have an office in Palo Alto. We have an office in Bangalore. We just announced a data residency solution for Europe, data residency solution for India and emerging markets. Because data residency is another one of those things that's just emerging right now. And irrespective of whether you believe in security and privacy. Data residency is one of those things that you are mandated to implement. >> And where are you hiring? Is it combination to go to market? Tell me about your go to market. >> The go to market. We are direct sales organization, but we work with partners. So we haven't announced some of these partnerships, but you're working with some of the companies here who either are large database companies, large security companies. We think there is a win-win relationship between us and some of the partner. >> You're a partner model, partner channel model. >> So, direct sales but partner assisted. >> Yeah. Right. All right. We got to go. Hey, awesome story. Congratulations. Best of luck. >> Very interesting. >> Love to have you back and track the progress. >> Thank you, thank you so much. >> Okay. Thank you for watching theCUBE, the leader in and high-tech coverage. We're at Re-Invent 2021. Be right back (upbeat music)

>> From Santa Clara, California, in the heart of Silicon Valley, it's theCUBE! Covering Technovation's World Pitch 2018. Now, here's Sonia Tagare. >> Hi, welcome back, I'm Sonia Tagare, here with theCUBE in Santa Clara, California, covering Technovation's World Pitch Summit 2018, a pitch competition in which girls develop mobile apps in order to create positive change in the world. This week, 12 finalist teams are competing for their chance to win the coveted gold or silver scholarships. With us today, from our very own Cupertino, California, we have team FemStem with: Harini Arumugam, Eesha Ramkumar, and Ria Doshi, welcome. (together) - Thank you! >> So, your app, Alleviate, tell us more about that. >> So our app helps people with autism overcome the challenges they face in their daily life. We specialize in interaction skills and helping them relax in overwhelming situations. >> That's awesome, so how does it work? How would a user use it? >> So, I think the first thing you see is the sign up and login page, where a user can either signup saying they're verbal or non-verbal, meaning they can use their voice or can't, and our app personalizes our feature based on that. >> Awesome. >> So, one of the aspects of our app is actually a relaxation feature, and a lot of people with autism, they struggled with anxiety and being-- they're very hyper-sensitive in overwhelming situations, so we do provide meditative tracks, relaxing music, and an interactive reading simulator for them. >> So our other feature is interaction, and so we split it for both non-verbal and verbal individuals. So for non-verbal individuals, the app verbally asks a question, and they must select yes or no in response to that question. And for verbal users we actually use speech recognition to have them respond to the app, and we, take that input and compare it to the image, so. >> Sounds like this could help a lot of people. >> Yeah. (all laugh excitedly) >> Why did you guys decide to make it in the first place? >> So in our school we actually have a really big special education system, and as a result, we've grown up with a lot of kids with autism, and we have first hand experience to struggles that they face in our classroom, and a lot of the times, they receive negative attention because of it, and we wanted to do something about this issue, because we felt that this was not only something that affected our school, but also a global issue, in fact people around the world, so we thought by, with this project, we would really be impacting peoples lives. >> That's awesome. So what made you decide to join Technovation? >> So I think, there was a Technovation club at our school, and actually, I didn't Eesha or Harini before Technovation, so we all signed up for the club because we thought it was really interesting and at the first club meeting we kind of looked at each other and we were like hey, do you want to be a team? And so that's kind of how our Technovation journey started. >> That's awesome. So why did you choose the name FemStem? (laughing) - Well, we're all females, and that's kind of what Technovation is about, empowering females and, I mean, to speak to this, I think we're all like so passionate about STEM and, just combining them, we played around with the words a little bit, that's FemStem. >> That's awesome. So how do you think Technovation is helping the overall girls in tech conversation in the community? >> I think that Technovation gives us a lot of confidence, you know, we're new to the whole app building, that kind of structure. And being able to see something that we do have an impact, I think that confidence is really what girls should be looking out for. >> Yeah, and definitely, since none of us knew app development before coming into Technovation, it really gave us the opportunity to explore, create something that helped our community and actually have an impact on the world through technology. >> I was looking to add, so on a general level, I think that one of the biggest issues of today is that girls who are young age have little to no exposure in the STEM field, and I think Technovation really helps them develop and interest in STEM, and develop the confidence they need; and the ability to ask questions and receive help, so I think that's something that Technovation's really done for all of us. >> That's great, so you definitely encourage other girls-- >> Yes, definitely, yeah. >> That's awesome, and what's the best thing that's been happening in the competition so far? >> We've gotten to meet a lot of people around the world, that's the coolest thing that I can ask for. It doesn't happen like on a normal day, so I think this is really something that we've all been looking forward to. >> And speaking to our Technovation journey, we actually got to collaborate with students. Our app focus is on kids with autism, and we got to meet individuals as part of our special education community, and that's kind of when we saw our impact, and it kind of clicked for us that this is actually making a difference, and that's, that's like, it was an unbelievable experience. >> And it was great to see actually that our app had an impact on these kids, and getting recommendation from our director of para education at our school, who actually recommended our app to different districts in our school because of the impact it had on the kids, which is really nice. >> So where do you see this app in five years, if you can get the funding? >> If we get the funding, definitely we're going to add more features, like facial recognition features, and allowing people with autism to perform emotions that they've practiced. We will also produce a go to market strategy where we actually beta test our app on more kids, outside of our special education community, to ensure it has the impact that we really need to have. >> Congratulations on everything, and good luck for your pitch tomorrow! (all together) - Thank you! >> We're here at Technovation's World Pitch Summit 2018, stay tuned for more. (bubbly music)

(car engines) >> [Voiceover] Live from Silicon Valley, it's theCube, covering Mobile World Congress 2017. Brought to you by Intel. >> Okay welcome back everyone, we are here live in Palo Alto for the Cube's special coverage of two days of wall to wall coverage of Mobile World Congress 2017, we're doing it here in Palo Alto, covering what's happening in Barcelona, with folks over there, we've got analysts, we've got reporters, and we have friends there phoning in and sharing their commentary, certainly on Twitter as well. And we're doing it from inside our new studio in Palo Alto, and we're going to break it down. As their day ends, we're going to be analyzing and discussing the future implications of what it all means, teasing out the top news, giving our opinion and our commentary in reaction to all the breaking news. I'm John Furrier with Silicon Angle and theCube. I think the next guest is Willie Lu, who is a Facebook friend who I've been having conversations with, it's great to meet in person. He's a wireless guru, going back to his ph.D in the 90s, now chairman of the Palo Alto Research Group. Extensive experience in dealing with fixed wireless, mobile wireless, but more importantly, creating the technologies with industry to understand what's it going to take to invent the future. Willie, great to have you inside the studio. >> Thank you very much, John. >> One of the great things about having the Palo Alto studio is while everyone's out in Barcelona right now having dinner, probably going out for the evening, we get to sit inside the studio and talk about what they did today. So the big story inside Mobile World Congress in Barcelona was obviously, the devices. You're seeing Blackberry making a comeback, Nokia, you know, pumping their new muscles, bringing back the old Nokia Phone, and rolling out their new ones. Huawei, you got bringing in their Apple killer, they want to go up and down the stack. So certainly the device centric jewelry, if you will, the phone, the eye candy, the VR, the AR, the virtual reality. But also 5G. Intel, Qualcomm, Ericsson, Nokia, all the major telcos are rolling out essentially what they are calling 5G and beyond, which is essentially not just wireless, but an end to end network to be the new fabric of wireless. Not only for the devices in the phones, but the devices being the people in the cars. And the factories, and the cities, and the entertainment, this is an area that you have a lot of work in at a technical level. So I went to spend this segment talking about the picture of the future. Right? You know, obviously we need that next step up function of architecture, we need that next network. We need those next devices, that's something that you're thinking a lot about. What's your picture, what's the future look like for you? >> Yeah, thanks John. I'm the wireless mobile system architect for almost 25 to 30 years. So from my point of view, because I'm the technical eyes, from a technical point of view, when you're talking about mobile communications, normally we have three factors we have to trade off, compromise each other, okay? The first is high speed transmission, the second one is mobility, fluid mobility, the third one is capacity. Make sure capacity, right? Make sure the operator make money, right? So, before, previously in the last 20 or 30 years, our phones from the step-by-step, from 2G which is GSM or CDMA, the basic CDMA which is IS-95 to 3G which is WCDMA to the 4G which is OFGMA, including LTE. And these phones basically is still focused on one issues, even mobility issue, even high speed issue, but in the future in the 4G, 5G, 6G whatever, you know we need a very high speed. Very high speed, one giga beyond, over there. We also need a mobility, frame mobility, right? We also make sure able to make money, the operator make money, right? >> That's the number one. >> So how to, we want three, we want mobility, high speed, capacity. We, everything we need. And then single one standard is not going to work, because if you want pick LTE, a very high speed, you lose the mobility. If you pick free mobility, you lose the bandwidth. So the issue, that's the issue. We, 20 years ago, when I do the ph.D and when I was Stanford professor， I was a consulting professor at Stanford, we started the open wireless access, it's means converge a multiple standard together, converge the wifi, LTE, and the broadband wide access together in a same device. So when you have a wifi, you can go to wifi, which is very high speed, can be very very high speed in the future right? And then you go to the highway, where very fast there, you cannot get a wifi, but you can get LTE, or 3G or 2G, that's fine. So that's the research we are working on the open wireless access or open wireless architecture or OWA. And there's, it's the (inaudible) map is from TGMA, CGMA, OFDMA, to OWA. Okay, that's the technical point side. And for the device design side, my picture is for the next five years, ten years, fifteen years, twenty years, which very clear, okay? Before that, in the last 20 years, everybody their mobile phones, is still a carrier-centric mobile phone. Is means when I have a mobile phone, it's AT&T, it's AT&T, it's locked to AT&T or it's AT&T phone, right? And right now, from last year to this year, we are on a very important transition from the carrier-centric phone to a user-centric phone. Yeah probably, couple of company, Google, other company, they are working on the, on the virtualization, mobile virtualization right? Means what? Means a user can pick up different operators on the way, right? So this phone, if I don't have signal, I don't have T-mobile signal, I can using AT&T to get a LTE. And if I don't have AT&T, I can use Verizon. So we are on the way from the carrier-centric to a user-centric at the moment. >> [John] So let's stop right there, 'cus I really think you're onto something really important and I think this is, there's some history to look at. I mean if you look at wireless, I agree, this is a very carrier-centric. And for the consumers out there, you can think of just the basic concepts of most people's experience: I want to unlock my phone, right? These are kind of known terms of consumers, whether they're, it's my kids or adults. "I don't want to be stuck to the carrier" "on their plan." "I want to move my phone around." But that's just on the service. Now you want to decouple it further to the person. So, take a car. I might want to have a relationship with my car, as if I'm, going to be never buying a car, I might use autonomous cars or Uber or other services. And I get into the car and I need personalization. So this is the user-centric thing is that super important point. But now we are stuck, still stuck, in my opinion, in siloed telco stacks, meaning I'm stuck to the carrier, I have limited services, and now I want to shift that to better performance. I mean you can't look any further than hyper convergence or converged infrastructure on the data centers. So where it's networking combining. So are you taking that same approach to say that you think wireless will converge in? Is that the idea? >> Yes, when you wireless converging. Take examples: wifi, LTE, and converge together. So your phone basically is running on wifi. Actually in the priority order, wifi first. Wifi first, and then second is LTE, and then probably 3G is the second one there. So, and then if you have wifi you go wifi, and if car, the car also can be a micro base station, okay, to connect to the wifi, LTE together, and then distribute to the passengers in the car, so this is also we can, for the future, work in mobile office project. I can stay in the car, and the car itself is a sub base station, and then connect each other. There also, okay let's talking about the future picture, okay. In the next five years, okay, there's a couple companies working, already working on the mobile wifi network. So it's means if I am living in Palo Alto there, I'm moving around in my neighborhood in Palo Alto, I don't have, I don't even add AT&T, Verizon operator, I can have a mobile service because I can share all neighbor's wifi networks together as a mobile protocol. Then I can moving, I can hike, I jogging, your house, my house to there. We can share the wifi together, we call. We divide the wifi into the home wifi, and the visitor wifi we can rent the service to outside. So this called community mobile network based on wifi. That's the next five years picture. >> [John] How does that happen? I mean I just found, first of all I believe, and that's a great philosophy. And you're starting to see Xfinity do that with their current wifi, creating a little metro neighborhood network. That's really hard to pull off 'cus of the security concerns. Is it viable in the next five years, do you think that is even doable? What has to happen to make that happen? >> I think this going to be not a major issue because wifi still have a lot of bandwidth, right? And you can exchange bandwidth with security issue there. So wifi is more easy to the security than LTE, because LTE for the similar network, the spectrum is very expensive right? So that's why we cannot using a lot of overheads for security. So I always say, the most secure is wifi, then LTE. 'Cus LTE, the data, right? When you open it, there's not much overhead available for secure encryption, whatever there. So wifi you can, >> [John] So they're maximizing their signal for performance, not security. >> Yeah, not security. And wifi you can take like 40%, 30% the overhead load for the security and it's very secure. So that's not issue, that's why. That's the five, next five moment. Okay and then beyond that, when the mobile wifi neighborhood is built, right? Then we back to the traditional settled operator networks there. We'll converge together, then user for the next ten years, after ten years, user can pick up his preferred operators as he like. For example, if I'm in Palo Alto and then AT&T give me a good package, right? They give an offer, and I click my AT&T, it's go to AT&T. And I back to the Cupertino and Cupertino, >> [John] It's like network hopping. >> Yeah. >> It's like not radio hop, frequency hopping, it's network hopping. >> That's an idea, right right right. But still you need a converging network info together. >> So let's take it back to Mobile World Congress. So right now the current present is, that they're painting the picture of a 5G world where autonomous vehicles, entertainment, smart cities, and smart home are all being powered by an end-to-end, from the network to the edge, software and capabilities, from silicon software to device. >> Yes. >> So that's cool, makes a lot of sense. Now is 5G truly the enabler, that 5, 6 G is the wireless enabler for this in your view? In your picture of the future, what role does wireless play in creating this new fabric? >> Yeah, I think it's very much possible because when I say when we converge the different wireless solutions together then you have more space to focus on one direction, you focus on very high speed. We can one giga, two giga, even ten giga is enough right? And the other side, we increase the mobility issue, right? And then the other side we converge on the operator side. In the future, I mean AT&T, Verizon, it's not, they're not going to just provide the cellular mobile access only, they want to provide more service around its 5G, 6G, be new business model right? For traditional business model, you just provide the radio, the hand phone access. But in future, this operator is going to help provide more service, service-oriented platform. >> Is that consistent, that service business model, is that viable in your vision of the future. What is, or let me ask differently. What is the business model for the operator, in your vision of this multi-network world? What do they do, what kind of services are they delivering? >> I think in the future, very important service, around the ten years, around the time frame, is very important service is called mobile virtualization service. So in the future, Google can run mobile service, but they're working with AT&T and Verizon. >> [John] It's like MVL on steroids, basically, it's all doing pipe management. >> Yeah and then let's say for example, Google did a contract with AT&T for how much bandwidth every year, probably one P, or a large bandwidth. And then AT&T provides its bandwidth to Google, right? And then AT&T can do other service also, so AT&T save a lot of cost in the individual marketing. You know, right now the operator spend a lot of money for the marketing, right? But later they can cut off this cost, because Google can do marketing, right? >> [John] So it's, this is economic reconfiguration. >> [Willie] Yes. >> Okay, so here's the next question. In today's landscape of the marketplace, what would be bad behavior from your standpoint, that would screw up that future? What would be the signs that it's not going the right way in the ecosystem, because part of the things that I'm seeing with things like Intel and the big players is there's an ecosystem that needs to get agreement; That to accelerate the future, there has to be a new model, a new network. What are some signs that are warning signs for you? You know, people holding onto a certain thing, certain technology. What would be a red flag for you, if you look at the marketplace, what kind of activities would say "woah, that's not good." >> Okay, I think it depends on, for the operator, I think it's not good, in the future it's not good, you just focus on making money from the access size. Because in the future, access will be cheaper, cheaper, cheaper, cheaper. So if AT&T just focus on access revenue, it's going to red flag, okay? So you have to provide total solution, right? And from the vendor side, you cannot support one single standards. You only support LTE, it's going to dangerous. So you have to be open. So in the future, I think in the future, from my personal point of view, Comcast, AT&T, all these company, they are going to merge together. Because they want provide a converged solution, right? So in the future access will be cheaper, cheaper, cheaper, cheaper. And then you have to, they have another revenues from the other sides. >> [John] I wrote a paper in 2001 called "Broadband Starvation". And it was the beginning before wifi really hit, and then wifi hit and New York Times picked it up, was one of those stories. But we talked about the starvation from America for more bandwidth. Obviously even outside the US, you saw accelerated bandwidth, broadband penetration. I called it the "Broadband Starvation" because broadband starvation was in rural areas, so it always was limited by the actual physical connection. You know, the cable, the last mile. We all know the history of the policy side of the Arbox and the days of you know, the telephone companies. But now Comcast and now AT&T (laugh), they're the fiber to the home, there's some, or the coaxial to the home. They bring in, off the street and terminate it into the house. Wireless changes that. Is that a scenario where you see 5G going where ultimately, this notion of fiber to the home could be you know, ancient history? Or, 'cus that always, there's still construction. You got to still trench, you still got provisions, and the circuits to the homes. You know, is wireless an opportunity there? And will that free up more competition? >> Yeah, I think that's a big question, and a big picture, okay. I think from my personal experience, when we design technology for next 10 years, 15 years, the very big picture you think about is very important is: we're on the way to transition, to transition from the mobile communication to a personal communication. So previously, the mobile communication >> Personal communication, you mean people-centric? >> Yeah, people-centric. So mobile communication, previously we call mobile communication is a telecom term. Is means just for connection, just for envisioning connection, right? But in future >> [John] Endpoint, that's it. >> Yeah that's right. So we're on the way. Even at some universities, they change the course from mobile communication to personal communication. Personal communication means is: everything is personal. Personal-centric, right? So in a personal-centric, so in the future, the operator, the vendor, the provider think about, in the future, you're not only provider, information connection only, you provide anything a person needed for his life, including health, security, right? Everything there. >> [John] Transportation. >> Transportation, yeah. >> [John] Could be all digital services. >> The transportation, security. >> healthcare. >> And everything there and then each application will need a different requirements of the bandwidth, right? Especially for the health, we need lots of lots of video transmission, right? And this is going to, that's why we need a WLAN, a wireless network, is converging together. And then wireless is still a lots, lots of way we have to invent. >> The word "convergence" is back again, it's happening everywhere. Willie, thanks so much for the commentary. Love this, this is consistent with, Wikibonds had a research, siliconANGLE had a research, Peter Burris who was on our opening segment talking about not IOT, only IOT, internet of things, but IOT and P, people. Internet of People. >> [Willie] Yes, and think about IOT, okay? What's the major technologies inside the IOT? One is sensing technology, okay? The other one is wireless connection, right? You want to connect to that billion billion nodes together, so we need a multidimensional, different wireless technology. How to connect this billion billion nodes together? That's also we need wireless technology. >> I worry about that not happening because I think the telcos have been slow, and I think I'm seeing movement now with the telcos, that now is the time to make their move. NFV's viable, and now their business model is somewhat emerging. The question is, will they be fast enough to move? That's the question. >> Yeah, I think. >> Are they? >> That's also my question, because the moving, the virtualization like from Google, they're moving very fast than a traditional telco, right? So telco have to change their way of thinking in the business, right? >> I think Google should be the telco, take over the telco. >> That's why in the the next five, ten years, people just go to Google, using Google account to get access to the phone, to the mobile phone. You get a phone number from Google, right? >> They're going to call it Apple World Congress, or Google World Congress. Uber World Congress, if we don't. >> But anyway, we still need everybody work together. It's like different wireless standards converge together. And different company they also want to converge together. And then eventually, the target is very simple. It's the personal, it's the personal centric, user centric, the wireless world. That's the future. >> [John] Willie Lu here from Palo Alto Research. In here Palo Alto, a good Facebook friend guru in the wireless area all the way down from back in his ph.D days, as a practitioner and inventing the future. Great vision, I agree with it 100%. I think Intel and all the big players would agree. The ecosystem of smart movement right now is critical, and I think there's a huge opportunity to, to tie it all together there in IOT and people, a people-centric world. Congratulations on your work at the Wireless Mobile Congress that you started, and also the open, this open alliance, open wireless alliance. Congratulations. Willie Lu here inside theCube, I'm John Furrier, for more exclusive coverage of Mobile World Congress here in Palo Alto after the short break. (electronic music) (cheerful electronic music)

>>live from the Frederick P Rose Hall, home of jazz at Lincoln center in New York, New York. It's the queue at IBM Z. Next redefining digital business. Brought to you by headline sponsor. IBM. >>Hey everyone. We are here live in New York city for the IBM Z system. Special presentation of the cube. I'm John furrier, cofounder SiliconANGLE at my coast. Dave Alante co founder Wiki bond.org. Dave, we are here with gathering Corine, vice president of the Z systems technology. Welcome to the cube. Great to have you. >>Thank you. I'm really glad to be here. It's an exciting day for us. >>We had a great conversation last night. I wanted to just get you introduced to the crowd one year overseeing a lot of the technology side of it. You're involved in the announcement, but uh, you're super technical and uh, and, and the speeds and feeds of this thing are out there. It's in the news, it's in the press, but it's not really getting the justice. And we were talking earlier on our intro about how the main frame is back in modernize, but it's not your grandfather's mainframe. Tell us what's different, what's the performance tech involved, why is it different and what should people be aware of? >>Sure. So this machine really is unmatched. We have tremendous scale performance in multiple dimensions that we can talk through. The IO subsystem provides tremendous value security that's unmatched. So many of the features and attributes to the system just cannot be compared to other platforms. And the Z 13 what we're announcing today evolves and improves so many of those attributes. We really designed the system to support transaction growth from mobility, to do analytics in the system, integrated with the data and the transactions that we can drive insights when they really matter and support it. Cloud delivery. >>So there's two, two threads that are out there in the news that we've wanted to pivot on. One is the digital business model, and that's out in the press release is all the IBM marketing and action digital business. We believe as transformers, that's pretty much something that's gonna be transformative. But performance with the cloud has been touted, Hey, basically unlimited performance with cloud. Think of compute as a not a scarce resource anymore. How do you guys see that? Cause you guys are now pushing performance to a whole nother level. Why can't I just get scale out saying or scale out infrastructure, build data centers. What is this fitted with that mindset or is it, >>yeah, so I, there's, there's performance in so many different dimensions and I'll can talk you through a few of them. So at the, at the heart of the technology in this system, we have tremendous value in from the processor up. So starting at the base technology, we build the microprocessor in 22 nanometer technology, eight cores per chip. We've got four layers of cash integrate on this. More cash that can be accessed from these processor cores then can compare to anything else. Tremendous value. Don't have to go out through IO to memory as frequently as you would have to in other environments. We also have an iOS SIS subsystem that has hundreds of additional processing cores that allows you to drive workload fast through that. Um, so I think it's the, it's, it's the, the, the scale of this system that can allow you to do things in a single footprint that you have to do with a variety of distributed environments separately coupled with unique security features, embedded encryption capability on the processor, PCIE attached, tamper resistance, cryptography, compression engines as so many of these technologies that come together to build a system. >>So IBM went to the, went to the, went to the woodshed back and took all the good technology from the back room cobbled together. Cause you guys have done some pretty amazing things in the, what they call proprietary days, been mainframe back in the sixties seventies eighties and client server a lot of innovation. So you guys, is that true? Would that be an accurate statement? You guys kind of cobbled together and engineered this system with the best >>engineered from, from from soup to nuts, from the casters up. We live, we literally have made innovations at almost every level here in the system. Now it's evolved from previous generations and we have tremendous capabilities in the prior ones as well. But you see across almost every dimension we have improved performance scape scalability capability. Um, and we've done that while opening up the platform. So some of the new capabilities that we're discussing today include enterprise Linux. So Linux on the platform run Linux on many platforms. Linux is Linux, but it's even better on the Z 13 because now you have the scalability, the security, the availability behind it and new open support, we're announcing KVM will be supported on this platform later this year we have OpenStack supported, we're developing an ecosystem around this. We have renouncing Postgres, Docker, no JS support on the mainframe. And that's tremendously exciting because now we're really broadening a user base and allowing users to do a lot more with Linux on the main. >>So one of the big themes that we're hearing today is bringing marrying analytics and transaction systems together. You guys are very excited about that. Uh, one of the, even even the New York times article referenced this, people are somewhat confused about this because other people talk about doing it. We go to the Hadoop world, you know, we talked big data, spark in memory databases, SAP doing their stuff with Hannah. What's different about what Z systems are doing? >>That's a great question. So today many users are moving data off of platforms, including the mainframe to do their analytics. Moving back on this ETL process, extract, transform load. It's incredibly expensive, cumbersome copies of that data. You have redundancy, you have security risk, tremendous complexity to manage. And it's totally unnecessary today because you can do that analytics now on the system Z platform, driving tremendous capability insights that can be done within the transaction and integrated where the transactions and the data live. So much more value to do that. And we've built up a portfolio of capabilities and some of them are new. We're an announcing as part of today's event as well that can allow us to do transformation of the data analytics of that data. And it, and it's, it's at every level, right? We have embedded analytics, accelerators in the process or a new engine we call Cindy single instruction. Multiple data allows you to do, uh, a mathematical, uh, vector processing. >>Let's drill down on that. I want to get your particular on this. You have the in process or stuff is compelling to me. I like, I want to drill down on that. Get technical. Right now all the rage is in memory in memory. She's not even on the big data. Spark has got traction for the analytics. DTL thing is a huge problem. I think that's 100% accurate across the board. We hear that all the time. But what's going on in the process server because you guys have advanced not just in memory, it's in processor. What is that architecture, what are the, some of the tech features and why is that different than just saying, Hey, I'm doing a lot of in memory. >>So, so the process or has um, a deeper and richer cash hierarchy, um, than, than we see in other environments. That means we have four layers of cash. Two of those cash layers are embedded within the processor core itself. They're private to the core. The next layer is on the processor chip and it's shared amongst all those cores. And the fourth layer on a herder, right, is on a separate chip. It's huge. It's embedded DRAM technology. It's a tremendously large cash and we've expanded that, which means you don't have to go out to memory nearly as frequently because you, >>you stayed in the yard that stayed in the yard today in memory is state of the art today. You guys have taken it advanced inside the core. What kind of performances that dude, what's the, what's the advantage? >>There's huge performance advantages to that. We see, we see, we can do, uh, analytics. Numbers are something like 17 times faster than comparable solutions. Being able to bring those analytics into the system for insights when you need them, right? To be able to do faster of scoring of transactions, to be able to do faster fraud detection with so many applications. So many industries are looking to be able to bring these insights faster, more co-located with the data and not have to wait the latency associated with moving data off and, and, and doing some sort of analysis on data that's stale. How that's not interesting. We really want to be able to to integrate that where the data and the transactions live and we can now do that on the. >>So in memory obviously is awesome, right? You can go much faster. A best IO is no IO as gene Amdahl would say, but if something goes wrong and you have to flush the memory in reload >>everything, it's problematic. How does IBM address that? So to minimize that problem relative to we hear you hear complaints and other architectures that that that's problematic. How do you solve that problem or have you solved that problem? >>Well, you know, I think it's a combination of, of the cash, the memory and the analytics capabilities, the resiliency of the system. So you worry about machines going down, failures and we've built in security, reliability, redundancy at every level to prevent failures. We have diagnostic capabilities, things like the IBM Z aware solution, right? This is a solution that's been used to monitor the system behavior so that you can identify anomalous behaviors before you have a problem that's been available with cos. now we're extending that to Linux for the first time. We have solutions like disaster recovery, continuous availability solutions like the GDPs, uh, it's now extended to be a virtual appliance for Linux. So I, there's so many features and functions. This system allow you to have a much more robust, capable, >>popular is Linux. Can you quantify that? You guys talk a lot about Linux and can you give us some percentage? >>Linux has been around for 15 years on the mainframe and um, we have a very good user adoption. We're, we're, we're seeing a large fraction of our clients are running Linux either all by itself or in concert with Zoes. >>So double digit workloads. >>Yeah, it's a very, it's a very significant fraction of the myths in the field today. >>God, I don't want to get a personal perspective from you on some things. One, you went, uh, you have an applied physics degree from Yale, master's from an applied physics from Stanford, PhD, applied physics from Stanford and all the congratulations by the way, you're super smart means you, it means you can get to the schools you means you're, you're smart. But the rage is software defined, right? So I want you to tell us from your perspective being in applied physics, the advances in Silicon is really being engineered now. So is it the combination of that software defined? What's your perspective? What should people know about the tech at the physics side of it? Cause you can't change physics know the other day, but Silicon is doing some good stuff. So talk about that, that convergence between the physics, Silicon and software. >>Yeah, that's a, that's a great question. So I think what sets us apart here with the mainframe is our ability to integrate across that stack. So you're right, Silicon Silicon piece of 22 nanometers Silicon, we can all do similar things with it, but when you co optimize what you do with that Silicon with high-performance system design, with innovations at every level, from where operating systems software, you can build an end to end solution that's unmatched. And with an IBM, we, we, we do that. We really have an opportunity to collaborate across the stack. So can we put things in the operating system? It can take advantage of something that's in that hardware and being able to do that gives us a unique opportunity. And we've done that here, right? Whether it's the Cyndi accelerator and having our software capabilities or see Plex optimizes a Java, be able to take advantage of what's in that, uh, in that microprocessor, we see that with new instructions that we offer here that can be taken advantage of compilers that optimize for what's in the technology. So I think it's that, it's that co optimization across the stack. You're right, software as a user, you see the software, you see the solution, you see the capability at the machine. But to get that you need the infrastructure underneath it, you need the capabilities that can be exploited by the software. And that's why that, >>and we're seeing that in dev ops right now with the dev ops movement. You're seeing, I want to abstract away the complexities of infrastructure and have software be more optimized. And here you guys are changing the state of the art in with the in-memory to in processor architecture, but also you're enabling developers and software to work effectively. >>Right? And I think about cloud service delivery, right? You know, and we would love to be able to offer end users it as a service so we can access the mainframe. All of those qualities of service that we know and love about the mainframe without the complexity and can do that. Technologies like Zoes connect and Blumix with system Z mobile first platform, allowing you to connect from systems, engagements, the six systems of Rutgers deploy Z services. So you can, we were trying to help our clients to be able to not be cost centers for their, uh, for their firms but to provide value added services. And that can be done with the capabilities on the main. >>So no, Docker, OpenStack KVM, obviously we talked about Linux. What does that mean from a business standpoint, from the perspective of running applications? Can you sort of walk us through what you expect clients to do or what >>it's, it's, it's all about standardization and really expanding an ecosystem for users on the platform. And we want anybody running Linux anywhere to be able to run it on, run their applications, develop their applications on the mainframe. And to be able to take advantage of the consolidation opportunities driven by the scale the platform and be able to drive unmatched end to end security solutions on this plot. Right? It's, it's a combination of enabling an ecosystem to be able to do what users expect to be able to do. And that ecosystem continues to evolve. It's very rapidly changing. We know we have to respond, but we want to make sure that we are providing the capabilities that developers and users expect on the platform. And I think we've taken a tremendous leap at the Z 13 to be able to do that. >>So obviously Linux opened up. That was the starting point. Right? Um, what do you expect with the sort of new open innovations? Will you pull in more workloads, more applications or, >>I certainly believe we will. And you know, new workloads on the platform. This is, this is a, an evolution for us and we continue to see the opportunity to bring new workloads to the platform. Things, support of, of, of Linux. And the expanding ecosystem there helps us to do that effectively. We see that, whether it's um, the, the, the transaction growth from mobile and being able to say, what does that mean for the mainframe? How can we not just respond to that but take advantage, enable new opportunities there. And I, so I think absolutely Linux will help us to grow workloads to get into new spaces and really continue to modernize the mainframe. >>John and I were talking at the open Paul Moritz at the time, CEO of VMware in 2009. So we are going to build a software mainframe. Um, interesting, very bold statement. Don't, where's he working on pivotal? Do you have a software mainframe? Have you already built it? >>I don't think you can have software that running on something. And so the mainframe is not a piece of hardware. The mainframe's a solution. It's a platform that includes technology, infrastructure, hardware and the software capabilities that run on it. And as I said, I think it's the integration that the co optimization across that really provides value to clients. I don't know how you can have a software solution without some fundamental infrastructure that gives you the qualities of service. That's so much of the inherent security availability. All of that is >>that's a marketing. It didn't, it didn't pan out. The vision was beautiful and putting a great PowerPoint together. he went to pivotal now, but I think what's happening is what you're, what you're talking about is it's distributed mainframe capability. The scale out open source movement has driven the wannabe mainframe market to explode. And so what now you look at Amazon, you can Google look at these, these power data centers. They are mainframes. In essence, they are centralized places. Well, they want to say the cloud is a software mainframe. Software runs on these data centers. So instead of having rack and stack, uh, three x86 processors, you just drop into mainframe or God box as I call it. And you have this monster box that's highly optimized and then you could have clusters of other stuff around it. Your argument is the integration is what, what makes the difference that end. And so Amazon makes their own gear, right? We know that now they don't do open compute. They're making their own gear. So people who want to be Amazon would probably go to some kind of hybrid mainframe. Like they're not making their own. 70 makes sense of that cause Amazon, I mean they purpose built their own boxes. They are building their own point though, right? I mean to the outside of the box. Right. >>The way I see it as is for for mission critical applications where you cannot support any downtime, you want to have a system that's built from the ground up for pure availability for security and we have that right? We have a system that you can prevent failures, right? We have redundancy at so many levels. We have, we have, you know, if a transaction, different model rate, you win when you take money out of your account or when you transfer money more potently into your account, you need to make sure it's there, right? You want to know that with a hundred percent confidence and to do that I would expect you feel more confident running that >>credit card transactions, same game all over again. Mission critical versus non mission critical, I mean internet of things. But what's not mission critical is my follow up question here of things. Some sensors data that's passive. I, if it's running my airplane, ass running your temperature. Oh, you're down for 10 minutes. I mean, yeah, >>there were some times that we would accept, accepts and downs. >>Lumpy. No, it's really about lumpy SLA performing. Amazon gets away with that because the economics are fantastic, right? So you can't be lumpy and bank transaction. What about costs versus, Oh mainframe. So expensive, so expensive. You guys put out some TCO data that suggest it's less expensive. Help us get through that. >>Yeah, so, so I think when we look at total cost of ownership, we're often looking at the savings to administration and the management of the complexity of sprawl. And with the mainframe, because you have such scale and what you can include in it in a single footprint, you can now consolidate so much into this literally very small environment and the cost savings because of the integration capabilities, because of the performance that you can contain within this box, you see end-to-end cost savings for our clients. And in that, that the break even point is not so large. Right. And so you talked about mission critical. If you're doing your mission critical work on your mainframe and you have other things that you need to do that aren't, you don't consider perhaps as mission critical, you have an opportunity to consolidate. You can do that all on the same platform. You're, you're not, you know, we, we can run with tremendous utilization. You can, you want to use these machines for all their work. >>So sorry. So a follow up on that. So the stickiness then AKA lock-in used to be, I got a bunch of COBOL code that won't run anywhere else. He got me, I got to keep buying Mayfair. I was just saying now the stickiness is for the types of workloads that your clients are running. It is cheaper. That's your, >>it's cheaper. And I think it has unmatched capability, availability, security features that you can't find in other solutions. >>And if you had to, in theory you could replicate it, but it would just be so expensive with people. >>In theory, I, okay. But I think some the fundamental technologies and solutions across that stack, who else can do that? Right. Okay. Can integrate solutions in the hardware and all the way up that stack. And, and I, I don't know anyone else, >>tell me what, tell me what, in your opinion, what gets you most excited about this technology platform? I mean, is there a couple things? Just are one thing saying >>that is so game changing. I'm super excited by this. Um, I can't sleep at night. I'm intoxicated technically. I mean, what gets you jazzed up on this? >>Well, I, I'll tell you, it's, today's a really proud day. I have to say being here and being a part of this launch, you know, personally having been a part of the development, been an IBM for 15 years. I spent the last eight years doing hardware development, including building components and key parts of the system. And now to see us bring that to market and with the value that I know we're bringing to clients, it's, it get, I, I get a little choked up. I truly, honestly, I truly, honestly feel really, really proud about what we've done. Um, so in terms of what is most exciting, um, I think the analytics story is incredibly powerful and I think being able to take a bunch of the technologies that we've built up over time, including some of the new capabilities like in database transformation and advanced analytics that we'll be continuing to roll out over the course of this year. I think this can be really transformative and I think we can help our clients to take advantage of that. I think they will see tremendous value to their business. We'll be able to do things that we simply couldn't do with the old model of moving data off and, and having the latency that comes with that. So I'm really excited about that >>nice platform, not just a repackaging of mainframe. Okay, great. So second, final question from me I want to ask you is two perspectives on, um, the environment, the society we live in. So first let's talk it CIO, CEO, what mindset should they be in as this new transformation? The digital businesses upon them and they have the ability to rearchitect now with mainframe and cloud and data centers. What should they be thinking about as someone who has a PhD in applied physics, been working on this killer system? What is the, what's the moonshot for that CIO and, and how should they be thinking about their architecture right now? >>So I think CEO's need to be thinking about what is a good solution for the variety of problems that they have in their shops and not segment those as we've often seen. Um, you have the x86 distributed world and maybe you have a main frame this and that. I begin to think about this more holistically about the set of challenges you need to go address as a business. And what capabilities do you want to bring to bear to solve those problems? I think that when you think about it that way, you get away from good enough solutions. You get away from some of this, um, mindset that you have about this only plays over there. And this only plays over there. And I think you open yourself up for new possibilities that can drive tremendous value to their businesses. And we can think differently about how to use technology, drive efficiency, drive performance, and real value. >>Last night at dinner, we, we all, we all have families and kids. Um, and you know, even there's a lot of talk about software driving the world these days. And it is, software's amazing. It's great. Best time to be a software developer. Since I've been programming since I was in college and, and it's so much so awesome with open source. However, there's a real culture hacker culture now with hardware. So, um, what's your advice to young people out there? You know, middle schoolers or parents that have kids in middle school for women, young girls, young boys with this. Now you've got drones, you've got hackers, raspberry pie, these kinds of things are going on. You've got kind of this Homebrew computer mindset. These young kids, they don't even know what Apple butter >>I would say it is, it is so exciting. Uh, the, the, the engineering world, the technology challenges, hardware or software. And I wouldn't even differentiate. I think we have a tremendous opportunity to do new and exciting things here. Um, I would say to young girls and boys don't opt out too soon. That means take your classes, studying math and science in school and keep it as an option because you might find when you're in high school or college or beyond, that you really want to do this cool stuff. And if you haven't taken the basics, you, you find yourselves not in a position to be able to, to, to, to team and build great things and deliver new products and provide a lot of value. So I think it's a really exciting area. And I've been >>it's a research as I'm seeing like this. I mean I went to the 30th anniversary for apples Macintosh in Cupertino last year and that whole Homebrew computer club was a hacker culture. You know, the misfits, if you will. And a coder camp. >>I think that think there are people who grow up in, always know that they want to be the engineer, the software developer. And that's great. And then there are others of us, and I'll put myself in that in that space that you may have a lot of different interests. And what has drawn me to engineering and to the, the work that we do here is has been the, the ability to solve tough problems, to, to do something you've never, no one has ever done before, to team with fantastically smart people and to build new technology. I think it's an incredibly exciting space and I encourage people to think about that opportunity >>from a person who has a PhD in applied physics. That's awesome. Thank Kevin. Thanks for joining us here inside the queue, VP of systems. Again, great time to be a software build. Great time to be making hardware and solutions. This is the cue. We're excited to be live in New York city. I'm John furry with Dave Alante. We'll be right back. This rep break.