>>From the Cube Studios in Palo Alto in Boston, bringing you data-driven insights from the cube and E T R. This is breaking analysis with Dave Valante. >>Making technology predictions in 2022 was tricky business, especially if you were projecting the performance of markets or identifying I P O prospects and making binary forecast on data AI and the macro spending climate and other related topics in enterprise tech 2022, of course was characterized by a seesaw economy where central banks were restructuring their balance sheets. The war on Ukraine fueled inflation supply chains were a mess. And the unintended consequences of of forced march to digital and the acceleration still being sorted out. Hello and welcome to this week's weekly on Cube Insights powered by E T R. In this breaking analysis, we continue our annual tradition of transparently grading last year's enterprise tech predictions. And you may or may not agree with our self grading system, but look, we're gonna give you the data and you can draw your own conclusions and tell you what, tell us what you think. >>All right, let's get right to it. So our first prediction was tech spending increases by 8% in 2022. And as we exited 2021 CIOs, they were optimistic about their digital transformation plans. You know, they rushed to make changes to their business and were eager to sharpen their focus and continue to iterate on their digital business models and plug the holes that they, the, in the learnings that they had. And so we predicted that 8% rise in enterprise tech spending, which looked pretty good until Ukraine and the Fed decided that, you know, had to rush and make up for lost time. We kind of nailed the momentum in the energy sector, but we can't give ourselves too much credit for that layup. And as of October, Gartner had it spending growing at just over 5%. I think it was 5.1%. So we're gonna take a C plus on this one and, and move on. >>Our next prediction was basically kind of a slow ground ball. The second base, if I have to be honest, but we felt it was important to highlight that security would remain front and center as the number one priority for organizations in 2022. As is our tradition, you know, we try to up the degree of difficulty by specifically identifying companies that are gonna benefit from these trends. So we highlighted some possible I P O candidates, which of course didn't pan out. S NQ was on our radar. The company had just had to do another raise and they recently took a valuation hit and it was a down round. They raised 196 million. So good chunk of cash, but, but not the i p O that we had predicted Aqua Securities focus on containers and cloud native. That was a trendy call and we thought maybe an M SS P or multiple managed security service providers like Arctic Wolf would I p o, but no way that was happening in the crummy market. >>Nonetheless, we think these types of companies, they're still faring well as the talent shortage in security remains really acute, particularly in the sort of mid-size and small businesses that often don't have a sock Lacework laid off 20% of its workforce in 2022. And CO C e o Dave Hatfield left the company. So that I p o didn't, didn't happen. It was probably too early for Lacework. Anyway, meanwhile you got Netscope, which we've cited as strong in the E T R data as particularly in the emerging technology survey. And then, you know, I lumia holding its own, you know, we never liked that 7 billion price tag that Okta paid for auth zero, but we loved the TAM expansion strategy to target developers beyond sort of Okta's enterprise strength. But we gotta take some points off of the failure thus far of, of Okta to really nail the integration and the go to market model with azero and build, you know, bring that into the, the, the core Okta. >>So the focus on endpoint security that was a winner in 2022 is CrowdStrike led that charge with others holding their own, not the least of which was Palo Alto Networks as it continued to expand beyond its core network security and firewall business, you know, through acquisition. So overall we're gonna give ourselves an A minus for this relatively easy call, but again, we had some specifics associated with it to make it a little tougher. And of course we're watching ve very closely this this coming year in 2023. The vendor consolidation trend. You know, according to a recent Palo Alto network survey with 1300 SecOps pros on average organizations have more than 30 tools to manage security tools. So this is a logical way to optimize cost consolidating vendors and consolidating redundant vendors. The E T R data shows that's clearly a trend that's on the upswing. >>Now moving on, a big theme of 2020 and 2021 of course was remote work and hybrid work and new ways to work and return to work. So we predicted in 2022 that hybrid work models would become the dominant protocol, which clearly is the case. We predicted that about 33% of the workforce would come back to the office in 2022 in September. The E T R data showed that figure was at 29%, but organizations expected that 32% would be in the office, you know, pretty much full-time by year end. That hasn't quite happened, but we were pretty close with the projection, so we're gonna take an A minus on this one. Now, supply chain disruption was another big theme that we felt would carry through 2022. And sure that sounds like another easy one, but as is our tradition, again we try to put some binary metrics around our predictions to put some meat in the bone, so to speak, and and allow us than you to say, okay, did it come true or not? >>So we had some data that we presented last year and supply chain issues impacting hardware spend. We said at the time, you can see this on the left hand side of this chart, the PC laptop demand would remain above pre covid levels, which would reverse a decade of year on year declines, which I think started in around 2011, 2012. Now, while demand is down this year pretty substantially relative to 2021, I D C has worldwide unit shipments for PCs at just over 300 million for 22. If you go back to 2019 and you're looking at around let's say 260 million units shipped globally, you know, roughly, so, you know, pretty good call there. Definitely much higher than pre covid levels. But so what you might be asking why the B, well, we projected that 30% of customers would replace security appliances with cloud-based services and that more than a third would replace their internal data center server and storage hardware with cloud services like 30 and 40% respectively. >>And we don't have explicit survey data on exactly these metrics, but anecdotally we see this happening in earnest. And we do have some data that we're showing here on cloud adoption from ET R'S October survey where the midpoint of workloads running in the cloud is around 34% and forecast, as you can see, to grow steadily over the next three years. So this, well look, this is not, we understand it's not a one-to-one correlation with our prediction, but it's a pretty good bet that we were right, but we gotta take some points off, we think for the lack of unequivocal proof. Cause again, we always strive to make our predictions in ways that can be measured as accurate or not. Is it binary? Did it happen, did it not? Kind of like an O K R and you know, we strive to provide data as proof and in this case it's a bit fuzzy. >>We have to admit that although we're pretty comfortable that the prediction was accurate. And look, when you make an hard forecast, sometimes you gotta pay the price. All right, next, we said in 2022 that the big four cloud players would generate 167 billion in IS and PaaS revenue combining for 38% market growth. And our current forecasts are shown here with a comparison to our January, 2022 figures. So coming into this year now where we are today, so currently we expect 162 billion in total revenue and a 33% growth rate. Still very healthy, but not on our mark. So we think a w s is gonna miss our predictions by about a billion dollars, not, you know, not bad for an 80 billion company. So they're not gonna hit that expectation though of getting really close to a hundred billion run rate. We thought they'd exit the year, you know, closer to, you know, 25 billion a quarter and we don't think they're gonna get there. >>Look, we pretty much nailed Azure even though our prediction W was was correct about g Google Cloud platform surpassing Alibaba, Alibaba, we way overestimated the performance of both of those companies. So we're gonna give ourselves a C plus here and we think, yeah, you might think it's a little bit harsh, we could argue for a B minus to the professor, but the misses on GCP and Alibaba we think warrant a a self penalty on this one. All right, let's move on to our prediction about Supercloud. We said it becomes a thing in 2022 and we think by many accounts it has, despite the naysayers, we're seeing clear evidence that the concept of a layer of value add that sits above and across clouds is taking shape. And on this slide we showed just some of the pickup in the industry. I mean one of the most interesting is CloudFlare, the biggest supercloud antagonist. >>Charles Fitzgerald even predicted that no vendor would ever use the term in their marketing. And that would be proof if that happened that Supercloud was a thing and he said it would never happen. Well CloudFlare has, and they launched their version of Supercloud at their developer week. Chris Miller of the register put out a Supercloud block diagram, something else that Charles Fitzgerald was, it was was pushing us for, which is rightly so, it was a good call on his part. And Chris Miller actually came up with one that's pretty good at David Linthicum also has produced a a a A block diagram, kind of similar, David uses the term metacloud and he uses the term supercloud kind of interchangeably to describe that trend. And so we we're aligned on that front. Brian Gracely has covered the concept on the popular cloud podcast. Berkeley launched the Sky computing initiative. >>You read through that white paper and many of the concepts highlighted in the Supercloud 3.0 community developed definition align with that. Walmart launched a platform with many of the supercloud salient attributes. So did Goldman Sachs, so did Capital One, so did nasdaq. So you know, sorry you can hate the term, but very clearly the evidence is gathering for the super cloud storm. We're gonna take an a plus on this one. Sorry, haters. Alright, let's talk about data mesh in our 21 predictions posts. We said that in the 2020s, 75% of large organizations are gonna re-architect their big data platforms. So kind of a decade long prediction. We don't like to do that always, but sometimes it's warranted. And because it was a longer term prediction, we, at the time in, in coming into 22 when we were evaluating our 21 predictions, we took a grade of incomplete because the sort of decade long or majority of the decade better part of the decade prediction. >>So last year, earlier this year, we said our number seven prediction was data mesh gains momentum in 22. But it's largely confined and narrow data problems with limited scope as you can see here with some of the key bullets. So there's a lot of discussion in the data community about data mesh and while there are an increasing number of examples, JP Morgan Chase, Intuit, H S P C, HelloFresh, and others that are completely rearchitecting parts of their data platform completely rearchitecting entire data platforms is non-trivial. There are organizational challenges, there're data, data ownership, debates, technical considerations, and in particular two of the four fundamental data mesh principles that the, the need for a self-service infrastructure and federated computational governance are challenging. Look, democratizing data and facilitating data sharing creates conflicts with regulatory requirements around data privacy. As such many organizations are being really selective with their data mesh implementations and hence our prediction of narrowing the scope of data mesh initiatives. >>I think that was right on J P M C is a good example of this, where you got a single group within a, within a division narrowly implementing the data mesh architecture. They're using a w s, they're using data lakes, they're using Amazon Glue, creating a catalog and a variety of other techniques to meet their objectives. They kind of automating data quality and it was pretty well thought out and interesting approach and I think it's gonna be made easier by some of the announcements that Amazon made at the recent, you know, reinvent, particularly trying to eliminate ET t l, better connections between Aurora and Redshift and, and, and better data sharing the data clean room. So a lot of that is gonna help. Of course, snowflake has been on this for a while now. Many other companies are facing, you know, limitations as we said here and this slide with their Hadoop data platforms. They need to do new, some new thinking around that to scale. HelloFresh is a really good example of this. Look, the bottom line is that organizations want to get more value from data and having a centralized, highly specialized teams that own the data problem, it's been a barrier and a blocker to success. The data mesh starts with organizational considerations as described in great detail by Ash Nair of Warner Brothers. So take a listen to this clip. >>Yeah, so when people think of Warner Brothers, you always think of like the movie studio, but we're more than that, right? I mean, you think of H B O, you think of t n t, you think of C N N. We have 30 plus brands in our portfolio and each have their own needs. So the, the idea of a data mesh really helps us because what we can do is we can federate access across the company so that, you know, CNN can work at their own pace. You know, when there's election season, they can ingest their own data and they don't have to, you know, bump up against, as an example, HBO if Game of Thrones is going on. >>So it's often the case that data mesh is in the eyes of the implementer. And while a company's implementation may not strictly adhere to Jamma Dani's vision of data mesh, and that's okay, the goal is to use data more effectively. And despite Gartner's attempts to deposition data mesh in favor of the somewhat confusing or frankly far more confusing data fabric concept that they stole from NetApp data mesh is taking hold in organizations globally today. So we're gonna take a B on this one. The prediction is shaping up the way we envision, but as we previously reported, it's gonna take some time. The better part of a decade in our view, new standards have to emerge to make this vision become reality and they'll come in the form of both open and de facto approaches. Okay, our eighth prediction last year focused on the face off between Snowflake and Databricks. >>And we realized this popular topic, and maybe one that's getting a little overplayed, but these are two companies that initially, you know, looked like they were shaping up as partners and they, by the way, they are still partnering in the field. But you go back a couple years ago, the idea of using an AW w s infrastructure, Databricks machine intelligence and applying that on top of Snowflake as a facile data warehouse, still very viable. But both of these companies, they have much larger ambitions. They got big total available markets to chase and large valuations that they have to justify. So what's happening is, as we've previously reported, each of these companies is moving toward the other firm's core domain and they're building out an ecosystem that'll be critical for their future. So as part of that effort, we said each is gonna become aggressive investors and maybe start doing some m and a and they have in various companies. >>And on this chart that we produced last year, we studied some of the companies that were targets and we've added some recent investments of both Snowflake and Databricks. As you can see, they've both, for example, invested in elation snowflake's, put money into Lacework, the Secur security firm, ThoughtSpot, which is trying to democratize data with ai. Collibra is a governance platform and you can see Databricks investments in data transformation with D B T labs, Matillion doing simplified business intelligence hunters. So that's, you know, they're security investment and so forth. So other than our thought that we'd see Databricks I p o last year, this prediction been pretty spot on. So we'll give ourselves an A on that one. Now observability has been a hot topic and we've been covering it for a while with our friends at E T R, particularly Eric Bradley. Our number nine prediction last year was basically that if you're not cloud native and observability, you are gonna be in big trouble. >>So everything guys gotta go cloud native. And that's clearly been the case. Splunk, the big player in the space has been transitioning to the cloud, hasn't always been pretty, as we reported, Datadog real momentum, the elk stack, that's open source model. You got new entrants that we've cited before, like observe, honeycomb, chaos search and others that we've, we've reported on, they're all born in the cloud. So we're gonna take another a on this one, admittedly, yeah, it's a re reasonably easy call, but you gotta have a few of those in the mix. Okay, our last prediction, our number 10 was around events. Something the cube knows a little bit about. We said that a new category of events would emerge as hybrid and that for the most part is happened. So that's gonna be the mainstay is what we said. That pure play virtual events are gonna give way to hi hybrid. >>And the narrative is that virtual only events are, you know, they're good for quick hits, but lousy replacements for in-person events. And you know that said, organizations of all shapes and sizes, they learn how to create better virtual content and support remote audiences during the pandemic. So when we set at pure play is gonna give way to hybrid, we said we, we i we implied or specific or specified that the physical event that v i p experience is going defined. That overall experience and those v i p events would create a little fomo, fear of, of missing out in a virtual component would overlay that serves an audience 10 x the size of the physical. We saw that really two really good examples. Red Hat Summit in Boston, small event, couple thousand people served tens of thousands, you know, online. Second was Google Cloud next v i p event in, in New York City. >>Everything else was, was, was, was virtual. You know, even examples of our prediction of metaverse like immersion have popped up and, and and, and you know, other companies are doing roadshow as we predicted like a lot of companies are doing it. You're seeing that as a major trend where organizations are going with their sales teams out into the regions and doing a little belly to belly action as opposed to the big giant event. That's a definitely a, a trend that we're seeing. So in reviewing this prediction, the grade we gave ourselves is, you know, maybe a bit unfair, it should be, you could argue for a higher grade, but the, but the organization still haven't figured it out. They have hybrid experiences but they generally do a really poor job of leveraging the afterglow and of event of an event. It still tends to be one and done, let's move on to the next event or the next city. >>Let the sales team pick up the pieces if they were paying attention. So because of that, we're only taking a B plus on this one. Okay, so that's the review of last year's predictions. You know, overall if you average out our grade on the 10 predictions that come out to a b plus, I dunno why we can't seem to get that elusive a, but we're gonna keep trying our friends at E T R and we are starting to look at the data for 2023 from the surveys and all the work that we've done on the cube and our, our analysis and we're gonna put together our predictions. We've had literally hundreds of inbounds from PR pros pitching us. We've got this huge thick folder that we've started to review with our yellow highlighter. And our plan is to review it this month, take a look at all the data, get some ideas from the inbounds and then the e t R of January surveys in the field. >>It's probably got a little over a thousand responses right now. You know, they'll get up to, you know, 1400 or so. And once we've digested all that, we're gonna go back and publish our predictions for 2023 sometime in January. So stay tuned for that. All right, we're gonna leave it there for today. You wanna thank Alex Myerson who's on production and he manages the podcast, Ken Schiffman as well out of our, our Boston studio. I gotta really heartfelt thank you to Kristen Martin and Cheryl Knight and their team. They helped get the word out on social and in our newsletters. Rob Ho is our editor in chief over at Silicon Angle who does some great editing for us. Thank you all. Remember all these podcasts are available or all these episodes are available is podcasts. Wherever you listen, just all you do Search Breaking analysis podcast, really getting some great traction there. Appreciate you guys subscribing. I published each week on wikibon.com, silicon angle.com or you can email me directly at david dot valante silicon angle.com or dm me Dante, or you can comment on my LinkedIn post. And please check out ETR AI for the very best survey data in the enterprise tech business. Some awesome stuff in there. This is Dante for the Cube Insights powered by etr. Thanks for watching and we'll see you next time on breaking analysis.

>>Yeah. Hello and welcome to the Cuba's International Women's Showcase, featuring International Women's Day. I'm John, host of the Kiwi here in California. Great remote guest. She's amazing founder and C e O of Cuba, and great to see you. Okay, thanks for coming on. Um, good to see you. >>You as well. Always a pleasure. You >>know, International Women's Day is the big celebration. We're doing a lot of interviews with great people making things happen, moving and shaking things. Um, but every day, International Women's Day, As far as I'm concerned, it's happening all around the world. But these are stories of innovation, the stories of changes, the stories of transformation for the better. You've been doing a lot of things. Um and I want to get into that. But let's start with your background. Tell us a bit about who you are and what you've got going on. >>Yeah, my background is a little strange. I used to be a maritime archaeologists. So dumb shit breaks for a little bit. That was amazing. I always just It's only partial just because it's actually a bit of truth to it, that learning how to, you know, handle things at depth really does train you to be a C e o. Because you learn to control your breath and and focus on the things that matter and not be so reactive because it's three activity that will panic that will kill you. Uh, always knowing how to reframe. Return to the basics. Um, there's a really good things to hold on to, even in the world of business. Right? So I at some point, ended up doing doing a lot of things. Largely business development, following my time diving and amazing woman. Um, another woman for International Women's Day named Doctor who was a biotech entrepreneur from Japan, stepping down as her role at the helm of her company. Um, and she wanted to launch a space for a young innovators from around the world who are doing amazing work to tackle this very complex challenges we all know exist, um, and figure out a way to give them time and space to do their best work and pursue their their highest visions for change. We decided that we would focus on for-profit companies largely who were using sustainable, scalable business models to pursue both profit and purpose. Um creating a virtuous cycle between the return of money to a company and putting that into to go even further and faster towards, um, solving a problem. Um, so we now have companies over 200 companies from around the world that we have helped support tackling every single, sustainable development goal. Um, and I'm proud to say, you know, particularly related to the subject that fifty-nine percent of our companies have a woman founder or CO-FOUNDER. Um, and 69% of the founder of color. Um, so we're working with entrepreneurs from every every area of the world. Many approximate to the problem that they are trying to solve, so they intimately understand it. Um, and they're doing amazing things. >>Yeah, you can help the great mission. You have a lot of other things going on your helping women encouraging them to your career in the tech sector. Um, good statistics could be better, right? Is higher and better. So, um, what are you guys doing? What, you specifically to help and encourage women to forge their career and tech? >>Yeah. I mean, look, the good news is I do think that it's getting better. I particularly think that we will see the adventure is improving. Um, it takes a while because the companies that have been funded up until now are still working in the biggest amount in the later stages. So I think that percentage hasn't been shifting. But I have to believe that that's a bit of an illusion, and then a couple of years, we're going to start to sea level out. But you know as well as I do that they're pretty poultry statistics in terms of the amount of venture that women like cos. Capture, Um, and the other ways that women are doubted, um, in terms of their ability and potential. Um, so we we love to work with any underrepresented group of entrepreneurs, and there's ways that we do that whether it's helping them sort of find their power and hold space and be confident. And, um, you know, be able to pitch to any room, talk to any investor, talk to any customer but also working to be directed about some of the systemic challenges, both in terms of talking to existing investors and trying to educate them to see the opportunities that they're missing because there is a an economic imperative to them understanding what they're missing. Um, but there's also some things that we're doing in-house to make sure that we're also helping to close capital gaps for all our entrepreneurs. So we actually now have a suite of three capital mechanisms that are entrepreneurs can access on the back end of our incubator, a microphone fund, which is very quick turnaround, small amounts of capital for entrepreneurs who existing opportunities owns, which is a tax destination. Just this in the U. S. But that's meant to be deployed so that they can access capital towards revenue without credit checks, collateral being put up, a slow moving pace of banks and C. D. S s. It's particularly useful for people who may not raise venture. And it's useful for, uh, you know, people who maybe don't have that friends and family check that they can expect similar. We've got a great angel network who look at the best impact deals from around the world. Um, and it doesn't have to be a housing company, just a great venture that's pursuing impact on profit. Um, and then lastly, we're just about to announce that we have a fund of our own on the back end of our incubator that funds only healthy and companies. Um, it's an early stage fund. Um, but watch this space because our pipeline is just increasing your every year. We used to sort of just 16 companies here. Now, we're serving 60 this year, so, um, yeah, it's really exciting. Um, and so obviously, it's really great that, you know, we're going to be able to help scale the impact that we want to see. Uh, ideally a lot. A lot faster. >>Well, you definitely taking control. I remember when we had a few years ago. I think four years ago, you just thinking about getting going and going now with great tailwind. Um, >>and the diversity >>of sources of capital as well as diversity of firms is increasing. That's helping, uh, that we're seeing, but you're also got the back end fun for the housing companies. But also, you've been involved in we capital for a long time. Can you talk about that? Because that's a specific supporting women entrepreneurs initiative. Um, yeah. What's up with capital share? That >>was That was another venture that I-i embarked on with such coz. Um as well as Sheila Johnson and Jonny Adam, Person who runs Rethink Impact. We capital is a group of about 16 women that I pulled together women investors to invest through rethink impact, which is another fun that is looking for impact businesses but predominantly looking for those businesses that are led by women. So this investment group is women supporting women. Um, through the use of deployment of capital, um, they're doing amazingly well. They've had some really stunning news recently that I'll let you dig up. >>I'll definitely thanks for the lead there. I'm gonna go jump on that story. >>Yeah, >>the Okay, Thanks for that lead on that trend, though in Silicon Valley and certainly in other areas that are hot like New York, Boston and D. C. Where you're at, um, you're seeing now multiple years in almost a decade in of the pioneers of these women, only funds or women only firms and your investment. Um, and it's starting to increase to under all underrepresented minorities and entrepreneurs. Right? So take us through how you see that because it's just getting more popular. Is that going to continue to accelerate in your mind? Are their networks of networks. They cross pollinating. >>Yeah, I think you know, it's It's I'm glad to see it. And, you know, it's been a long time coming. I think you know, I think we all look forward to a future where it's not necessary. Um, and you know, funds. Just invest in everyone Until then, making sure that we have specific pools of capital allocated to ensure that that, you know, those entrepreneurs who have not always been equally represented get to pursue their ideas not just because they deserve to pursue their ideas, but because the world needs their ideas. Right. And as I mentioned, there is a business imperative, right? We've got lots of examples of businesses like banks that you wouldn't have gotten a shot just because the investors just didn't understand the opportunity. Um, and I think that's normal. That's human. It happens to everyone. You are successful as an investor largely because you recognize patterns. And if something is, you know, outside of your life experience, you are not going to identify it. So it's very important that we create different kinds of capital run by different types of people. Um, and, uh, and you know. I know lots of investors have every type that are investing in these funds because they recognize that, you know, perhaps the highest growth potential is gonna come out of these, you know, particular kind of funds, which is really exciting. >>That's super important, because half the world is women, and that's just like the population is inspired by many new ventures. And that's super exciting trend. I wanna ask you about your other areas of doing a lot of work in the queue has been to buy multiple times, um, initially reporting on a region out there, and that's certainly isn't important part of the world. Um, you've got a lot of good news going on there. Can you share what's going on with, uh, the social entrepreneurship going on in Bahrain around the region? >>Yeah, I'm happy to. We we've actually been so privileged to work with a W S for a very long time. Almost since the start of the incubator they've supported are entrepreneurs, all of our entrepreneurs with access to cloud credits and services. Um, and we've sort of double down with a W S in the last couple of years in areas where We both want to create an uplift, um, for small businesses and rapidly growing tax solutions to these these social environmental problems. We see. So there's been an excellent partner to do that. And one of the areas we did in the water was with rain, particularly with women, tech startups, women tech startups in Bahrain. Yeah, we did that last year. We had an amazing group of women over in D. C. Um, and we continue to support them. One of them is actually in the process of raising. I think she just closed her seed round recently. And that's why for, um, al yet, um, and she created playbook, which is an amazing, uh, platform for women to take master classes and network and really sort of level up, as one says, Um, but also, um, the mall of work. Um uh, just really talented women over in Bahrain, um, pushing the envelope and all sorts of directions, and it was wonderful to get the opportunity to work with them. Um, that has now spawned another set of programs serving entrepreneurs in the Middle East in North Africa. They were also working on with us as well as the U S. State Department. Um, so we're going to be working for the next two years with entrepreneurs to help our recovery from covid. Um, in China. Um, and then I'm also proud to say that we're working with a W s in South Africa because there is just an extraordinary energy, you know, in the continent, Um, and some amazing entrepreneurial minds working on, you know, the many problems and opportunities that they're facing and recognizing. Um So we're supporting, you know, companies that are working on finding, um, skilled refugees to be able to help them resettle and use their talents and make money. Um, sadly, are very relevant company now with what's going on in Ukraine. Um, but also, uh, zombie and satellite company, um, companies that are preventing food, food waste by providing, um, solar-powered refrigerators to rural areas in South Africa. Um, so a lot of, um, you know, just incredible talent and ideas that we're seeing globally. Um, and happy to be doubling down on that with the help of a W s. >>That's awesome. Yeah, following the work when we met in D. C. And again, you always had this international view um it's International Women's Day. It's not North America >>Women's Day. It's >>International Women's Day. Can you share your thoughts on how that landscape is changing outside the U. S. For example, and around the world and how the international peace is important and you mentioned pattern matching? Um, you also, when you see patterns, they become trends. What do you see forming that have been that that are locked in on the U. C they're locked in on that are happening that are driving. What are some of those trends that you see on the international side that's evolving? >>Yeah. You know, I think the wonderful opportunity with the Internet and social media is that, you know, both, uh, we can be more transparent about areas for improvement and put a little pressure where maybe things are moving fast enough. We've all seen the power of that, Um, the other, um, you know, things that certainly in countries where women maybe as free to move and operate, they can still acquire skills education they can set up cos they can do so so much. Um, you know, through these amazing technologies that we now have at our disposal growing an amazing rates. Um, they can connect via zoom. Right? I think that while the pandemic definitely set women back and we should acknowledge that, um, uh, the things that the pandemic perhaps helped us to exponentially scale will move women forward. And perhaps that's the target to hang on to, to feel optimistic about where we're headed. >>And also, there's a lot of problems to solve. And I think one of the things we're seeing you mentioned the Ukraine situation. You're seeing the geopolitical landscape changing radically with technology driving a lot of value. So with problems comes opportunities. Um, innovation plays a big role. Can you share some of the successful stories that you were inspired by that you've seen, um, in the past couple of years. And as you look forward, what What some of those innovation stories look like? And what are you inspired by? >>Yeah. I mean, there's so, so many. Um, you know, we just, uh, had a couple of entrepreneurs, and just the last year, Um, you know, after I think everyone sort of took an initial breath with the pandemic, They realize that they either had an opportunity or they had a problem to solve to your point. Um, and they did that well or not. And or some of them, you know, just didn't didn't have any more cards to play and had to really pivot. Um, it was really interesting to see how everyone handled handled that particular moment in time. One company that I think of is everywhere. Um, and she had created a wearable device that you can just put on your ear. It looks like an earring right at the top of your ear. Um, and it was for her for herself because she suffered from pulmonary complications. And, uh, without more discreet wearable, you know, had to wear a huge device and look around and oxygen tank and, you know, just to sort of have a good quality of life. Um, it turns out, obviously, during covid, that is a very useful item, not just for patients suffering from covid and wanting to know what their oxygen levels were doing, but also potentially athletics. So, um, she's really been able to double down as a result of the trends from the pandemic. Um, and I'm really proud of part of her. And that's actually where another great one that we just just came through. Our last 15 is Maya. Um, and she had a brick and mortar store. Um, uh, called Cherry Blossom. Intimate where she helped women have an enjoyable experience finding, uh, and fitting bras post mastectomy to include sort of, you know, the necessary, um, prosthetics and things like that. Um, she even made it so that you could go with your friends who haven't had a mistake, and she could also find some lovely luxury. Um, but the pandemic meant that that experience was sort of off the table. Um, and what they did was she decided to make it a technological one. So now she's she's essentially will be part of it. You can, you know, go to my, um, online. And you can, um, you know, order, uh, measure yourself, work with a specialist, all online, get a few different options, figure out the one that's perfect for you and the rest back. Um, and I don't think without the pandemic, that would not have happened. So she's now able to serve exponentially more. Um, you know, women who deserve to feel like themselves post it to me. >>That's also a model and inspirational. I have to ask you for the young women out there watching. What advice would you share with them as they navigate into a world that's changing and evolving and getting better with other women, mentors and entrepreneurs and or just an ecosystem of community? What advice would you give them as they step into the world and have to engage and experience life? >>Yeah, gosh, part of me always wants to resist that they don't listen to anyone to do you follow your heart, follow your gut, or at least be careful who you listen to because a lot of people will want to give you advice. I would >>say, Uh, that's good advice. Don't take my advice. Well, you've been a great leader. Love the work, you're doing it and I'll say N D. C. But all around the world and again, there's so much change going on with innovation. I mean, just the advances in technology across the board, from with machine learning and AI from linguistics and understanding. And I think we're going to be a bigger community. Your thoughts on as you see community organically becoming a big part of how people are engaging. What's your what's your view As you look out across the landscape, communities becoming a big part of tribes. What's your vision on how the role of communities place? >>You know, we we actually do you think a lot about community and healthy. And we say that are you know, alchemy really is providing space, you know, physical and mental space to think, um, access access to capital access to networks, Um, community, Um, and the community piece is very, very important. Are entrepreneurs leave us like the number one thing that they miss is being among like-minded, um, you know, slightly slightly crazy audacious people. Um, and I often joked that we're building a kind army because it is, you know, it's people who want to do it differently if people want to do it with integrity. Is people who are in it for a very different motivations than just money. Um, and, you know, you start to feel the power of that group together and its entirety and what that might look like as as a community solving global problems. Um, and it really is inspiring. Um, I do think that people are starving for FaceTime and people time, real human time after the pandemic, I think they won't go away. It's a great tool, but we all want a little bit of that, and I will mention just along those lines. And if you don't mind a quick plug for an event that we're having March 16, Um, also in partnership with a W s called Build her relevant to International Women's Day as well. People can, either. If they're in the city, they can come in person. But we also have a virtual program, and we'll be listening to some of the most inspiring. Women leaders and entrepreneurs both in government and also the private sector share their knowledge on the side of the pandemic for for, you know, the next tribal group of women entrepreneurs and leaders. >>That's great. Well, you are on our website for sure. >>Thank you. Thank you. Appreciate it. >>And we love the fact that you're in our community as well. Doing great work. Thanks for spending time with the Cube and on International Women's Day celebration. Thanks for coming on and sharing. >>Thank you, John. >>Okay. The Cube International showcase Women's Day, featuring some great guests all around the world, Not just in the U S. But all over the world. I'm your host. Thanks for watching. Yeah, Yeah, yeah, hm, Yeah.

>>Mhm. Mhm. >>We're here with the Cube covering Calm Vault Connections 21. We're gonna look at the data protection space and how cloud computing has advanced the way we think about backup recovery and protecting our most critical data. Ranga Rajagopalan, who is the vice president of products at Con vault and Stephen Orban, who's the General manager of AWS marketplace and control services gents. Welcome to the cube. Good to see you. >>Thank you. Always A pleasure to see you here >>steve. Thanks for having us. Very >>welcome, Stephen, let's start with you. Look the cloud has become a staple of digital infrastructure. I don't know where we'd be right now without being able to access enterprise services I. T. Services remotely. Um But specifically how our customers looking at backup and recovery in the cloud, is it a kind of a replacement for existing strategies? Is it another layer of protection? How are they thinking about that? >>Yeah. Great question. David again, thank thanks for having me. And I think you know, look if you look back to 15 years ago when the founders of AWS had the hypothesis that many enterprises governments and developers we're gonna want access to on demand pay as you go I. T. Resources in the cloud. Uh None of us would have been able to predict that it would have Matured and um you know become the staple that it has today over the last 15 years. But the reality is that a lot of these enterprise customers, many of whom have been doing their own IT infrastructure for the last 10, 20 or multiple decades do have to kind of figure out how they deal with the change management of moving to the cloud. And while a lot of our customers um will initially come to us because they're looking to save money or costs, almost all of them decided to stay and go big because of the speed at which they are able to innovate on behalf of their customers and when it comes to storage and backup, that just plays right into where they're headed. And there's a variety of different techniques that customers use, whether it be, you know, a lift and shift for a particular set of applications or a data center where they do very much. Look at how can they replace the backup and recovery that they have on premises in the cloud using solutions like, but we're partnering with console to do or completely reimagining their architecture for net new developments that they can really move quickly for their customers. Um and and completely developing something brand new, where it is really a, you know, a brand new replacement and innovation for for for what they've done in the past. >>Great, thank you, Stephen Rachael, I want to ask you about the d were digital. Look, if you're not a digital business today, you're basically out of business. So, my question to you is how have you seen customers change the way they think about data protection during what I call the forced March to digital over the last 18, 19 months or customers, you know, thinking about data protection differently today >>definitely Dave and and thank you for having me and steven. Pleasure to join you on this cube interview first going back to stevens comments can't agree more. Almost every business that we talked with today has a cloud first strategy, a cloud transformation mandate and you know, the reality is back to your digital comment. There are many different paths to the hybrid multi cloud and different customers. You know, there are different parts of the journey. So I still was saying most often customers at least in the data protection perspective start the conversation by thinking here have all these tips. Can I start using cloud as my air gap long term retention target and before they realized they start moving their workloads into the cloud and none of the backup and record yesterday's are going to change. So you need to continue protecting the clothes, which is where the cloud native data protection comes in and then they start innovating around er, can I use cloud as media sites so that you know, I don't need to meet in the other side. So this year is all around us. Cloud transformation is all around us and and the real essence of this partnership between AWS and calm vault is essentially to dr and simplify all the paths to the club regardless of whether you're going to use it as a storage started or you know, your production data center, all your dear disaster recovery site. >>Yeah, it really is about providing that optionality for customers. I talked to a lot of customers and said, hey, our business resilience strategy was really too focused on D. R. I've talked to all the customers at the other end of the spectrum said we don't even have a D. R. Strategy now, we're using the cloud for that. So it's really all over the map and you want that optionality. So steven and then go ahead. >>Please, ransomware plays a big role in many of these considerations that greatly. It's unfortunately not a question of whether you're going to be hit by ransomware, it's almost we can like, what do you do when you're hit by ransomware and the ability to use the clothes scaled immediately, bring up the resources, use the cloud backups has become a very popular choice simply because of the speed with which you can bring the business back to normal our patients. The agility and the power that cloud brings to the table. >>Yeah, ransomware is scary. You don't, you don't even need a high school diploma to be a ransomware ist you can just go on the dark web and by ransomware as a service and do bad things and hopefully you'll end up in jail. Uh Stephen we know about the success of the AWS marketplace, uh you guys are partnering here. I'm interested in how that partnership, you know, kind of where it started and how it's evolving. >>Yeah, happy to highlight on that. So, look when >>we when we started >>Aws or when the founders of aws started aws, as I said 15 years ago we we realized very early on that while we were going to be able to provide a number of tools for customers to have on demand access to compute storage, networking databases that many, particularly enterprise and government government customers still use a wide range of tools and solutions from hundreds, if not in some cases thousands of different partners. I mean I talked to enterprises who literally use thousands of of different vendors to help them deliver their solutions for their customers. So almost 10 years ago, we're almost at our 10 year anniversary for AWS marketplace, we launched the first substantiation of AWS marketplace which allowed builders and customers to find try buy and then deploy third party software solutions running on amazon machine instances also noticed as armies natively right in their AWS and cloud accounts to complement what they were doing in the cloud. And over the last nearly 10 years we've evolved quite a bit to the point where we support software and multiple different packaging types, whether it be amazon machine instances, containers, machine learning models and of course SAS and the rise of software as a service. So customers don't have to manage the software themselves. But we also support data products through the AWS Data exchange and professional services for customers who want to get services to help them integrate the software into their environments. And we now do that across a wide range of procurement options. So what used to be pay as you go amazon machine instances now includes multiple different ways to contract directly, customer can do that directly with the vendor with their channel partner or using kind of our public e commerce capabilities. And we're super excited, um, over the last couple of months we've been partnering with calm vault to get their industry leading backup and recovery solutions listed on AWS marketplace, which is available for our collective customers now. So not only do they have access to convulse awesome solutions to help them protect against ransomware as we talked about and to manage their backup and recovery environments, but they can find and deploy that directly in one click right into their AWS accounts and consolidate their building relationship right on the AWS and voice. And it's been awesome to work with with Rhonda and the product teams and convo to really, um, expose those capabilities where converts using a lot of different AWS services to provide a really great native experience for our collective customers as they migrate to the cloud. >>Yeah, the marketplace has been amazing. We've watched it evolve over the past decade and, and, and it's a, it's a key characteristic of everybody has a cloud today. We're a cloud to butt marketplaces unique uh, in that it's the power of the ecosystem versus the resources of one and Ringo. I wonder from, from your perspective, if you could talk about the partnership with AWS from your view and then specifically you've got some hard news, I wonder if you could talk about that as well. >>Absolute. So the partnership has been extended for more than 12 years. Right. So aws and Commonwealth have been bringing together solutions that help customers solve the data management challenges and everything that we've been doing has been driven by the customer demand that we seek. Right customers are moving their workloads in the cloud. They're finding new ways of deploying their workloads and protecting them. Um, you know, earlier we introduced cloud native integration with the EBS API which has driven almost 70% performance improvements in backup and restores. And when you look at huge customers like coca cola who have standardized on AWS um, combo. That is the scale that they want to operate in. You manage around 1 50,000 snapshots 1200 ec, two instances across six regions. But with just one resource dedicated for the data management strategy. Right? So that's where the real built in integration comes into play and we've been extending it to make use of the cloud efficiencies like our management and auto scale and so on. Another aspect is our commitment to a radically simple customer experience and that's, you know, I'm sure Stephen would agree it's a big month for at AWS as well. That's really together with the customer demand which brought us together to introduce com ball into the AWS marketplace exactly the way Stephen described it. Now the heart announcement is coming back up and recovery is available in native this marketplace. So the exact four steps that Stephen mentioned, find, try buy and deploy everything simplified through the marketplace So that our aws customers can start using far more back of software in less than 20 minutes. A 60 year trial version is included in the product through marketplace and you know, it's a single click buy, we use the cloud formation templates to deploy. So it becomes a super simple approach to protect the AWS workloads and we protect a lot of them. Starting from easy to rds dynamodb document DB um, you know, the containers, the list just keeps going on. So it becomes a very natural extension for our customers to make it super simple to start using convert data protection for the w >>well the con vault stack is very robust. You have extremely mature stack. I want, I'm curious as to how this sort of came about and it had to be customer driven. I'm sure where your customers saying, hey, we're moving to the cloud, we had a lot of workloads in the cloud, we're calm vault customer. That intersection between calm vault and AWS customers. So again, I presume this was customer driven. but maybe you can give us a little insight and add some color to that. >>Everything in this collaboration has been customer driven. We were earlier talking about the multiple paths to chlorine vapor example and still might probably add more color from his own experience at our jones. But I'll bring it to reference Parsons who's a civil engineering leader. They started with the cloud first mandate saying we need to start moving all our backups to the cloud but we have wanted that bad actors might find it easy to go and access the backups edible is um, Conwell came together with the security features and com well brought in its own authorization controls and now we have moved more than 14 petabytes of backup data into the club and it's so robust that not even the backup administrator and go and touch the backups without multiple levels of authorization. Right. So the customer needs, whether it is from a security perspective performance perspective or in this case from a simplicity perspective is really what is driving this. And and the need came exactly like that. There are many customers who have no standardized on it because they want to find everything through the AWS marketplace. They want to use their existing, you know, the AWS contracts and also bring data strategy as part of that so that that's the real um, driver behind this. Um, Stephen and I hope actually announced some of the customers that I actively started using it. You know, many notable customers have been behind this uh, innovation, don't even, I don't know, I wanted to add more to that. >>I would just, I would, I would just add Dave, you know, look if I look back before I joined a W S seven years ago, I was the C I O at dow jones and I was leading a a fairly big cloud migration there over a number of years. And one of the impetus is for us moving to the cloud in the first place was when Hurricane Sandy hit, we had a real disaster recovery scenario in one of our New Jersey data centers um, and we had to act pretty quickly convert was, was part of that solution. And I remember very clearly Even back then, back in 2013, they're being options available to help us accelerate are moved to the cloud and just to reiterate some of the stuff that Rhonda was talking about consoles, done a great job over the last more than a decade, taking features from things like EBS and S three and EC two and some of our networking capabilities and embedding them directly into their services so that customers are able to more quickly move their backup and recovery workloads to the cloud. So each and every one of those features was as a result of, I'm sure combo working backwards from their customer needs just as we do at >>AWS >>and we're super excited to take that to the next level to give customers the option to then also by that right on their AWS invoice on AWS marketplace. >>Yeah, I mean, we're gonna have to leave it there steven, you've mentioned several times the sort of the early days of back then we were talking about gigabytes and terabytes and now we're talking about petabytes and beyond. Guys. Thanks so much. I really appreciate your time and sharing the news with us. >>Dave. Thanks for having us. >>All right. Keep it right there more from combat connections. 21. You're watching the >>cube. Mm hmm.

>>from the bellagio hotel in Las Vegas >>it's the >>cube >>covering Ui >>Path Forward four brought to you >>by Ui Path. >>Welcome back to las Vegas. The cube is live with you. I Path forward four at the bellagio lisa martin with Dave Volonte. We're gonna be talking about you I Path integration suite, we have a couple of guests joining us here. Mark Jeannie is here the GM of Ui Path, formerly the co founder and Ceo of cloud elements and Peter Villeroy also joins us Director of Global I. T. Automation practice at UI Path guys welcome to the program. >>Thanks lisa. Great to hear. >>So Mark, let's go ahead and start with you. The Cloud elements acquisition was done in about the last six months. Talk to us about why you chose to be acquired by Ui Path and where things are today. Some big announcements yesterday. >>Yeah absolutely. So yeah if you go back six months ago um you know we have been in conversations with you I Path for for quite a while and um you know as we were looking at our opportunities as an api integration platform. So cloud elements just to step back a little bit um was a leader in helping companies take a P. I. S integrate applications together and bed that into their into their apps and um you know I Path approached us about the combination of what's happening in the automation world and you know these these have been a society as the marine Fleming from I. D. C. Mentioned this morning integration and DARPA have been separate swim lanes and what we saw and what you I. Path approaches with was ability to combine these together and really be the first company to take and take ui automation and seamlessly connected together with A. P. I. Automation or api integration >>Peter What's been some of the feedback? We know you guys are more than 9000 customers strong now we've had a whole bunch of amount yesterday and today. What's been the feedback so far on the cloud elements acquisition? So >>there's a huge amount of interest. We've had very positive feedback on that lisa the combination of Ui driven automation and A. P. I. Uh Native Integrations is is key especially to the I. T. Leadership that I work with. Um some of whom have traditionally compartmentalized you ipads platform in the Ui space and legitimately think about their own internal processes as being having very little to do with the user interface right. And so combining Ui driven automation together with uh api integration really helps too pick them up where they are and show them the power of that kind of a hyper automation platform that can deliver value in a number of spaces. And you guys ever >>see the movie Blindside? All right. You know what I'm talking about with joe. Theismann gets hit from the blind side and then his career is over and and that's when people realized oh my gosh the left tackle for right handed quarterback is so important and it's subsequent drafts when somebody would pick a left tackle like a good left all the rest went and that's what's happening in in the automation business today. You guys took the lead, you you set the trend. People said wow this is actually going to be a huge market. And then now we're seeing all this gonna occur. And a lot of it from these big software companies who believe every dollar of software should go to them saying hey we can actually profit from this within our own vertical stacks. So what do you make of all the M. And A. That's going on in particular? There was one recently where private equity firm is mashing together a long time R. P. A vendor with a long time integration firm. So it looks like you guys, you know on the right >>side of history in this regard. Your thoughts. Yeah. Absolutely. I mean if you think about automation right you've got to obviously help people do their jobs better. But if you're going to automate a process and a department you needed connect the applications that they use that those people use otherwise you can't accomplish it. And where ap is fit in as is automation and ui automation has become more and more mission critical and it's become bigger and bigger part of enterprise I. T. Wants to get involved. And so enterprise gets involved and what's their stack. It's api based their technology stack is how you connect back is through api so more and more companies are seeing what you I path saw is that if you're gonna automate every process and every department for every person you need to connect to every application that they're using and that's why this is now becoming right. Three companies now just recently have done these types of acquisitions of bringing an integration platform in and combining them together are trying to combine them together. >>All mps are not created equally as we know. Some are sort of half baked lot of them. Many of them don't have decent documentation so there's sort of a spectrum there. How do you, how do you think about prioritizing? How do you think about the landscape? Do you just kind of ignore the stuff that's not well documented and eventually that will take care of itself. How should we think about there have always >>been layers of integration right. Especially working with the ICTy organizations. So you've got our native integrations would make it easy to drag and drop activities and then you've got the A. P. I. Is that we can consume with various activities. That area has really grown through the acquisition of cloud elements and then you've got that third layer where when all else fails, you go on to the user interface and interact with the application like a human does and what you see is that our our interaction with college elements really enables a great enhancement of that lower base level um which is mildly interesting to the lines of business very important. I Yeah, for sure. >>So the reason I asked that question is I was talking to one of your customers this big ASAP customers said I love you ipad. The problem I have is I got so many custom mods and so it's just you know orally documented and I can't I wanna put automation in there but I can't. So to those parts of the tech stack become like the main frame of you know what I mean? And just sort of they live there and they just keep doing their thing but there's so much innovation that pops up around it. How do you how do you see that? >>Well that's part of the agility that comes with the platform like you ipads is that you can interact with the very clean uh swagger documented restful aPI s and you can interact with SCP on their proprietary ages old A. P. I. S. Um Those are things that we've traditionally done decently well, but again through this acquisition we could do that on a grander scale um with bidirectional triggering and all the goodness that you >>solve that problem today that your customer and this is a couple of years ago, you can solve that problem with cloud elements. Is that right? >>Yeah, absolutely. The the ability to integrate too these enterprise platforms like ASAP you need multiple tools to do the job. Right. So ui automation is great but if you've customized ui significantly or other things like that then the A. P. I can be a great structure for it and other cases where um that api provides a resiliency in a in a scale to it that um opens up new processes as well to those corporate systems. Right? So the balance of being able to bring these two worlds together is where you can unlock more because you got >>east west automation >>that's very good overhead and now >>you're going north south with cloud elements is deeper. Right, >>bottom line from the VP of its point of view, the more that can be done from a machine to machine communication the better. So sure. >>What's the opportunity for the existing cloud elements customers to take advantage of here? >>Yeah, absolutely. Um We've continued to support, brought our customers over with us. Uh Part of our customer base has actually been a significant number of software customers. Uh cos S. A. P. S. One of them doc you sign gain site, you know, so household names in the world of software as well as large financial services institutions like US Bank and Capital One and american Express, all of them had that common need where um they wanted to have an api centric approach to being able to connect to customers and partners and leverage our platform to do that. So we will continue to support that extend that. But we see opportunities where again we couldn't automate everything for our customers just threw a PS And uh you know for example one of our major financial services institutions were working with wants to take um and provide a robot for their uh customers and commercial payments to be able to automatically kick off in A. P. I. And so that seamless integration where we can combine that automation with robots leveraging and kicking off a P. I. S automatically takes us further into automating those processes for those >>customers. So you guys six months right. Uh talk about how that integration api integration company better gone smoothly. But what was that like you guys are getting the knack of M and a talk about that, what you learn maybe what you would do differently to even accelerate further, How'd it go? Uh >>That's the best answer from you having been on the >>acquisition side. Um Well we how well it went is six months later, which I think is really unheard of in the technology world, we're introducing our combined offering you I Path integration service that essentially takes what cloud elements built embeds it right into automation. Cloud studio in the Ui Path products. We and uh it's been a global effort. Right? So we had the Ui Path team was based in Hyderabad Denver and Dallas and then we've got um Ui Path engineers working with that cloud elements team that are in Bucharest Bellevue and bangalore and with the miracles of zoom and uh that type of thing, never meeting anyone in person, we were able to integrate the product together and launch it here today >>six months is a fast turnaround time frame was how much of that was accelerated by the, by the fact of the global situation that we're in. >>Yeah, well you know in some respects that that helped right? Because we um um we didn't have to waste time traveling and we could hop on zoom calls instantly. We spent a lot of time even over zoom making sure there was a cultural fit. You I path has a, you know, not only the humble, bold and type of values but it's a very collaborative environment, very open and collaborative environment as Brent can attest to. And that collaboration, I think in that spirit of collaboration really helped us feel welcome and move quickly to pull this together. And also >>the necessity is the mother of innovation right. Uh you ipad traditionally being popular in the CFOs organization were becoming the C I O s best friend and the timing was right to introduce this kind of capability to combine with what we traditionally do well and really move into their picking up like I said the customer where they are and leading them into that fully end to end automation capability and this was integral. So it wasn't time to kick the tires but to get moving >>and my right, there's a governance play here as well because I. T. Is kind of generally responsible for governance if you make it easier for them to whatever governance systems they're using >>governance privacy >>security that now you can just connect. They don't have to rip and replace. Is there an angle there? >>Sure, yeah. So nothing is more important than I. T. Than than control and governments and change management and half of the uh conversations we're having out there on the floor are around that right um uh ensuring that all of the good governance is in place um and we have a lot of the uh integrations and frameworks necessary to help that through your devops pipeline and doing proper ci cd and test automation um and you know introducing that integration layer in addition to what we already have just helps all of that to uh move more smoothly and bring more value to our customers. >>Mark talk to me about some of the feedback from customers that you mentioned, doc Watson. S A P probably I imagine joint customers with you. I path now there you're working together, what's the what's in it for them? >>Yeah, no the feedback has been tremendous. Right, so um api automation is not new to you. I path but customers have been asking for more capability. So one of them is in that governance area that we were just talking about, right, the ability to create connections centrally enable them disable them. Right? You got mission critical corporate applications. You want to be able to make sure that those applications are being controlled and monitored. Right? So that was one aspect. And by bringing this as a cloud based service, we can accomplish that. Um the other area is that this eventing capability, the ability to kick off workflows and processes based on changes to corporate applications, a new employees added in workday. I want to kick off a process to onboard that new employee and that triggered eventing service has been really well received and then um yeah, so that I'd say with the ability to also create new connections more simply was the third big factor. Uh we created a standardized authentication service. So no matter where you are in the UI Path product line, you get a consistent way to create a new connection, whether it's a personal connection by a business user too, you know, google docs or Microsoft office or your C O E R I T. Creating a connection to uh an important corporate system. >>How about the partner? I know you guys had partner day here leading into forward for they must be stoked about this gives you a lever to even add new partners. What was those >>conversations like? Yeah, yeah, no, absolutely. The partners are excited about those same features but um they're also excited about something in our roadmap which we expect to be previewing early next year and that's a connector builder. So the ability for partners to uh more quickly than ever create their own connectors. That'll work just like first party connectors that we ui Path build and add them into catalogs, share them in the market place. So there's new revenue opportunities, new opportunities for partners to create reusable assets that they can leverage and yeah so um lots of things, lots of work to continue to do, right? It's only been six months and uh but that's that's gonna be a big initiative going forward. >>So integration service as you mentioned, announced at this conference, we know that that's the first step obviously accomplished as we also talked about very quickly in a six month time period. But what does the future hold for api automation and integration service? >>So um one of the key areas just continue to expose the integration service um more broadly in the Ui Path product portfolio. Now that we have this service, more Ui Path products will be able to leverage it. Right? We're starting off with studio and orchestrator but that we can all use and share that common common capability. Um The other is to make access to complex business systems easier. So you think about it right. A uh to get a purchase order from net suite might take five or six api calls to do. Well, a citizen developer doesn't know what those five or six things you have to do. So we'll be creating these business activities or just get me open purchase orders that will work seamlessly in the studio product. And behind the scenes. Well, chain together those 56 aPI calls to make that a simple process. Right? So taking the integration service and making it even more powerful tool for that citizen developer than nontechnical user as well. So that's >>development work you're going to do. >>That's what we're gonna do as well as enable partners to do as well. So it's a key part of our road map over time. Because >>yeah I mean the partner pieces key because when net suite changes how it you're creating that abstraction layer. So but that's value add for the partners. >>Absolutely. And they have that domain expertise, right. They can create assets, leveraging the UI path automation capabilities but also bring their knowledge about A. S. A. P. Or workday and those oracle ebs and those core business systems and then combine that together into assets that enhance integration service that they build and I can I can share with their customers and share with our market >>because the work workday developer is going to know about that well ahead of time. No, >>it's coming and they know better than we do. Right. That's their business. That's what they know really well. >>Nice nice value at opportunity, peter >>One of the things that you iPad has been known for is its being very and I've said this on the program the last two days, that's being a good use case for land and expand. You guys have 70% of revenue that comes from existing customers. Talk to me about the cloud elements acquisition as a facilitator of because you kind of mentioned, you know, we're used to be really in bed with the cfos now we're going to see us and we've heard from a number of your customers where they started in finance and it's now Enterprise White, how is this going to help facilitate that? Even more? >>It really helps, you know, touching on what Mark just mentioned about the citizen developer, right, just as one of many examples, the empowerment of end users to automate things for themselves um is critical to that land and expand um successes that we've been seeing and where from an I. T standpoint, the frustration with the citizen developer is, you know, maybe what they're building isn't so top notch right? It works for themselves. What we can't replicate that, but put making it easy to make api integration part of what they do in studio X is so key to enhancing also the reusability of what's coming out of there. So that c uh C O E S can replicate that across teams are globally within their organization and that's part of land and expand because you may find something that's valuable in one line of business replicates easily into another line of business if the tool set is in place >>pretty powerful model lisa >>it is guys. Thanks so much for joining us today, talking about the club elements acquisition, what you're uh, doing with integration service, What's to come the opportunities in it for both sides and your partners? We appreciate your time. >>Great. Thank you. Thank you very much. I >>appreciate it. Thank you for >>David Want I'm lisa martin. You're watching the cube live in las Vegas at the bellagio Ui Path forward for stick around. We'll be right back. Yeah. Mhm. Mhm mm.

>>Hi everyone. Welcome to the cubes coverage of eight of his public sector summit live in Washington D. C, where it's a face to face real event. I'm johN for a year host but virtual events. Hybrid events were hybrid event as well. We've got a great remote interview. Got a guest here in person, Jon Stankovic, president of cloud solutions. Smartronix and Britain was the VP of eight of his managed services, also known as A M. S with amazon web services, jOHN and jOHN and three johns here. Welcome to the cube remote >>in person. >>Hybrid. >>Thanks. Thank you. Great to be on the cube longtime viewer and I really appreciate what you >>do for fun to be here remotely but I feel like it right there. >>Yeah, I love the hybrid if it's only gonna get better next time will be in the metaverse soon. But uh, jOHn on the line there, I want to ask you with AWS managed services, take us through what you guys are doing with Smart Trust because this is an interesting service you guys are working together. How's that relates at the table for us. >>Yeah, well, you know, we're really excited about this announcement, We've been working with Smartronix since we launched A. M S 4.5 years ago. So we've been able to build up working with them, you know, a huge library of automation capabilities and this really just formalised as that in an offer for our joint customers where we can bring the expertise from AWS and Smartronix and offer a full solution that's highly integrated to help help our customers jointly accelerate their cloud adoption as well as their operating model transformation as they start to move to a more devops motion and they need help. We're there together to provide our expertise and make that simple for them. >>Well I appreciate the call. You john b john s over here. Js john Stankevich. Um tell me about Smart trust because you heard what's going on with devoPS to point a whole revolutions going on in devops, you're starting to see a highly accelerated modern application development environment which means that the software developers are setting the pace there, the pace car of the innovation, right? And so other teams like security or I. T. Become blockers. Blockers a drag and anchor. So the shift left on security for instance is causing a lot of problems on the security team. So all this is going on like right now so still the speed is the game. What's your take? >>Sure so absolutely. I think that's where this partnership really really excels. You know, we want customers to focus on their mission, you know, national security, health care outcomes. Um we want them to kind of take the rest off their plate. So when you say some of the quote unquote blockers around security uh Smartronix has invested heavily in a federally authorized platform that sits on top of what a WS has done from a Fed ramp and so right off the bat speed agility. We don't want our customers spending time replicating things that we've done at scale and leveraging what AWS has and so by kind of utilizing this, this joint offer all of a sudden a big part of that compliance is taken care of. Uh, and then things like devoPS, things like SRE models that you hear a lot about, we fold all that into this uh, combined service offering. >>I know a little about what you guys are doing. You mentioned SRE is very cool, but let's take a minute to explain what you guys are doing because you guys are on the cutting edge of solving a lot of problems from infrastructure fools around the deVOPS stack. What are you guys doing in the cloud services? >>Sure. So I think jOHN hit a little bit on it. But you know, we look at AMS as best in breed at scale managing core parts of the U. S. Infrastructure. What Smartronix does is many times customers have some unique requirements and we take that core kind of powered by aims and we try and fill in those kind of complementary skill sets and complementary requirements. And so something like the devops, which is basically making sure that those people developing that software, they have also the ability to manage it and on an ongoing basis. Kind of run it. We develop all the frameworks and that's part of this offering to enable that. >>What's the solution jOHN B because I think you guys don't, this is people have challenges. I want to understand those challenges. And then when they go to the external managed service, what's involved, you walk us through that? Because I think that's important. >>Yeah, sure. You know, it turns out jOHN nailed this one. That moving to the cloud can be, can be a big transformation for many, many enterprises and government teams. Right. They worked for many years and have an ecosystem in their traditional data center. But when they move to the cloud, there's a lot of moving pieces and so what we like to focus on is helping them with the undifferentiated aspects of safely and automating cloud operations. So working with, with Smartronix allows us to take what we're doing across the infrastructure services, around security, around automation, around patching instance management, container management, all of those uh, undifferentiated, heavy lifting passed by now with Smartronix and expertise across the application layer across customers, unique environments across federal and moderate the various government standards and compliance is, and we think we're able to get, take a customer um, from kind of really early stage cloud experience and rapidly deploy configure and get them into a very stable scalable posture operationally on the cloud so that they can start to invest in their people, their skills and their differentiated application on the cloud that really drive the differentiation in their business and not have to worry about best practice configurations and operational run books and, and and automation is and and and the latest dep sec ops capabilities that will pick up for them while they're training and getting, they're getting their emotions in place, >>jOHn is on the Smartronix side. Talk about the difference between scale okay. Which is a big issue with cloud these customers want to have with AMS but then you also have some scale, maybe some scale to but highly compliant environments, regulated industries, for instance, this is the hot areas because scale is unwieldy, but if you don't want get rain it in, it can be chaotic. Right? So also regulations and compliance is a huge issue. >>Yeah. What what we found is um, at times customers look at it and they just get frustrated because it can be kind of intimidating and we as a combined team really have spent a lot of time we have accelerators to walk customers through that process and a really flexible model. If they feel that they have a lot of domain expertise in it, then we'll just kind of be almost a supporter other customers look at it and say, you know, we'd like you to take the entire patch of that compliance and so highly regulated environments. Both commercial D. O. D. National Security, um federal civilian agencies, state and local, they're all looking to this and saying we really want someone that's been through things like the U. S. Audited managed service provider, things like they're managed security service provider, things like fed ramp or D. O. D. Ill four and five. And I think to be honest Smartronix has just invested heavily in that with the goal of reducing all that complexity and it's it's really been taken off and we really appreciate the partnership specifically with jOHn and uh the A. W. S. A. M. S. Team. >>All right so you guys were going together, what's the ultimate benefit to the customer? >>I can I'll give my thing right off the bat all this innovation coming out of A. W. S. Um It's fantastic but only if you have the ability to take advantage of it. And so thousands of new services being rolled out. We really want customers to be able to take advantage of that and let at times us do what we do best and let them focus on their mission. And I think that's what really AWS is all about and we just feel very fortunate to be an enabler of that >>john be talking about talking about the staffing issues too because one of the problems that we have been reporting and this has come up at every reinvest on the max. Peterson about this as well. He's promised last year was gonna train 29 million people. See how that comes out of reinvent when the report card comes back. I was kinda busting his chops a little bit there but he had a smile on his face I think is gonna hit the numbers a lot of times, Maybe people don't have an SRE they don't have a devout person or they have some staff that they're in transition or transforming this is a huge factor. What's your take on this, >>you know, that that is so important, you know, as john mentioned, it's all about helping the customers focused and and their their cloud talent is scarce and it's a scarce resource and you you want to make sure that your cloud talent is working on the cool stuff or they're going to leave and and as you train and skill, these folks, they want to focus on what really impacts the business, what's really differentiating doing, you know, doing the cloud and the necessities on operations and operational tasks and sec ops and things like that, sometimes, that's not the sexiest part of the work that the customer really wants to focus their team on. So again, I think together we're able to help drive high levels of automation and really do that day in and day out work that is not necessarily the differentiator of their business and that's going to attract and keep the best and brightest minds in these in these customers um which allows us to help them with the undifferentiated aspects of of the heavy lifting. >>Not only is availability of people, it's keeping the people, I love that great call out there, Okay, where does this go? Where's the relationship. So you guys are partnering, you have the M. S. Is going on? Strong managed services not gonna go away mormon people were using managed services. It's part of the ecosystem within the ecosystem. What's next in the relationship? >>Well, I think, you know, I'll speak first, john, I'm sure you've got some thoughts to, but you know, we've got so many things on our plate around predictive operations and the predictive capabilities that we're excited about tackling together. Obviously there's all sorts of unique applications that require even deeper capabilities and working with Smartronix to help us, you know, provide even greater insight into the application layer. So I kind of see us expanding um both horizontally as well as well as vertically and horizontally. We've got customers looking at the edge with the outpost solutions and we can snap into those capabilities as well. So there's a tremendous amount of kind of, I'd say vertical and horizontal opportunity that we can continue to expand it together, >>john your reaction, That's >>pretty right on Absolutely. I think john Berger really hit it and I think really machine learning, you know, that's a big area of focus, if you look at all this data is being collected, predictive modeling and so we have this kind of transition from a model where people were basically watching screens reacting and what the AWS MSP offer and what you know, AmS offers is really predicting, so you you're not doing that, you're not reacting, you're proactively ahead of things. And that's the honest truth is AWS is such a well run service. It just doesn't break, you know, it doesn't break like what you see in the traditional kind of legacy infrastructure. And so at times we're just continuing to climb that stack. As, as john mentioned, >>it's really interesting as you guys are, as you're talking, I'm thinking myself just go back a couple of years ago, eight years ago or so. DevoPS is a bad word. Dev's dominate up. So I was through them now, operational leverage is a huge part of this ai operations, um, the entire I. T service management being disrupted heavily by cloud operations that also facilitate rapid development models. Right? So, again, this is like under reported, but it's a really nuanced point hardened operations for security and not holding back the developers is the cloud scale. What's your guys reaction to that? >>Yeah, I completely agree. I think, you know, the automation piece of things and I think customers are still going through transitions. You know, traditionally managed services means a big staff and it's like I said, sitting there watching screens and you flip that model where you have developers actually deploying code and infrastructure to support it. It's, you know, it's very transitional and very transformative and I think that's where an offering, like what we've really partnered on really, really helps because at times it can be overwhelming for customers and we just want to simplify that. And as I've said, let them focus on their mission. >>Amen one last question before we break, because I was talking to another partner, a big part of AWS. Um, and we're talking about SAS versus solutions and sometimes if you're too Sassy, you're not really building a custom solution, but you can have the best of both worlds. A little professional services, maybe some headroom on the stack, if you will your building solutions. So the next question is, as you guys put this cutting edge innovative innovative solution together, how are your customers consuming it? Like what's the consumption? I'm assuming there must be happy because a lot of heavy lifting being taken away, they don't have to deal with house the contract process. >>Well, you know, I think, you know, we have the opportunity, we support customers and kind of all modes of their application stack. So, you know, a full stacks solution. You know, even a legacy architecture moving to the cloud requires a high degree of automation to support it. And then as those applications become modernized over time, they become much more cloud native at some point, they might even become a full stack Starzz offer. So many of our customers actually run their SAAS platform leveraging our capability as well. So, you know, I think it gives the customer a lot of optionality uh, and future kind of growth as they modernize their application stack. >>Yeah, john your reaction. Absolutely. >>I think one of the greatest benefits is it's freeing up funds to do mission work. And so instead of spending time procuring hardware and managing it and leasing data center space, they literally have more funding. And so we've seen customers literally transform their business because this piece of it's done more efficiently and they have really excess and really additional funding to do their mission. >>We love the business model innovation, faster um, higher quality, easy and inexpensive. That's the flywheel gentlemen, Thank you for coming on and get the three. John john thank you. Vice President Cloud Solutions. That Smartronix, thank you for coming on. John Barrington BP of amazon websites managed. There is a also known as AWS and A M. S. A W. S got upside down. W. M. Looks the same. Thank you guys for coming. I appreciate it. Thank you. We appreciate great great Cube covers here. eight of us summit we're live on the ground and were remote. It's a hybrid event. I'm John for your host. Thanks for watching. Mhm

>>Yeah. Hello and welcome back to the cubes coverage of AWS public sector summit here in Washington D. C. We're live on the ground for two days. Face to face conference and expo hall and everything here but keith brooks who is the director and head of technical business development for a dress government Govcloud selling brains 10th birthday. Congratulations. Welcome to the cube. Thank you john happy to be E. C. 2 15 S three is 9.5 or no, that maybe they're 10 because that's the same day as sqs So Govcloud. 10 years, 20 years. What time >>flies? 10 years? >>Big milestone. Congratulations. A lot of history involved in Govcloud. Yes. Take us through what's the current situation? >>Yeah. So um let's start with what it is just for the viewers that may not be familiar. So AWS Govcloud is isolated. AWS cloud infrastructure and services that were purposely built for our U. S. Government customers that had highly sensitive data or highly regulated data or applications and workloads that they wanted to move to the cloud. So we gave customers the ability to do that with AWS Govcloud. It is subject to the fed ramp I and D O D S R G I L four L five baselines. It gives customers the ability to address ITAR requirements as well as Seaga's N'est ce MMC and Phipps requirements and gives customers a multi region architecture that allows them to also designed for disaster recovery and high availability in terms of why we built it. It starts with our customers. It was pretty clear from the government that they needed a highly secure and highly compliant cloud infrastructure to innovate ahead of demand and that's what we delivered. So back in august of 2011 we launched AWS GovCloud which gave customers the best of breed in terms of high technology, high security, high compliance in the cloud to allow them to innovate for their mission critical workloads. Who >>was some of the early customers when you guys launched after the C. I. A deal intelligence community is a big one but some of the early customers. >>So the Department of Health and Human Services, the Department of Veterans Affairs, the Department of Justice and the Department of Defense were all early users of AWS GovCloud. But one of our earliest lighthouse customers was the Nasa jet propulsion laboratory and Nasa Jpl used AWS GovCloud to procure Procure resources ahead of demand which allowed them to save money and also take advantage of being efficient and only paying for what they needed. But they went beyond just I. T. Operations. They also looked at how do they use the cloud and specifically GovCloud for their mission programs. So if you think back to all the way to 2012 with the mars curiosity rover, Nasa Jpl actually streamed and processed and stored that data from the curiosity rover on AWS Govcloud They actually streamed over 150 terabytes of data responded to over 80,000 requests per second and took it beyond just imagery. They actually did high performance compute and data analytics on the data as well. That led to additional efficiencies for future. Over there >>were entire kicking they were actually >>hard core missing into it. Mission critical workloads that also adhere to itar compliance which is why they used AWS GovCloud. >>All these compliance. So there's also these levels. I remember when I was working on the jetty uh stories that were out there was always like level for those different classifications. What does all that mean like? And then this highly available data and highly high availability all these words mean something in these top secret clouds. Can you take us through kind of meetings >>of those? Yeah absolutely. So it starts with the federal compliance program and the two most popular programs are Fed ramp and Dodi srg fed ramp is more general for federal government agencies. There are three levels low moderate and high in the short and skinny of those levels is how they align to the fisma requirements of the government. So there's fisma low fisma moderate fisma high depending on the sensitivity of the government data you will have to align to those levels of Fed ramp to use workloads and store data in the cloud. Similar story for D. O. D. With srg impact levels to 45 and six uh impacts levels to four and five are all for unclassified data. Level two is for less sensitive public defense data levels. Four and five cover more sensitive defense data to include mission critical national security systems and impact level six is for classified information. So those form the basis of security and compliance, luckily with AWS GovCloud celebrating our 10th anniversary, we address Fed ramp high for our customers that require that and D. O. D impact levels to four and five for a sensitive defense guy. >>And that was a real nuanced point and a lot of the competition can't do that. That's real people don't understand, you know, this company, which is that company and all the lobbying and all the mudslinging that goes on. We've seen that in the industry. It's unfortunate, but it happens. Um, I do want to ask you about the Fed ramp because what I'm seeing on the commercial side in the cloud ecosystem, a lot of companies that aren't quote targeting public sector are coming in on the Fed ramp. So there's some good traction there. You guys have done a lot of work to accelerate that. Any new, any new information to share their. >>Yes. So we've been committed to supporting the federal government compliance requirements effectively since the launch of GovCloud. And we've demonstrated our commitment to Fed ramp over the last number of years and GovCloud specifically, we've taken dozens of services through Fed ramp high and we're 100% committed to it because we have great relationships with the Fed ramp, Jabor the joint authorization board. We work with individual government agencies to secure agency A. T. O. S. And in fact we actually have more agency A. T. O. S. With AWS GovCloud than any other cloud provider. And the short and skinny is that represents the baseline for cloud security to address sensitive government workloads and sensitive government data. And what we're seeing from industry and specifically highly regulated industries is the standard that the U. S. Government set means that they have the assurance to run control and classified information or other levels of highly sensitive data on the cloud as well. So Fed ramp set that standard. It's interesting >>that the cloud, this is the ecosystem within an ecosystem again within crossover section. So for instance um the impact of not getting Fed ramp certified is basically money. Right. If you're a supplier vendor uh software developer or whatever used to being a miracle, no one no one would know right bed ramp. I'm gonna have to hire a whole department right now. You guys have a really easy, this is a key value proposition, isn't it? >>Correct. And you see it with a number of I. S. V. S. And software as the service providers. If you visit the federal marketplace website, you'll see dozens of providers that have Fed ramp authorized third party SAAS products running on GovCloud industry leading SAAS companies like Salesforce dot com driven technology Splunk essay PNS to effectively they're bringing their best of breed capabilities, building on top of AWS GovCloud and offering those highly compliant fed ramp, moderate fed ramp high capabilities to customers both in government and private industry that need that level of compliance. >>Just as an aside, I saw they've got a nice tweet from Teresa Carlson now it's plunk Govcloud yesterday. That was a nice little positive gesture uh, for you guys at GovCloud, what other areas are you guys moving the needle on because architecturally this is a big deal. What are some areas that you're moving the needle on for the GovCloud? >>Well, when I look back across the last 10 years, there were some pretty important developments that stand out. The first is us launching the second Govcloud infrastructure region in 2018 And that gave customers that use GovCloud specifically customers that have highly sensitive data and high levels of compliance. The ability to build fault tolerant, highly available and mission critical workloads in the cloud in a region that also gives them an additional three availability zones. So the launch of GovCloud East, which is named AWS GovCloud Us East gave customers to regions a total of six availability zones that allowed them accelerate and build more scalable solutions in the cloud. More recently, there is an emergence of another D O D program called the cybersecurity maturity model, C M M C and C M M C is something where we looked around the corner and said we need to Innovate to help our customers, particularly defense customers and the defense industrial based customers address see MMC requirements in the cloud. So with Govcloud back in December of 2020, we actually launched the AWS compliant framework for federal defense workloads, which gives customers a turnkey capability and tooling and resources to spin up environments that are configured to meet see MMC controls and D. O. D. Srg control. So those things represent some of the >>evolution keith. I'm interested also in your thoughts on how you see the progression of Govcloud outside the United States. Tactical Edge get wavelength coming on board. How does how do you guys look at that? Obviously us is global, it's not just the jet, I think it's more of in general. Edge deployments, sovereignty is also going to be world's flat, Right? I mean, so how does that >>work? So it starts back with customer requirements and I tie it back to the first question effectively we built Govcloud to respond to our U. S. Government customers and are highly regulated industry customers that had highly sensitive data and a high bar to meet in terms of regulatory compliance and that's the foundation of it. So as we look to other customers to include those outside of the US. It starts with those requirements. You mentioned things like edge and hybrid and a good example of how we marry the two is when we launched a W. S. Outpost in Govcloud last year. So outpost brings the power of the AWS cloud to on premises environments of our customers, whether it's their data centers or Coehlo environments by bringing AWS services, a. P. I. S and service and points to the customer's on premises facilities >>even outside the United States. >>Well, for Govcloud is focused on us right now. Outside of the U. S. Customers also have availability to use outpost. It's just for us customers, it's focused on outpost availability, geography >>right now us. Right. But other governments gonna want their Govcloud too. Right, Right, that's what you're getting at, >>Right? And it starts with the data. Right? So we we we spent a lot of time working with government agencies across the globe to understand their regulations and their requirements and we use that to drive our decisions. And again, just like we started with govcloud 10 years ago, it starts with our customer requirements and we innovate from there. Well, >>I've been, I love the D. O. D. S vision on this. I know jet I didn't come through and kind of went scuttled, got thrown under the bus or whatever however you want to call it. But that whole idea of a tactical edge, it was pretty brilliant idea. Um so I'm looking forward to seeing more of that. That's where I was supposed to come in, get snowball, snowmobile, little snow snow products as well, how are they doing? And because they're all part of the family to, >>they are and they're available in Govcloud and they're also authorized that fed ramp and Gov srg levels and it's really, it's really fascinating to see D. O. D innovate with the cloud. Right. So you mentioned tactical edge. So whether it's snowball devices or using outposts in the future, I think the D. O. D. And our defense customers are going to continue to innovate. And quite frankly for us, it represents our commitment to the space we want to make sure our defense customers and the defense industrial base defense contractors have access to the best debris capabilities like those edge devices and edge capable. I >>think about the impact of certification, which is good because I just thought of a clean crows. We've got aerospace coming in now you've got D O. D, a little bit of a cross colonization if you will. So nice to have that flexibility. I got to ask you about just how you view just in general, the intelligence community a lot of uptake since the CIA deal with amazon Just overall good health for eight of his gum cloud. >>Absolutely. And again, it starts with our commitment to our customers. We want to make sure that our national security customers are defense customers and all of the customers and the federal government that have a responsibility for securing the country have access to the best of breed capability. So whether it's the intelligence community, the Department of Defense are the federal agencies and quite frankly we see them innovating and driving things forward to include with their sensitive workloads that run in Govcloud, >>what's your strategy for partnerships as you work on the ecosystem? You do a lot with strategy. Go to market partnerships. Um, it's got its public sector pretty much people all know each other. Our new firms popping up new brands. What's the, what's the ecosystem looks like? >>Yeah, it's pretty diverse. So for Govcloud specifically, if you look at partners in the defense community, we work with aerospace companies like Lockheed martin and Raytheon Technologies to help them build I tar compliant E. R. P. Application, software development environments etcetera. We work with software companies I mentioned salesforce dot com. Splunk and S. A. P. And S. To uh and then even at the state and local government level, there's a company called Pay It that actually worked with the state of Kansas to develop the Icann app, which is pretty fascinating. It's a app that is the official app of the state of Kansas that allow citizens to interact with citizens services. That's all through a partner. So we continue to work with our partner uh broad the AWS partner network to bring those type of people >>You got a lot of MST is that are doing good work here. I saw someone out here uh 10 years. Congratulations. What's the coolest thing uh you've done or seen. >>Oh wow, it's hard to name anything in particular. I just think for us it's just seeing the customers and the federal government innovate right? And, and tie that innovation to mission critical workloads that are highly important. Again, it reflects our commitment to give these government customers and the government contractors the best of breed capabilities and some of the innovation we just see coming from the federal government leveraging the count now. It's just super cool. So hard to pinpoint one specific thing. But I love the innovation and it's hard to pick a favorite >>Child that we always say. It's kind of a trick question I do have to ask you about just in general, the just in 10 years. Just look at the agility. Yeah, I mean if you told me 10 years ago the government would be moving at any, any agile anything. They were a glacier in terms of change, right? Procure Man, you name it. It's just like, it's a racket. It's a racket. So, so, but they weren't, they were slow and money now. Pandemic hits this year. Last year, everything's up for grabs. The script has been flipped >>exactly. And you know what, what's interesting is there were actually a few federal government agencies that really paved the way for what you're seeing today. I'll give you some examples. So the Department of Veterans Affairs, they were an early Govcloud user and way back in 2015 they launched vets dot gov on gov cloud, which is an online platform that gave veterans the ability to apply for manage and track their benefits. Those type of initiatives paved the way for what you're seeing today, even as soon as last year with the U. S. Census, right? They brought the decennial count online for the first time in history last year, during 2020 during the pandemic and the Census Bureau was able to use Govcloud to launch and run 2020 census dot gov in the cloud at scale to secure that data. So those are examples of federal agencies that really kind of paved the way and leading to what you're saying is it's kind >>of an awakening. It is and I think one of the things that no one's reporting is kind of a cultural revolution is the talent underneath that way, the younger people like finally like and so it's cooler. It is when you go fast and you can make things change, skeptics turned into naysayers turned into like out of a job or they don't transform so like that whole blocker mentality gets exposed just like shelf where software you don't know what it does until the cloud is not performing, its not good. Right, right. >>Right. Into that point. That's why we spend a lot of time focused on education programs and up skilling the workforce to, because we want to ensure that as our customers mature and as they innovate, we're providing the right training and resources to help them along their journey, >>keith brooks great conversation, great insight and historian to taking us to the early days of Govcloud. Thanks for coming on the cube. Thanks thanks for having me cubes coverage here and address public sector summit. We'll be back with more coverage after this short break. Mhm. Mhm mm.

>>Hello. And we're here at the cube startup showcase made possible by a Ws. Thanks so much for joining us today. You know when Jim McDaid Ghani was formulating her ideas around data mesh, She wasn't the only one thinking about decentralized data architecture. Hello, Fresh was going into hyper growth mode and realized that in order to support its scale, it needed to rethink how it thought about data. Like many companies that started in the early part of last decade, Hello Fresh relied on a monolithic data architecture and the internal team. It had concerns about its ability to support continued innovation at high velocity. The company's data team began to think about the future and work backwards from a target architecture which possessed many principles of so called data mesh even though they didn't use that term. Specifically, the company is a strong example of an early but practical pioneer of data mission. Now there are many practitioners and stakeholders involved in evolving the company's data architecture, many of whom are listed here on this on the slide to are highlighted in red are joining us today, we're really excited to welcome into the cube Clements cheese, the Global Senior Director for Data at Hello Fresh and christoph Nevada who's the Global Senior Director of data also, of course. Hello Fresh folks. Welcome. Thanks so much for making some time today and sharing your story. >>Thank you very much. Hey >>steve. All right, let's start with Hello Fresh. You guys are number one in the world in your field, you deliver hundreds of millions of meals each year to many, many millions of people around the globe. You're scaling christoph. Tell us a little bit more about your company and its vision. >>Yeah. Should I start or Clements maybe maybe take over the first piece because Clements has actually been a longer trajectory yet have a fresh. >>Yeah go ahead. Climate change. I mean yes about approximately six years ago I joined handle fresh and I didn't think about the startup I was joining would eventually I. P. O. And just two years later and the freshman public and approximately three years and 10 months after. Hello fresh was listed on the German stock exchange which was just last week. Hello Fresh was included in the Ducks Germany's leading stock market index and debt to mind a great great milestone and I'm really looking forward and I'm very excited for the future for the future for head of fashion. All our data. Um the vision that we have is to become the world's leading food solution group and there's a lot of attractive opportunities. So recently we did lounge and expand Norway. This was in july and earlier this year we launched the U. S. Brand green >>chef in the U. K. As >>well. We're committed to launch continuously different geographies in the next coming years and have a strong pipe ahead of us with the acquisition of ready to eat companies like factor in the U. S. And the planned acquisition of you foods in Australia. We're diversifying our offer now reaching even more and more untapped customer segments and increase our total addressable market. So by offering customers and growing range of different alternatives to shop food and consumer meals. We are charging towards this vision and the school to become the world's leading integrated food solutions group. >>Love it. You guys are on a rocket ship, you're really transforming the industry and as you expand your tam it brings us to sort of the data as a as a core part of that strategy. So maybe you guys could talk a little bit about your journey as a company specifically as it relates to your data journey. You began as a start up. You had a basic architecture like everyone. You made extensive use of spreadsheets. You built a Hadoop based system that started to grow and when the company I. P. O. You really started to explode. So maybe describe that journey from a data perspective. >>Yes they saw Hello fresh by 2015 approximately had evolved what amount of classical centralized management set up. So we grew very organically over the years and there were a lot of very smart people around the globe. Really building the company and building our infrastructure. Um This also means that there were a small number of internal and external sources. Data sources and a centralized the I team with a number of people producing different reports, different dashboards and products for our executives for example of our different operations teams, christian company's performance and knowledge was transferred um just via talking to each other face to face conversations and the people in the data where's team were considered as the data wizard or as the E. T. L. Wizard. Very classical challenges. And those et al. Reserves indicated the kind of like a silent knowledge of data management. Right? Um so a central data whereas team then was responsible for different type of verticals and different domains, different geographies and all this setup gave us to the beginning the flexibility to grow fast as a company in 2015 >>christoph anything that might add to that. >>Yes. Um Not expected to that one but as as clement says it right, this was kind of set up that actually work for us quite a while. And then in 2017 when L. A. Freshman public, the company also grew rapidly and just to give you an idea how that looked like. As was that the tech department self actually increased from about 40 people to almost 300 engineers And the same way as a business units as Clemens has described, also grew sustainable, sustainably. So we continue to launch hello fresh and new countries launching brands like every plate and also acquired other brands like much of a factor and with that grows also from a data perspective the number of data requests that centrally we're getting become more and more and more and also more and more complex. So that for the team meant that they had a fairly high mental load. So they had to achieve a very or basically get a very deep understanding about the business. And also suffered a lot from this context switching back and forth, essentially there to prioritize across our product request from our physical product, digital product from the physical from sorry, from the marketing perspective and also from the central reporting uh teams. And in a nutshell this was very hard for these people. And this that also to a situation that, let's say the solution that we have became not really optimal. So in a nutshell, the central function became a bottleneck and slowdown of all the innovation of the company. >>It's a classic case, isn't it? I mean Clements, you see you see the central team becomes a bottleneck and so the lines of business, the marketing team salesman's okay, we're going to take things into our own hands. And then of course I I. T. And the technical team is called in later to clean up the mess. Uh maybe, I mean was that maybe I'm overstating it, but that's a common situation, isn't it? >>Yeah. Uh This is what exactly happened. Right. So um we had a bottleneck, we have the central teams, there was always a little of tension um analytics teams then started in this business domains like marketing, trade chain, finance, HR and so on. Started really to build their own data solutions at some point you have to get the ball rolling right and then continue the trajectory um which means then that the data pipelines didn't meet the engineering standards. And um there was an increased need for maintenance and support from central teams. Hence over time the knowledge about those pipelines and how to maintain a particular uh infrastructure for example left the company such that most of those data assets and data sets are turned into a huge step with decreasing data quality um also decrease the lack of trust, decreasing transparency. And this was increasing challenge where majority of time was spent in meeting rooms to align on on data quality for example. >>Yeah. And and the point you were making christoph about context switching and this is this is a point that Jemaah makes quite often is we've we've we've contextualized are operational systems like our sales systems, our marketing system but not our our data system. So you're asking the data team, Okay. Be an expert in sales, be an expert in marketing, be an expert in logistics, be an expert in supply chain and it start stop, start, stop, it's a paper cut environment and it's just not as productive. But but on the flip side of that is when you think about a centralized organization you think, hey this is going to be a very efficient way, a cross functional team to support the organization but it's not necessarily the highest velocity, most effective organizational structure. >>Yeah, so so I agree with that. Is that up to a certain scale, a centralized function has a lot of advantages, right? That's clear for everyone which would go to some kind of expert team. However, if you see that you actually would like to accelerate that and specific and this hyper growth, right, you wanna actually have autonomy and certain teams and move the teams or let's say the data to the experts in these teams and this, as you have mentioned, right, that increases mental load and you can either internally start splitting your team into a different kind of sub teams focusing on different areas. However, that is then again, just adding another peace where actually collaboration needs to happen busy external sees, so why not bridging that gap immediately and actually move these teams and to end into into the function themselves. So maybe just to continue what, what was Clements was saying and this is actually where over. So Clements, my journey started to become one joint journey. So Clements was coming actually from one of these teams to build their own solutions. I was basically having the platform team called database housed in these days and in 2019 where basically the situation become more and more serious, I would say so more and more people have recognized that this model doesn't really scale In 2019, basically the leadership of the company came together and I identified data as a key strategic asset and what we mean by that, that if we leverage data in a proper way, it gives us a unique competitive advantage which could help us to, to support and actually fully automated our decision making process across the entire value chain. So what we're, what we're trying to do now or what we should be aiming for is that Hello, Fresh is able to build data products that have a purpose. We're moving away from the idea. Data is just a by problem products, we have a purpose why we would like to collect this data. There's a clear business need behind that. And because it's so important to for the company as a business, we also want to provide them as a trust versi asset to the rest of the organization. We say there's the best customer experience, but at least in a way that users can easily discover, understand and security access high quality data. >>Yeah, so and and and Clements, when you c J Maxx writing, you see, you know, she has the four pillars and and the principles as practitioners you look at that say, okay, hey, that's pretty good thinking and then now we have to apply it and that's and that's where the devil meets the details. So it's the four, you know, the decentralized data ownership data as a product, which we'll talk about a little bit self serve, which you guys have spent a lot of time on inclement your wheelhouse which is which is governance and a Federated governance model. And it's almost like if you if you achieve the first two then you have to solve for the second to it almost creates a new challenges but maybe you could talk about that a little bit as to how it relates to Hello fresh. >>Yes. So christophe mentioned that we identified economic challenge beforehand and for how can we actually decentralized and actually empower the different colleagues of ours. This was more a we realized that it was more an organizational or a cultural change and this is something that somebody also mentioned I think thought words mentioned one of the white papers, it's more of a organizational or cultural impact and we kicked off a um faced reorganization or different phases we're currently and um in the middle of still but we kicked off different phases of organizational reconstruct oring reorganization, try unlock this data at scale. And the idea was really moving away from um ever growing complex matrix organizations or matrix setups and split between two different things. One is the value creation. So basically when people ask the question, what can we actually do, what shall we do? This is value creation and how, which is capability building and both are equal in authority. This actually then creates a high urge and collaboration and this collaboration breaks up the different silos that were built and of course this also includes different needs of stuffing forward teams stuffing with more, let's say data scientists or data engineers, data professionals into those business domains and hence also more capability building. Um Okay, >>go ahead. Sorry. >>So back to Tzemach did johnny. So we the idea also Then crossed over when she published her papers in May 2019 and we thought well The four colors that she described um we're around decentralized data ownership, product data as a product mindset, we have a self service infrastructure and as you mentioned, Federated confidential governance. And this suited very much with our thinking at that point of time to reorganize the different teams and this then leads to a not only organisational restructure but also in completely new approach of how we need to manage data, show data. >>Got it. Okay, so your business is is exploding. Your data team will have to become domain experts in too many areas, constantly contact switching as we said, people started to take things into their own hands. So again we said classic story but but you didn't let it get out of control and that's important. So we actually have a picture of kind of where you're going today and it's evolved into this Pat, if you could bring up the picture with the the elephant here we go. So I would talk a little bit about the architecture, doesn't show it here, the spreadsheet era but christoph maybe you can talk about that. It does show the Hadoop monolith which exists today. I think that's in a managed managed hosting service, but but you you preserve that piece of it, but if I understand it correctly, everything is evolving to the cloud, I think you're running a lot of this or all of it in A W. S. Uh you've got everybody's got their own data sources, uh you've got a data hub which I think is enabled by a master catalog for discovery and all this underlying technical infrastructure. That is really not the focus of this conversation today. But the key here, if I understand it correctly is these domains are autonomous and not only that this required technical thinking, but really supportive organizational mindset, which we're gonna talk about today. But christoph maybe you could address, you know, at a high level some of the architectural evolution that you guys went through. >>Yeah, sure. Yeah, maybe it's also a good summary about the entire history. So as you have mentioned, right, we started in the very beginning with the model is on the operation of playing right? Actually, it wasn't just one model is both to one for the back end and one for the for the front and and or analytical plane was essentially a couple of spreadsheets and I think there's nothing wrong with spreadsheets, right, allows you to store information, it allows you to transform data allows you to share this information. It allows you to visualize this data, but all the kind of that's not actually separating concern right? Everything in one tool. And this means that obviously not scalable, right? You reach the point where this kind of management set up in or data management of isn't one tool reached elements. So what we have started is we've created our data lake as we have seen here on Youtube. And this at the very beginning actually reflected very much our operational populace on top of that. We used impala is a data warehouse, but there was not really a distinction between borders, our data warehouse and borders our data like the impala was used as a kind of those as the kind of engine to create a warehouse and data like construct itself and this organic growth actually led to a situation as I think it's it's clear now that we had to centralized model is for all the domains that will really lose kimball modeling standards. There was no uniformity used actually build in house uh ways of building materialized use abuse that we have used for the presentation layer, there was a lot of duplication of effort and in the end essentially they were missing feedbacks, food, which helped us to to improve of what we are filled. So in the end, in the natural, as we have said, the lack of trust and that's basically what the starting point for us to understand. Okay, how can we move away and there are a lot of different things that you can discuss of apart from this organizational structure that we have said, okay, we have these three or four pillars from from Denmark. However, there's also the next extra question around how do we implement our talking about actual right, what are the implications on that level? And I think that is there's something that we are that we are currently still in progress. >>Got it. Okay, so I wonder if we could talk about switch gears a little bit and talk about the organizational and cultural challenges that you faced. What were those conversations like? Uh let's dig into that a little bit. I want to get into governance as well. >>The conversations on the cultural change. I mean yes, we went through a hyper growth for the last year since obviously there were a lot of new joiners, a lot of different, very, very smart people joining the company which then results that collaboration uh >>got a bit more difficult. Of course >>there are times and changes, you have different different artifacts that you were created um and documentation that were flying around. Um so we were we had to build the company from scratch right? Um Of course this then resulted always this tension which I described before, but the most important part here is that data has always been a very important factor at l a fresh and we collected >>more of this >>data and continued to improve use data to improve the different key areas of our business. >>Um even >>when organizational struggles, the central organizational struggles data somehow always helped us to go through this this kind of change. Right? Um in the end those decentralized teams in our local geography ease started with solutions that serve the business which was very very important otherwise wouldn't be at the place where we are today but they did by all late best practices and standards and I always used sport analogy Dave So like any sport, there are different rules and regulations that need to be followed. These rules are defined by calling the sports association and this is what you can think about data governance and compliance team. Now we add the players to it who need to follow those rules and bite by them. This is what we then called data management. Now we have the different players and professionals, they need to be trained and understand the strategy and it rules before they can play. And this is what I then called data literacy. So we realized that we need to focus on helping our teams to develop those capabilities and teach the standards for how work is being done to truly drive functional excellence in a different domains. And one of our mission of our data literacy program for example is to really empower >>every employee at hello >>fresh everyone to make the right data informs decisions by providing data education that scaled by royal Entry team. Then this can be different things, different things like including data capabilities, um, with the learning paths for example. Right? So help them to create and deploy data products connecting data producers and data consumers and create a common sense and more understanding of each other's dependencies, which is important, for example, S. S. L. O. State of contracts and etcetera. Um, people getting more of a sense of ownership and responsibility. Of course, we have to define what it means, what does ownership means? But the responsibility means. But we're teaching this to our colleagues via individual learning patterns and help them up skill to use. Also, there's shared infrastructure and those self self service applications and overall to summarize, we're still in this progress of of, of learning, we are still learning as well. So learning never stops the tele fish, but we are really trying this um, to make it as much fun as possible. And in the end we all know user behavior has changed through positive experience. Uh, so instead of having massive training programs over endless courses of workshops, um, leaving our new journalists and colleagues confused and overwhelmed. >>We're applying um, >>game ification, right? So split different levels of certification where our colleagues can access, have had access points, they can earn badges along the way, which then simplifies the process of learning and engagement of the users and this is what we see in surveys, for example, where our employees that your justification approach a lot and are even competing to collect Those learning path batteries to become the # one on the leader board. >>I love the game ification, we've seen it work so well and so many different industries, not the least of which is crypto so you've identified some of the process gaps uh that you, you saw it is gloss over them. Sometimes I say paved the cow path. You didn't try to force, in other words, a new architecture into the legacy processes. You really have to rethink your approach to data management. So what what did that entail? >>Um, to rethink the way of data management. 100%. So if I take the example of Revolution, Industrial Revolution or classical supply chain revolution, but just imagine that you have been riding a horse, for example, your whole life and suddenly you can operate a car or you suddenly receive just a complete new way of transporting assets from A to B. Um, so we needed to establish a new set of cross functional business processes to run faster, dry faster, um, more robustly and deliver data products which can be trusted and used by downstream processes and systems. Hence we had a subset of new standards and new procedures that would fall into the internal data governance and compliance sector with internal, I'm always referring to the data operations around new things like data catalog, how to identify >>ownership, >>how to change ownership, how to certify data assets, everything around classical software development, which we know apply to data. This this is similar to a new thinking, right? Um deployment, versioning, QA all the different things, ingestion policies, policing procedures, all the things that suffer. Development has been doing. We do it now with data as well. And in simple terms, it's a whole redesign of the supply chain of our data with new procedures and new processes and as a creation as management and as a consumption. >>So data has become kind of the new development kit. If you will um I want to shift gears and talk about the notion of data product and, and we have a slide uh that we pulled from your deck and I'd like to unpack it a little bit. Uh I'll just, if you can bring that up, I'll read it. A data product is a product whose primary objective is to leverage on data to solve customer problems where customers, both internal and external. So pretty straightforward. I know you've gone much deeper and you're thinking and into your organization, but how do you think about that And how do you determine for instance who owns what? How did you get everybody to agree? >>I can take that one. Um, maybe let me start with the data product. So I think um that's an ongoing debate. Right? And I think the debate itself is an important piece here, right? That visit the debate, you clarify what we actually mean by that product and what is actually the mindset. So I think just from a definition perspective, right? I think we find the common denominator that we say okay that our product is something which is important for the company has come to its value what you mean by that. Okay, it's it's a solution to a customer problem that delivers ideally maximum value to the business. And yes, it leverages the power of data and we have a couple of examples but it had a fresh year, the historical and classical ones around dashboards for example, to monitor or error rates but also more sophisticated ways for example to incorporate machine learning algorithms in our recipe recommendations. However, I think the important aspects of the data product is a there is an owner, right? There's someone accountable for making sure that the product that we are providing is actually served and is maintained and there are, there is someone who is making sure that this actually keeps the value of that problem thing combined with the idea of the proper documentation, like a product description, right that people understand how to use their bodies is about and related to that peace is the idea of it is a purpose. Right? You need to understand or ask ourselves, Okay, why does this thing exist does it provide the value that you think it does. That leads into a good understanding about the life cycle of the data product and life cycle what we mean? Okay from the beginning from the creation you need to have a good understanding, we need to collect feedback, we need to learn about that. We need to rework and actually finally also to think about okay benefits time to decommission piece. So overall, I think the core of the data product is product thinking 11 right that we start the point is the starting point needs to be the problem and not the solution and this is essentially what we have seen what was missing but brought us to this kind of data spaghetti that we have built there in in Russia, essentially we built at certain data assets, develop in isolation and continuously patch the solution just to fulfill these articles that we got and actually these aren't really understanding of the stakeholder needs and the interesting piece as a result in duplication of work and this is not just frustrating and probably not the most efficient way how the company should work. But also if I build the same that assets but slightly different assumption across the company and multiple teams that leads to data inconsistency and imagine the following too narrow you as a management for management perspective, you're asking basically a specific question and you get essentially from a couple of different teams, different kind of grass, different kind of data and numbers and in the end you do not know which ones to trust. So there's actually much more ambiguity and you do not know actually is a noise for times of observing or is it just actually is there actually a signal that I'm looking for? And the same is if I'm running in a B test right, I have a new future, I would like to understand what has it been the business impact of this feature. I run that specific source in an unfortunate scenario. Your production system is actually running on a different source. You see different numbers. What you've seen in a B test is actually not what you see then in production typical thing then is you're asking some analytics tend to actually do a deep dive to understand where the discrepancies are coming from. The worst case scenario. Again, there's a different kind of source. So in the end it's a pretty frustrating scenario and that's actually based of time of people that have to identify the root cause of this divergence. So in a nutshell, the highest degree of consistency is actually achieved that people are just reusing Dallas assets and also in the media talk that we have given right, we we start trying to establish this approach for a B testing. So we have a team but just providing or is kind of owning their target metric associated business teams and they're providing that as a product also to other services including the A B testing team, they'll be testing team can use this information defines an interface is okay I'm joining this information that the metadata of an experiment and in the end after the assignment after this data collection face, they can easily add a graph to the dashboard. Just group by the >>Beatles Hungarian. >>And we have seen that also in other companies. So it's not just a nice dream that we have right. I have actually worked in other companies where we worked on search and we established a complete KPI pipeline that was computing all this information. And this information was hosted by the team and it was used for everything A B test and deep dives and and regular reporting. So uh just one of the second the important piece now, why I'm coming back to that is that requires that we are treating this data as a product right? If you want to have multiple people using the things that I am owning and building, we have to provide this as a trust mercy asset and in a way that it's easy for people to discover and actually work with. >>Yeah. And coming back to that. So this is to me this is why I get so excited about data mesh because I really do think it's the right direction for organizations. When people hear data product they say well, what does that mean? Uh but then when you start to sort of define it as you did, it's it's using data to add value, that could be cutting costs, that could be generating revenue, it could be actually directly you're creating a product that you monetize, So it's sort of in the eyes of the beholder. But I think the other point that we've made is you made it earlier on to and again, context. So when you have a centralized data team and you have all these P NL managers a lot of times they'll question the data because they don't own it. They're like wait a minute. If they don't, if it doesn't agree with their agenda, they'll attack the data. But if they own the data then they're responsible for defending that and that is a mindset change, that's really important. Um And I'm curious uh is how you got to, you know, that ownership? Was it a was it a top down with somebody providing leadership? Was it more organic bottom up? Was it a sort of a combination? How do you decide who owned what in other words, you know, did you get, how did you get the business to take ownership of the data and what is owning? You know, the data actually mean? >>That's a very good question. Dave I think this is one of the pieces where I think we have a lot of learnings and basically if you ask me how we could start the feeling. I think that would be the first piece. Maybe we need to start to really think about how that should be approached if it stopped his ownership. Right? It means somehow that the team has a responsibility to host and self the data efforts to minimum acceptable standards. This minimum dependencies up and down string. The interesting piece has been looking backwards. What what's happening is that under that definition has actually process that we have to go through is not actually transferring ownership from the central team to the distributor teams. But actually most cases to establish ownership, I make this difference because saying we have to transfer ownership actually would erroneously suggests that the data set was owned before. But this platform team, yes, they had the capability to make the changes on data pipelines, but actually the analytics team, they're always the ones who had the business understands, you use cases and but no one actually, but it's actually expensive expected. So we had to go through this very lengthy process and establishing ownership. We have done that, as in the beginning, very naively. They have started, here's a document here, all the data assets, what is probably the nearest neighbor who can actually take care of that and then we we moved it over. But the problem here is that all these things is kind of technical debt, right? It's not really properly documented, pretty unstable. It was built in a very inconsistent over years and these people who have built this thing have already left the company. So there's actually not a nice thing that is that you want to see and people build up a certain resistance, e even if they have actually bought into this idea of domain ownership. So if you ask me these learnings, but what needs to happen as first, the company needs to really understand what our core business concept that they have, they need to have this mapping from. These are the core business concept that we have. These are the domain teams who are owning this concept and then actually link that to the to the assets and integrated better with both understanding how we can evolve actually, the data assets and new data build things new in the in this piece in the domain. But also how can we address reduction of technical death and stabilizing what we have already. >>Thank you for that christoph. So I want to turn a direction here and talk about governance and I know that's an area that's passionate, you're passionate about. Uh I pulled this slide from your deck, which I kind of messed up a little bit sorry for that, but but by the way, we're going to publish a link to the full video that you guys did. So we'll share that with folks. But it's one of the most challenging aspects of data mesh, if you're going to decentralize you, you quickly realize this could be the Wild West as we talked about all over again. So how are you approaching governance? There's a lot of items on this slide that are, you know, underscore the complexity, whether it's privacy, compliance etcetera. So, so how did you approach this? >>It's yeah, it's about connecting those dots. Right. So the aim of the data governance program is about the autonomy of every team was still ensuring that everybody has the right interoperability. So when we want to move from the Wild West riding horses to a civilised way of transport, um you can take the example of modern street traffic, like when all participants can manoeuvre independently and as long as they follow the same rules and standards, everybody can remain compatible with each other and understand and learn from each other so we can avoid car crashes. So when I go from country to country, I do understand what the street infrastructure means. How do I drive my car? I can also read the traffic lights in the different signals. Um, so likewise as a business and Hello Fresh, we do operate autonomously and consequently need to follow those external and internal rules and standards to set forth by the redistribution in which we operate so in order to prevent a car crash, we need to at least ensure compliance with regulations to account for society's and our customers increasing concern with data protection and privacy. So teaching and advocating this advantage, realizing this to everyone in the company um was a key community communication strategy and of course, I mean I mentioned data privacy external factors, the same goes for internal regulations and processes to help our colleagues to adapt to this very new environment. So when I mentioned before the new way of thinking the new way of um dealing and managing data, this of course implies that we need new processes and regulations for our colleagues as well. Um in a nutshell then this means the data governance provides a framework for managing our people the processes and technology and culture around our data traffic. And those components must come together in order to have this effective program providing at least a common denominator, especially critical for shared dataset, which we have across our different geographies managed and shared applications on shared infrastructure and applications and is then consumed by centralized processes um for example, master data, everything and all the metrics and KPI s which are also used for a central steering. Um it's a big change day. Right. And our ultimate goal is to have this noninvasive, Federated um ultimatum and computational governance and for that we can't just talk about it. We actually have to go deep and use case by use case and Qc buy PVC and generate learnings and learnings with the different teams. And this would be a classical approach of identifying the target structure, the target status, match it with the current status by identifying together with the business teams with the different domains have a risk assessment for example, to increase transparency because a lot of teams, they might not even know what kind of situation they might be. And this is where this training and this piece of illiteracy comes into place where we go in and trade based on the findings based on the most valuable use case um and based on that help our teams to do this change to increase um their capability just a little bit more and once they hand holding. But a lot of guidance >>can I kind of kind of trying to quickly David will allow me I mean there's there's a lot of governance piece but I think um that is important. And if you're talking about documentation for example, yes, we can go from team to team and tell these people how you have to document your data and data catalog or you have to establish data contracts and so on the force. But if you would like to build data products at scale following actual governance, we need to think about automation right. We need to think about a lot of things that we can learn from engineering before. And that starts with simple things like if we would like to build up trust in our data products, right, and actually want to apply the same rigor and the best practices that we know from engineering. There are things that we can do and we should probably think about what we can copy and one example might be. So the level of service level agreements, service level objectives. So that level indicators right, that represent on on an engineering level, right? If we're providing services there representing the promises we made to our customers or consumers, these are the internal objectives that help us to keep those promises. And actually these are the way of how we are tracking ourselves, how we are doing. And this is just one example of that thing. The Federated Governor governance comes into play right. In an ideal world, we should not just talk about data as a product but also data product. That's code that we say, okay, as most as much as possible. Right? Give the engineers the tool that they are familiar basis and actually not ask the product managers for example to document their data assets in the data catalog but make it part of the configuration. Have this as a, as a C D C I, a continuous delivery pipeline as we typically see another engineering task through and services we say, okay, there is configuration, we can think about pr I can think about data quality monitoring, we can think about um the ingestion data catalog and so on and forest, I think ideally in the data product will become of a certain templates that can be deployed and are actually rejected or verified at build time before we actually make them deploy them to production. >>Yeah, So it's like devoPS for data product um so I'm envisioning almost a three phase approach to governance and you kind of, it sounds like you're in early phases called phase zero where there's there's learning, there's literacy, there's training, education, there's kind of self governance and then there's some kind of oversight, some a lot of manual stuff going on and then you you're trying to process builders at this phase and then you codify it and then you can automate it. Is that fair? >>Yeah, I would rather think think about automation as early as possible in the way and yes, there needs to be certain rules but then actually start actually use case by use case. Is there anything that small piece that we can already automate? It's as possible. Roll that out and then actually extended step by step, >>is there a role though that adjudicates that? Is there a central Chief state officer who is responsible for making sure people are complying or is it how do you handle that? >>I mean from a from a from a platform perspective, yes, we have a centralized team to uh implement certain pieces they'll be saying are important and actually would like to implement. However, that is actually working very closely with the governance department. So it's Clements piece to understand and defy the policies that needs to be implemented. >>So Clements essentially it's it's your responsibility to make sure that the policy is being followed. And then as you were saying, christoph trying to compress the time to automation as fast as possible percent. >>So >>it's really it's uh >>what needs to be really clear that it's always a split effort, Right? So you can't just do one thing or the other thing, but everything really goes hand in hand because for the right automation for the right engineering tooling, we need to have the transparency first. Uh I mean code needs to be coded so we kind of need to operate on the same level with the right understanding. So there's actually two things that are important which is one its policies and guidelines, but not only that because more importantly or even well equally important to align with the end user and tech teams and engineering and really bridge between business value business teams and the engineering teams. >>Got it. So just a couple more questions because we gotta wrap I want to talk a little bit about the business outcome. I know it's hard to quantify and I'll talk about that in a moment but but major learnings, we've got some of the challenges that you cited. I'll just put them up here. We don't have to go detailed into this, but I just wanted to share with some folks. But my question, I mean this is the advice for your peers question if you had to do it differently if you had a do over or a Mulligan as we like to say for you golfers, what would you do differently? Yeah, >>I mean can we start with from a from the transformational challenge that understanding that it's also high load of cultural change. I think this is this is important that a particular communication strategy needs to be put into place and people really need to be um supported. Right? So it's not that we go in and say well we have to change towards data mesh but naturally it's in human nature, you know, we're kind of resistance to to change right? Her speech uncomfortable. So we need to take that away by training and by communicating um chris we're gonna add something to that >>and definitely I think the point that I have also made before right we need to acknowledge that data mesh is an architecture of scale, right? You're looking for something which is necessary by huge companies who are vulnerable, data productive scale. I mean Dave you mentioned it right, there are a lot of advantages to have a centralized team but at some point it may make sense to actually decentralized here and at this point right? If you think about data Mash, you have to recognize that you're not building something on a green field. And I think there's a big learning which is also reflected here on the slide is don't underestimate your baggage. It's typically you come to a point where the old model doesn't doesn't broke anymore and has had a fresh right? We lost our trust in our data and actually we have seen certain risks that we're slowing down our innovation so we triggered that this was triggering the need to actually change something. So this transition implies that you typically have a lot of technical debt accumulated over years and I think what we have learned is that potentially we have decentralized some assets to earlier, this is not actually taking into account the maturity of the team where we are actually distributed to and now we actually in the face of correcting pieces of that one. Right? But I think if you if you if you start from scratch you have to understand, okay, is are my team is actually ready for taking on this new uh, this news capabilities and you have to make sure that business decentralization, you build up these >>capabilities and the >>teams and as Clements has mentioned, right, make sure that you take the people on your journey. I think these are the pieces that also here, it comes with this knowledge gap, right? That we need to think about hiring and literacy the technical depth I just talked about and I think the last piece that I would add now which is not here on the flight deck is also from our perspective, we started on the analytical layer because that's kind of where things are exploding, right, this is the thing that people feel the pain but I think a lot of the efforts that we have started to actually modernize the current state uh, towards data product towards data Mash. We've understood that it always comes down basically to a proper shape of our operational plane and I think what needs to happen is is I think we got through a lot of pains but the learning here is this need to really be a commitment from the company that needs to happen and to act. >>I think that point that last point you made it so critical because I I hear a lot from the vendor community about how they're gonna make analytics better and that's that's not unimportant, but but through data product thinking and decentralized data organizations really have to operationalize in order to scale. So these decisions around data architecture an organization, their fundamental and lasting, it's not necessarily about an individual project are why they're gonna be project sub projects within this architecture. But the architectural decision itself is an organizational, its cultural and what's the best approach to support your business at scale. It really speaks to to to what you are, who you are as a company, how you operate and getting that right, as we've seen in the success of data driven driven companies is yields tremendous results. So I'll ask each of you to give give us your final thoughts and then we'll wrap maybe >>maybe it quickly, please. Yeah, maybe just just jumping on this piece that you have mentioned, right, the target architecture. If we talk about these pieces right, people often have this picture of mind like OK, there are different kind of stages, we have sources, we have actually ingestion layer, we have historical transformation presentation layer and then we're basically putting a lot of technology on top of that kind of our target architecture. However, I think what we really need to make sure is that we have these different kind of viewers, right? We need to understand what are actually the capabilities that we need in our new goals. How does it look and feel from the different kind of personas and experience view? And then finally, that should actually go to the to the target architecture from a technical perspective um maybe just to give an outlook but what we're what we're planning to do, how we want to move that forward. We have actually based on our strategy in the in the sense of we would like to increase that to maturity as a whole across the entire company and this is kind of a framework around the business strategy and it's breaking down into four pillars as well. People meaning the data, cultural, data literacy, data organizational structure and so on that. We're talking about governance as Clements has actually mentioned that, right, compliance, governance, data management and so on. You talk about technology and I think we could talk for hours for that one. It's around data platform, better science platform and then finally also about enablement through data, meaning we need to understand that a quality data accessibility and the science and data monetization. >>Great, thank you christophe clement. Once you bring us home give us your final thoughts. >>Can't can just agree with christoph that uh important is to understand what kind of maturity people have to understand what the maturity level, where the company where where people organization is and really understand what does kind of some kind of a change replies to that those four pillars for example, um what needs to be taken first and this is not very clear from the very first beginning of course them it's kind of like Greenfield you come up with must wins to come up with things that we really want to do out of theory and out of different white papers. Um only if you really start conducting the first initiatives you do understand. Okay, where we have to put the starts together and where do I missed out on one of those four different pillars? People, process technology and governance. Right? And then that kind of an integration. Doing step by step, small steps by small steps not boiling the ocean where you're capable ready to identify the gaps and see where either you can fill um the gaps are where you have to increase maturity first and train people or increase your text text, >>you know Hello Fresh is an excellent example of a company that is innovating. It was not born in Silicon Valley which I love. It's a global company. Uh and I gotta ask you guys, it seems like this is an amazing place to work you guys hiring? >>Yes, >>definitely. We do >>uh as many rights as was one of these aspects distributing. And actually we are hiring as an entire company specifically for data. I think there are a lot of open roles serious. Please visit or our page from better engineering, data, product management and Clemens has a lot of rules that you can speak about. But yes >>guys, thanks so much for sharing with the cube audience, your, your pioneers and we look forward to collaborations in the future to track progress and really want to thank you for your time. >>Thank you very much. Thank you very much. Dave >>thank you for watching the cubes startup showcase made possible by A W. S. This is Dave Volonte. We'll see you next time. >>Yeah.

>>mhm Yes. >>Hello and welcome back to the cubes coverage of dr khan 2021 virtual. I'm john Kerry hosted the Q got a great cube segment here. Simon Maple Field C T Oh it's technique. Great company security shifting left great to have you on Simon. Thanks for thanks for stopping by >>absolute pleasure. Thank you very much for having me. >>So you guys were on last year the big partnership with DR Conn remember that interview vividly because it was really the beginning at the beginning but really come to me the mainstream of shifting left as devops. It's not been it's been around for a while. But as a matter of practice as containers have been going super mainstream. Super ballistic in the developer community then you're seeing what's happening. It's containers everywhere. Security Now dev sec apps is the standard. So devops great infrastructure as code. We all know that but now it's def sec ops is standard. This is the real deal. Give us the update on what's going on with sneak. >>Absolutely, yeah. And you know, we're still tireless in our approach of trying to get make sure developers don't just have the visibility of security but are very much empowered in terms of actually fixing issues and secure development is what we're really striving for. So yeah, the update, we're still very, very deep into a partnership with DACA. We have updates on DR desktop which allows developers to scan the containers on the command line, providing developers that really fast feedback as as early as possible. We also have uh, you know, new updates and support for running Docker scan on Lennox. Um, and yeah, you know, we're still there on the Docker hub and providing that security insights um, to, to users who are going to Docker hub to grab their images. >>Well, for the folks watching maybe for the first time, the sneak Docker partnership, we went in great detail last year was the big reveal why Docker and sneak partnership, what is the evolution of that partnership over the year? They speak highly of you guys as a developer partner. Why Doctor? What's the evolution looked like? >>It's a it's a really great question. And I think, you know, when you look at the combination of DACA and sneak well actually let's take let's take each as an individual. Both companies are very, very developer focused. First of all, right, so our goals and will be strife or what we what we tirelessly spend their time doing is creating features and creating, creating an environment in which a developer you can do what they need to do as easily as possible. And that, you know, everyone says they want to be developer friendly, They want to be developer focused. But very few companies can achieve. And you look at a company like doctor, you're a company like sneak it really, really provides that developer with the developer experience that they need to actually get things done. Um, and it's not just about being in a place that a developer exists. It's not enough to do that. You need to provide a developer with that experience. So what we wanted to do was when we saw doctor and extremely developer friendly environment and a developer friendly company, when we saw the opportunity there to partner with Yoko, we wanted to provide our security developer friendliness and developer experience into an already developed a friendly tool. So what the partnership provides is the ease of, you know, deploying code in a container combined with the ease of testing your code for security issues and fixing security issues in your code and your container and pulling it together in one place. Now, one of the things which we as a as a security company um pride ourselves on is actually not necessarily saying we provide security tools. One of what our favorite way of saying is we're a developer tooling company. So we provide tools that are four developers now in doing that. It's important you go to where the developers are and developers on DACA are obviously in places like the Docker hub or the Docker Cli. And so it's important for us to embed that behavior and that ease of use inside Dhaka for us to have that uh that that flow. So the developer doesn't need to leave the Docker Cli developer that doesn't need to leave Docker hub in order to see that data. If you want to go deeper, then there are probably easier ways to find that data perhaps with sneak or on the sneak site or something like that. But the core is to get that insight to get that visibility and to get that remediation, you can see that directly in in the in the Dhaka environment. And so that's what makes the relationship so so powerful. The fact that you combine everything together and you do it at source >>and doing it at the point of code. >>Writing >>code is one of the big things I've always liked about the value proposition is simple shift left. Um So let's just step back for a second. I got to ask you this question because this I wanted to make sure we get this on the table. What are the main challenges uh and needs to, developers have with container security? What are you seeing as the main top uh A few things that they need to have right now for the challenges uh with container security? >>Yeah, it's a it's a very good question. And I think to answer that, I think we need to um we need to think of it in a couple of ways. First of all, you've just got developers security uh in general, across containers. Um And the that in itself is there are different levels at which developers engage with containers. Um In some organizations, you have security teams that are very stringent in terms of what developers can and can't do in other organizations. It's very much the developer that that chooses their environment, chooses their parent image, et cetera. And so there when a developer has many, many choices in which they need to need to decide on, some of those choices will lead to more issues, more risk. And when we look at a cloud native environment, um uh Let's take let's take a node uh image as an example, the number of different uh images tags you can choose from as a developer. It's you know, there are hundreds, probably thousands. That you can actually you can actually choose. What is the developer gonna do? Well, are they going to just copy paste from another doctor file, for example, most likely. What if there are issues in that docker file? They're just gonna copy paste that across mis configurations that exist. Not because the developer is making the wrong decision, but because the developer very often doesn't necessarily know that they need to add a specific directive in. Uh So it's not necessarily what you add in a conflict file, but it's very often what you admit. So there are a couple of things I would say from a developer point of view that are important when we think about cloud security, the first one is just that knowledge that understanding what they need to do, why they need to do it. Secure development doesn't need to be, doesn't mean they need to be deep in security. It means they need to understand how they can develop securely and what what the best decisions that could come from guard rails, from the security team that they provide the development team to offer. But that's the that's an important error of secure development. The second thing and I think one of the most important things is understanding or not understanding necessarily, but having the information to get an act on those things early. So we know the length of time that developers are uh working on a branch or working on um some some code changes that is reducing more and more and more so that we can push to production very, very quickly. Um What we need to do is make sure that as a developer is making their changes, they can make the right decision at the right time and they have the right information at that time. And a lot of this could be getting information from tools, could be getting information from your team where it could be getting information from your production environments and having that information early is extremely important to make. That decision. May be in isolation with your team in an autonomous way or with advice from the security team. But I would say those are the two things having that information that will allow you to make that action, that positive change. Um uh and and yeah, understanding and having that knowledge about how you can develop security. >>All right. So I have a security thing. So I'm a development team and by the way, this whole team's thing is a huge deal. I think we'll get to that. I want to come back to that in a second but just throw this out there. Got containers, got some security, it's out there and you got kubernetes clusters where containers are coming and going. Sometimes containers could have malware in them. Um and and this is, I've heard this out and about how do how that happens off container or off process? How do you know about it? Is that infected by someone else? I mean is it gonna be protected? How does the development team once it's released into the wild, so to speak. Not to be like that, but you get the idea, it's like, okay, I'm concerned off process this containers flying around. What is it How do you track all >>and you know, there's a there's a few things here that are kind of like potential potential areas that, you know, we can trip up when we think about malware that's running um there are certain things that we need to that we need to consider and what we're really looking at here are kind of, what do we have in place in the runtime that can kind of detect these issues are happening? How do we block that? And how do you provide that information back to the developer? The area that I think is, and that is very, very important in order to in order to be able to identify monitor that those environments and then feed that back. So that that that's the kind of thing that can be that can be fixed. Another aspect is, is the static issues and the static issues whether that's in your os in your OS packages, for example, that could be key binaries that exist in your in your in your docker container out the box as well or of course in your application, these are again, areas that are extremely important to detect and they can be detected very very early. So some things, you know, if it's malware in a package that has been identified as malware then absolutely. That can be that can be tracked very very early. Sometimes these things need to be detected a little bit later as well. But yeah, different tools for different for different environments and wear sneak is really focused. Is this static analysis as early as possible. >>Great, great insight there. Thanks for sharing that certainly. Certainly important. And you know, some companies classes are locked down and all of sudden incomes, you know, some some malware from a container, people worried about that. So I want to bring that up. Uh The other thing I want to ask you is this idea of end to end security um and this is a team formation thing we're seeing where modern teams have essentially visibility of their workload and to end. So this is a huge topic. And then by the way it might integrate their their app might integrate with other processes to that's great for containers as well and observe ability and microservices. So this is the trend. What's in it for the developer? If I work with sneak and docker, what benefits do I get if I want to go down that road of having these teams began to end, but I want the security built in. >>Mhm. Yeah, really, really important. And I think what's what's most important there is if we don't look end to end, there are component views and there are applications. If we don't look into end, we could have our development team fixing things that realistically aren't in production anyway or aren't the key risks that are potentially hurting us in our production environment. So it's important to have that end to end of you so that we have the right insights and can prioritize what we need to identify and look at early. Um, so I think, I think that visibility into end is extremely important. If we think about who, who is re fixing uh certain issues, again, this is gonna depend from dog to walk, but what we're seeing more and more is this becoming a developer lead initiative to not just find or be given that information, but ultimately fixed. They're getting more and more responsible for DR files for for I see for for their application code as well. So one of the areas which we've looked into as well is identifying and actually running in cuba Netease workloads to identify where the most important areas that a developer needs to look at and this is all about prioritization. So, you know, if the developer has just a component view and they have 100 different images, 100 different kubernetes conflicts, you know, et cetera. Where do they prioritize, where do they spend their time? They shouldn't consider everything equal. So this identification of where the workloads are running and what um is causing you the most risk as a business and as an organization, that is the data. That can be directly fed back into your, your your vulnerability data and then you can prioritize based on the kubernetes workloads that are in your production and that can be fed directly into the results in the dashboards. That's neat. Can provide you as well. So that end to end story really provides the context you need in order to not just develop securely, but act and action issues in a proper way. >>That's a great point. Context matters here because making it easy to do the right thing as early as possible, the right time is totally an efficiency productivity gain, you see in that that's clearly what people want. It's a great formula, success, reduce the time it takes to do something, reduced the steps and make it easy. Right, come on, that's a that's a formula. Okay, so I gotta bring that to the next level. When I ask you specifically around automation, this is one the hot topic and def sec ops, automation is part of it. You got scale, you got speed, you've got a I machine learning, you go out of all these new things. Microservices, how do you guys fit into the automation story? >>It's a great question. And you know, one of the recent reports that we that we did based on a survey data this year called the state of a state of cloud, native applications security. We we asked the question how automated our people in their in their deployment pipelines and we found some really strong correlations between value from a security point of view um in terms of in terms of having that automation in it, if I can take you through a couple of them and then I'll address that question about how we can be automated in that. So what we found is a really strong correlation as you would expect with security testing in ci in your source code repositories and all the way through the deployment ci and source code were the two of the most most well tested areas across the pipeline. However the most automated teams were twice as likely to test in I. D. S. And testing your CLS in local development. And now those are areas that are really hard to automate if at all because it's developers running running their cli developers running and testing in their I. D. So the having a full automation and full uh proper testing throughout the sclc actually encourages and and makes developers test more in their development environment. I'm not saying there's causation there but there's definite correlation. A couple of other things that this pushes is um Much much more likely to test daily or continuously being automated as you would expect because it's part of the bills as part of your monitoring. But crucially uh 73% of our respondents were able to fix a critical issue in less than a week as opposed to just over 30% of people that were not automated, so almost double people are More likely to fix within a week. 36% of people who are automated can fix a critical security issue in less than a day as opposed to 8% of people who aren't automated. So really strong data that correlates being automated with being able to react now. If you look at something like Sneak what if our um goals of obviously being developer friendly developer first and being able to integrate where developers are and throughout the pipeline we want to test everywhere and often. Okay, so we start as far left as we can um integrating into, you know, CLS integrating into Docker hub, integrating into into doctors can so at the command line you type in doctors can you get sneak embedded in DHAKA desktop to provide you those results so as early as possible, you get that data then all the way through to to uh get reposed providing that testing and automatically testing and importing results from there as well as as well as other repositories, container repositories, being at a poor from there and test then going into ci being able to run container tests in C I to make sure we're not regressing and to choose what we want to do their whether we break, whether we continue with with raising an issue or something like that, and then continuing beyond that into production. So we can monitor tests and automatically send pull requests, etcetera. As and when new issues or new fixes occur. So it's about integrating at every single stage, but providing some kind of action. So, for example, in our ui we provide the ability to say this is the base level you should be or could be at, it will reduce your number of vulnerabilities by X and as a result you're going to be that much more secure that action ability across the pipeline. >>That's a great, great data dump, that's a masterclass right there on automation. Thanks for sharing that sign. I appreciate it. I gotta ask you the next question that comes to my mind because I think this is kind of the dots connect for the customer is okay. I love this kind of hyper focus on containers and security. You guys are all over it, shift left as far as possible, be there all the time, test, test, test all through the life cycle of the code. Well, the one thing that is popping up as a huge growth areas, obviously hybrid cloud devops across both environments and the edge, whether it's five G industrial or intelligent edge, you're gonna have kubernetes clusters at the edge now. So you've got containers. The relationship to kubernetes and then ultimately cloud native work clothes at, say, the edge, which has data has containers. So there's a lot of stuff going on all over the place. What's your, what's your comment there for customer says, Hey, you know, I got, this is my architecture that's happening to me now. I'm building it out. We're comfortable with kubernetes put in containers everywhere, even on the edge how to sneak fit into that story. >>Yeah, really, really great question. And I think, you know, a lot of what we're doing right now is looking at a developer platform. So we care about, we care about everything that a developer can check in. Okay, so we care about get, we care about the repositories, we care about the artifact. So um, if you look at the expansion of our platform today, we've gone from code that people uh, third party libraries that people test. We added containers. We've also added infrastructure as code. So Cuban eighties conflicts, Terror form scripts and things like that. We're we're able to look at everything that the developer touches from their code with sneak code all the way through to your to your container. And I see, so I think, you know, as we see more and more of this pushing out into the edge, cuba Nitties conflict that that, you know, controls a lot of that. So much of this is now going to be or not going to be, but so much of the environment that we need to look at is in the configurations or the MIS configurations in that in those deployment scripts, um, these are some of the areas which which we care a lot about in terms of trying to identify those vulnerabilities, those miS configurations that exist within within those scripts. So I can see yeah more and more of this and there's a potential shift like that across to the edge. I think it's actually really exciting to be able to see, to be able to see those uh, those pushing across. I don't necessarily see any other, any, you know, different security threats or the threat landscape changing as a result of that. Um there could be differences in terms of configurations, in terms of miS configurations that that that could increase as a result, but, you know, a lot of this and it just needs to be dealt with in the appropriate way through tooling through, through education of of of of how that's done. >>Well, obviously threat vectors are all gonna look devops like there's no perimeter. So they're everywhere right? Looking at I think like a hacker to be being there. Great stuff. Quick question on the future relationship with DR. Obviously you're betting a lot here on that container relationship, a good place to start. A lot of benefits there. They have dependencies, they're going to have implications. People love them, they love to use them, helps old run with the new and helps the new run better. Certainly with kubernetes, everything gets better together. What's the future with the DACA relationship? Take us through how you see it. >>So yeah, I mean it's been an absolute blast the doctor and you know, even from looking at some of the internal internal chats, it's been it's been truly wonderful to see the, the way in which both the doctor and sneak from everything from an engineering point of view from a marketing, from a product team. It's been a pleasure to, it's been a pleasure to see that relationship grow and flourish. And, and I think there's two things, first of all, I think it's great that as companies, we, we both worked very, very well together. I think as as as users um seeing, you know, doctor and and and sneak work so so seamlessly and integrated a couple of things. I would love to see. Um, I think what we're gonna see more and more and this is one of the areas that I think, um you know, looking at the way sneak is going to be viewing security in general. We see a lot of components scanning a lot, a lot of people looking at a components can and seeing vulnerabilities in your components. Can I think what we need to, to to look more upon is consolidating a lot of the a lot of the data which we have in and around different scans. What I would love to see is perhaps, you know, if you're running something through doctors can how can you how can you view that data through through sneak perhaps how can we get that closer integration through the data that we that we see. So I would love to see a lot more of that occur, you know, within that relationship and these are kind of like, you know, we're getting to that at that stage where we see integration, it just various levels. So we have the integration where we have we are embedded but how can we make that better for say a sneak user who also comes to the sneak pages and wants to see that data through sneak. So I would love to see at that level uh more there where as I mentioned, we have we have some some additional support as well. So you can run doctors can from from Lenox as well. So I can see more and more of that support rolling out but but yeah, in terms of the future, that's where I would love to see us uh to grow more >>and I'll see in the landscape side on the industry side, um, security is going beyond the multiple control planes out there. Kubernetes surveillance service matches, etcetera, continues to be the horizontally scalable cloud world. I mean, and you got you mentioned the edge. So a lot more complexity to rein in and make easier. >>Yeah, I mean there's a lot more complexity, you know, from a security point of view, the technology is the ability to move quickly and react fast in production actually help security a lot because you know, being able to spin a container and make changes and and bring a container down. These things just weren't possible, you know, 10 years ago, 20 years ago. Pre that it's like it was it's insanely hard compared trying to trying to do that compared to just re spinning a container up. However, the issue I see from a security point of view, the concerns I see is more around a culture and an education point of view of we've got all this great tech and it's it's awesome but we need to do it correctly. So making sure that as you mentioned with making the right decision, what we want to make sure is that right decision is also the easy decision and the clear decision. So we just need to make sure that as we as we go down this journey and we're going down it fast and it's not gonna, I don't see it slowing down, we're going fast down that journey. How do we make, how do we prepare ourselves for that? We're already seeing, you know, miss configurations left, right and center in the news, I am roles as three buckets, etcetera. These are they're they're simpler fixes than we than we believe, right? We just need to identify them and and make those changes as needed. So we just need to make sure that that is in place as we go forward. But it's exciting times for sure. >>It's really exciting. And you got the scanning and right at the point of coding automation to help take that basic mis configuration, take that off the table. Not a lot of manual work, but ultimately get to that cloud scale cool stuff. >>Simon, thank you >>for coming on the cube dr khan coverage. Really appreciate your time. Drop some nice commentary there. Really appreciate it. Thank you. >>My pleasure. Thank you very much. >>Simon Maple Field C T. O. A sneak hot startup. Big partner with Docker Security, actually built in deVOPS, is now dead. Say cops. This is dr khan cube 2021 virtual coverage. I'm sean for your host. Thanks for watching. Mm.

>>what? Hello, I'm john free with the cube. I want to welcome Conrad Feldman, the founder and Ceo of Kwan cast here to kick off the quan cast industry summit on the demise of third party cookies. The events called the cookie conundrum, a recipe for success. The changing advertising landscape, super relevant conversation just now. More than ever. Conrad welcome to your own program kicking this off. Thanks for holding this event. It's a pleasure. Great to chat with you today. So a big fan been following your company since the founding of it. Been analytics is always the prize of any data driven company. Media. Anything's all data driven now. Um, talk about the open internet because now more than ever it's under siege. As I, as I mentioned in my open, um, we've been seeing the democratization, a new trend of decentralization. We're starting to see um, you know, everyone's present online now, Clay Shirky wrote a book called, here comes everyone in 2005. Well everyone's here. Right? So you know, we're here, it's gonna be more open. But yet people are looking at as close right now. You're seeing the big players, um, or in the data. What's your vision of this open internet? >>Well, an open internet exists for everyone. And if you think about the evolution of the internet, when the internet was created for the first time really in history, anyone that had access to the internet could publish the content, whatever they were interested in and could find an audience. And of course that's grown to where we are today, where five billion people around the world are able to engage in all sorts of content, whether that's entertainment or education, news, movies. What's perhaps not so widely understood is that most of that content is paid for by advertising and there's a lot of systems that support advertising on the open Internet and some of those are under siege today certainly. >>And what's the big pressure point? Is it just more control the data? Is it just that these walled gardens are wanting to, you know, suck the audience in there? Is that monetization driving it? What's where's the friction? >>Well, the challenges is sort of the accumulation of power into a really small number of now giant corporations who have actually reduced a lot of the friction that marketers have in spending their money effectively. And it means that those companies are capturing a disproportionate spend of the ad budgets that fund digital content. So the problem is if more of the money goes to them, less of its going to independent content creators. It's actually getting harder for independent voices to emerge and be heard. And so that's the real challenges. That has more power consolidates into just a limited number of tech giants. The funding path for the open Internet becomes constrained and there'll be less choice for consumers without having to pay for subscriptions. >>Everyone knows the more data you have the better and certainly, but the centralized power when the trend is going the other way, the consensus is everyone wants to be decentralized more truth, more trust all this is being talked about on the heels of the google's news around, you know, getting rid of third party cookies and others have followed suit. Um, what does this mean? I mean, this cookies have been the major vehicle for tracking and getting that kind of data. What is gonna be replaced with what is this all about? And can you share with us what the future will look like? >>Sure, Well, just as advertising funds the open Internet is advertising technology that supports that advertising spend. It supports sort of the business of advertising that funds the open Internet. And within all of that technology is the need for different systems to be able to align around um the identification of for example, a consumer, Have they been to this site before? Have they seen an ad before? So there's all of these different systems that might be used for advertising for measurement, for attribution, for creating personalization. And historically they've relied upon the third party cookie as the mechanism for synchronization. Well, the third party cookie has been in decline for some time. It's already mostly gone from actually apple safari browser, but google's chrome has so much control over how people access the internet. And so it was when Google announced that chrome was going to deprecate the third party cookie, that it really sort of focus the minds of the industry in terms of finding alternative ways to tailor content and ultimately to just simply measure the effectiveness of advertising. And so there's an enormous amount of um innovation taking place right now to find alternative solutions. >>You know, some are saying that the free open internet was pretty much killed when, you know, the big comes like facebook and google started bringing all this data and kind of pulls all sucks all the auction in the room, so to speak. What's this mean with cookies now getting, getting rid of um, by google has an impact publishers because is it helpful? I mean hurtful. I mean, where's the where is that, what the publisher impact? >>Well, I don't think anyone really knows right now. So first of all, cookies weren't necessarily a very good solution to the sort of the challenge of maintaining state and understanding those sorts of the delivery of advertising and so on. It's just the one that's commonly used, I think for different publishers it may mean different things. But many publishers need to be able to demonstrate the value and the effectiveness of the advertising solutions that they deliver. So they'll be innovating in terms of how they use their first party data. They'll be continuing to use contextual solutions that have long been used to create advertising relevant, relevant. I think the big question of course is how we're going to measure it that any of this is effective at all because everyone relies upon measuring advertising effectiveness to justify capturing those budgets in the first place. >>You know, you mentioned contextual come up a lot also in the other interviews we've done with the folks in the around the internet around this topic of machine learning is a big 12 What is the impact of this with the modernization of the solution? You mentioned cookies? Okay cookies, old technology. But the mechanisms in this ecosystem around it or not, it funds the open internet. What is that modern solution that goes that next level? Is it contextual metadata? Is that shared systems? What's the it's the modernization of that. >>It's all of those and and more. There's no there's no single solution to replace the third party cookie. There'll be a combination of solutions. Part of that will be alternative identity mechanisms. So you know, you will start to see more registration wars to access content so that you have what's called a deterministic identify there will be statistical models so called probabilistic models, contextual has always been important. It will become more important and it will be combined with we use contextual combining natural language processing with machine learning models to really understand the detailed context of different pages across the internet. You'll also see the use of first party data and there are discussions about shared data services as well. I think there's gonna be a whole set of different innovations that will need to inter operate and it's going to be an evolutionary process as people get used to using these different systems to satisfy the different stages of the media fulfillment cycle from research and planning to activation to measurement. >>You know, you put up walled gardens. I want to just touch on the on on this kind of concept of walled gardens and and and and compare and contrast that with the demand for community, open internet has always fostered a community vibe. You see network effects mostly in distinct user communities or subnets of sub networks. If you will kind of walled gardens became that kind of group get together but then became more of a media solution to make the user is the product, as they say, facebook's a great example, right? People talk about facebook and from that misinformation abuse walled garden is not the best thing happening right now in the world, but yet is there any other other choice? That's how they're going to make money? But yet everyone wants trust, truth community. Are they usually exclusive? How do you see this evolving, what's your take? >>Well, I think the open internet is a, is a forum where anyone can have their voice, uh, put their voice out there and have it discovered and it's in that regard, it's a it's a force for good look. I think there are there are challenges, obviously in terms of some of the some of the optimization that takes place with inside the walled gardens, which is, is sort of optimized to drive engagement can have some unintended consequences. Um obviously that's something that's, that's broadly being discussed today and the impact on society, but sort of more at a more pointed level, it's just the absorption of advertising dollars. There's a finite amount of money from advertisers. It's estimated to be $400 billion this year in digital advertising. So it's a huge amount of money in terms of funding the open Internet, which sounds great except for its increasingly concentrated in a tiny number of companies. And so, you know, our job at Quan cast as champions of the free and open Internet is to help direct money effectively to publishers across the open internet and give advertisers a reliable, repeatable way of accessing the audiences that they care about in the environment they care about and delivering advertising results. >>It's a publisher, we care a lot about what our audience wants and try to serve them and listen to them. If we could get the data, we want that data and then also broker in the monetization with advertisers, who might want to reach that audience in whatever way. So this brings up the question of, you know, automation and role of data. You know, this is a huge thing to having that data closed loop, if you will for for publishers. But yet most publishers are small, some niche. And even as they can become super large, they don't have all the data and more, the more data, the better the machine learning. So what's the answer to this as it goes forward? How do we get there? What's the dots that that we need to connect to get that future state? >>So I think it takes it takes companies working together effectively. I think a really important part of it is, is a more direct conversation with consumers. We've seen that change beginning to happen over the past few years with the introduction of regulations that require clear communication to consumers about the data that's captured. And y and I think that creates an opportunity to explain to your audience is the way in which content is funded. So I think that consumer that consumer conversation will be part of the collective solution. >>You know, I want to as we wind down this kickoff segment, get your thoughts and vision around um, the evolution of the internet and you guys have done some great work at quan Cast is well documented, but everyone used to talk about traffic by traffic, then it became cost of acquisitions. PPC search. This is either mechanisms that people have been using for a long, long time, then you know, your connections but audience is about traffic, audience traffic. If this if my family is online, doesn't it become about networks and the people. So I want to get your thoughts and your vision because if community is going to be more important than people agree that it is and things are gonna be decentralized, more openness, more voices to be heard. You need to dress ability. The formation of networks and groups become super important. What's your vision on that? >>So my vision is to create relevance and utility for consumers. I think that's one of the things that's often forgotten is that when we make advertising more relevant and useful for consumers, it automatically fulfils the objectives that publishers and marketers have, everyone wins when advertising is more relevant. And our vision is to make advertising relevant across the entire open internet so that that ad supported model can continue to flourish and that five billion and hopefully many more billions in the future, people around the world have access to high quality, diverse content. >>If someone asked you Conrad, what is quant cast doing to make the open internet viable now that cookies are going away? What's the answer? >>So well, the cookie pieces is a central piece of it in terms of finding solutions that will enable sort of planning activation and measurement post cookies and we have a lot of innovation going on. There were also working with a range of industry bodies and our and our partners to build solutions for this. What we're really trying to do is to make buying the open internet as straightforward for marketers as it is today and buying the walled gardens. The reason the walled gardens capture so much money is they made it really easy for marketers to get results, marketers would like to be able to spend their money across all of the diverse publishes the open internet. You know, our job at Comcast is to make it just as easy to effectively spend money in funding the content that they really care about in reaching the audiences that they want. >>Great stuff. Great Mission. Conrad, thanks for coming on. Conrad Feldmann founder and Ceo here at the cookie conundrum recipe for success event, Quant Cast Industry summit on the demise of third party cookies. Thank you. Conrad appreciate it. Thank you. Yeah, I'm john ferrier, stay with us for more on the industry event around the middle cookies. Mhm Yeah, yeah, thank you. Mhm. Welcome back to the Qantas industry summit on the demise of third party cookies, the cookie conundrum, a recipe for success. I'm john furrier host of the cube, the changing landscape of advertising is here and shit Gupta, founder of you of digital is joining us chief. Thanks for coming on this segment. Really appreciate, I know you're busy, you've got two young kids as well as providing education to the digital industry, you got some kids to take care of and train them to. So welcome to the cube conversation here as part of the program. >>Yeah, thanks for having me excited to be here. >>So the office of the changing landscape of advertising really centers around the open to walled garden mindset of the web and the big power players. We know the big 34 tech players dominate the marketplace so clearly in a major inflection point and we've seen this movie before Web mobile revolution which was basically a reply platform NG of capabilities. But now we're in an error of re factoring the industry, not re platt forming a complete changing over of the value proposition. So a lot at stake here as this open web, open internet, global internet evolves. What are your, what's your take on this, this industry proposals out there that are talking to this specific cookie issue? What does it mean? And what proposals are out there? >>Yeah, so, you know, I I really view the identity proposals and kind of to to kind of groups, two separate groups. So on one side you have what the walled gardens are doing and really that's being led by google. Right, so google um you know, introduce something called the privacy sandbox when they announced that they would be deprecating third party cookies uh as part of the privacy sandbox, they've had a number of proposals unfortunately, or you know, however you want to say they're all bird themed for some reason, I don't know why. Um but the one, the bird theme proposal that they've chosen to move forward with is called flock, which stands for Federated learning of cohorts. And essentially what it all boils down to is google is moving forward with cohort level learning and understanding of users in the future after third party cookies, unlike what we've been accustomed to in this space, which is a user level understanding of people and what they're doing online for targeting tracking purposes. And so that's on one side of the equation, it's what google is doing with flock and privacy sandbox now on the other side is, you know, things like unified I. D. Two point or the work that I. D five is doing around building new identity frameworks for the entire space that actually can still get down to the user level. Right? And so again, unified I. D. Two point oh comes to mind because it's the one that's probably got the most adoption in the space. It's an open source framework. So the idea is that it's free and pretty much publicly available to anybody that wants to use it and unified, I need to point out again is user level. So it's it's basically taking data that's authenticated data from users across various websites you know that are logging in and taking those authenticated users to create some kind of identity map. And so if you think about those two work streams right, you've got the walled gardens and or you know, google with flock on one side and then you've got unified I. D. Two point oh and other I. D. Frameworks for the open internet. On the other side, you've got these two very differing type of approaches to identity in the future. Again on the google side it's cohort level, it's going to be built into chrome. Um The idea is that you can pretty much do a lot of the things that we do with advertising today, but now you're just doing it at a group level so that you're protecting privacy, whereas on the other side of the open internet you're still getting down to the user level. Um And that's pretty powerful. But the the issue there is scale, right? We know that a lot of people are not logged in on lots of websites. I think the stat that I saw is under five of all website traffic is authenticated. So really if you if you simplify things you boil it all down, you have kind of these two very differing approaches. >>I guess the question it really comes down to what alternatives are out there for cookies and which ones do you think will be more successful? Because I think, you know, the consensus is at least from my reporting, in my view, is that the world agrees. Let's make it open, Which one is going to be better. >>Yeah, that's a great question, john So as I mentioned, right, we have we have to kind of work streams here, we've got the walled garden work streams, work stream being led by google and their work around flock, and then we've got the open internet, right? Let's say unified I. D to kind of represents that. I personally don't believe that there is a right answer or an endgame here. I don't think that one of them wins over the other, frankly, I think that, you know, first of all, you have those two frameworks, neither of them are perfect, they're both flawed in their own ways. There are pros and cons to both of them. And so what we're starting to see now is you have other companies kind of coming in and building on top of both of them as kind of a hybrid solution. Right? So they're saying, hey, we use, you know, an open I. D. Framework in this way to get down to the user level and use that authenticated data and that's important. But we don't have all the scale. So now we go to google and we go to flock to kind of fill the scale. Oh and hey, by the way, we have some of our own special sauce, right? We have some of our own data, we have some of our own partnerships, we're gonna bring that in and layer it on top. Right? And so really where I think things are headed is the right answer, frankly, is not one or the other. It's a little mishmash of both. With a little extra something on top. I think that's that's what we're starting to see out of a lot of companies in the space. And I think that's frankly where we're headed. >>What do you think the industry will evolve to, in your opinion? Because I think this is gonna, you can't ignore the big guys on this because these programmatic you mentioned also the data is there. But what do you think the market will evolve to with this, with this conundrum? >>So, so I think john where we're headed? You know, I think we're right now we're having this existential existential crisis, right? About identity in this industry, because our world is being turned upside down, all the mechanisms that we've used for years and years are being thrown out the window and we're being told they were gonna have new mechanisms, Right? So cookies are going away device ids are going away and now we got to come up with new things and so the world is being turned upside down and everything that you read about in the trades and you know, we're here talking about it, right? Like everyone's always talking about identity right now, where do I think this is going if I was to look into my crystal ball, you know, this is how I would kind of play this out. If you think about identity today. Right? Forget about all the changes. Just think about it now and maybe a few years before today, Identity for marketers in my opinion has been a little bit of a checkbox activity. Right? It's been hey, um, okay, uh, you know ad tech company or a media company, do you have an identity solution? Okay. Tell me a little bit more about it. Okay, Sounds good. That sounds good. Now can we move on and talk about my business and how are you going to drive meaningful outcomes or whatever for my business? And I believe the reason that is, is because identity is a little abstract, right? It's not something that you can actually get meaningful validation against. It's just something that, you know. Yes, You have it. Okay, great. Let's move on, type of thing. Right. And so that, that's, that's kind of where we've been now, all of a sudden The cookies are going away, the device ids are going away. And so the world is turning upside down in this crisis of how are we going to keep doing what we were doing for the last 10 years in the future. So everyone's talking about it and we're trying to re engineer right? The mechanisms now if I was to look into the crystal ball right 2 3 years from now where I think we're headed is not much is going to change. And what I mean by that john is um uh I think that marketers will still go to companies and say do you have an ID solution? Okay tell me more about it. Okay uh Let me understand a little bit better. Okay you do it this way. Sounds good. Now the ways in which companies are going to do it will be different right now. It's flock and unified I. D. And this and that right. The ways the mechanisms will be a little bit different but the end state right? Like the actual way in which we operate as an industry and kind of like the view of the landscape in my opinion will be very simple or very similar, right? Because marketers will still view it as a tell me you have an ID solution. Make me feel good about it. Help me check the box and let's move on and talk about my business and how you're going to solve for my needs. So I think that's where we're going. That is not by any means to discount this existential moment that we're in. This is a really important moment where we do have to talk about and figure out what we're going to do in the future. My just my viewpoint is that the future will actually not look all that different than the present. >>And I'll say the user base is the audience. Their their data behind it helps create new experiences, machine learning and Ai are going to create those and we have the data you have the sharing it or using it as we're finding shit Gupta great insight dropping some nice gems here. Founder of you of Digital and also the Adjunct professor of Programmatic advertising at Levi School of Business and santa Clara University professor. Thank you for coming dropping the gems here and insight. Thank you. >>Thanks a lot for having me john really appreciate >>it. Thanks for watching. The cooking 100 is the cube host Jon ferrier me. Thanks for watching. Mhm. Yeah. Mhm. Hello welcome back to the cookie conundrum recipe for success and industry conference and summit from Guanacaste on the demise of third party cookies. Got a great industry panel here to break it down chris Gunther Senior Vice president Global Head of programmatic at news corp chris thanks for coming on Zal in Managing Director Solutions at Z axis and Summer Simpson. Vice president Product at quan cast stellar panel. Looking forward to this conversation. Uh thanks for coming on and chatting about the cookie conundrum. Thank you for having us. So chris we'll start with you at news corp obviously a major publisher deprecation of third party cookies affects everyone. You guys have a ton of traffic, ton of audience across multiple formats. Um, tell us about the impact to you guys and the reliance he has had on them. And what are you gonna do to prepare for this next level change? >>Sure. I mean, I think like everyone in this industry there's uh a significant reliance and I think it's something that a lot of talk about audience targeting but obviously that reliance on third party cookies pervasive across the whole at tech ecosystem Martek stack. And so you know, we have to think about how that impact vendor vendors, we work with what it means in terms of use cases across marketing, across advertising, across site experience. So, you know, without a doubt, it it's it's significant, but you know, we look at it as listen, it's disruptive, uh, disruption and change is always a little scary. Um, but overall it's a, it's a long overdue reset. I mean, I think that, you know, our perspective is that the cookies, as we all know was it was a crutch, right sort of a technology being used in way it shouldn't. Um, and so as we look at what's going to happen presumably after Jan 2022 then it's, it's a good way to kind of fix on some bad practices practices that lead to data leakage, um, practice or devalue for our perspective, some of the, you know, we offered as as publishers and I think that this is a key thing is that we're not just looking to as we look at the post gender world, not just kind of recreating the prior world because the prior world was flawed or I guess you could say the current world since it hasn't changed yet. But the current world is flawed. Let's not just not, you know, let's not just replicate that. Let's make sure that, you know, third party cookie goes away. Other work around like fingerprinting and things like that. You know, also go away so philosophically, that's where our heads at. And so as we look at how we are preparing, you know, you look at what are the core building blocks of preparing for this world. Obviously one of the key ones is privacy compliance. Like how do we treat our users with consent? Yeah, obviously. Are we um aligned with the regulatory environments? Yeah. In some ways we're not looking just a Jan 2022, but Jan 23 where there's gonna be the majority of our audiences we covered by regulation. And so I think from regulation up to data gathering to data activation, all built around an internal identifier that we've developed that allows us to have a consistent look at our users whether they're logged in or obviously anonymous. So it's really looking across all those components across all our sites and in all in a privacy compliant way. So a lot of work to be done, a lot of work in progress. But we're >>excited about what's going on. I like how you framed at Old world or next gen kind of the current situation kind of flawed. And as you think about programmatic, the concept is mind blowing and what needs to be done. So we'll come back to that because I think that original content view is certainly relevant, a huge investment and you've got great content and audience consuming it from a major media standpoint. Get your perspective on the impact because you've got clients who want to get their their message out in front of the audience at the right time, at the right place and the right context. Right, So your privacy, you got consent, all these things kind of boiling up. How do you help clients prepare? Because now they can go direct to the consumer. Everyone, everyone has a megaphone, now, everyone's, everyone's here, everyone's connected. So how are you impacted by this new notion? >>You know, if if the cookie list future was a tic tac, dance will be dancing right now, and at least into the next year, um this has been top of mind for us and our clients for quite some time, but I think as each day passes, the picture becomes clearer and more in focus. Uh the end of the third party cookie does not mean the end of programmatic. Um so clients work with us in transforming their investments into real business outcomes based on our expertise and based on our tech. So we continue to be in a great position to lead to educate, to partner and to grow with them. Um, along this uh cookie list future, the impact will be all encompassing in changing the ways we do things now and also accelerating the things that we've already been building on. So we take it from the top planning will have a huge impact because it's gonna start becoming more strategic around real business outcomes. Uh where Omni channel, So clients want to drive outcomes, drew multiple touch points of a consumer's journey, whether it has programmatic, whether it has uh cookie free environment, like connected tv, digital home audio, gaming and so forth. So we're going to see more of these strategic holistic plans. Creative will have a lot of impact. It will start becoming more important with creative testing. Creative insights. You know, creative in itself is cookie list. So there will be more focused on how to drive uh brand dialogue to connect to consumers with less targeting. With less cookies, with the cohesiveness of holistic planning. Creative can align through multiple channels and lastly, the role of a. I will become increasingly important. You know, we've always looked to build our tech our products to complement new and existing technology as well as the client's own data and text back to deliver these outcomes for them. And ai in its core it's just taking input data uh and having an output of your desired outcome. So input data could be dSP data beyond cookies such as browser such as location, such as contextual or publisher taking clients first party data, first party crm data like store visitation, sales, site activity. Um and using that to optimize in real time regardless of what vendor or what channel we're on. Um So as we're learning more about this cookie list dance, we're helping our clients on the steps of it and also introducing our own moves. >>That's awesome. Data is going to be a key value proposition, connecting in with content real time. Great stuff. Somewhere with your background in journalism and you're the tech VP of product at quan cast. You have the keys to the kingdom over there. It's interesting Journalism is about truth and good content original content. But now you have a data challenge problem opportunity on both sides, brands and publishers coming together. It's a data problem in a way it's a it's a tech stack, not so much just getting the right as to show up at the right place the right time. It's really bigger than that now. What's your take on this? >>Um you know, >>so first >>I think that consumers already sort of like except that there is a reasonable value exchange for their data in order to access free content. Right? And that's that's a critical piece for us to all kind of like understand over the past. Hi guys, probably two years since even even before the G. D. P. R. We've been doing a ton of discovery with customers, both publishers and marketers. Um and so you know, we've kind of known this, this cookie going away thing has been coming. Um And you know, Google's announcement just kind of confirmed it and it's been, it's been really, really interesting since Google's announcement, how the conversations have changed with with our customers and other folks that we talked to. And I've almost gone from being like a product manager to a therapist because there's such an emotional response. Um you know, from the marketing perspective, there's real fear there. There's like, oh my God, how you know, it's not just about, you know, delivering ads, it's about how do I control frequency? How do I, how do I measure, you know, success? Because the technology has has grown so much over the years to really give marketers the ability to deliver personalized advertising, good content, right. The consumers um and be able to monitor it and control it so that it's not too too intrusive on the publisher perspective side, we see slightly different response. It's more of a yes, right. You know, we're taking back control and we're going to stop the data leakage, we're going to get the value back for our inventory. Um and that both things are a good thing, but if it's, if it's not managed, it's going to be like ships passing in the night, right? In terms of um of, you know, they're there, them coming together, right, and that's the critical pieces that they have to come together. They have to get closer, you got to cut out a lot of that loom escape in the middle so that they can talk to each other and understand what's the value exchange happening between marketers and publishers and how do we do that without cookies? >>It's a fascinating, I love love your insight there. I think it's so relevant and it's got broader implications because, you know, if you look at how data's impact, some of these big structural changes and re factoring of industries, look at cyber security, you know, no one wants to share their data, but now if they share they get more insight, more machine learning, benefit more ai benefit. So now we have the sharing notion, but that goes against counter the big guys that want to wall garden, they want to hoard all the data and and control that to provide their own personalization. So you have this confluence of, hey, I want to hoard the data and then now I want to share the data. So so christmas summer you're in the, in the wheelhouse, you got original content and there's other providers out there. So is there the sharing model coming with privacy and these kinds of services? Is the open, come back again? How do you guys see this uh confluence of open versus walled gardens, because you need the data to make machine learning good. >>So I'll start uh start off, I mean, listen, I think you have to give credit to the walled gardens have created, I think as we look as publishers, what are we offering to our clients, what are we offering to the buy side? We need to be compelling. We shouldn't just be uh yeah, actually as journalists, I think that there is a case of the importance of funding journalism. Um but ultimately we need to make sure we're meeting the KPI is and the business needs of the buy side. And I think around that it is the sort of three core pillars that its ease of access, its scope of of activation and targeting and finally measurable results. So as I think is us as an individual publishers, so we have, we have multiple publications. So we do have scale. But then in partnership with other publishers perhaps to organizations like pre bid, you know, I think we can, you know, we're trying to address that and I think we can offer something that's compelling um, and transparent in terms of what these results are. But obviously, you know, I want to make sure it's clear transparent terms of results, but obviously where there's privacy in terms of the data and I think the form, you know, I think we've all heard a lot like data clean rooms, a lot of them out there flogging those wears. I think there's something valuable but you know, I think it's the right who is sort of the right partner or partners um and ultimately who allows us to get as close as possible to the buy side. And so that we can share that data for targeting, share it for perhaps for measurement, but obviously all in a privacy compliant >>way summer, what's your take on this? Because you talk about the future of the open internet democratization, the network effect that we're seeing in Vire al Itty and across multiple on the on the channels. Is that pointed out what's happening? That's the distribution now. So um that's almost an open garden model. So it's like um yeah, >>yeah, it's it's um you know, back in the day, you know, um knight ridder who was who was the first group that I that I worked for, um you know, each of those individual properties, um we're not hugely valuable on their own from a digital perspective, but together as a unit, they became valuable, right, and got scale for advertisers. Now we're in a place where, you know, I kind of think that each of those big networks are going to have to come together and work together to compare in size to the, to the world gardens. Um, and yeah, this is something that we've talked about before and an open garden. Um, I think that's the, that's the definitely the right route to take. And I and I agree with chris it's, it's about publishers getting as close to the market. Is it possible working with the tech companies that enable them to do that and doing so in a very privacy centric >>way. So how do we bring the brands and agencies together to get ready for third party cookies? Because there is a therapist moment here of it's gonna be okay. The parachute will open. The future is not gonna be as as grim. Um, it's a real opportunity. But if managed properly, what's your take on this is just more first party data strategy and what's your assessment of this? >>So we collaborated right now with ball grants on how did this still very complex cookie list future. Um, you know what's going to happen in the future? 2, 6 steps that we can take right now and market should take. Um, The first step is to gather intel on what's working on your current campaign, analyzing the data sets across cookie free environment. So you can translate those tactics eventually when the cookies do go away. So we have to look at things like temperature or time analysis. We could look at log level data. We could look at site analytics data. We can look at brand measurement tools and how creative really impacts the campaign success. The second thing we can look at is geo targeting strategies. The geo target strategy has been uh underrated because the granularity and geo data could go down all the way to the local level, even beyond zip code. So for example the census black data and this is especially important for CPG brands. So we're working closely with the client teams to understand not only the online data but the offline data and how we can utilize that in the future. Uh We want to optimize investments around uh markets that are working so strong markets and then test and underperforming markets. The third thing we can look at is contextual. So contextual by itself is cookie free. Uh We could build on small scale usage to test and learn various keywords and content categories based sets. Working closely with partners to find ways to leverage their data to mimic audiences that you are trying to target right now with cookies. Um the 4th 1 is publisher data or publisher targeting. So working with your publishers that you have strong relationships with who can curate similar audiences using their own first party data and conducting RFs to understand the scale and reach against your audience and their future role maps. So work with your top publishers based on historical data to try to recreate your best strategies. The 15 and I think this is very important is first party data, you know, that's going to matter more than ever. In the calculus future brands will need to think about how to access and developed the first party data starting with the consumers seeing a value in exchange for the information. It's a gold mine and understanding of consumer, their intent, the journey um and you need a really great data science team to extract insights out of that data, which will be crucial. So partner with strategic onboarding vendors and vet their ability to accept first party data into a cleaner environment for targeting for modeling for insight. And lastly, the six thing that we can do is begin to inform prospect prospecting by dedicating test budget to start gaining learnings about cookie list 11 place that we can start and it is under invested right now is Safari and Firefox. They have been calculus for quite some time so you can start here and begin testing here. Uh work with your data scientist team to understand the right mix is to to target and start exploring other channels outside of um just programmatic cookies like CTV digital, out of home radio gaming and so forth. So those are the six steps that we're taking right now with our clients to uh prepare and plan for the cookie list future. >>So chris let's go back to you. What's the solution here? Is there one, is there multiple solutions? What's the future look like for a cookie was future? >>Uh I think the one certain answers, they're definitely not just one solution. Um as we all know right now there there seems to be endless solutions, a lot of ideas out there, proposals with the W three C uh work happening within other industry bodies uh you know private companies solutions being offered and you know, it's a little bit of it's enough to make everyone's head spin and to try to track it to understand and understand the impact. And as a publisher were obviously a lot of people are knocking on our door. Uh they're saying, hey our solution is one that is going to bring in lots of money, you know, the all the buy side is going to use it. This is the one like I ma call to spend um, and so expect here and so far is that none of these solutions are I think everyone is still testing and learning no one on the buy side from our, from our knowledge is really committed to one or a few. It's all about a testing stage. I think that, you know, putting aside all that noise, I think what matters the most to us as publisher is actually something summer mentioned before. It's about control. You know, if we're going to work with a again, outside of our sort of, you know, internal identifier work that we're doing is we're going to work with an outside party or outside approach doesn't give us control as a publisher to ensure that it is, we control the data from our users. There isn't that data leakage, it's probably compliant. What information gets shared out there. What is it, what's released within within the bid stream? Uh If it is something that's attached to a somewhat declared user registered user that if that then is not somehow amplified or leverage off on another site in a way that is leveraging bit stream data or fingerprinting and going against. I think that the spirit of what we're trying to do in a post third party cookie world so that those controls are critical and I think they have those controls, his publisher, we have collectively be disciplined in what solutions that we we test out and what we eventually adopt. But even when the adoption point arrives, uh definitely it will not be one. There will be multiple because it's just too many use cases to address >>great, great insight there from, from you guys, news corp summer. Let's get back to you. I want to get your thoughts. You've been in many waves of innovation ups and downs were on a new one. Now we talked about the open internet democratization. Journalism is under a lot of pressure now, but there's now a wave of quality people really leaning in towards fighting misinformation, understanding truth and community and date is at the heart of it. What do you see as the new future for journalists, reward journalism is our ways their path forward. >>So there's uh, there's what I hope is going to happen. Um, and then I'm just gonna ignore what could write. Um, you know, there's there's a trend in market right now, a number of fronts, right? So there are marketers who are leaning into wanting to spend their marketing dollars with quality journalists, focusing on bipac owned and operated, really leaning into into supporting those businesses that have been uh, those publishers that have been ignored for years. I really hope that this trend continues. Um We are leaning into into helping um, marketers curate that supply right? And really, uh, you know, speak with their dollars about the things that that they support. Um, and uh, and and value right in market. So I'm hoping that that trend continues and it's not just sort of like a marketing blip. Um, but we will do everything possible to kind of like encourage that behavior and and give people the information they need to find, you know, truly high quality journalism. >>That's awesome chris Summer. Thanks for coming on and sharing your insight on this panel on the cookie list future. Before we go, just quick summary each of you. If you don't mind just giving a quick sound bite or bumper sticker of what we can expect. If you had to throw a prediction For what's going to happen in the next 24 months Chris We'll start with you. >>Uh it's gonna be quite a ride. I think that's an understatement. Um I think that there, I wouldn't be surprised if if google delays the change to the chrome by a couple of months and and may give the industry some much needed time, but no one knows. I guess. I guess I'm not except for someone somewhere deep within chrome. So I think we all have to operate in a way that changes to happen, changes to happen quickly and it's gonna cover across all facets of the industry, all facets of from advertising, marketing. So just be >>prepared. >>Yeah, along the same lines, be prepared, nobody knows what's going to happen in the future. Uh You know, while dancing in this together. Uh I think um for us it's um planning and preparing and also building on what we've already been working on. Um So omni channel ai um creative and I think clients will uh lean more into those different channels, >>awesome. So we'll pick us home, last word. >>I think we're in the throwing spaghetti against the wall stage. Right, so this is a time of discovery of leaning in trying everything out, Learning and iterating as fast as we possibly >>can. Awesome. And I love the cat in the background over your shoulder. Can't stop staring at your wonderful cat. Thanks for coming on chris, Thanks for coming on. This awesome panel industry breakdown of the cookie conundrum. The recipe for success data ai open. Uh The future is here, it's coming, it's coming fast. I'm john fryer with the cube. Thanks for watching. Mhm. Yeah. Mhm. Mhm. Welcome back to the Quant Cast industry summit on the demise of third party cookies. The cookie conundrum, a recipe for success. We're here peter day. The cto of quad cast and crew T cop car, head of product marketing quad cast. Thanks for coming on talking about the changing advertising landscape. >>Thanks for having us. Thank you for having >>us. So we've been hearing this story out to the big players. Want to keep the data, make that centralized control, all the leverage and then you've got the other end. You got the open internet that still wants to be free and valuable for everyone. Uh what's what are you guys doing to solve this problem? Because cookies go away? What's going to happen there? How do people track things you guys are in this business first question? What is quan cast strategies to adapt to third party cookies going away? What's gonna be, what's gonna be the answer? >>Yeah. So uh very rightly said, john the mission, the Qantas mission is the champion of free and open internet. Uh And with that in mind, our approach to this world without third party cookies is really grounded in three fundamental things. Uh First as industry standards, we think it's really important to participate and to work with organizations who are defining the standards that will guide the future of advertising. So with that in mind, we've been participating >>with I. A. B. >>Tech lab, we've been part of their project Triarc. Uh same thing with pre bid, who's kind of trying to figure out the pipes of identity. Di di di di di pipes of uh of the future. Um And then also is W three C, which is the World Wide Web Consortium. Um And our engineers and our engineering team are participating in their weekly meetings trying to figure out what's happening with the browsers and keeping up with the progress they're on things such as google's block. Um The second uh sort of thing is interoperability, as you've mentioned, there are lots of different uh I. D. Solutions that are emerging. You have you I. D. Two point oh, you have live RAM, you have google's flock. Uh And there will be more, there are more and they will continue to be more. Uh We really think it is important to build a platform that can ingest all of these signals. And so that's what we've done. Uh The reason really is to meet our customers where they are at today. Our customers use multiple different data management platforms, the mps. Um and that's why we support multiple of those. Um This is not going to be much different than that. We have to meet our customers where we are, where they are at. And then finally, of course, which is at the very heart of who contrast is innovation. Uh As you can imagine being able to take all of these multiple signals in including the I. D. S. And the cohorts, but also others like contextual first party um consent is becoming more and more important. Um And then there are many other signals, like time, language geo location. So all of these signals can help us understand user behavior intent and interests um in absence of 3rd party cookies. However, uh there's there's something to note about this. They're very raw, their complex, they're messy all of these different signals. Um They are changing all the time, they're real time. Um And there's incomplete information isolation. Just one of these signals cannot help you build a true and complete picture. So what you really need is a technology like AI and machine learning to really bring all of these signals together, combine them statistically and get an understanding of user behavior intent and interests and then act on it, be it in terms of providing audience insights um or responding to bid requests and and so on and so forth. So those are sort of the three um fundamentals that our approach is grounded in which is industry standards, interoperability and and innovation. Uh and you know, you have peter here, who is who is the expert So you can dive much deeper into >>it. Is T. T. O. You've got to tell us how is this going to actually work? What are you guys doing from a technology standpoint to help with data driven advertising in a third party cookie list world? >>Well, we've been um This is not a shock, you know, I think anyone who's been close to his space has known that the 3rd Party Cookie has been um uh reducing inequality in terms of its pervasiveness and its longevity for many years now. And the kind of death knell is really google chrome making a, making the changes that they're gonna be making. So we've been investing in the space for many years. Um and we've had to make a number of hugely diverse investment. So one of them is in how as a marketer, how do I tell if my marketing still working in the world without >>computers? The >>majority of marketers completely reliant on third party cookies today to tell them if they're if they're marketing is working or not. And so we've had to invest heavily and statistical techniques which are closer to kind of economic trick models that markets are used to things like out of home advertising, It's going to establishing whether they're advertising is working or not in a digital environment actually, >>just as >>often, you know, as is often the case in these kind of times of massive disruption, there's always opportunity to make things better. And we really think that's true. And you know, digital measurement has often mistaken precision for accuracy. And there's a real opportunity to kind of see the wood for the trees if you like. And start to come with better methods of measuring the affections of advertising without third party cookies. And in fact to make countless other investments in areas like contextual modeling and and targeting that third party cookies and and uh, connecting directly to publishers rather than going through this kind of bloom escape that's gonna tied together third party cookies. So if I was to enumerate all the investments we've made, I think we'll be here till midnight but we have to make a number of vestments over a number of years and that level investments only increasing at the moment. >>Peter on that contextual. Can you just double click on that and tell us more? >>Yeah, I mean contextual is unfortunately these things, this is really poorly defined. It can mean everything from a publisher saying, hey, trust us, this dissipated about CVS to what's possible now and has only really been possible the last couple of years, which is to build >>statistical >>models of the entire internet based on the content that people are actually consumed. And this type of technology requires massive data processing capabilities. It's able to take advantage of the latest innovations in there is like natural language processing and really gives um computers are kind of much deeper and richer understanding of the internet, which ultimately makes it possible to kind of organize, organized the Internet in terms of the types of content of pages. So this type of technology has only been possible the last two years and we've been using contextual signals since our inception, it's always been massively predictive in terms of audience behaviours, in terms of where advertising is likely to work. And so we've been very fortunate to keep the investment going um and take advantage of many of these innovations that have happened in academia and in kind of uh in adjacent areas >>on the ai machine learning aspect, that seems to be a great differentiator in this day and age for getting the most out of the data. How is machine learning and ai factoring into your platform? >>I think it's, it's how we've always operated right from our interception when we started as a measurement company, the way that we were giving our customers at the time, we were just publishers, just the publisher side of our business insights into who their audience was, were, was using machine learning techniques. And that's never really changed. The foundation of our platform has always been, has always been machine learning from from before. It was cool. A lot of our kind of, a lot of our core teams have backgrounds in machine learning phds in statistics and machine learning and and that really drives our our decision making. I mean, data is only useful if you can make sense of it and if you can organize it and if you can take action on it and to do that at this kind of scout scale, it's absolutely necessary to use machine learning technology. >>So you mentioned contextual also, you know, in advertising, everyone knows in that world that you've got the contextual behavioural dynamics, the behavior that's kind of generally everyone's believing is happening. The consensus is undeniable is that people are wanting to expect an environment where there's trust, there's truth, but also they want to be locked in. They don't wanna get walled into a walled garden, nobody wants to be in the world, are they want to be free to pop around and visit sites is more horizontal scalability than ever before. Yet, the bigger players are becoming walled garden, vertical platforms. So with future of ai the experience is going to come from this data. So the behavior is out there. How do you get that contextual relevance and provide the horizontal scale that users expect? >>Yeah, I think it's I think it's a really good point and we're definitely this kind of tipping point. We think, in the broader industry, I think, you know, every published right, we're really blessed to work with the biggest publishers in the world, all the way through to my mom's vlog, right? So we get to hear the perspectives of publishers at every scale. I think they consistently tell us the same thing, which is they want to more directly connected consumers, they don't wanna be tied into these walled gardens, which dictate how they must present their content and in some cases what content they're allowed to >>present. >>Um and so our job as a company is to really provide level >>the playing field a little bit, >>provide them the same capabilities they're only used to in the walled gardens, but let's give them more choice in terms of how they structure their content, how they organize their content, how they organize their audiences, but make sure that they can fund that effectively by making their audiences in their environments discoverable by marketers measurable by marketers and connect them as directly as possible to make that kind of ad funded economic model as effective in the open Internet as it is in social. And so a lot of the investments we've made over recent years have been really to kind of realize that vision, which is, it should be as easy for a marketer to be able to understand people on the open internet as it is in social media. It should be as effective for them to reach people in the environment is really high quality content as it is on facebook. And so we invest a lot of a lot of our R and D dollars in making that true. We're now live with the Comcast platform, which does exactly that. And as third party cookies go away, it only um only kind of exaggerated or kind of further emphasizes the need for direct connections between brands and publishers. And so we just wanna build the technology that helps make that true and gives the kind of technology to these marketers and publishers to connect and to deliver great experiences without relying on these kind of walled >>gardens. Yeah, the Director Director, Consumer Director audience is a new trend. You're seeing it everywhere. How do you guys support this new kind of signaling from for for that's happening in this new world? How do you ingest the content and just this consent uh signaling? >>Uh we were really fortunate to have an amazing, amazing R and D. Team and, you know, we've had to do all sorts to make this, you need to realize our vision. This has meant things like, you know, we have crawlers which scan the entire internet at this point, extract the content of the pages and kind of make sense of it and organize it uh, and organize it for publishers so they can understand how their audiences overlap with potential competitors or collaborators. But more importantly, organize it for marketers. So you can understand what kind of high impact opportunities are there for them there. So, you know, we've had to we've had to build a lot of technology. We've had to build analytics engines, which can get answers back in seconds so that marketers and publishers can kind of interact with their own data and make sense of it and present it in a way that's compelling and help them drive their strategy as well as their execution. We've had to invest in areas like consent management because we believe that a free and open internet is absolutely reliant on trust and therefore we spend a lot of our time thinking about how do we make it easy for end users to understand who has access to their data and easy for end users to be able to opt out. And uh and as a result of that, we've now got the world's most widely adopted adopted consent management platform. So it's hard to tackle one of these problems without tackling all of them. Were fortunate enough to have had a large enough R and D budget over the last four or five years, make a number investments, everything from consent and identity through context, your signals through the measurement technologies, which really bring advertisers >>and Publishers places together great insight. Last word for you is what's the what's the customer view here as you bring these new capabilities of the platform, uh what's what are you guys seeing as the highlight uh from a platform perspective? >>So the initial response that we've seen from our customers has been very encouraging, both on the publisher side as well as the marketer side. Um I think, you know, one of the things we hear quite a lot is uh you guys are at least putting forth a solution, an actual solution for us to test Peter mentioned measurement, that really is where we started because you cannot optimize what you cannot measure. Um so that that is where his team has started and we have some measurement very, very uh initial capabilities still in alpha, but they are available in the platform for marketers to test out today. Um so the initial response has been very encouraging. People want to engage with us um of course our, you know, our fundamental value proposition, which is that the Qantas platform was never built to be reliant on on third party data. These stale segments like we operate, we've always operated on real time live data. Um The second thing is, is our premium publisher relationships. We have had the privilege of working like Peter said with some of the um biggest publishers, but we also have a very wide footprint. We have first party tags across um over 100 million plus web and mobile destinations. Um and you know, as you must have heard like that sort of first party footprint is going to come in really handy in a world without third party cookies, we are encouraging all of our customers, publishers and marketers to grow their first party data. Um and so that that's something that's a strong point that customers love about us and and lean into it quite a bit. Um So yeah, the initial response has been great. Of course it doesn't hurt that we've made all these are in the investments. We can talk about consent. Um, and you know, I often say that consent, it sounds simple, but it isn't, there's a lot of technology involved, but there's lots of uh legal work involved as it as well. We have a very strong legal team who has expertise built in. So yeah, very good response. Initially >>democratization. Everyone's a publisher. Everyone's a media company. They have to think about being a platform. You guys provide that. So I congratulate Peter. Thanks for dropping the gems there. Shruti, thanks for sharing the product highlights. Thanks for, for your time. Thank you. Okay, this is the quan cast industry summit on the demise of third party cookies. And what's next? The cookie conundrum. The recipe for success with Kwan Cast. I'm john free with the cube. Thanks for watching. Mm

>>from around the globe, >>it's the cube >>With digital coverage of IBM think 2021 brought to you by >>IBM. Welcome back here on the cube, jOHn wall is your host with you as we continue our IBM think initiative. Been talking a lot about IBM s assistance in terms of what it's doing for its client base. We're gonna talk about partnerships today a little bit with Bill Patterson who is the VP and general manager of Crm applications at Salesforce, who has a really good partnership in great practice right now with IBM and Bill, thanks for the time to you looking forward to spending some time with you hear, >>thank you Jon. Thanks for having me today. >>You bet. Let's just jump right in first off, let's share with the viewers about your core responsibilities that sales for us. We're talking about Crm what your engagement is there, but if you would just kind of give us an idea of the kind of things that you're handling on a day to day basis, >>Well I am responsible for our crm applications here at Salesforce, which are our sales cloud technologies to help organizations get back to growth. Our service cloud technologies which are really helping organizations to take care of their customers through all moments of the digital lifecycle are small business solutions. So to help growing organizations thrive uh and our work dot common vaccine management solutions which are helping economies safely reopen through the crisis modes that we've all been living in. So broad range of responsibilities in my day to day is nothing like it was a year ago. >>I could only imagine, especially when you throw that last component in Covid, which hopefully will have some time to talk about just because they people are so are taken to the subject now and obviously it's impacting business on so many different levels. But let's talk first off about IBM and your partnership with them kind of the genesis of that, how that came about and maybe how you're working together, how are you integrated these days with IBM? >>Well you know one of the things that Salesforce that are key value as an organization is is to establish trust around the transformation of organizations across the world and when you think about brands that you can trust to drive transformation with IBM and Salesforce really stand apart. Uh so IBM is an incredible partner for us, on the technology side, on a service delivery side and an innovation side for us to create new solutions to help our clients really go in this from two state of how their businesses used to operate to how they need to operate in the future. Um I love working with the IBM team, we have a lot of great values that are shared across our two organizations, but most fundamentally those values are deeply rooted in customer success. And I think that that is one of the things that really draws me to working with such a great partner here. >>Yeah. Go into the process a little bit if you will. So if I'm a prospective client of yours and I come to you with some cloud needs, you know, again, whether it's uh, you know, storage or whether it's applications or whether it's edge, whatever it is, you know, I'm coming to you for um how do you then translate that to IBM and how does IBM come into play? Where does where do the boundaries kind of start and stop or do they? Is it a complete mesh? >>Yeah. Well, I think one of the things that's sort of unique about today's climate is people aren't just looking to solve technology problems. They're looking to solve business problems and what we really do, you know, at Salesforce's lead with the business transformation opportunity uh, and deeply partnered with IBM on a number of fronts to really go help those opportunities become realized. The first is in the services line. IBM has great partnerships with Salesforce around the transformation about core business processes, configuration integration services. That's one of the dimensions that we work together on. We also worked together on the areas of artificial intelligence and how we help businesses become smart in their operations every day to empower their workforce to really achieve more. And finally, you know that you mentioned about core technology oftentimes the business requirements translate into great technology transformation and that's what we do deeply with the IBM team is really outlined a blueprint and a road map for modernizing the technical infrastructure to help organizations move fast, increase their operational agility and run at such scale and safely today in the modern world that we all operate in on so through all those facets of the life cycle, IBM continues to be one of our leading partners globally to help clients, you know, not just here in the United States but around the world think about how they need to maximize their transformational abilities. >>And you touched on this at the outset of the interview, we were talking about IBM and the impact and and obviously the great association relationship that you have with them and the value in that I'd like you to amplify on that a little bit more in terms of specifically what are you getting out of it you think from a sales force perspective to have kind of the power and the weight and the bench basically that IBM provides. >>Yeah, well you think about transformation and you know, you read a lot about digital transformation online, that means so many different things to so many different businesses, businesses not just like I said here in one country, but globally the transformational needs, you really need to come with incredible bench and domain expertise by industry, by geography. Even by, you know, some micro regions in those geography has given what we've been experiencing here in the public sector in the United States with the scope of response activity we're doing with the IBM team. And so when you talk about the deep bench, what I love about working with IBM on is again commanding just great industry insights and knowledge of where industries are heading uh and also cross industry insights so that you can really bring great best practices from say one industry to another Um second is that real understanding of the global nature of business today. And I don't think the one thing that's really fasting about digital, it is not a sovereign identity today, a digital really means that you need to understand how to operate in every country, every region, every location uh you know, safely and so IBM has incredible depth and bench of experiences to help our clients truly transform those areas. Maybe another area that I really have appreciated working with IBM on is that deep technical understanding and deep technical domain of excellence, you know, maybe in the area of artificial intelligence and our partnership is quite unique between Salesforce and IBM, not only do we work together for external clients, but inside of IBM, IBM is using Salesforce today to run a lot of your core operations. And so the partnership we work with not only IBM as a kind of delivery excellence, but internally as a customer is really helping IBM transform its operations from service to sales to marketing all around the world. So I think this partnership is one that is deeply rooted in in working together and really like I mentioned before, finding the right path to drive the outcomes >>of tomorrow, you know, you mentioned Covid, um and so I would like to touch on that, but I assume that's you know, a big part of of your current relationship, if you will in service of the partnership goes, what specifically are you doing with IBM in that space of what have you done? And then what are you continuing to do as we go through now, the vaccination process and the variant identification processes and all these things. So maybe you can share with our viewers a little bit about the kinds of things that you have been working on together and the kind of progress that you've been making. >>Yeah, well back, you know, a year ago, uh you know when the world was really at a standstill, uh sales first created a solution called work dot com, which was to engineer new technologies to help businesses kind of deal with the reality of a hard shutdown to business in the say prime um private sector and in the public sector to really create new innovation around key solutions like contact tracing that you might have needed to track, you know, kind of outbreak and uh you know, the rate of progression of the virus. And what we did with the IBM team, working with uh clients around the world, first was work together to deploy those technologies rapidly into the hands of our customers through those moments of opportunity and realization. You know, working with our clients, we also started here, you know, kind of about, you know, where we find ourselves today. This mass vaccination wave of where our citizens and societies are kind of on the recovery journey. And the work that we did with IBM was to start to plan out the next wave of recovery options around vaccine management sales force, creating the core vaccine scheduling, distribution in administration management services in IBM focusing on more of that credentialing and vaccination state of how someone has gone from receiving a shot and arm to now having a trusted profile of which vaccines. When did you receive them? Are they still accurate, valid? Uh, around those solutions. So where we're working with the IBM tape most acutely on covid now is in the vaccine credential management side through Watson health. >>Mm Well, can you give us an idea now? Let's if we can dig in a little deeper on some other things you talk about? Talk about core technologies, we talked about, I mentioned Edge you know, that's when people are trying to figure out how to integrate, you know, these edge technologies into their, into their primary systems now. So, um can you give us some examples, some specific examples of some things that you're actually collaborating on today in those areas or maybe another that comes to mind? >>Yeah. Edge computing is probably one of the other more exciting things that we're doing with the IBM team. And I think you find that really working with our field service business and IBM cloud services, you know, globally speaking on the edge, you know, as devices become smarter and more digital. Um, they have a lot of signals that organizations can now tap into not only for real time intelligence, but also fault intelligence. When a device actually is starting to need repair or preventative maintenance around the solutions that kind of need to be administered and the work that we're doing to really broker this connected, not just enterprise, but connected set of experiences, but by IBM super powerful here because the IBM edge services are now helping us get into anomaly detection, those anomaly detection czar automatically routing to workers who use the sales force field service capabilities. And now we can help organizations stay running uh, you know, safely and and with continuity, which is really all our customers are asking us for. So the ability for us to be creative and understand our parts of the picture together are really the things that I think are most exciting um for what we're doing for clients around >>the world. Now, you mentioned continuity, kind of a cousin of that and a security right, in a way, because, you know, um so what are you hearing from your your customer base these days with regard to security? You know, a lot of very high profile instances, certainly from bad state actors, as we will know. But what are you hearing in terms of security that you're looking at and maybe cooperating and collaborating with IBM on to make sure that those concerns are being addressed? >>Yeah. You know, I think, well, first off security is on the top of mines, you know, for all decision makers, executives today, it's the number one threat that a lot of companies are really needing to respond to, given what we've seen, uh you know, in the geopolitical world that we're in. Um and security isn't just about securing your servers, it's also about securing every operational touch point that you might have with, you know, your um uh every end user or even every customer that's inter operating with your services that you project as an organization. And what I love about working with the IBM team as we mentioned, you know, just such great insights across all parts of technology infrastructure to really help understand both the threat level, uh how to contain that threat level, and more importantly how to engineer, you know, with great solutions all the way into the hands of customers so that becomes safe and easy for all actors in your environment to really operate with. Um And that's where, you know, again, you think about a solution like mobile sales professionals, you know, they're out traveling around the world on mobile devices, sometimes they're even brought their own personal devices into the enterprise. And so IBM is a great partner for ours just to help us understand the overall threat level of every device, every moment that an employee might have within their organizational data and really helped create great solutions to keep organizations running >>safely. Yeah, I think it's uh interesting you talk about people bringing their own devices on back when I remember that from B y O B was like a huge thing, right? And this major problem or a conundrum and now it's, it's almost like an afterthought right? You got it solved, we got it well, taken care of, >>oh, you think about again, devices in the enterprise and how much we've been able to achieve with the will be becoming commonplace in norm even today, the working place from home kind of environment that we're in, I mean, who would have thought a year ago that most of our operations conducted safely from her home office is not just our regional and corporate offices. And again, that's the kind of thing that working with IBM has been such a great value for our clients because you know, no one could have forecasted that the context center would have had to move to your kitchen last year. Uh and yet, you know, we had to really go achieve that in this time and working great partners like IBM, it became not just a conversation but real practice. >>Right by the way, I think I said, B Y O. B. I met B Y O. D. And so you know where my mind's at? Uh >>I wasn't gonna correct you. I appreciate that. It's >>Just kind of hit me. I think that just that was a 40 and slip. Certainly. >>Hey Bill, thanks for >>the time. I certainly do appreciate it. Thanks for shining light on this really good partnership between Salesforce and IBM. And we wish you continued success down the road with that as well. >>Yeah. Thanks again and again. Love being your partner and love the impact we're having together. >>Great! Thank you very much. Bill Patterson joining us, the VP working Crm at Salesforce, talking about IBM and that relationship that they're putting into practice for their client base. John Wall's reporting here on the cube. Thanks for joining us with more on IBM thing. Yeah.

>>from >>Around the globe. It's the cube with digital coverage of IBM think 2021 brought to you by IBM. Welcome to the cubes coverage of IBM Think 2021. I'm your host lisa martin today. Have a new guest new to the cube moderate Tabla, the director of strategic partnerships for enterprise application services is joining me moderate. It's nice to have you on the program. >>Thank you lisa. Very excited to be here and hello everyone. >>So different this year. Again Virtual like last year we're going to talk about digital transformation and we saw this huge acceleration in 2020. The massive adoption of SAS applications. We want to talk though about IBM managed services for S AP applications. So before we get into that I'd love for you to be able to describe what your role is to our audience. >>Absolutely lisa. So good day everyone. I've been with IBM for over 23 years and my current role, I run the strategic alliances for IBM basically in the E. R. P. Space S. A. P. Being our primary strategic partner, I have a global team of architects and we basically look at market requirements. Talk to a lot of customers, talk to our business partner S. A. P. Obviously um you know, try to help them would come up with a solution. Well the transformation journey to the cloud and hopefully today, you know, we'll elaborate a little bit more on the exact work that we do in this space. So very happy to be here. Thank you. >>Sure. So we're going to dissect the IBM s. A. P. Relationship. I think you even worked at S. A. P. Before your 23 year tenure at IBM. So we'll get to some of that as well. But help us understand customers have so much choice each day. There is more and more interest why should a customer choose IBM as their strategic partner for this digital transformation journey. >>Well really, IBM has been in this essay p business for many, many decades. As you know Um we have many many certified people in S. A. P. close to 40,000 people actually globally. Um And we can help the clients in various aspects of their journey. So you know the typical cloud journey has four different aspects to it. Um You need the advice so you need basically systems integration services to help customers actually define the scope on, you know what they actually want to either upgrade, bring it to current as well as you know what workloads they want to move to the cloud. We can help customers with our Systems integration services called the Global Business Business Services in IBM we can help them with their entire planning, we can help them with the actual move to the cloud. So IBM offers a whole different variety of services for migration or not only to see ASAP workloads. I mean ASAP typically ends up being the heart of the workloads that any of the major customers run but surrounding SCP, there's a lot of other applications so we can help plan that entire journey for advice and then move it as well as in the interim. You know, there's also another step which can be some customers. They need to build net new and you know upgrade their applications to the latest technologies so we can help them with that. And then once the building move is over, obviously customers need help with the actual steady state run state environment and that's where this key service that we have managed services for SCP applications helps them. So our certifications with S. A. P. And the fact that we have consultants that are certified and all these different aspects of the journey can really help your clients. The other part, I would say that IBM is really a hybrid cloud provider. So obviously we have our cloud service, the IBM cloud, but we can offer this service meeting the customer where they need to be. So we are a client centric service, so if the customer has a choice of AWS or Azure, uh we can meet them left. So this is how, you know, we can really help our customers with our expertise. I know the data point to note that, you know, 70 80 of the enterprise customers still have not moved their workloads to the cloud. So this is a space, especially with Covid, as you've seen what's happened, you know, customers now are really, really looking to accelerate the journey because it's become a necessity, It's no longer something that our Ceo and C I O can push to the right, right, this is something they have to act now. So I began with all these various services, you know, specifically good in the S A. P area. Um, and given that we've been managing these production workloads for a lot of these enterprise customers on our cloud services for many, many years, we have the experience, we can truly help them with their journey >>And as you said, that's so critical of these days. One of the things that I think we learned in 2020 is is there was no time like the present, it really became such a massive shift that for business survival, those that weren't digitized definitely were in some hot water. Talk to me. So you talked about the IBM s, a P relationship being longstanding, Can you talk to me about the different aspects of the alliance and how that helps you guys to meet customers where they are? >>Sure. Um so s. a. p. and idea, we've been strategic partners for over 46 years. That's a long time. The partnership obviously has evolved over the years and I'll talk about you know a few of the different aspects where we've been partners um you know, the alliance initially obviously started, you know, IBM is in multiple businesses as you know, we have our one of the largest systems integrators in the world from a global business services point of view as well as one of the largest application planet services providers. So that's uh you know part of the alliance then we have our server groups, the power systems that IBM has. So that's another dimension of the alliance where um you know 5 6000 plus ASAP clients even today are still running um there? S a the applications on the power systems, whether it's on premise or also in some of the cloud deployment models. Historically we also had obviously the Database DB two alliance, but now with the S. A. P. S moved to Hannah um that's kind of a little bit of a mute point. Obviously it still exists, but most of the clients are now obviously being encouraged really to adopt S. A. P. S latest S four hana from the services standpoint. The other facet, you know, is really around the cloud services. So that's really our topic today right. Um in the cloud services area we have alliances with S. A. P very very strong alliances that have existed for you know, almost a decade now. Um as I said we've been managing the production workloads for very very large customers in many different industries, their entire supply chains. HR financial systems are running on IBM either in the old traditional hosting models um or also in our cloud models for the past 10 plus years. Right as IBM has evolved, so we have made sure that we do a whole different types of certifications with S. A. P. To stay current. Um many of these certifications are done either you know every two years, some are done every year. And if anyone checks, you know, the S. A. P. Service marketplace website which is owned by S. A. P. You can see IBM listed in all these different angles as a certified provider. There isn't another provider that can claim this breath in terms of certifications that IBM has done and that's why customers can benefit either from one or two of these services that IBMS provides or obviously a combination is a single vendor if the customer needs. So, you know, we have the sex, we have the credibility, we have decades of, you know, Delivery excellence in these areas, servicing these clients. Lots of the Fortune, 100 customers actually are running. Um there? S a p workloads on the IBM systems, whether in traditional hosting or in a hybrid cloud deployment. Some cases were actually providing services for customers that run their SCP workloads on premise. So we cater to that, you know, sets of clients as well and then of course others that are purely on our cloud. Um IBM cloud as well as hyper scholars. Yeah, so long >>list of certifications, that seems to be one of the biggest differentiators that you talked about me a little bit about how things have evolved over the last 12 to 18 months. in terms of how is IBMS focus changed for hybrid cloud with S. A. P. >>Yeah, so the focus changed if you know, you know, until last year we will call the cloud and cognitive company. Um This year of course the whole company has changed and we're going through a major transformation at the moment. We are the hybrid cloud company now. And that that name change means a lot. It means a lot in the sense that it gives choices to the customer, that's what the whole mission is all about. We want to make sure that customers are consuming IBM services and the IBM wants to meet them where they want to be. So there's you know, flexibility of choices in terms of hybrid, another cloud deployment model. So most customers in the S. A. P. Area, you know, they're looking for either just a pure private cloud deployment or they're looking for public cloud deployment or a combination and some are because, you know, there? S A. P. S. Footprint sizes are so large. Think about the multinational global companies, you know, and then they operate in so many different regions of the world and their data sizes of their databases are so large. Perhaps, you know, the public cloud really isn't a good fit yet. These customers are looking to move some sort of their workloads to the cloud. So that's where this hybrid cloud helps them. Because customers, you know, 90 plus percent of the clients today are really not choosing one hyper Scaler as their deployment option. They're really looking at multiple. So because they're running their workloads not just ASAP, but everything else, you know, SCP always brings along a whole bunch of other applications like tax applications and other interfaces, homegrown applications analytics that the customers are using. So if you want to take advantage of the true hybrid cloud and the benefits of all the various um, deployments and hyper scale is available in that region. Really, the hybrid cloud strategy from IBM is a perfect fit because we give them choices of deployment. We're not saying that you have to deploy an IBM cloud. Um, we're saying you can deploy either on premise VWs as your idea of cloud. Really what makes sense? You know, best sense for the types of war clothes that the customer is looking at. So that's how the strategy for IBM has completely changed to meet the clients, you know, for what they're actually looking for. Talk to me a >>little bit about the go to market so I B M and S A P longstanding decades old relationship, A lot of certifications that you talked about. We're talking about business critical Applications, you mentioned supply chain a minute ago and I can't help but think it how supply chain has been affected in the last year. What is the good market approach with respect to providing consultation services to help customers determine? Should we migrate to what Hyper Scaler and how and when? >>Yeah, so we can help them with that? Um, so hyper hyper scale is obviously, you know, IBM has been listed for example, as the leader in Gartner 2020 and you know, there's lots of other stats that show them that IBM is a leader in application services, in consulting services, application management services as well as managed services. So these are all different, Right? And you can see us being listed as a leader either it's in Gartner or I. D. C. Or Horse or Wave. And for many reasons and you know, IBM actually has one series of pinnacle awards from S. A. P. Over the U. S. How this helps the clients really determined is that, you know, IBM obviously does a lot of studies externally. We have internal as well as external facing views of comparatives of the various hyper scholars, um you know, including Aws, Azure, G. C. P. And so on. So when a customer comes to us for asking for advice, um, and so on, we basically look at our own intellectual properties, all the analysis that has been done. And more importantly, we look at the full scope of services that the customer wants is doing. What sort of a business are there in. We have industry experts, there's E. R. P. Strategy, um, folks within IBM. So, you know, they go after a certain industry and when they, let's say, you know, they've gone after the oil and gas industry, for example, they will look at multiple customers in that particular space. So based on their experiences, we can actually define the right road map for the client to be able to help them to move their work clothes to this hybrid cloud strategy that I just mentioned. Right? So that's how we can help them because we have the expertise in that industry as well. >>And I'm curious moderate in the last year with so much flux and rapidly changing market conditions, Did you >>see any >>one or two industries in particular really leading the charge here and coming to IBM. S. A. P. For help on this transformation journey which has been accelerated by a couple of years. >>Suddenly the retail industry for sure, right. I mean in spite of the crisis, I think the retail industry did pretty well, right? Because people still have to buy stuff. Of course, the whole buying behavior change. No question. Um You and I don't know about two days of, but for me, you know, I was never a major online shopper. Oh yeah. You know, I just about everything. Um previously it used to be select things here and there, but now it's totally changed, right? So that industry certainly has accelerated. No question. We've had a lot of those coming. The other industries that I've seen. The change in the last 12, 18 months is really, for example, you know, the banking industry and so on. Um IBM basically, you know, launched a lot of services in the financial services sector for this reason. Um So those are of course transforming very fast to keep up with the market. Um and I'm sure there's others, right? But these are the two that come to mind. Yeah, >>two that have been most affected and needed to pivot so quickly. In addition to health care. Let me ask you one final question here. Before we wrap. Talk to me about the advantages of using the PMC partner managed cloud s a P license resale model. The advantages of using that and the benefits. >>Sure. Um so we, you know, so far our discussion was really focused around, you know, the various service capabilities that IBM has in terms of our capabilities for helping clients with hyper scholars and hybrid cloud. We also need to spend a little bit of time talking about the operations model. Right? So when they're running their production workloads on IBM PMC is yet another dimension. So what PMC partner managed cloud is really some very limited partnerships that s A P does And the IBM is the lead on that one in this base. What ASAP allows is the partner, which in this case is IBM to resell the ASAP software license to a customer. So IBM has the rights globally to resell the license and why is that beneficial to the client? Because now, um, IBM can actually turn around the S. A. P license and have the customer pay us in a SAS model. So it basically is now an apex model where the customer is basically paying, you know, a monthly fee as an example, so there's no upfront cost to the client and they basically pay IBM and IBM PS ASAP. So IBM is kind of holding the risk if you will on behalf of the customer, it gives customers more choices, more flexibilities, better pricing approach. So if the customer wants as an example to buy everything the full package, including systems implementation services, deployment models with choices on a cloud, whether it's IBM cloud or others as well as the license itself. IBM has this end to end capability today. We've been selling it to several clients for a few years in several geography is right. So that's the advantage behind it. >>Excellent. Thanks for breaking that down moderate and joining me today talking about what's new with I B M and S A P, the opportunities for customers to accelerate their digital transformation. We appreciate you stopping by. >>Thank you very much, lisa truly enjoyed it. Thank you. >>Good. Me too. For moderate Tabla. I'm lisa martin. You're watching the cubes coverage of IBM think 2021. >>Mm.

>>Okay, >>welcome to Accelerating next. Thank you so much for joining us today. We have a great program. We're gonna talk tech with experts, will be diving into the changing economics of our industry and how to think about the next phase of your digital transformation. Now. Very importantly, we're also going to talk about how to optimize workloads from edge to excess scale with full security and automation all coming to you as a service. And with me to kick things off as Neil Mcdonald, who's the GM of compute at HP NEAL. Always a pleasure. Great to have you on. >>It's great to see you dad >>now, of course, when we spoke a year ago, we had hoped by this time we'd be face to face. But here we are again, you know, this pandemic, It's obviously affected businesses and people in so many ways that we could never have imagined. But the reality is in reality, tech companies have literally saved the day. Let's start off, how is HPV contributing to helping your customers navigate through things that are so rapidly shifting in the marketplace, >>although it's nice to be speaking to you again and I look forward to being able to do this in person. At some >>point. The >>pandemic has really accelerated the need for transformation and businesses of all sizes. More than three quarters of C. I. O. S. Report that the crisis has forced them to accelerate their strategic agendas, organizations that were ready transforming or having to transform faster and organizations that weren't on that journey yet are having to rapidly develop and execute a plan to adapt to this new reality. Our customers are on this journey and they need a partner for not just the computer technology but also the expertise and economics that they need for that digital transformation. And for us this is all about unmatched optimization for workloads from the edge to the enterprise to extra scale With 360° security and the intelligent automation all available in that as a service experience. >>Well, you know, as you well know, it's a challenge to manage through any transformation, let alone having to set up remote workers overnight, securing them, re setting budget priorities. What are some of the barriers that you see customers are working hard to overcome? >>Simply put the organizations that we talk with our challenged in three areas. They need the financial capacity to actually execute a transformation. They need the access to the resource and the expertise needed to successfully deliver on a transformation. And they have to find the way to match their investments with the revenues for the new services that they're putting in place to service their customers in this environment. >>You know, we have a data partner E. T. R. Enterprise Technology Research and the spending data that we see from them is it's quite dramatic. I mean last year we saw a contraction of roughly 5% of in terms of I. T. Spending budgets etcetera. And this year we're seeing a pretty significant rebound. Maybe a 67% growth ranges is the prediction. The challenge we see his organizations have to they got to iterate on that. I call it the forced march to digital transformation and yet they also have to balance their investments. For example that the corporate headquarters which have kind of been neglected. Is there any help in sight for the customers that are trying to reduce their spending and also take advantage of their investment capacity? >>I think you're right. Many businesses are understandably reluctant to loosen the purse strings right now given all of the uncertainty. And often a digital transformation is viewed as a massive upfront investment that will pay off in the long term, and that can be a real challenge in an environment like this, but it doesn't need to be uh, we work through HP financial services to help our customers create the investment capacity to accelerate the transformation, often by leveraging assets they already have and helping them monetize them in order to free up the capacity to accelerate what's next for their infrastructure and for the business. >>So can we drill into that? I would wonder if you could add some specifics. I mean, how do you ensure a successful outcome? What are you really paying attention to as those sort of markers for success? >>Well, when you think about the journey that an organization is going through, it's tough to be able to run the business and transform at the same time and one of the constraints is having the people with enough bandwidth and enough expertise to be able to do both. So we're addressing that in two ways for our customers. One is by helping them confidently deploy new solutions which we have engineered, leveraging decades of expertise and experience in engineering to deliver those workload optimized portfolios that take the risk and the complexity out of assembling some of these solutions and give them a prepackaged validated supported solution intact that simplifies that work for them. But in other cases we can enhance our customers bandwidth by bringing them HP point Next experts with all of the capabilities we have to help them plan, deliver and support these I. T. Projects and transformations. Organizations can get on a faster track of modernization, getting greater insight and control as they do it. We're a trusted partner to get the most for a business that's on this journey in making these critical computer investments to underpin the transformations and whether that's planning to optimizing to save for retirement at the end of life. We can bring that expertise to bear to help amplify what our customers already have in house and help them accelerate and succeed in executing these transformations. >>Thank you for that. Let's let's talk about some of the other changes that customers see him in the cloud is obviously forced customers and their suppliers to really rethink how technology is packaged, how it's consumed, how it's priced. I mean there's no doubt in that. So take Green Lake, it's obviously leading example of a pay as you scale infrastructure model and it could be applied on prem or hybrid. Can you maybe give us a sense as to where you are today with Green Lake? >>Well, it's really exciting now from our first pay, as you go offering back in 2006, 15 years ago to the introduction of Green Lake. HBs really been paving the way on consumption-based services through innovation and partnership to help meet the exact needs of our customers. Hp Green Lake provides an experience, is the best of both worlds. A simple paper use technology model with the risk management of data that's under our customers direct control and it lets customers shift to everything as a service in order to free up capital and avoid that upfront expense that we talked about. They can do this anywhere at any scale or any size and really HP Greenlee because the cloud that comes to you >>like that. So we've touched a little bit on how customers can maybe overcome some of the barriers to transformation. What about the nature of transformations themselves? I mean historically there was a lot of lip service paid to digital and and there's a lot of complacency, frankly, but you know that covid wrecking ball meme that so well describes that if you're not a digital business, essentially you're gonna be out of business. So, you know, those things have evolved, how is HPV addressed the new requirements? >>Well, the new requirements are really about what customers are trying to achieve. And four very common themes that we see are enabling the productivity of remote workforce. That was never really part of the plan for many organizations being able to develop and deliver new apps and services in order to service customers in a different way or drive new revenue streams, being able to get insights from data so that in these tough times they can optimize their business more thoroughly. And then finally think about the efficiency of an agile hybrid private cloud infrastructure. Especially one that now has to integrate the edge. And we're really thrilled to be helping our customers accelerate all of these and more with HP computer. >>I want to double click on that remote workforce productivity. I mean again the surveys that we see, 46 of the ceo say that productivity improved with the whole work from home remote work trend. And on average those improvements were in the four range which is absolutely enormous. I mean when you think about that how does HP specifically help here? What do you guys do? >>Well every organization in the world has had to adapt to a different style of working and with more remote workers than they had before. And for many organizations that's going to become the new normal. Even post pandemic, many I. T. Shops are not well equipped for the infrastructure to provide that experience because if all your workers are remote the resiliency of that infrastructure, the latency is of that infrastructure, the reliability of are all incredibly important. So we provide comprehensive solutions expertise and as a service options that support that remote work through virtual desktop infrastructure or V. D. I. So that our customers can support that new normal of virtual engagements online everything across industries wherever they are. And that's just one example of many of the workload optimized solutions that we're providing for our customers is about taking out the guesswork and the uncertainty in delivering on these changes that they have to deploy as part of their transformation. And we can deliver that range of workload optimized solutions across all of these different use cases. Because of our broad range of innovation in compute platforms that span from the ruggedized edge to the data center all the way up to exa scale in HPC. >>I mean that's key if you're trying to affect the digital transformation and you don't have to fine tune, you know, basically build your own optimized solutions if I can buy that rather than having to build it and rely on your R and D. You know, that's key. What else is HP doing? You know, to deliver new apps, new services, you your microservices, containers, the whole developer trend, what's going on there? >>Well, that's really key because organizations are all seeking to evolve their mix of business and bring new services and new capabilities, new ways to reach their customers, new way to reach their employees, new ways to interact in their ecosystem all digitally. And that means that development and many organizations of course are embracing container technology to do that today. So with the HP container platform, our customers can realize that agility and efficiency that comes with container ization and use it to provide insight to their data more and more on that data of course is being machine generated or generated the edge or the near edge. And it can be a real challenge to manage that data holistically and not of silos and islands at H. P. S. Moral data fabric speeds the agility and access to data with a unified platform that can span across the data centers, multiple clouds and even the edge. And that enables data analytics that can create insights powering a data driven production oriented cloud enabled analytics and AI available anytime anywhere and at any scale. And it's really exciting to see the kind of impact that that can have in helping businesses optimize their operations in these challenging times. >>You gotta go where the data is and the data is distributed. It's decentralized. I I like the liberal vision and execution there so that all sounds good. But with digital transformation you're gonna see more compute in hybrid deployments. You mentioned edge. So the surface area, it's like the universe its its ever expanding. You mentioned, you know, remote work and work from home before. So I'm curious where are you investing your resources from a cyber security perspective? What can we count on from H P. E there >>Or you can count on continued leadership from hp as the world's most secure industry standard server portfolio. We provide an enhanced and holistic 360° view to security that begins in the manufacturing supply chain and concludes with a safeguarded end of life Decommissioning. And of course we've long set the bar for security with our work on silicon root of trust and we're extending that to the application tier. But in addition to the security customers that are building this modern Khyber or private cloud, including the integration of the Edge need other elements to they need an intelligent software defined control plane so that they can automate their compute fleets from all the way at the edge to the core. And while scale and automation enable efficiency, all private cloud infrastructures are competing with Web scale economics and that's why we're democratizing web scale technologies like Pensando to bring web scale economics and web scale architecture to the private cloud. Our partners are so important in helping us serve our customers needs. >>Yeah. I mean H. P. Is really up to its ecosystem game since the middle of last decade when when you guys reorganized and it became even more partner friendly. So maybe give us a preview of what's coming next in that regard from today's event. >>Well, they were really excited to have HP. Ceo, Antonio Neri speaking with Pat Gelsinger's from Intel and later lisa su from A. M. D. And later I'll have the chance to catch up with john Chambers, the founder and Ceo of J. C. Two ventures to discuss the state of the market today. >>Yeah, I'm jealous. You got, yeah, that's a good interviews coming up, NEal, thanks so much for joining us today on the virtual cube. You've really shared a lot of great insight how HP is is partner with customers. It's, it's always great to catch up with you. Hopefully we can do so face to face, you know, sooner rather than later. >>I look forward to that. And you know, no doubt our world has changed and we're here to help our customers and partners with the technology, the expertise and the economics they need For these digital transformations. And we're going to bring them unmatched workload optimization from the edge to exa scale with that 360° security with the intelligent automation. And we're gonna deliver it all as an as a service experience. We're really excited to be helping our customers accelerate what's next for their businesses. And it's been really great talking with you today about that day. Thanks for having me >>very welcome. It's been super Neil and I actually, you know, I had the opportunity to speak with some of your customers about their digital transformation and the role of that HPV plays there. So let's dive right in. >>Yeah. Mm.

>>from >>around the globe. It's the Cube with digital coverage of AWS reinvent 2020 sponsored by Intel AWS and our community partners. >>Hey, welcome back. You're ready, Jeffrey here with the Cube coming to you from our Palo Alto studios with our continuing coverage of aws reinvent 2020 the virtual event. We're excited to be back. We've been coming to reinvent for years and years and years, I think since 2013 1st years virtual But that's the way it is. And we're gonna jump into Cloud and government and D o d. And we're really excited to have our next guest. You know a lot about the topic. We have Robert Grote. He is the VP of technology and strategy from spark Tronics coming to us from Virginia. Great to see you, Robert. >>Great. Thank you. >>And joining him is Anthony Voltaggio, the CTO of Smartronix. Anthony. Good to see you as well. Thank you. Great. So let's jump into it. I think Rob, we had you on a couple of years ago. I I looked it up. It was early October 18 and you guys were getting a lot of success with cloud in government and I think it was before the Jedi and all that other stuff was going down. Two years is forever in cloud time. I wonder if you could just share a little bit about how the market has changed since I think it was February or March of 2018 to now late November 2020 in terms of cloud and government and Department of Defense. And you're highly regulated customers. >>Sure, I think one of the things that's changed is that security certainly used to be a headwind on bond. Now we're actually seeing it more of a tailwind where our customers, especially are heavily regulated, compliance driven customers in the public sector and the D. O. D are really looking at new ways of embracing the value of the cloud. So one of the things that has changed is that maybe two years ago, we were looking at How do we move digital estate from on premise into the cloud environment? We're now we're looking at. How do we actually achieve value in the cloud? How do we allow our customers to optimize their portfolio? How do they modernize their application footprint in a in a secure way and some of the things that we focused on, particularly smartronix, is how do we remove that friction that exists when a new kind of legacy customer really wants to transform the way that they deliver services. So we built, uh, capabilities that really allow them to more rapidly migrate their services into the cloud environment. We created and have an 80 0, now for a cloud assured manage services, which means that our customers who want to meet the rigorous security mandates now have that ability to utilize our services when they're deploying these services. And it really enables them to focus on the development of the modernization, you know, versus having to do the cumbersome components of security compliance and operation on def. You if you look at what we're trying to build and trying Thio intersect with where our customers we're going, they really want to get to that pace of innovation that the cloud provides. Um, you know, I think I've said this before to the Cube that the slope of disruption is correlated to the pace of innovation. And if you continue to build technical debt like our customers may have done in the past, they're gonna fall behind and it might be okay, um, for, you know, Blockbuster to fall behind the Netflix or for uber disrupted industry. But for our customers, there's national security consequences when they fall behind. So we've got to create a platform and a capability that enables them to innovate on, deliver very agile services rapidly. >>And then I wanna go. I wanna go to you because I think Robin, in your last interview, talked about your customers very secure, highly regulated, compliance driven environments. Right? And? And to be clear, you guys sell a lot to Department of Defense and all the various branches of the U. S. Military etcetera. You know, Anthony, a lot of talk of digital transformation on the commercial side and and people going right And then, of course, all the jokes and memes about Covic, you know, being the accelerator to that for >>your >>customers. The accelerators thio at modernization in the digital transformation are very different. It's not about necessarily the competitors down the street, but it's about some nasty competitors that want to cause this real harm. How how have they adopted? You know, kind of this this digital transformation and what's different in terms of accelerating it in your customer base. >>We're looking our defense customers and national security customers. Absolutely. The velocity and scale of cloud is becoming an enabler again. Looking at those information work was that they have looking at the nation state adversaries that we're facing right now. Information is information warfare. So if we're not ready to scale, innovate at much higher velocity than we have in the past, we're gonna become victim to those attacks. Methodologies that score matters of using so that the scale and power of the cloud as well is that tailwind of all these authorized services that are offered by Amazon that are already at the federal federal high and D o D. Impact. Those for higher, up to impact level six really, really enable them to go ahead and meet that mission. But mad and speed and agility. They need toe mash that for necessary, >>right? Well lets you just talked about impact level, and I want to dig into that for a little bit because in doing research on you guys and a lot of the solutions that customers you talk about, there's there's constant conversation about these impact levels Impact level for impact level five Impact Level six Again. It's highly regulated industry. You guys have a very, very high bar that you have to hit in your solutions. What does impact level mean and why is it important? And how are you basically working your way up the chart, which I assume is a much more impactful? Not not no pun intended, but much more significant solution delivery. >>So impact levels really have to do with information risk. So what is the level of information that that system is processing? So as you move up the impact levels, that information becomes more more critical to national security. So on impact Level four system may have to do with standard mission operations and Ministry of Task, etcetera, where when you go up the staff to impeccable five and even to impact level six or higher, you're really dealing with, let's say, in the d. O d, uh, perspective, the horror fighter eso. Now you're dealing with where that war fighters deployed the capabilities of the water fighter that they're leveraging To fight that battle against the adversary eso you have to put more and more rigorous controls around that information to ensure the adversaries can gain the tactical advantage over our war fighters. >>It's really interesting. You know how all these systems are really designed? Uh, toe work together. And as you said, kind of for that, that warfighter, if you you know, you you watch anything on defense, it's kind of the point into the stick, but there's a whole lot of support behind that behind that person at the very end to help them get the information to be successful in their job and support them. Um, etcetera. But I'm curious. Have you seen a change in attitude in terms of not only the data and the information in the systems as a support for the war fighter, but in fact, that data itself being a significant asset as well as a significant target, probably bigger and more valuable than an aircraft carrier or any other kind of traditional defense assets? >>Yeah, I would say we've definitely seen that change. Our our our customers air really looking at data and aggregate and when you're when you're building a cloud profile when you're building a portfolio systems, um, and it's all in a single type environment or an enclave where you can unlock the value of that data, the aggregate of all of those applications. The aggregate of that data has increased value, and that allows you to do a lot more things with it. Allows you to innovate a lot. Mawr toe. Learn more about that data on We're seeing our customers really looking at. How can they unlock that value? Whether it's looking at improving the supply chain, looking at data feeds that they're able to aggregate from commercial sources as well as sources that they're getting in a distributed fashion or whether it's just, you know, looking at, how can they improve the efficiency of of delivering services to the to the warfighter? Um, it really is about unlocking that value of data. So that's why it's also important that we have capabilities that protect that data. And then we provide more capabilities that allow our customers to be able to leverage as the C. S. P s as AWS innovates. Allow them to leverage these new capabilities much more rapidly than they could in the past, >>right? Well, and you talk about technical debt and you know there's kind of technical dead and There's application dead, and there's kind of application portfolio stuff that that you have right that may or may not work well, that's probably running and has been running for years. That doesn't necessarily all have to be modernized. You said Sometimes you know it's it's best to leave. Leave it as it lies. How are you helping people figure out? You know what, what to modernize, what to leave it as as it is. And then you know, or you know how much effort should really be spent on new on new applications and new development. You know, taking taking advantage of the latest because that's kind of a tricky portfolio strategy. And as you said, there's a whole lot of legacy stuff that's still running in those old data centers. >>You mentioned the key word there and that strategy. Our our customers are looking to us to help them evaluate their portfolio, determine what things that they should be doing next, the sequencing events and how they can unlock some of those values in the cloud. So, you know, one of the things that we talk about is that ability to even if you're taking stuff from a legacy environment and moving that estate into the cloud. There's certain things that you can do to opportunistically re factor and get value out of the cloud. You don't have to rewrite the application every time there's things that you can do to just re factor. Um, and one of those components is that when you look at cloud and you look at the a p I nature of the cloud, um, transparency is the gift of the cloud. And automation is how you get value out of that gift. And when when you look at how automation and transparency you're kind of tied together for our customers and you look at the fact that again everything's in a P I based, you know, with, you know, full non repudiation who made that call when they made that call? You've got an ability to create this autonomic response system, and this is This is a key part of application modernization, giving that customer the ability to rapidly respond to an event, create automation, create run books, use you know, advanced technologies like machine learning for anomaly detection, create, you know, security orchestration, all of those components when you could build that framework. Then your customers can even take some of their legacy assets and be able to utilize, you know, the high value of the cloud and respond to events much faster and in, um, or automated an autonomic manner. >>I love that transparency in automation. And I want to go back to you. Anthony, you've been doing this for a long time. Um, you didn't have these tools at your disposal before, and you didn't have necessarily the automation that you have before. And I think more importantly, you know, interesting thing that Rob you touched on on on your earlier interview a couple of years back, you know, kind of this scale learning something identified by by Bill Chamorro's I once in terms of calling it out where you learn something in one place and you can apply that learning, you know, across many, many places. And then the other piece. I want you to comment on its automation because, as we know, a lot of errors happen from silly things, fat fingers, bad copy paste, putting in a wrong config code. This that and the other. So, by adding mawr and Mawr automation and continuing to kind of remove potential little slip ups that can cause big big problems. It's a really different world that you've got in the tools that you have in your portfolio to offer these solutions up to your clients >>absolutely again, as we've learned MAWR Maura about these repeatable patterns that have happened across our different customers. That allows us to create that run book automation library that then allows our team and our capabilities scale across multiple workloads and kind of like Robert identified earlier. There's a lot of these cognitive services, and I'll take Amazon a specific example. Guard duty. It is a very innovative capability with M. L. A. I behind it that allow you to look at these access patterns and communication patterns of these application workloads and quickly identify threats. But the automation and road book and orchestration that you can build behind this then allows you to leverage that library to immediately respond to these events. When you see a threat and you see that pattern, your your ability to rapidly respond to that and mitigate that threat, Israel allows your business and information systems continue providing no the primary business use case and again in our GOP customer. National security system. Customers dividing to the warfighter complete their mission. >>Yeah, well, what a good and let you give. Give a plug for some of your processes and techniques. You have something that you call fast, um, to help people, you know, go through this decision process. And I think, as you said, Rob, you know, you gotta have some strategy before you start making some decisions. And also, this thing that we're seeing out there called the shift left. Um, what does that mean to you? What does it mean to your customers? Why is that important? Why should people know about it? Start with you, Rob. >>So what? We notice we've been doing cloud services, you know, since 2009, Really? One of the first eight of us public sector partners delivering the first capabilities to that market. And what we noticed is that ah, lot of organizations found it easy to move one or two workloads into the cloud. But they struggled in making a cloud, a true enterprise asset. So we took a step back and we created something that we call foundational agile strategic transformation. And that's fast. It's a It's a program that we developed that allows complex organizations. Security minded organizations understand What are all the foundational things that need to be in place to really treat cloud as an enterprise asset? And it covers much more than just the technical components. It covers the organizational components. It covers all the stakeholders around security. But one of the key things that we've changed in the past couple of years is how do we not only look at, you know, leveraging the cloud is an enterprise asset, But how do we allow them to accelerate how they can get the value out of the cloud, modernize their applications, create thes capabilities? And the shift left component of fast is providing as much capability all the way down to where the developer is, where you have maybe dead set cops when it used to be a developer on one side and operations on the other. Security is kind of a binding function. Now we're talking about how can we create more capability, right at the point of development? How can we shift that capability? And I think the role of the managed service provider is to enable that in an organization provide capability, provide operations capability but also help them in a You know, we use the term SRE quite a bit. Site reliability, engineering. How can we really help them continuously optimize their portfolio and build a set of capabilities and services? So when they're building new applications, they're not adding to their technical debt. >>That's great and so and so, so important. And it's just been so interesting. Toe watch again. A security specifically for Public Cloud in AWS has become from you know, what was potentially a concern and a headwind to now being a tailwind. And all you have to do is go to go to some of the the architectural keynotes my some of my favorites and see the scale in massive investments that they can put into infrastructure. And they can put into security that no single company, unless you have the biggest, biggest ones you know, can possibly invested to be able to leverage that opportunity. And obviously, Teresa Carlson and the Public Sector team have done a really good job and giving you guys the solutions that satisfy the very tight requirements that you're very important customers have. So it's really a great story and really enjoy learning mawr and continued success to you guys And, uh, and your teams and your importance, your customers and all the important stuff that they protect for us. Uh, eso thank you very much. All right. Thank you. All right, well, signing off. That's Robert and Anthony. I'm Jeff. You're watching the Cube. Ongoing coverage of aws reinvent 2020. Thanks for watching. See you next time. Thank you.

>>from around the globe. It's the Cube presenting innovation for good, brought to you by on shape. >>Hello, everyone, and welcome to Innovation for Good Program, hosted by the Cuban. Brought to You by on Shape, which is a PTC company. My name is Dave Valentin. I'm coming to you from our studios outside of Boston. I'll be directing the conversations today. It's a very exciting, all live program. We're gonna look at how product innovation has evolved and where it's going and how engineers, entrepreneurs and educators are applying cutting edge, cutting edge product development techniques and technology to change our world. You know, the pandemic is, of course, profoundly impacted society and altered how individuals and organizations they're gonna be thinking about an approaching the coming decade. Leading technologists, engineers, product developers and educators have responded to the new challenges that we're facing from creating lifesaving products to helping students learn from home toe how to apply the latest product development techniques and solve the world's hardest problems. And in this program, you'll hear from some of the world's leading experts and practitioners on how product development and continuous innovation has evolved, how it's being applied toe positive positively affect society and importantly where it's going in the coming decades. So let's get started with our first session fueling Tech for good. And with me is John Hirschbeck, who is the president of the Suffers, a service division of PTC, which acquired on shape just over a year ago, where John was the CEO and co founder, and Dana Grayson is here. She is the co founder and general partner at Construct Capital, a new venture capital firm. Folks, welcome to the program. Thanks so much for coming on. >>Great to be here, Dave. >>All right, John. >>You're very welcome. Dana. Look, John, let's get into it for first Belated congratulations on the acquisition of Von Shape. That was an awesome seven year journey for your company. Tell our audience a little bit about the story of on shape, but take us back to Day zero. Why did you and your co founders start on shape? Well, >>actually, start before on shaping the You know, David, I've been in this business for almost 40 years. The business of building software tools for product developers and I had been part of some previous products in the industry and companies that had been in their era. Big changes in this market and about, you know, a little Before founding on shape, we started to see the problems product development teams were having with the traditional tools of that era years ago, and we saw the opportunity presented by Cloud Web and Mobile Technology. And we said, Hey, we could use Cloud Web and Mobile to solve the problems of product developers make their Their business is run better. But we have to build an entirely new system, an entirely new company, to do it. And that's what on shapes about. >>Well, so notwithstanding the challenges of co vid and difficulties this year, how is the first year been as, Ah, division of PTC for you guys? How's business? Anything you can share with us? >>Yeah, our first year of PTC has been awesome. It's been, you know, when you get acquired, Dave, you never You know, you have great optimism, but you never know what life will really be like. It's sort of like getting married or something, you know, until you're really doing it, you don't know. And so I'm happy to say that one year into our acquisition, um, PTC on shape is thriving. It's worked out better than I could have imagined a year ago. Along always, I mean sales are up. In Q four, our new sales rate grew 80% vs Excuse me, our fiscal Q four Q three. In the calendar year, it grew 80% compared to the year before. Our educational uses skyrocketing with around 400% growth, most recently year to year of students and teachers and co vid. And we've launched a major cloud platform using the core of on shape technology called Atlas. So, um, just tons of exciting things going on a TTC. >>That's awesome. But thank you for sharing some of those metrics. And of course, you're very humble individual. You know, people should know a little bit more about you mentioned, you know, we founded Solid Works, co founded Solid where I actually found it solid works. You had a great exit in the in the late nineties. But what I really appreciate is, you know, you're an entrepreneur. You've got a passion for the babies that you you helped birth. You stayed with the salt systems for a number of years. The company that quiet, solid works well over a decade. And and, of course, you and I have talked about how you participated in the the M I T. Blackjack team. You know, back in the day, a zai say you're very understated, for somebody was so accomplished. Well, >>that's kind of you, but I tend to I tend Thio always keep my eye more on what's ahead. You know what's next, then? And you know, I look back Sure to enjoy it and learn from it about what I can put to work making new memories, making new successes. >>Love it. Okay, let's bring Dana into the conversation. Hello, Dana. You look you're a fairly early investor in in on shape when you were with any A And and I think it was like it was a serious B, but it was very right close after the A raise. And and you were and still are a big believer in industrial transformation. So take us back. What did you see about on shape back then? That excited you. >>Thanks. Thanks for that. Yeah. I was lucky to be a early investment in shape. You know, the things that actually attracted me. Don shape were largely around John and, uh, the team. They're really setting out to do something, as John says humbly, something totally new, but really building off of their background was a large part of it. Um, but, you know, I was really intrigued by the design collaboration side of the product. Um, I would say that's frankly what originally attracted me to it. What kept me in the room, you know, in terms of the industrial world was seeing just if you start with collaboration around design what that does to the overall industrial product lifecycle accelerating manufacturing just, you know, modernizing all the manufacturing, just starting with design. So I'm really thankful to the on shape guys, because it was one of the first investments I've made that turned me on to the whole sector. And while just such a great pleasure to work with with John and the whole team there. Now see what they're doing inside PTC. >>And you just launched construct capital this year, right in the middle of a pandemic and which is awesome. I love it. And you're focused on early stage investing. Maybe tell us a little bit about construct capital. What your investment thesis is and you know, one of the big waves that you're hoping to ride. >>Sure, it construct it is literally lifting out of any what I was doing there. Um uh, for on shape, I went on to invest in companies such as desktop metal and Tulip, to name a couple of them form labs, another one in and around the manufacturing space. But our thesis that construct is broader than just, you know, manufacturing and industrial. It really incorporates all of what we'd call foundational industries that have let yet to be fully tech enabled or digitized. Manufacturing is a big piece of it. Supply chain, logistics, transportation of mobility or not, or other big pieces of it. And together they really drive, you know, half of the GDP in the US and have been very under invested. And frankly, they haven't attracted really great founders like they're on in droves. And I think that's going to change. We're seeing, um, entrepreneurs coming out of the tech world orthe Agnelli into these industries and then bringing them back into the tech world, which is which is something that needs to happen. So John and team were certainly early pioneers, and I think, you know, frankly, obviously, that voting with my feet that the next set, a really strong companies are going to come out of the space over the next decade. >>I think it's a huge opportunity to digitize the sort of traditionally non digital organizations. But Dana, you focused. I think it's it's accurate to say you're focused on even Mawr early stage investing now. And I want to understand why you feel it's important to be early. I mean, it's obviously riskier and reward e er, but what do you look for in companies and and founders like John >>Mhm, Um, you know, I think they're different styles of investing all the way up to public market investing. I've always been early stage investors, so I like to work with founders and teams when they're, you know, just starting out. Um, I happened to also think that we were just really early in the whole digital transformation of this world. You know, John and team have been, you know, back from solid works, etcetera around the space for a long time. But again, the downstream impact of what they're doing really changes the whole industry. And and so we're pretty early and in digitally transforming that market. Um, so that's another reason why I wanna invest early now, because I do really firmly believe that the next set of strong companies and strong returns for my own investors will be in the spaces. Um, you know, what I look for in Founders are people that really see the world in a different way. And, you know, sometimes some people think of founders or entrepreneurs is being very risk seeking. You know, if you asked John probably and another successful entrepreneurs, they would call themselves sort of risk averse, because by the time they start the company, they really have isolated all the risk out of it and think that they have given their expertise or what they're seeing their just so compelled to go change something, eh? So I look for that type of attitude experience a Z. You can also tell from John. He's fairly humble. So humility and just focus is also really important. Um, that there's a That's a lot of it. Frankly, >>Excellent. Thank you, John. You got such a rich history in the space. Uh, and one of you could sort of connect the dots over time. I mean, when you look back, what were the major forces that you saw in the market in in the early days? Particularly days of on shape on? And how is that evolved? And what are you seeing today? Well, >>I think I touched on it earlier. Actually, could I just reflect on what Dana said about risk taking for just a quick one and say, throughout my life, from blackjack to starting solid works on shape, it's about taking calculated risks. Yes, you try to eliminate the risk Sa's much as you can, but I always say, I don't mind taking a risk that I'm aware of, and I've calculated through as best I can. I don't like taking risks that I don't know I'm taking. That's right. You >>like to bet on >>sure things as much as you sure things, or at least where you feel you. You've done the research and you see them and you know they're there and you know, you, you you keep that in mind in the room, and I think that's great. And Dana did so much for us. Dana, I want to thank you again. For all that, you did it every step of the way, from where we started to to, you know, your journey with us ended formally but continues informally. Now back to you, Dave, I think, question about the opportunity and how it's shaped up. Well, I think I touched on it earlier when I said It's about helping product developers. You know, our customers of the people build the future off manufactured goods. Anything you think of that would be manufacturing factory. You know, the chair you're sitting in machine that made your coffee. You know, the computer you're using, the trucks that drive by on the street, all the covert product research, the equipment being used to make vaccines. All that stuff is designed by someone, and our job is given the tools to do it better. And I could see the problems that those product developers had that we're slowing them down with using the computing systems of the time. When we built solid works, that was almost 30 years ago. If people don't realize that it was in the early >>nineties and you know, we did the >>best we could for the early nineties, but what we did. We didn't anticipate the world of today. And so people were having problems with just installing the systems. Dave, you wouldn't believe how hard it is to install these systems. You need toe speck up a special windows computer, you know, and make sure you've got all the memory and graphics you need and getting to get that set up. You need to make sure the device drivers air, right, install a big piece of software. Ah, license key. I'm not making this up. They're still around. You may not even know what those are. You know, Dennis laughing because, you know, zero cool people do things like this anymore. Um, and it only runs some windows. You want a second user to use it? They need a copy. They need a code. Are they on the same version? It's a nightmare. The teams change, you know? You just say, Well, get everyone on the software. Well, who's everyone? You know, you got a new vendor today? A new customer tomorrow, a new employee. People come on and off the team. The other problem is the data stored in files, thousands of files. This isn't like a spreadsheet or word processor, where there's one file to pass around these air thousands of files to make one, even a simple product. People were tearing their hair out. John, what do we do? I've got copies everywhere. I don't know where the latest version is. We tried like, you know, locking people out so that only one person can change it At the time that works against speed, it works against innovation. We saw what was happening with Cloud Web and mobile. So what's happened in the years since is every one of the forces that product developers experience the need for speed, the need for innovation, the need to be more efficient with their people in their capital. Resource is every one of those trends have been amplified since we started on shape by a lot of forces in the world. And covert is amplified all those the need for agility and remote work cove it is amplified all that the same time, The acceptance of cloud. You know, a few years ago, people were like cloud, you know, how is that gonna work now They're saying to me, You know, increasingly, how would you ever even have done this without the cloud. How do you make solid works work without the cloud? How would that even happen? You know, once people understand what on shapes about >>and we're the >>Onley full SAS solution software >>as a service, >>full SAS solution in our industry. So what's happened in those years? Same problems we saw earlier, but turn up the gain, their bigger problems. And with cloud, we've seen skepticism of years ago turn into acceptance. And now even embracement in the cova driven new normal. >>Yeah. So a lot of friction in the previous environments cloud obviously a huge factor on, I guess. I guess Dana John could see it coming, you know, in the early days of solid works with, you know, had Salesforce, which is kind of the first major independent SAS player. Well, I guess that was late nineties. So his post solid works, but pre in shape and their work day was, you know, pre on shape in the mid two thousands. And and but But, you know, the bet was on the SAS model was right for Crick had and and product development, you know, which maybe the time wasn't a no brainer. Or maybe it was, I don't know, but Dana is there. Is there anything that you would invest in today? That's not Cloud based? >>Um, that's a great question. I mean, I think we still see things all the time in the manufacturing world that are not cloud based. I think you know, the closer you get to the shop floor in the production environment. Um e think John and the PTC folks would agree with this, too, but that it's, you know, there's reliability requirements, performance requirements. There's still this attitude of, you know, don't touch the printing press. So the cloud is still a little bit scary sometimes. And I think hybrid cloud is a real thing for those or on premise. Solutions, in some cases is still a real thing. What what we're more focused on. And, um, despite whether it's on premise or hybrid or or SAS and Cloud is a frictionless go to market model, um, in the companies we invest in so sass and cloud, or really make that easy to adopt for new users, you know, you sign up, started using a product, um, but whether it's hosted in the cloud, whether it's as you can still distribute buying power. And, um, I would I'm just encouraging customers in the customer world and the more industrial environment to entrust some of their lower level engineers with more budget discretionary spending so they can try more products and unlock innovation. >>Right? The unit economics are so compelling. So let's bring it, you know, toe today's you know, situation. John, you decided to exit about a year ago. You know? What did you see in PTC? Other than the obvious money? What was the strategic fit? >>Yeah, Well, David, I wanna be clear. I didn't exit anything. Really? You >>know, I love you and I don't like that term exit. I >>mean, Dana had exit is a shareholder on and so it's not It's not exit for me. It's just a step in the journey. What we saw in PTC was a partner. First of all, that shared our vision from the top down at PTC. Jim Hempleman, the CEO. He had a great vision for for the impact that SAS can make based on cloud technology and really is Dana of highlighted so much. It's not just the technology is how you go to market and the whole business being run and how you support and make the customers successful. So Jim shared a vision for the potential. And really, really, um said Hey, come join us and we can do this bigger, Better, faster. We expanded the vision really to include this Atlas platform for hosting other SAS applications. That P D. C. I mean, David Day arrived at PTC. I met the head of the academic program. He came over to me and I said, You know, and and how many people on your team? I thought he'd say 5 40 people on the PTC academic team. It was amazing to me because, you know, we were we were just near about 100 people were required are total company. We didn't even have a dedicated academic team and we had ah, lot of students signing up, you know, thousands and thousands. Well, now we have hundreds of thousands of students were approaching a million users and that shows you the power of this team that PTC had combined with our product and technology whom you get a big success for us and for the teachers and students to the world. We're giving them great tools. So so many good things were also putting some PTC technology from other parts of PTC back into on shape. One area, a little spoiler, little sneak peek. Working on taking generative design. Dana knows all about generative design. We couldn't acquire that technology were start up, you know, just to too much to do. But PTC owns one of the best in the business. This frustrated technology we're working on putting that into on shaping our customers. Um, will be happy to see it, hopefully in the coming year sometime. >>It's great to see that two way exchange. Now, you both know very well when you start a company, of course, a very exciting time. You know, a lot of baggage, you know, our customers pulling you in a lot of different directions and asking you for specials. You have this kind of clean slate, so to speak in it. I would think in many ways, John, despite you know, your install base, you have a bit of that dynamic occurring today especially, you know, driven by the forced march to digital transformation that cove it caused. So when you sit down with the team PTC and talk strategy. You now have more global resource is you got cohorts selling opportunities. What's the conversation like in terms of where you want to take the division? >>Well, Dave, you actually you sounds like we should have you coming in and talking about strategy because you've got the strategy down. I mean, we're doing everything said global expansion were able to reach across selling. We got some excellent PTC customers that we can reach reach now and they're finding uses for on shape. I think the plan is to, you know, just go, go, go and grow, grow, grow where we're looking for this year, priorities are expand the product. I mentioned the breath of the product with new things PTC did recently. Another technology that they acquired for on shape. We did an acquisition. It was it was small, wasn't widely announced. It, um, in an area related to interfacing with electrical cad systems. So So we're doing We're expanding the breath of on shape. We're going Maura, depth in the areas were already in. We have enormous opportunity to add more features and functions that's in the product. Go to market. You mentioned it global global presence. That's something we were a little light on a year ago. Now we have a team. Dana may not even know what we have. A non shape, dedicated team in Barcelona, based in Barcelona but throughout Europe were doing multiple languages. Um, the academic program just introduced a new product into that space that z even fueling more success and growth there. Um, and of course, continuing to to invest in customer success and this Atlas platform story I keep mentioning, we're going to soon have We're gonna soon have four other major PTC brands shipping products on our Atlas Saas platform. And so we're really excited about that. That's good for the other PTC products. It's also good for on shape because now there's there's. There's other interesting products that are on shape customers can use take advantage of very easily using, say, a common log in conventions about user experience there, used to invest of all they're SAS based, so they that makes it easier to begin with. So that's some of the exciting things going on. I think you'll see PTC, um, expanding our lead in SAS based applications for this sector for our our target, uh, sectors not just in, um, in cat and data management, but another area. PTC's Big and his augmented reality with of euphoria, product line leader and industrial uses of a R. That's a whole other story we should do. A whole nother show augmented reality. But these products are amazing. You can you can help factory workers people on, uh, people who are left out of the digital transformation. Sometimes we're standing from machine >>all day. >>They can't be sitting like we are doing Zoom. They can wear a R headset in our tools, let them create great content. This is an area Dana is invested in other companies. But what I wanted to note is the new releases of our authoring software. For this, our content getting released this month, used through the Atlas platform, the SAS components of on shape for things like revision management and collaboration on duh workflow activity. All that those are tools that we're able to share leverage. We get a lot of synergy. It's just really good. It's really fun to have a good time. That's >>awesome. And then we're gonna be talking to John MacLean later about that. Let's do a little deeper Dive on that. And, Dana, what is your involvement today with with on shape? But you're looking for you know, which of their customers air actually adopting. And they're gonna disrupt their industries. And you get good pipeline from that. How do you collaborate today? >>That sounds like a great idea. Um, Aziz, John will tell you I'm constantly just asking him for advice and impressions of other entrepreneurs and picking his brain on ideas. No formal relationship clearly, but continue to count John and and John and other people in on shaping in the circle of experts that I rely on for their opinions. >>All right, so we have some questions from the crowd here. Uh, one of the questions is for the dream team. You know, John and Dana. What's your next next collective venture? I don't think we're there yet, are we? No. >>I just say, as Dana said, we love talking to her about. You know, Dana, you just returned the compliment. We would try and give you advice and the deals you're looking at, and I'm sort of casually mentoring at least one of your portfolio entrepreneurs, and that's been a lot of fun for May on, hopefully a value to them. But also Dana. We uran important pipeline to us in the world of some new things that are happening that we wouldn't see if you know you've shown us some things that you've said. What do you think of this business? And for us, it's like, Wow, it's cool to see that's going on And that's what's supposed to work in an ecosystem like this. So we we deeply value the ongoing relationship. And no, we're not starting something new. I got a lot of work left to do with what I'm doing and really happy. But we can We can collaborate in this way on other ventures. >>I like this question to somebody asking With the cloud options like on shape, Wilmore students have stem opportunities s Oh, that's a great question. Are you because of sass and cloud? Are you able to reach? You know, more students? Much more cost effectively. >>Yeah, Dave, I'm so glad that that that I was asked about this because Yes, and it's extremely gratified us. Yes, we are because of cloud, because on shape is the only full cloud full SAS system or industry were able to reach. Stem education brings able to be part of bringing step education to students who couldn't get it otherwise. And one of most gratifying gratifying things to me is the emails were getting from teachers, um, that that really, um, on the phone calls that were they really pour their heart out and say We're able to get to students in areas that have very limited compute resource is that don't have an I T staff where they don't know what computer that the students can have at home, and they probably don't even have a computer. We're talking about being able to teach them on a phone to have an android phone a low end android phone. You can do three D modeling on there with on shape. Now you can't do it any other system, but with on shape, you could do it. And so the teacher can say to the students, They have to have Internet access, and I know there's a huge community that doesn't even have Internet access, and we're not able, unfortunately to help that. But if you have Internet and you have even an android phone, we can enable the educator to teach them. And so we have case after case of saving a stem program or expanding it into the students that need it most is the ones we're helping here. So really excited about that. And we're also able to let in addition to the run on run on whatever computing devices they have, we also offer them the tools they need for remote teaching with a much richer experience. Could you teach solid works remotely? Well, maybe if the student ran it had a windows workstation. You know, big, big, high end workstation. Maybe it could, but it would be like the difference between collaborating with on shape and collaborate with solid works. Like the difference between a zoom video call and talking on the landline phone. You know, it's a much richer experience, and that's what you need. And stem teaching stem is hard, So yeah, we're super super. Um, I'm excited about bringing stem to more students because of cloud yond >>we're talking about innovation for good, and then the discussion, John, you just had it. Really? There could be a whole another vector here. We could discuss on diversity, and I wanna end with just pointing out. So, Dana, your new firm, it's a woman led firm, too. Two women leaders, you know, going forward. So that's awesome to see, so really? Yeah, thumbs up on that. Congratulations on getting that off the ground. >>Thank you. Thank you. >>Okay, so thank you guys. Really appreciate It was a great discussion. I learned a lot and I'm sure the audience did a swell in a moment. We're gonna talk with on shaped customers to see how they're applying tech for good and some of the products that they're building. So keep it right there. I'm Dave Volonte. You're watching innovation for good on the Cube, the global leader in digital tech event coverage. Stay right there. >>Oh, yeah, it's >>yeah, yeah, around >>the globe. It's the Cube presenting innovation for good. Brought to you by on shape. >>Okay, we're back. This is Dave Volonte and you're watching innovation for good. A program on Cuba 3 65 made possible by on shape of PTC company. We're live today really live tv, which is the heritage of the Cube. And now we're gonna go to the sources and talkto on shape customers to find out how they're applying technology to create real world innovations that are changing the world. So let me introduce our panel members. Rafael Gomez Furberg is with the Chan Zuckerberg bio hub. A very big idea. And collaborative nonprofit was initiative that was funded by Mark Zuckerberg and his wife, Priscilla Chan, and really around diagnosing and curing and better managing infectious diseases. So really timely topic. Philip Tabor is also joining us. He's with silver side detectors, which develops neutron detective detection systems. Yet you want to know if early, if neutrons and radiation or in places where you don't want them, So this should be really interesting. And last but not least, Matthew Shields is with the Charlottesville schools and is gonna educate us on how he and his team are educating students in the use of modern engineering tools and techniques. Gentlemen, welcome to the Cuban to the program. This should be really interesting. Thanks for coming on. >>Hi. Or pleasure >>for having us. >>You're very welcome. Okay, let me ask each of you because you're all doing such interesting and compelling work. Let's start with Rafael. Tell us more about the bio hub and your role there, please. >>Okay. Yeah. So you said that I hope is a nonprofit research institution, um, funded by Mark Zuckerberg and his wife, Priscilla Chan. Um, and our main mission is to develop new technologies to help advance medicine and help, hopefully cure and manage diseases. Um, we also have very close collaborations with Universe California, San Francisco, Stanford University and the University California Berkeley on. We tried to bring those universities together, so they collaborate more of biomedical topics. And I manage a team of engineers. They by joining platform. Um, and we're tasked with creating instruments for the laboratory to help the scientist boats inside the organization and also in the partner universities Do their experiments in better ways in ways that they couldn't do before >>in this edition was launched Well, five years ago, >>it was announced at the end of 2016, and we actually started operation with at the beginning of 2017, which is when I joined, um, So this is our third year. >>And how's how's it going? How does it work? I mean, these things take time. >>It's been a fantastic experience. Uh, the organization works beautifully. Um, it was amazing to see it grow From the beginning, I was employee number 12, I think eso When I came in, it was just a nem P office building and empty labs. And very quickly we had something running about. It's amazing eso I'm very proud of the work that we have done to make that possible. Um And then, of course, that's you mentioned now with co vid, um, we've been able to do a lot of very cool work attire being of the pandemic in March, when there was a deficit of testing, uh, capacity in California, we spun up a testing laboratory in record time in about a week. It was crazy. It was a crazy project, Um, but but incredibly satisfying. And we ended up running all the way until the beginning of November, when the lab was finally shut down. We could process about 3000 samples a day. I think at the end of it all, we were able to test about 100 on the order of 100 and 50,000 samples from all over the state. We were providing free testing toe all of the Department of Public Health Department of Public Health in California, which at the media pandemic, had no way to do testing affordably and fast. So I think that was a great service to the state. Now the state has created that testing system that would serve those departments. So then we decided that it was unnecessary to keep going with testing in the other biopsy that would shut down. >>All right. Thank you for that. Now, Now, Philip, you What you do is mind melting. You basically helped keep the world safe. Maybe describe a little bit more about silver sod detectors and what your role is there and how it all works. >>Tour. So we make a nuclear bomb detectors and we also make water detectors. So we try and do our part thio keep the world from blowing up and make it a better place at the same time. Both of these applications use neutron radiation detectors. That's what we make. Put them out by import border crossing places like that. They can help make sure that people aren't smuggling. Shall we say very bad things. Um, there's also a burgeoning field of research and application where you can use neutrons with some pretty cool physics to find water so you could do things. Like what? A detector up in the mountains and measure snowpack. Put it out in the middle of the field and measure soil moisture content. And as you might imagine, there's some really cool applications in, uh, research and agronomy and public policy for this. >>All right, so it's OK, so it's a It's much more than, you know, whatever fighting terrorism, it's there's a riel edge or I kind of i o t application for what you guys >>do. We do both its's to plowshares. You might >>say a mat. I I look at your role is kind of scaling the brain power for for the future. Maybe tell us more about Charlottesville schools and in the mission that you're pursuing and what you do. >>Thank you. Um, I've been in Charlottesville City schools for about 11 or 12 years. I started their teaching, um, a handful of classes, math and science and things like that. But Thescore board and my administration had the crazy idea of starting an engineering program about seven years ago. My background is an engineering is an engineering. My masters is in mechanical and aerospace engineering and um, I basically spent a summer kind of coming up with what might be a fun engineering curriculum for our students. And it started with just me and 30 students about seven years ago, Um, kind of a home spun from scratch curriculum. One of my goals from the outset was to be a completely project based curriculum, and it's now grown. We probably have about six or 700 students, five or six full time teachers. We now have pre engineering going on at the 5th and 6th grade level. I now have students graduating. Uh, you know, graduating after senior year with, like, seven years of engineering under their belt and heading off to doing some pretty cool stuff. So it's It's been a lot of fun building a program and, um, and learning a lot in the process. >>That's awesome. I mean, you know, Cuba's. We've been passionate about things like women in tech, uh, diversity stem. You know, not only do we need more, more students and stem, we need mawr underrepresented women, minorities, etcetera. We were just talking to John Herstek and integrate gration about this is Do you do you feel is though you're I mean, first of all, the work that you do is awesome, but but I'll go one step further. Do you feel as though it's reaching, um, or diverse base? And how is that going? >>That's a great question. I think research shows that a lot of people get funneled into one kind of track or career path or set of interests really early on in their educational career, and sometimes that that funnel is kind of artificial. And so that's one of the reasons we keep pushing back. Um, so our school systems introducing kindergartners to programming on DSO We're trying to push back how we expose students to engineering and to stem fields as early as possible. And we've definitely seen the first of that in my program. In fact, my engineering program, uh, sprung out of an after school in Extracurricular Science Club that actually three girls started at our school. So I think that actually has helped that three girls started the club that eventually is what led to our engineering programs that sort of baked into the DNA and also our eyes a big public school. And we have about 50% of the students are under the poverty line and we e in Charlottesville, which is a big refugee town. And so I've been adamant from Day one that there are no barriers to entry into the program. There's no test you have to take. You don't have to have be taking a certain level of math or anything like that. That's been a lot of fun. To have a really diverse set of kids enter the program and be successful, >>that's final. That's great to hear. So, Philip, I wanna come back to you. You know, I think about maybe some day we'll be able to go back to a sporting events, and I know when I when I'm in there, there's somebody up on the roof looking out for me, you know, watching the crowd, and they have my back. And I think in many ways, the products that you build, you know, our similar. I may not know they're there, but they're keeping us safe or they're measuring things that that that I don't necessarily see. But I wonder if you could talk about a little bit more detail about the products you build and how they're impacting society. >>Sure, so There are certainly a lot of people who are who are watching, trying to make sure things were going well in keeping you safe that you may or may not be aware of. And we try and support ah lot of them. So we have detectors that are that are deployed in a variety of variety of uses, with a number of agencies and governments that dio like I was saying, ports and border crossing some other interesting applications that are looking for looking for signals that should not be there and working closely to fit into the operations these folks do. Onda. We also have a lot of outreach to researchers and scientists trying to help them support the work they're doing. Um, using neutron detection for soil moisture monitoring is a some really cool opportunities for doing it at large scale and with much less, um, expense or complication than would have been done. Previous technologies. Um, you know, they were talking about collaboration in the previous segment. We've been able to join a number of conferences for that, virtually including one that was supposed to be held in Boston, but another one that was held out of the University of Heidelberg in Germany. And, uh, this is sort of things that in some ways, the pandemic is pushing people towards greater collaboration than they would have been able to do. Had it all but in person. >>Yeah, we did. Uh, the cube did live works a couple years ago in Boston. It was awesome show. And I think, you know, with this whole trend toward digit, I call it the Force march to digital. Thanks to cove it I think that's just gonna continue. Thio grow. Rafael. What if you could describe the process that you use to better understand diseases? And what's your organization's involvement? Been in more detail, addressing the cove in pandemic. >>Um, so so we have the bio be structured in, Um um in a way that foster so the combination of technology and science. So we have to scientific tracks, one about infectious diseases and the other one about understanding just basic human biology, how the human body functions, and especially how the cells in the human body function on how they're organized to create tissues in the body. On Ben, it has this set of platforms. Um, mind is one of them by engineering that are all technology rated. So we have data science platform, all about data analysis, machine learning, things like that. Um, we have a mass spectrometry platform is all about mass spectrometry technologies to, um, exploit those ones in service for the scientist on. We have a genomics platform that it's all about sequencing DNA and are gonna, um and then an advanced microscopy. It's all about developing technologies, uh, to look at things with advanced microscopes and developed technologies to marry computation on microscopy. So, um, the scientists set the agenda and the platforms, we just serve their needs, support their needs, and hopefully develop technologies that help them do their experiments better, faster, or allow them to the experiment that they couldn't do in any other way before. Um And so with cove, it because we have that very strong group of scientists that work on have been working on infectious disease before, and especially in viruses, we've been able to very quickly pivot to working on that s O. For example, my team was able to build pretty quickly a machine to automatically purified proteins on is being used to purify all these different important proteins in the cove. It virus the SARS cov to virus Onda. We're sending some of those purified proteins all over the world. Two scientists that are researching the virus and trying to figure out how to develop vaccines, understand how the virus affects the body and all that. Um, so some of the machines we built are having a very direct impact on this. Um, Also for the copy testing lab, we were able to very quickly develop some very simple machines that allowed the lab to function sort of faster and more efficiently. Sort of had a little bit of automation in places where we couldn't find commercial machines that would do it. >>Um, eso Matt. I mean, you gotta be listening to this and thinking about Okay, So someday your students are gonna be working at organizations like like, like Bio Hub and Silver Side. And you know, a lot of young people they're just don't know about you guys, but like my kids, they're really passionate about changing the world. You know, there's way more important than you know, the financial angles and it z e. I gotta believe you're seeing that you're right in the front lines there. >>Really? Um, in fact, when I started the curriculum six or seven years ago, one of the first bits of feedback I got from my students is they said Okay, this is a lot of fun. So I had my students designing projects and programming microcontrollers raspberry, PiS and order we nose and things like that. The first bit of feedback I got from students was they said Okay, when do we get to impact the world? I've heard engineering >>is about >>making the world a better place, and robots are fun and all, but, you know, where is the real impact? And so um, dude, yeah, thanks to the guidance of my students, I'm baking that Maurin. Now I'm like day one of engineering one. We talk about how the things that the tools they're learning and the skills they're gaining, uh, eventually, you know, very soon could be could be used to make the world a better place. >>You know, we all probably heard that famous line by Jeff Hammer Barker. The greatest minds of my generation are trying to figure out how to get people to click on ads. I think we're really generally generationally, finally, at the point where young students and engineering a really, you know, a passionate about affecting society. I wanna get into the product, you know, side and understand how each of you are using on shape and and the value that that it brings. Maybe Raphael, you could start how long you've been using it. You know, what's your experience with it? Let's let's start there. >>I begin for about two years, and I switched to it with some trepidation. You know, I was used to always using the traditional product that you have to install on your computer, that everybody uses that. So I was kind of locked into that. But I started being very frustrated with the way it worked, um, and decided to give on ship chance. Which reputation? Because any change always, you know, causes anxiety. Um, but very quickly my engineers started loving it, Uh, just because it's it's first of all, the learning curve wasn't very difficult at all. You can transfer from one from the traditional product to entree very quickly and easily. You can learn all the concepts very, very fast. It has all the functionality that we needed and and what's best is that it allows to do things that we couldn't do before or we couldn't do easily. Now we can access the our cat documents from anywhere in the world. Um, so when we're in the lab fabricating something or testing a machine, any computer we have next to us or a tablet or on iPhone, we can pull it up and look at the cad and check things or make changes. That's something that couldn't do before because before you had to pay for every installation off the software for the computer, and I couldn't afford to have 20 installations to have some computers with the cat ready to use them like once every six months would have been very inefficient. So we love that part. And the collaboration features are fantastic, especially now with Kobe, that we have to have all the remote meetings eyes fantastic, that you can have another person drive the cad while the whole team is watching that person change the model and do things and point to things that is absolutely revolutionary. We love it. The fact that you have very, very sophisticated version control before it was always a challenge asking people, please, if you create anniversary and apart, how do we name it so that people find it? And then you end up with all these collection of files with names that nobody ever remembers, what they are, the person left. And now nobody knows which version is the right one. A mess with on shape on the version ING system it has, and the fact that you can go back in history off the document and go back to previous version so easily and then go back to the press and version and explore the history of the part that is truly, um, just world changing for us, that we can do that so easily on for me as a manager to manage this collection of information that is critical for our operations. It makes it so much easier because everything is in one place. I don't have to worry about file servers that go down that I have to administer that have to have I t taken care off that have to figure how to keep access to people to those servers when they're at home, and they need a virtual private network and all of that mess disappears. I just simply give give a person in accounting on shape and then magically, they have access to everything in the way I want. And we can manage the lower documents and everything in a way that is absolutely fantastic. >>Feel what was your what? What were some of the concerns you had mentioned? You had some trepidation. Was it a performance? Was it security? You know some of the traditional cloud stuff, and I'm curious as to how, How, whether any of those act manifested really that you had to manage. What were your concerns? >>Look, the main concern is how long is it going to take for everybody in the team to learn to use the system like it and buy into it? Because I don't want to have my engineers using tools against their will write. I want everybody to be happy because that's how they're productive. They're happy, and they enjoyed the tools they have. That was my main concern. I was a little bit worried about the whole concept of not having the files in a place where I couldn't quote unquote seat in some server and on site, but that That's kind of an outdated concept, right? So that took a little bit of a mind shift, but very quickly. Then I started thinking, Look, I have a lot of documents on Google Drive. Like, I don't worry about that. Why would I worry about my cat on on shape, right? Is the same thing. So I just needed to sort of put things in perspective that way. Um, the other, um, you know, the concern was the learning curve, right? Is like, how is he Will be for everybody to and for me to learn it on whether it had all of the features that we needed. And there were a few features that I actually discussed with, um uh, Cody at on shape on, they were actually awesome about using their scripting language in on shape to sort of mimic some of the features of the old cat, uh, in on, shaped in a way that actually works even better than the old system. So it was It was amazing. Yeah, >>Great. Thank you for that, Philip. What's your experience been? Maybe you could take us through your journey within shape. >>Sure. So we've been we've been using on shaped silver side for coming up on about four years now, and we love it. We're very happy with it. We have a very modular product line, so we make anything from detectors that would go into backpacks. Two vehicles, two very large things that a shipping container would go through and saw. Excuse me. Shape helps us to track and collaborate faster on the design. Have multiple people working a same time on a project. And it also helps us to figure out if somebody else comes to us and say, Hey, I want something new how we congrats modules from things that we already have put them together and then keep track of the design development and the different branches and ideas that we have, how they all fit together. A za design comes together, and it's just been fantastic from a mechanical engineering background. I will also say that having used a number of different systems and solid works was the greatest thing since sliced bread. Before I got using on shape, I went, Wow, this is amazing and I really don't want to design in any other platform. After after getting on Lee, a little bit familiar with it. >>You know, it's funny, right? I'll have the speed of technology progression. I was explaining to some young guns the other day how I used to have a daytime er and that was my life. And if I lost that daytime, er I was dead. And I don't know how we weigh existed without, you know, Google maps eso we get anywhere, I don't know, but, uh but so So, Matt, you know, it's interesting to think about, you know, some of the concerns that Raphael brought up, you hear? For instance, you know, all the time. Wow. You know, I get my Amazon bill at the end of the month that zip through the roof in, But the reality is that Yeah, well, maybe you are doing more, but you're doing things that you couldn't have done before. And I think about your experience in teaching and educating. I mean, you so much more limited in terms of the resource is that you would have had to be able to educate people. So what's your experience been with With on shape and what is it enabled? >>Um, yeah, it was actually talking before we went with on shape. We had a previous CAD program, and I was talking to my vendor about it, and he let me know that we were actually one of the biggest CAD shops in the state. Because if you think about it a really big program, you know, really big company might employ. 5, 10, 15, 20 cad guys, right? I mean, when I worked for a large defense contractor, I think there were probably 20 of us as the cad guys. I now have about 300 students doing cat. So there's probably more students with more hours of cat under their belt in my building than there were when I worked for the big defense contractor. Um, but like you mentioned, uh, probably our biggest hurdle is just re sources. And so we want We want one of things I've always prided myself and trying to do in this. Programs provide students with access two tools and skills that they're going to see either in college or in the real world. So it's one of the reason we went with a big professional cad program. There are, you know, sort of K 12 oriented software and programs and things. But, you know, I want my kids coding and python and using slack and using professional type of tools on DSO when it comes to cat. That's just that That was a really hurt. I mean, you know, you could spend $30,000 on one seat of, you know, professional level cad program, and then you need a $30,000 computer to run it on if you're doing a heavy assemblies, Um and so one of my dreams And it was always just a crazy dream. And I was the way I would always pitcher in my school system and say, someday I'm gonna have a kid on a school issued chromebook in subsidized housing, on public WiFi doing professional level bad and that that was a crazy statement until a couple of years ago. So we're really excited that I literally and you know, March and you said the forced march, the forced march into, you know, modernity, March 13th kids sitting in my engineering lab that we spent a lot of money on doing cad March 14th. Those kids were at home on their school issued chromebooks on public WiFi, uh, keeping their designs going and collaborating. And then, yeah, I could go on and on about some of the things you know, the features that we've learned since then they're even better. So it's not like this is some inferior, diminished version of Academy. There's so much about it. Well, I >>wanna I wanna ask you that I may be over my skis on this, but we're seeing we're starting to see the early days of the democratization of CAD and product design. It is the the citizen engineer, I mean, maybe insulting to the engineers in the room, But but is that we're beginning to see that >>I have to believe that everything moves into the cloud. Part of that is democratization that I don't need. I can whether you know, I think artists, you know, I could have a music studio in my basement with a nice enough software package. And Aiken, I could be a professional for now. My wife's a photographer. I'm not allowed to say that I could be a professional photographer with, you know, some cloud based software, and so, yeah, I do think that's part of what we're seeing is more and more technology is moving to the cloud. >>Philip. Rafael Anything you Dad, >>I think I mean, yeah, that that that combination of cloud based cat and then three d printing that is becoming more and more affordable on ubiquitous It's truly transformative, and I think for education is fantastic. I wish when I was a kid I had the opportunity to play with those kinds of things because I was always the late things. But, you know, the in a very primitive way. So, um, I think this is a dream for kids. Teoh be able to do this. And, um, yeah, there's so many other technologies coming on, like Arduino on all of these electronic things that live kids play at home very cheaply with things that back in my day would have been unthinkable. >>So we know there's a go ahead. Philip, please. >>We had a pandemic and silver site moved to a new manufacturing facility this year. I was just on the shop floor, talking with contractors, standing 6 ft apart, pointing at things. But through it all, our CAD system was completely unruffled. Nothing stopped in our development work. Nothing stopped in our support for existing systems in the field. We didn't have to think about it. We had other server issues, but none with our, you know, engineering cad, platform and product development in support world right ahead, which was cool, but also a in that's point. I think it's just really cool what you're doing with the kids. The most interesting secondary and college level engineering work that I did was project based, taken important problem to the world. Go solve it and that is what we do here. That is what my entire career has been. And I'm super excited to see. See what your students are going to be doing, uh, in there home classrooms on their chromebooks now and what they do building on that. >>Yeah, I'm super excited to see your kids coming out of college with engineering degrees because, yeah, I think that Project based experience is so much better than just sitting in a classroom, taking notes and doing math problems on day. I think it will give the kids a much better flavor. What engineering is really about Think a lot of kids get turned off by engineering because they think it's kind of dry because it's just about the math for some very abstract abstract concept on they are there. But I think the most important thing is just that hands on a building and the creativity off, making things that you can touch that you can see that you can see functioning. >>Great. So, you know, we all know the relentless pace of technology progression. So when you think about when you're sitting down with the folks that on shape and there the customer advisor for one of the things that that you want on shape to do that it doesn't do today >>I could start by saying, I just love some of the things that does do because it's such a modern platform. And I think some of these, uh, some some platforms that have a lot of legacy and a lot of history behind them. I think we're dragging some of that behind them. So it's cool to see a platform that seemed to be developed in the modern era, and so that Z it is the Google docks. And so the fact that collaboration and version ing and link sharing is and like platform agnostic abilities, the fact that that seems to be just built into the nature of the thing so far, That's super exciting. As far as things that, uh, to go from there, Um, I don't know, >>Other than price. >>You can't say >>I >>can't say lower price. >>Yeah, so far on P. D. C. S that work with us. Really? Well, so I'm not complaining. There you there, >>right? Yeah. Yeah. No gaps, guys. Whitespace, Come on. >>We've been really enjoying the three week update. Cadence. You know, there's a new version every three weeks and we don't have to install it. We just get all the latest and greatest goodies. One of the trends that we've been following and enjoying is the the help with a revision management and release work flows. Um, and I know that there's more than on shape is working on that we're very excited for, because that's a big important part about making real hardware and supporting it in the field. Something that was cool. They just integrated Cem markup capability. In the last release that took, we were doing that anyway, but we were doing it outside of on shapes. And now we get to streamline our workflow and put it in the CAD system where We're making those changes anyway when we're reviewing drawings and doing this kind of collaboration. And so I think from our perspective, we continue to look forward. Toa further progress on that. There's a lot of capability in the cloud that I think they're just kind of scratching the surface on you, >>right? I would. I mean, you're you're asking to knit. Pick. I would say one of the things that I would like to see is is faster regeneration speed. There are a few times with convicts, necessities that regenerating the document takes a little longer than I would like. It's not a serious issue, but anyway, I I'm being spoiled, >>you know? That's good. I've been doing this a long time, and I like toe ask that question of practitioners and to me, it It's a signal like when you're nit picking and that's what you're struggling to knit. Pick that to me is a sign of a successful product, and and I wonder, I don't know, uh, have the deep dive into the architecture. But are things like alternative processors. You're seeing them hit the market in a big way. Uh, you know, maybe helping address the challenge, But I'm gonna ask you the big, chewy question now. Then we maybe go to some audience questions when you think about the world's biggest problems. I mean, we're global pandemics, obviously top of mind. You think about nutrition, you know, feeding the global community. We've actually done a pretty good job of that. But it's not necessarily with the greatest nutrition, climate change, alternative energy, the economic divides. You've got geopolitical threats and social unrest. Health care is a continuing problem. What's your vision for changing the world and how product innovation for good and be applied to some of the the problems that that you all are passionate about? Big question. Who wants toe start? >>Not biased. But for years I've been saying that if you want to solve the economy, the environment, uh, global unrest, pandemics, education is the case. If you wanna. If you want to, um, make progress in those in those realms, I think funding funding education is probably gonna pay off pretty well. >>Absolutely. And I think Stam is key to that. I mean, all of the ah lot of the well being that we have today and then industrialized countries. Thanks to science and technology, right improvements in health care, improvements in communication, transportation, air conditioning. Um, every aspect of life is touched by science and technology. So I think having more kids studying and understanding that is absolutely key. Yeah, I agree, >>Philip, you got anything to add? >>I think there's some big technical problems in the world today, Raphael and ourselves there certainly working on a couple of them. Think they're also collaboration problems and getting everybody to be able to pull together instead of pulling separately and to be able to spur the ideas on words. So that's where I think the education side is really exciting. What Matt is doing and it just kind of collaboration in general when we could do provide tools to help people do good work. Uh, that is, I think, valuable. >>Yeah, I think that's a very good point. And along those lines, we have some projects that are about creating very low cost instruments for low research settings, places in Africa, Southeast Asia, South America, so that they can do, um, um, biomedical research that it's difficult to do in those place because they don't have the money to buy the fancy lab machines that cost $30,000 an hour. Um, so we're trying to sort of democratize some of those instruments. And I think thanks to tools like Kahn shape then is easier, for example, to have a conversation with somebody in Africa and show them the design that we have and discuss the details of it with them on. But it's amazing, right to have somebody, you know, 10 time zones away, Um, looking really life in real time with you about your design and discussing the details or teaching them how to build a machine, right? Because, um, you know, they have a three D printer. You can you can just give them the design and say like, you build it yourself, uh, even cheaper than and, you know, also billing and shipping it there. Um, so all that that that aspect of it is also super important. I think for any of these efforts to improve some of the hardest part was in the world for climate change. Do you say, as you say, poverty, nutrition issues? Um, you know, availability of water. You have that project at about finding water. Um, if we can also help deploy technologies that teach people remotely how to create their own technologies or how to build their own systems that will help them solve those forms locally. I think that's very powerful. >>Yeah, the point about education is right on. I think some people in the audience may be familiar with the work of Erik Brynjolfsson and Andrew McAfee, the second machine age where they sort of put forth the premise that, uh, is it laid it out. Look, for the first time in history, machines air replacing humans from a cognitive perspective. Machines have always replaced humans, but that's gonna have an impact on jobs. But the answer is not toe protect the past from the future. The answer is education and public policy that really supports that. So I couldn't agree more. I think it's a really great point. Um, we have We do have some questions from the audience. If if we could If I can ask you guys, um, you know, this one kind of stands out. How do you see artificial intelligence? I was just talking about machine intelligence. Um, how do you see that? Impacting the design space guys trying to infuse a I into your product development. Can you tell me? >>Um, absolutely, like, we're using AI for some things, including some of these very low cost instruments that will hopefully help us diagnose certain diseases, especially this is that are very prevalent in the Third World. Um, and some of those diagnostics are these days done by thes armies of technicians that are trained to look under the microscope. But, um, that's a very slow process. Is very error prone and having machine learning systems that can to the same diagnosis faster, cheaper and also little machines that can be taken to very remote places to these villages that have no access to a fancy microscope. To look at a sample from a patient that's very powerful. And I we don't do this, but I have read quite a bit about how certain places air using a Tribune attorneys to actually help them optimize designs for parts. So you get these very interesting looking parts that you would have never thought off a person would have never thought off, but that are incredibly light ink. Earlier, strong and I have all sort of properties that are interesting thanks to artificial intelligence machine learning in particular >>yet another. The advantage you get when when your work is in the cloud I've seen. I mean, there's just so many applications that so if the radiology scan is in the cloud and the radiologist is goes to bed at night, Radiologist could come in in the morning and and say, Oh, the machine while you were sleeping was using artificial intelligence to scan these 40,000 images. And here's the five that we picked out that we think you should take a closer look at. Or like Raphael said, I can design my part. My, my, my, my, my you know, mount or bracket or whatever and go to sleep. And then I wake up in the morning. The machine has improved. It for me has made it strider strider stronger and lighter. Um And so just when your when your work is in the cloud, that's just that's a really cool advantage that you get that you can have machines doing some of your design work for you. >>Yeah, we've been watching, uh, you know, this week is this month, I guess is AWS re invent and it's just amazing to see how much effort is coming around machine learning machine intelligence. You know Amazon has sage maker Google's got, you know, embedded you no ML and big query. Uh, certainly Microsoft with Azure is doing tons of stuff and machine learning. I think the point there is that that these things will be infused in tow R and D and in tow software product by the vendor community. And you all will apply that to your business and and build value through the unique data that your collecting, you know, in your ecosystems. And and that's how you add value. You don't have to be necessarily, you know, developers of artificial intelligence, but you have to be practitioners to apply that. Does that make sense to you, Philip? >>Yeah, absolutely. And I think your point about value is really well chosen. We see AI involved from the physics simulations all the way up to interpreting radiation data, and that's where the value question, I think, is really important because it's is the output of the AI giving helpful information that the people that need to be looking at it. So if it's curating a serious of radiation alert, saying, Hey, like these air the anomalies. You need to look at eyes it, doing that in a way that's going to help a good response on. In some cases, the II is only as good as the people. That sort of gave it a direction and turn it loose. And you want to make sure that you don't have biases or things like that underlying your AI that they're going to result in less than helpful outcomes coming from it. So we spend quite a lot of time thinking about how do we provide the right outcomes to people who are who are relying on our systems? >>That's a great point, right? Humans air biased and humans build models, so models are inherently biased. But then the software is hitting the market. That's gonna help us identify those biases and help us, you know? Of course. Correct. So we're entering Cem some very exciting times, guys. Great conversation. I can't thank you enough for spending the time with us and sharing with our audience the innovations that you're bringing to help the world. So thanks again. >>Thank you so much. >>Thank you. >>Okay. Welcome. Okay. When we come back, John McElheny is gonna join me. He's on shape. Co founder. And he's currently the VP of strategy at PTC. He's gonna join the program. We're gonna take a look at what's next and product innovation. I'm Dave Volonte and you're watching innovation for good on the Cube, the global leader. Digital technology event coverage. We'll be right back. >>Okay? Okay. Yeah. Okay. >>From around >>the globe, it's the Cube. Presenting innovation for good. Brought to you by on shape. >>Okay, welcome back to innovation. For good. With me is John McElheny, who is one of the co founders of On Shape and is now the VP of strategy at PTC. John, it's good to see you. Thanks for making the time to come on the program. Thanks, Dave. So we heard earlier some of the accomplishments that you've made since the acquisition. How has the acquisition affected your strategy? Maybe you could talk about what resource is PTC brought to the table that allowed you toe sort of rethink or evolve your strategy? What can you share with us? >>Sure. You know, a year ago, when when John and myself met with Jim Pepperman early on is we're we're pondering. Started joining PTC one of things became very clear is that we had a very clear shared vision about how we could take the on shape platform and really extended for, for all of the PTC products, particular sort of their augmented reality as well as their their thing works or the i o. T business and their product. And so from the very beginning there was a clear strategy about taking on shape, extending the platform and really investing, um, pretty significantly in the product development as well as go to market side of things, uh, toe to bring on shape out to not only the PTC based but sort of the broader community at large. So So So PTC has been a terrific, terrific, um, sort of partner as we've we've gonna go on after this market together. Eso We've added a lot of resource and product development side of things. Ah, lot of resource and they go to market and customer success and support. So, really, on many fronts, that's been both. Resource is as well a sort of support at the corporate level from from a strategic standpoint and then in the field, we've had wonderful interactions with many large enterprise customers as well as the PTC channels. So it's been really a great a great year. >>Well, and you think about the challenges of in your business going to SAS, which you guys, you know, took on that journey. You know, 78 years ago. Uh, it's not trivial for a lot of companies to make that transition, especially a company that's been around as long as PTC. So So I'm wondering how much you know, I was just asking you How about what PCP TC brought to the table? E gotta believe you're bringing a lot to the table to in terms of the mindset, uh, even things is, is mundane is not the right word, but things like how you compensate salespeople, how you interact with customers, the notion of a service versus a product. I wonder if you could address >>that. Yeah, it's a it's a really great point. In fact, after we had met Jim last year, John and I one of the things we walked out in the seaport area in Boston, one of things we sort of said is, you know, Jim really gets what we're trying to do here and and part of let me bring you into the thinking early on. Part of what Jim talked about is there's lots of, you know, installed base sort of software that's inside of PTC base. That's helped literally thousands of customers around the world. But the idea of moving to sass and all that it entails both from a technology standpoint but also a cultural standpoint. Like How do you not not just compensate the sales people as an example? But how do you think about customer success? In the past, it might have been that you had professional services that you bring out to a customer, help them deploy your solutions. Well, when you're thinking about a SAS based offering, it's really critical that you get customers successful with it. Otherwise, you may have turned, and you know it will be very expensive in terms of your business long term. So you've got to get customers success with software in the very beginning. So you know, Jim really looked at on shape and he said that John and I, from a cultural standpoint, you know, a lot of times companies get acquired and they've acquired technology in the past that they integrate directly into into PTC and then sort of roll it out through their products, are there just reached channel, he said. In some respects, John John, think about it as we're gonna take PTC and we want to integrate it into on shape because we want you to share with us both on the sales side and customer success on marketing on operations. You know all the things because long term, we believe the world is a SAS world, that the whole industry is gonna move too. So really, it was sort of an inverse in terms of the thought process related to normal transactions >>on That makes a lot of sense to me. You mentioned Sharon turns the silent killer of a SAS company, and you know, there's a lot of discussion, you know, in the entrepreneurial community because you live this, you know what's the best path? I mean today, You see, you know, if you watch Silicon Valley double, double, triple triple, but but there's a lot of people who believe, and I wonder, if you come in there is the best path to, you know, in the X Y axis. If if it's if it's uh, growth on one and retention on the other axis. What's the best way to get to the upper right on? Really? The the best path is probably make sure you've nailed obviously the product market fit, But make sure that you can retain customers and then throw gas on the fire. You see a lot of companies they burn out trying to grow too fast, but they haven't figured out, you know that. But there's too much churn. They haven't figured out those metrics. I mean, obviously on shape. You know, you were sort of a pioneer in here. I gotta believe you've figured out that customer retention before you really, You know, put the pedal to the >>metal. Yeah, and you know, growth growth can mask a lot of things, but getting getting customers, especially the engineering space. Nobody goes and sits there and says, Tomorrow we're gonna go and and, you know, put 100 users on this and and immediately swap out all of our existing tools. These tools are very rich and deep in terms of capability, and they become part of the operational process of how a company designs and builds products. So any time anybody is actually going through the purchasing process. Typically, they will run a try along or they'll run a project where they look at. Kind of What? What is this new solution gonna help them dio. How are we gonna orient ourselves for success? Longer term. So for us, you know, getting new customers and customer acquisition is really critical. But getting those customers to actually deploy the solution to be successful with it. You know, we like to sort of, say, the marketing or the lead generation and even some of the initial sales. That's sort of like the Kindle ing. But the fire really starts when customers deploy it and get successful. The solution because they bring other customers into the fold. And then, of course, if they're successful with it, you know, then in fact, you have negative turn which, ironically, means growth in terms of your inside of your install. Bates. >>Right? And you've seen that with some of the emerging, you know, SAS companies, where you're you're actually you know, when you calculate whatever its net retention or renew ALS, it's actually from a dollar standpoint. It's up in the high nineties or even over 100%. >>So >>and that's a trend we're gonna continue. See, I >>wonder >>if we could sort of go back. Uh, and when you guys were starting on shape, some of the things that you saw that you were trying to strategically leverage and what's changed, you know, today we were talking. I was talking to John earlier about in a way, you kinda you kinda got a blank slate is like doing another startup. >>You're >>not. Obviously you've got installed base and customers to service, but But it's a new beginning for you guys. So one of the things that you saw then you know, cloud and and sas and okay, but that's we've been there, done that. What are you seeing? You know today? >>Well, you know, So So this is a journey, of course, that that on shape on its own has gone through it had I'll sort of say, you know, several iterations, both in terms of of of, you know, how do you How do you get customers? How do you How do you get them successful? How do you grow those customers? And now that we've been part of PTC, the question becomes okay. One, There is certainly a higher level of credibility that helps us in terms of our our megaphone is much bigger than it was when we're standalone company. But on top of that now, figuring out how to work with their channel with their direct sales force, you know, they have, um, for example, you know, very large enterprises. Well, many of those customers are not gonna go in forklift out their existing solution to replace it with with on shape. However, many of them do have challenges in their supply chain and communications with contractors and vendors across the globe. And so, you know, finding our fit inside of those large enterprises as they extend out with their their customers is a very interesting area that we've really been sort of incremental to to PTC. And then, you know, they they have access to lots of other technology, like the i o. T business. And now, of course, the augmented reality business that that we can bring things to bear. For example, in the augmented reality world, they've they've got something called expert capture. And this is essentially imagine, you know, in a are ah, headset that allows you to be ableto to speak to it, but also capture images still images in video. And you could take somebody who's doing their task and capture literally the steps that they're taking its geo location and from their builds steps for new employees to be, we'll learn and understand how todo use that technology to help them do their job better. Well, when they do that, if there is replacement products or variation of of some of the tools that that they built the original design instruction set for they now have another version. Well, they have to manage multiple versions. Well, that's what on shape is really great at doing and so taking our technology and helping their solutions as well. So it's not only expanding our customer footprint, it's expanding the application footprint in terms of how we can help them and help customers. >>So that leads me to the tam discussion and again, as part of your strategist role. How do you think about that? Was just talking to some of your customers earlier about the democratization of cat and engineering? You know, I kind of joked, sort of like citizen engineering, but but so that you know, the demographics are changing the number of users potentially that can access the products because the it's so much more of a facile experience. How are you thinking about the total available market? >>It really is a great question, You know, it used to be when you when you sold boxes of software, it was how many engineers were out there. And that's the size of the market. The fact that matter is now when, When you think about access to that information, that data is simply a pane of glass. Whether it's a computer, whether it's a laptop, UH, a a cell phone or whether it's a tablet, the ability to to use different vehicles, access information and data expands the capabilities and power of a system to allow feedback and iteration. I mean, one of the one of the very interesting things is in technology is when you can take something and really unleash it to a larger audience and builds, you know, purpose built applications. You can start to iterate, get better feedback. You know there's a classic case in the clothing industry where Zara, you know, is a fast sort of turnaround. Agile manufacturer. And there was a great New York Times article written a couple years ago. My wife's a fan of Zara, and I think she justifies any purchases by saying, You know, Zara, you gotta purchase it now. Otherwise it may not be there the next time. Yet you go back to the store. They had some people in a store in New York that had this woman's throw kind of covering Shaw. And they said, Well, it would be great if we could have this little clip here so we can hook it through or something. And they sent a note back toe to the factory in Spain, and literally two weeks later they had, you know, 4000 of these things in store, and they sold out because they had a closed loop and iterative process. And so if we could take information and allow people access in multiple ways through different devices and different screens, that could be very specific information that, you know, we remove a lot of the engineering data book, bring the end user products conceptually to somebody that would have had to wait months to get the actual physical prototype, and we could get feedback well, Weaken have a better chance of making sure whatever product we're building is the right product when it ultimately gets delivered to a customer. So it's really it's a much larger market that has to be thought of rather than just the kind of selling A boxes software to an engineer. >>That's a great story. And again, it's gonna be exciting for you guys to see that with. The added resource is that you have a PTC, Um, so let's talk. I promise people we wanna talk about Atlas. Let's talk about the platform. A little bit of Atlas was announced last year. Atlas. For those who don't know it's a SAS space platform, it purports to go beyond product lifecycle management and you You're talking cloud like agility and scale to CAD and product design. But John, you could do a better job than I. What do >>we need to know about Atlas? Well, I think Atlas is a great description because it really is metaphorically sort of holding up all of the PTC applications themselves. But from the very beginning, when John and I met with Jim, part of what we were intrigued about was that he shared a vision that on shape was more than just going to be a cad authoring tool that, in fact, you know, in the past these engineering tools were very powerful, but they were very narrow in their purpose and focus. And we had specialty applications to manage the versions, etcetera. What we did in on shape is we kind of inverted that thinking. We built this collaboration and sharing engine at the core and then kind of wrap the CAD system around it. But that collaboration sharing and version ING engine is really powerful. And it was that vision that Jim had that he shared that we had from the beginning, which was, how do we take this thing to make a platform that could be used for many other applications inside of inside of any company? And so not only do we have a partner application area that is is much like the APP store or Google play store. Uh, that was sort of our first Stan Shih ation of this. This this platform. But now we're extending out to broader applications and much meatier applications. And internally, that's the thing works in the in the augmented reality. But there'll be other applications that ultimately find its way on top of this platform. And so they'll get all the benefits of of the collaboration, sharing the version ing the multi platform, multi device. And that's an extremely extremely, um, strategic leverage point for the company. >>You know, it's interesting, John, you mentioned the seaport before. So PTC, for those who don't know, built a beautiful facility down at the Seaport in Boston. And, of course, when PTC started, you know, back in the mid 19 eighties, there was nothing at the seaport s. >>So it's >>kind of kind of ironic, you know, we were way seeing the transformation of the seaport. We're seeing the transformation of industry and of course, PTC. And I'm sure someday you'll get back into that beautiful office, you know? Wait. Yeah, I'll bet. And, uh and but I wanna bring this up because I want I want you to talk about the future. How you how you see that our industry and you've observed this has moved from very product centric, uh, plat platform centric with sass and cloud. And now we're seeing ecosystems form around those products and platforms and data flowing through the ecosystem powering, you know, new innovation. I wonder if you could paint a picture for us of what the future looks like to you from your vantage point. >>Yeah, I think one of the key words you said there is data because up until now, data for companies really was sort of trapped in different applications. And it wasn't because people were nefarious and they want to keep it limited. It was just the way in which things were built. And, you know, when people use an application like on shape, what ends up happening is there their day to day interaction and everything that they do is actually captured by the platform. And, you know, we don't have access to that data. Of course it's it's the customer's data. But as as an artifact of them using the system than doing their day to day job, what's happening is they're creating huge amounts of information that can then be accessed and analyzed to help them both improve their design process, improve their efficiencies, improve their actual schedules in terms of making sure they can hit delivery times and be able to understand where there might be roadblocks in the future. So the way I see it is companies now are deploying SAS based tools like on shape and an artifact of them. Using that platform is that they have now analytics and tools to better understand and an instrument and manage their business. And then from there, I think you're going to see, because these systems are all you know extremely well. Architected allow through, you know, very structured AP. I calls to connect other SAS based applications. You're gonna start seeing closed loop sort of system. So, for example, people design using on shape, they end up going and deploying their system or installing it, or people use the end using products. People then may call back into the customers support line and report issues, problems, challenges. They'll be able to do traceability back to the underlying design. They'll be able to do trend analysis and defect analysis from the support lines and tie it back and closed loop the product design, manufacture, deployment in the field sort of cycles. In addition, you can imagine there's many things that air sort of as designed. But then when people go on site and they have to install it. There's some alterations modifications. Think about think about like a large air conditioning units for buildings. You go and you go to train and you get a large air conditioning unit that put up on top of building with a crane. They have to build all kinds of adaptors to make sure that that will fit inside of the particulars of that building. You know, with on shape and tools like this, you'll be able to not only take the design of what the air conditioning system might be, but also the all the adapter plates, but also how they installed it. So it sort of as designed as manufactured as stalled. And all these things can be traced, just like if you think about the transformation of customer service or customer contacts. In the early days, you used to have tools that were PC based tools called contact management solution, you know, kind of act or gold mine. And these were basically glorified Elektronik role in Texas. It had a customer names and they had phone numbers and whatever else. And Salesforce and Siebel, you know, these types of systems really broadened out the perspective of what a customer relationship? Waas. So it wasn't just the contact information it was, you know, How did they come to find out about you as a company? So all of the pre sort of marketing and then kind of what happens after they become a customer and it really was a 3 60 view. I think that 3 60 view gets extended to not just to the customers, but also tools and the products they use. And then, of course, the performance information that could come back to the manufacturer. So, you know, as an engineer, one of the things you learn about with systems is the following. And if you remember, when the CD first came out CDs that used to talk about four times over sampling or eight times over sampling and it was really kind of, you know, the fidelity the system. And we know from systems theory that the best way to improve the performance of a system is to actually have more feedback. The more feedback you have, the better system could be. And so that's why you get 16 60 for example, etcetera. Same thing here. The more feedback we have of different parts of a company that a better performance, The company will be better customer relationships. Better, uh, overall financial performance as well. So that's that's the view I have of how these systems all tied together. >>It's a great vision in your point about the data is I think right on. It used to be so fragmented in silos, and in order to take a system view, you've gotta have a system view of the data. Now, for years, we've optimized maybe on one little component of the system and that sometimes we lose sight of the overall outcome. And so what you just described, I think is, I think sets up. You know very well as we exit. Hopefully soon we exit this this covert era on John. I hope that you and I can sit down face to face at a PTC on shape event in the near term >>in the seaport in the >>seaport would tell you that great facility toe have have an event for sure. It >>z wonderful >>there. So So John McElhinney. Thanks so much for for participating in the program. It was really great to have you on, >>right? Thanks, Dave. >>Okay. And I want to thank everyone for participating. Today we have some great guest speakers. And remember, this is a live program. So give us a little bit of time. We're gonna flip this site over toe on demand mode so you can share it with your colleagues and you, or you can come back and and watch the sessions that you heard today. Uh, this is Dave Volonte for the Cube and on shape PTC. Thank you so much for watching innovation for good. Be well, Have a great holiday. And we'll see you next time. Yeah.