>>Thanks. Hey, everyone, welcome back to the cubes. Continuing coverage of snowflakes. Summit 22 live from Caesars Forum in Las Vegas. Lisa Martin here. I have three guests here with me. We're gonna be talking about Snowflake Ventures and the snowflakes start up Challenge. That's in its second year. I've got Harry Glaser with me. Co founder and CEO of Model Bit Start Up Challenge finalist Damon Bryan joins us as well. The CTO and co founder of Hyper Affinity. Also a startup Challenge Finalists. And Stephane Williams to my left here, VP of Corporate development and snowflake Ventures. Guys, great to have you all on this little mini panel this morning. >>Thank you. >>Thank you. >>Let's go ahead, Harry, and we'll start with you. Talk to the audience about model. But what do you guys do? And then we'll kind of unpack the snowflake. The Snowflakes challenge >>Model bit is the easiest way for data scientists to deploy machine learning models directly into Snowflake. We make use of the latest snowflake functionality called Snow Park for python that allows those models to run adjacent to the data so that machine learning models can be much more efficient and much more powerful than they were before. >>Awesome. Damon. Give us an overview of hyper affinity. >>Yes, so hyper affinity were Decision Intelligence platform. So we helped. Specifically retailers and brands make intelligent decisions through the use of their own customer, data their product data and put data science in a I into the heart of the decision makers across their business. >>Nice Step seven. Tell us about the startup challenge. We talked a little bit about it yesterday with CMO Denise Pearson, but I know it's in its second year. Give us the idea of the impetus for it, what it's all about and what these companies embody. >>Yeah, so we This is the second year that we've done it. Um, we it was really out of, um Well, it starts with snowflake Ventures when we started to invest in companies, and we quickly realised that there's there's a massive opportunity for companies to be building on top of the Lego blocks, uh, of snowflake. And so, um, open up the competition. Last year it was the inaugural competition overlay analytics one, Um, and since then, you've seen a number of different functionalities and features as part of snowflakes snow part. Being one of them native applications is a really exciting one going forward. Um, the companies can really use to accelerate their ability to kind of deliver best in class applications using best in class technology to deliver real customer outcomes and value. Um, so we've we've seen tremendous traction across the globe, 250 applicants across 50. I think 70 countries was mentioned today, so truly global in nature. And it's really exciting to see how some of the start ups are taking snowflake to to to new and interesting use cases and new personas and new industries. >>So you had 200 over 250 software companies applied for this. How did you did you narrow it down to three? >>We did. Yeah, >>you do that. >>So, behind the scenes, we had a sub judging panel, the ones you didn't see up on stage, which I was luckily part of. We had kind of very distinct evaluation criteria that we were evaluating every company across. Um and we kind of took in tranches, right? We we took the first big garden, and we kind of try to get that down to a top 50 and top 50. Then we really went into the details and we kind of across, um, myself in ventures with some of my venture partners. Um, some of the market teams, some of the product and engineering team, all kind of came together and evaluated all of these different companies to get to the top 10, which was our semifinalists and then the semi finalists, or had a chance to present in front of the group. So we get. We got to meet over Zoom along the way where they did a pitch, a five minute pitch followed by a Q and A in a similar former, I guess, to what we just went through the startup challenge live, um, to get to the top three. And then here we are today, just coming out of the competition with with With folks here on the table. >>Wow, Harry talked to us about How did you just still down what model bit is doing into five minutes over Zoom and then five minutes this morning in person? >>I think it was really fun to have that pressure test where, you know, we've only been doing this for a short time. In fact model. It's only been a company for four or five months now, and to have this process where we pitch and pitch again and pitch again and pitch again really helped us nail the one sentence value proposition, which we hadn't done previously. So in that way, very grateful to step on in the team for giving us that opportunity. >>That helps tremendously. I can imagine being a 4 to 5 months young start up and really trying to figure out I've worked with those young start ups before. Messaging is challenging the narrative. Who are we? What do we do? How are we changing or chasing the market? What are our customers saying we are? That's challenging. So this was a good opportunity for you, Damon. Would you say the same as well for hyper affinity? >>Yeah, definitely conquer. It's really helped us to shape our our value proposition early and how we speak about that. It's quite complicated stuff, data science when you're trying to get across what you do, especially in retail, that we work in. So part of what our platform does is to help them make sense of data science and Ai and implement that into commercial decisions. So you have to be really kind of snappy with how you position things. And it's really helped us to do that. We're a little bit further down the line than than these guys we've been going for three years. So we've had the benefit of working with a lot of retailers to this point to actually identify what their problems are and shape our product and our proposition towards. >>Are you primarily working with the retail industry? >>Yes, Retail and CPG? Our primary use case. We have seen any kind of consumer related industries. >>Got it. Massive changes right in retail and CPG the last couple of years, the rise of consumer expectations. It's not going to go back down, right? We're impatient. We want brands to know who we are. I want you to deliver relevant content to me that if I if I bought a tent, go back on your website, don't show me more tense. Show me things that go with that. We have this expectation. You >>just explain the whole business. But >>it's so challenging because the brothers brands have to respond to that. How do you what is the value for retailers working with hyper affinity and snowflake together. What's that powerhouse? >>Yeah, exactly. So you're exactly right. The retail landscape is changing massively. There's inflation everywhere. The pandemic really impacted what consumers really value out of shopping with retailers. And those decisions are even harder for retailers to make. So that's kind of what our platform does. It helps them to make those decisions quickly, get the power of data science or democratise it into the hands of those decision makers. Um, so our platform helps to do that. And Snowflake really underpins that. You know, the scalability of snowflake means that we can scale the data and the capability that platform in tangent with that and snowflake have been innovating a lot of things like Snow Park and then the new announcements, announcements, uni store and a native APP framework really helping us to make developments to our product as quick as snowflakes are doing it. So it's really beneficial. >>You get kind of that tailwind from snowflakes acceleration. It sounds like >>exactly that. Yeah. So as soon as we hear about new things were like, Can we use it? You know, and Snow Park in particular was music to our ears, and we actually part of private preview for that. So we've been using that while and again some of the new developments will be. I'm on the phone to my guys saying, Can we use this? Get it, get it implemented pretty quickly. So yeah, >>fantastic. Sounds like a great aligned partnership there, Harry. Talk to us a little bit about model bit and how it's enabling customers. Maybe you've got a favourite customer example at model bit plus snowflake, the power that delivers to the end user customer? >>Absolutely. I mean, as I said, it allows you to deploy the M L model directly into snowflake. But sometimes you need to use the exact same machine learning model in multiple endpoints simultaneously. For example, one of our customers uses model bit to train and deploy a lead scoring model. So you know when somebody comes into your website and they fill out the form like they want to talk to a sales person, is this gonna be a really good customer? Do we think or maybe not so great? Maybe they won't pay quite as much, and that lead scoring model actually runs on the website using model bit so that you can deploy display a custom experience to that customer we know right away. If this is an A, B, C or D lead, and therefore do we show them a salesperson contact form? Do we just put them in the marketing funnel? Based on that lead score simultaneously, the business needs to know in the back office the score of the lead so that they can do things like routed to the appropriate salesperson or update their sales forecasts for the end of the quarter. That same model also runs in the in the snowflake warehouse so that those back office systems can be powered directly off of snowflake. The fact that they're able to train and deploy one model into two production environment simultaneously and manage all that is something they can only do with bottled it. >>Lead scoring has been traditionally challenging for businesses in every industry, but it's so incredibly important, especially as consumers get pickier and pickier with. I don't want I don't want to be measured. I want to opt out. What sounds like what model but is enabling is especially alignment between sales and marketing within companies, which is That's also a big challenge at many companies face for >>us. It starts with the data scientist, right? The fact that sales and marketing may not be aligned might be an issue with the source of truth. And do we have a source of truth at this company? And so the idea that we can empower these data scientists who are creating this value in the company by giving them best in class tools and resources That's our dream. That's our mission. >>Talk to me a little bit, Harry. You said you're only 4 to 5 months old. What were the gaps in the market that you and your co founders saw and said, Guys, we've got to solve this. And Snowflake is the right partner to help us do it. >>Absolutely. We This is actually our second start up, and we started previously a data Analytics company that was somewhat successful, and it got caught up in this big wave of migration of cloud tools. So all of data tools moved and are moving from on premise tools to cloud based tools. This is really a migration. That snowflake catalyst Snowflake, of course, is the ultimate in cloud based data platforms, moving customers from on premise data warehouses to modern cloud based data clouds that dragged and pulled the rest of the industry along with it. Data Science is one of the last pieces of the data industry that really hasn't moved to the cloud yet. We were almost surprised when we got done with our last start up. We were thinking about what to do next. The data scientists were still using Jupiter notebooks locally on their laptops, and we thought, This is a big market opportunity and we're We're almost surprised it hasn't been captured yet, and we're going to get in there. >>The other thing. I think it's really interesting on your business that we haven't talked about is just the the flow of data, right? So that the data scientist is usually taking data out of a of a of a day like something like Smoke like a data platform and the security kind of breaks down because then it's one. It's two, it's three, it's five, it's 20. Its, you know, big companies just gets really big. And so I think the really interesting thing with what you guys are doing is enabling the data to stay where it's at, not copping out keeping that security, that that highly governed environment that big companies want but allowing the data science community to really unlock that value from the data, which is really, really >>cool. Wonderful for small startups like Model Bit. Because you talk to a big company, you want them to become a customer. You want them to use your data science technology. They want to see your fed ramp certification. They want to talk to your C. So we're two guys in Silicon Valley with a dream. But if we can tell them the data is staying in snowflake and you have that conversation with Snowflake all the time and you trust them were just built on top. That is an easy and very smooth way to have that conversation with the customer. >>Would you both say that there's credibility like you got street cred, especially being so so early in this stage? Harry, with the partnership with With Snowflake Damon, we'll start with you. >>Yeah, absolutely. We've been using Snowflake from day one. We leave from when we started our company, and it was a little bit of an unknown, I guess maybe 23 years ago, especially in retail. A lot of retailers using all the legacy kind of enterprise software, are really starting to adopt the cloud now with what they're doing and obviously snowflake really innovating in that area. So what we're finding is we use Snowflake to host our platform and our infrastructure. We're finding a lot of retailers doing that as well, which makes it great for when they wanted to use products like ours because of the whole data share thing. It just becomes really easy. And it really simplifies it'll and data transformation and data sharing. >>Stephane, talk about the startup challenge, the innovation that you guys have seen, and only the second year I can. I can just hear it from the two of you. And I know that the winner is back in India, but tremendous amount of of potential, like to me the last 2.5 days, the flywheel that is snowflake is getting faster and faster and more and more powerful. What are some of the things that excite you about working on the start up challenge and some of the vision going forward that it's driving. >>I think the incredible thing about Snowflake is that we really focus as a company on the data infrastructure and and we're hyper focused on enabling and incubating and encouraging partners to kind of stand on top of a best of breed platform, um, unlocked value across the different, either personas within I T organisations or industries like hypothermia is doing. And so it's it's it's really incredible to see kind of domain knowledge and subject matter expertise, able to kind of plug into best of breed underlying data infrastructure and really divide, drive, drive real meaningful outcomes for for for our customers in the community. Um, it's just been incredible to see. I mean, we just saw three today. Um, there was 250 incredible applications that past the initial. Like, do they check all the boxes and then actually, wow, they just take you to these completely different areas. You never thought that the technology would go and solve. And yet here we are talking about, you know, really interesting use cases that have partners are taking us to two >>150. Did that surprise you? And what was it last year. >>I think it was actually close to close to 2 to 40 to 50 as well, and I think it was above to 50 this year. I think that's the number that is in my head from last year, but I think it's actually above that. But the momentum is, Yeah, it's there and and again, we're gonna be back next year with the full competition, too. So >>awesome. Harry, what is what are some of the things that are next for model bed as it progresses through its early stages? >>You know, one thing I've learned and I think probably everyone at this table has internalised this lesson. Product market fit really is everything for a start up. And so for us, it's We're fortunate to have a set of early design partners who will become our customers, who we work with every day to build features, get their feedback, make sure they love the product, and the most exciting thing that happened to me here this week was one of our early design partner. Customers wanted us to completely rethink how we integrate with gets so that they can use their CI CD workflows their continuous integration that they have in their own get platform, which is advanced. They've built it over many years, and so can they back, all of model, but with their get. And it was it was one of those conversations. I know this is getting a little bit in the weeds, but it was one of those conversations that, as a founder, makes your head explode. If we can have a critical mass of those conversations and get to that product market fit, then the flywheel starts. Then the investment money comes. Then you're hiring a big team and you're off to the races. >>Awesome. Sounds like there's a lot of potential and momentum there. Damon. Last question for you is what's next for hyper affinity. Obviously you've got we talked about the street cred. >>Yeah, what's >>next for the business? >>Well, so yeah, we we've got a lot of exciting times coming up, so we're about to really fully launch our products. So we've been trading for three years with consultancy in retail analytics and data science and actually using our product before it was fully ready to launch. So we have the kind of main launch of our product and we actually starting to onboard some clients now as we speak. Um, I think the climate with regards to trying to find data, science, resources, you know, a problem across the globe. So it really helps companies like ours that allow, you know, allow retailers or whoever is to democratise the use of data science. And perhaps, you know, really help them in this current climate where they're struggling to get world class resource to enable them to do that >>right so critical stuff and take us home with your overall summary of snowflake summit. Fourth annual, nearly 10,000 people here. Huge increase from the last time we were all in person. What's your bumper sticker takeaway from Summit 22 the Startup Challenge? >>Uh, that's a big closing statement for me. It's been just the energy. It's been incredible energy, incredible excitement. I feel the the products that have been unveiled just unlock a tonne, more value and a tonne, more interesting things for companies like the model bit I profanity and all the other startups here. And to go and think about so there's there's just this incredible energy, incredible excitement, both internally, our product and engineering teams, the partners that we have spoke. I've spoken here with the event, the portfolio companies that we've invested in. And so there's there's there's just this. Yeah, incredible momentum and excitement around what we're able to do with data in today's world, powered by underlying platform, like snowflakes. >>Right? And we've heard that energy, I think, through l 30 plus guests we've had on the show since Tuesday and certainly from the two of you as well. Congratulations on being finalist. We wish you the best of luck. You have to come back next year and talk about some of the great things. More great >>things hopefully will be exhibited next year. >>Yeah, that's a good thing to look for. Guys really appreciate your time and your insights. Congratulations on another successful start up challenge. >>Thank you so much >>for Harry, Damon and Stefan. I'm Lisa Martin. You're watching the cubes. Continuing coverage of snowflakes. Summit 22 live from Vegas. Stick around. We'll be right back with a volonte and our final guest of the day. Mhm, mhm

>> Announcer: Live from the Computer History Museum, in Mountain View, California, it's the Cube. Covering DevNet Create 2018, brought to you by Cisco. >> Hey, welcome back everyone, this is the Cube's live coverage here in Mountain View, Califonia, for Cisco's DevNet Create. It's their cloud native developer ecosystem. A new initiative, only a year and a half old, great, cloud native dev ops oriented. I'm John Furrier, your cost with my co-host Lauren Cooney, our next guest is Damon Edwards, Chief Product Officer of Rundeck. Welcome to the Cube, good to see you again. >> Yeah good to see you again as well. >> So, you were just on stage giving a talk. >> I was. >> About ops, dev ops. >> I was bumming people out, that's what I was doing, so all of the Cisco early stuff was about new products, new toys, new awesome stuff, and then my talk was about how silos and tickets ruin everything. Right that, we've got all these great advances on the dev side of the house and delivery side of the house and the new technologies we've got, and everything's high flying and going to be perfect, until it all hits operations and things tend to go wrong. So I walked through a bunch of names we changed to hide the not-so-innocent, we went through some incidents and tales of woe and how the disconnects, and basically the siloed way of working, number one, group like with like in operations, very siloed. But also, number two, that we run our lives through these ticket-driven request queues. Right and request queues or queues in general, if you look on the product side, and then the physics of the queuing, the queuing theory behind it, queues are economically very expensive things. You know, they add a lot of delays, they create a lot of bottlenecks. I ask you to do something, I write it down, you take it off the queue, you know, a week later, the context is all different, right? So you have all kinds of bottlenecks, all kinds of quality problems, all kinds of delays, and it's an expensive way to work. Yet that has become the defacto way that we run our lives. And studies and tickets for what they're good at, which is handling problems, we use tickets as the general work permission system for the entire operations organization, and it's no surprise that silos and ticket-driven request queues, that we get what we get. And so the talk was about how to say, well how can we stop using tickets as the primary way of doing things? How do we look at the organization and remove the need for hand-offs between the silos, and then replace, where we can't get rid of the hand-offs, with self-service, right? Pull-based self-service interfaces where people can get what they need to get done, do those operational tasks themselves, and then move on >> Lauren: Great. >> That's what it's all about. >> Tell us a little bit about what your company does and how you're solving this problem, 'cause it's definitely a problem that's out there right now, and people aren't talking about it a whole lot because it's kind of the ugly underbelly of development ops. You know, they're trying to solve it, but they don't really want to talk about it. >> It's less sexy because you get a promotion for delivering the next big project, right? Saying you fix how operations work, it generally doesn't- you know the board of directors doesn't know your name. So that's kind of problem number one. But how Rundeck factors into this is that we make tools for SREs and systems administrators to, number one, organize all their scripts and tools, connect all their scripts and tools, the platforms they currently have across those silos, create standard operating procedures, and then, probably most importantly use the access control features to start to give access to people who are traditionally outside of the operational boundaries. Let developers participate in operations. Let QA participate in operations. Let business analysts participate in operations. All those requests they normally have of operations, create those services, let them do them. By doing that, you're creating more capacity in operations to focus on issues you really need to be solved, and you're making everyone else happy because you're staying out of their way. They can move faster, have fast feedback, higher quality, all of that stuff. >> You know we've done a lot of crowd chats and we had the questions come up, Is it the culture, or is it the tooling, or is it the people? Thinking all of the above, culture, everyone goes to the (mumbles), yeah the culture's going to be there. You guys are doing tooling. Can you talk about some of the things that you've seen that works. How does someone go, "Hey, first it's self-awareness, "we got to change this." If someone's into that mindset, I want to move to the new model, to be more agile, to actually streamline those silos and that ticket system. What tool do they need to use? What are you guys providing? Where is the steps? What's the sequence of tooling and adoption, and picks and shovels. >> Number one, use what you have, right? So this idea that, okay we're going to solve this problem, we're going to teach everybody to use this one tool, so everyone's going to learn this DSL or this language, it just never works. I mean, you know, three years ago it was one tool, we all know the name. Couple of years ago is was another tool, we all know the name, you know, these configuration management tools. Now we're on to the new container world, I don't know if we need that or not. Everyone wants to do what they need to do, so let them do what they need to do. It's a very lean idea. Focus on how to connect those things. Focus on how to orchestrate and organize what you've got already. And then from there, focus on, you know, how do we two things? Limit those hand-offs, so that kind of is more of an organizational issue. And number two, all those hand-off points, Anything I need something from you John, you know, or you Lauren, I don't want to have to say, "do this for me, and you do this for me." I'm going to wait and you've got five other things you're working on. You should create services that I can pull from. I need something from you, I need something you normally do. Hit an automated service, sort of like, don't do the old Savist managed service way of doing things. Do it the Amazon way, right, which is I can hit an API and get what I want when I want it. And most importantly, it's not just a one way button I can push. But I can actually create those buttons myself. So I can give the thing that I need to do, you can look at it and say, yeah that's going to work, give me back permission to go and run it. Everybody's happy, you guys get more of the scenario, get more capacity and I get what I want without having- >> So is microservices going to impact operations in a way? Cause then what you're getting at is more of a microservices, more of the primitives are going to be in the ops side. So there's a development mindset anyway. Is that standard dev ops now is ops? >> Well you need to handle the operational concerns as early in the life-cycle as possible. Meaning developers have to build from- it's kind of like in the car world, you build a car for manufactureability. You have to build the services for operability, and so that's number one. And with the new microservices decoupled world, you have to move to this model of operations because the old model that did work balances across these silos, it just doesn't work in this decoupled world. It makes everything kind of grind back to a lumpen mass of who-knows-what. So if you want to let the organization decouple, you have to be able to decouple your operations to match. >> So how long is it taking for customers to realize the value of your solutions that you bring to the table? And how much time is it saving them? >> Yeah, I mean, for Rundeck specifically, because it doesn't force you to learn new languages, you can start with what you've got today. So literally it takes days, right? Start plugging in things that you have. You can set up the access control. You can set up the options interface, and next thing you know, I've got this self-service interface and I can turn around and let somebody use it. So, you know, Rundeck doesn't do the culture and the organization change for you. This becomes a tool that greases that, makes it a lot easier to get that. >> What specifically in the tool that works for customers that's resonating in your tool? What's the big impact when people engage with you guys? When do they know when to bring you in for the tool? Let's just say that the gurus can... hey, here's the culture, you know, you do some yoga, whatever you got to do culture-wise, make that happen. You come in, what do you do? >> Sure, so for us, we're kind of more the bottom-up, right? It's usually a team that says, "hey we're getting overrun with these requests." Or it's a team that's saying, we've got to get like- it could be as simple as our restarts are a mess. There's too many ways to do things across all these tools. And then it's, hey, these people keep bugging us to do this. Or, that team keeps bugging us to refresh this environment. Or, this team, we need to give them access to something that goes wrong in production, to run some health checks and see what's happening. Really, those kind of operational, support-type use cases. It's generally at the team-level, be brought in to solve these different problems. And then where, really, the gas gets poured on, is when the upper management is following all the dev ops and SREs conversations and realize that things need to change, then they usually see Rundeck as, ooh, we can use that, right? That's going to help us unlock things, and let's do more of that, and it spreads from team to team. >> So you're really not trying to come in and boil the ocean over. You come in on a very specific entry point, and then get momentum and scales. >> Yeah, we get organizations that aren't touching their culture at all. It's literally just, we're doing things the old, classic, off-shore, application operations call center model, and we're just going to get better at that, and use Rundeck to create more capacity, standardize things, bring some more people into this process, and that's it. And they're very successful as that. And then, the really exciting ones is when the coder gets caught up into larger organizational transformation. >> You mentioned SRE, site reliability engineers. Google uses that term. So I've got to ask you, we talked before we came on camera about "no ops", having a no ops culture because dev ops is more developer. And we were kind of pooh-poohing that, and you were kind of more aggressive. I won't say what you said to me because it's a children's show here. >> Damon: Yes I'm sure a lot of children watch the Cube. (laughs) >> The ops guys, no pun intended. So, Google is really hardcore on this. Do you have an opinion on this? Ops, no ops, dev ops, the role of ops? >> I mean it's ridiculous, ops happens, right? I mean, ops everyday. John Alspot was a formerly dexy, and now he's kind of a researcher, does this thing at conferences where he says, "Everybody raise your hand, if I locked everybody out, "so hands off the keyboard, you can't do anything. "How many of your companies "would still be in business tomorrow? "Or in a week? Or in a month? Or in a year?" And people's hands kind of going... You know, a day and a week, you know? And the reality is operations happens, right? These are complex, moving systems, interacting with complex things in the world, and you have to be able to operate them. So, you know, the original no ops idea was, oh I don't want to have a separate thing called operations, I want to distribute operations where it makes sense, have engineers everywhere. Google has an interesting view, which is, no we have a distinct organization. But they call it SRE and they use more software engineering discipline to do. We have a whole methodology behind it. But they're very much proving you can still have a separate engineering and operations organization and do it right. And then there's folks like Netflix and Amazon who are more like, no no we're going to distribute it within these cross-functional teams and organizations. >> And they're still ops no matter how you slice them. But here's the thing, my observation... People get confused automation and operations. Just because you're automating something doesn't mean it goes away. >> Damon: Right. >> You might automate some tasks and things- >> Damon: Or it could make it worse. >> Yeah so talk about that pull-push, that tug between that. Because it's the tension that's positive, because you want to automate things that you're doing multiple repetitive tasks on. But that eliminates some tasks but you're still operating. Talk about that dynamic. >> Well, there's certain things computers are very good at. Repetitive, no-end tasks, computers are great at. But it takes human creativity, or sort of the super complex connecting-the-dots. Humans are good at that. So how do you automate as much of the things as possible that the computers are good at? And that gives you the time and the cognitive bandwidth to focus on the creative. That's creative in building things, creative in "oh crap, we've got to solve this". Right, and the tool should be there to support that. The idea that you can automate all of that away, it just is not- >> Give me an example, if you look four or five years and think about how we're moving fast with the evolution with the cloud and everything else happening. (mumbles) IOG, AO, all this great stuff's happening. You got blog chain, you got cryptocurrent, a lot of things going on. That is super positive, it also could be detrimental. Where does the human piece come in? Where will always be the pieces where human creativity, human intuition, human judgment... Where is it always going to shine? What specific things do you see never going away? >> It's what you said, the intuition and the judgment, right? In the day-to-day work activities, you need to use that intuition and judgment to get things done, to see the different signals, and understand what they mean, to create new solutions on how to solve these new challenges. You know, that is where the human beings are needed. So, it's both in the delivery time, and in the idea of operations. If you think of an airplane, there's still pilots. You think of a nuclear power plant, there's still operators. Tons of automation, tons of alarms, tons of things to assist them, but it still comes down to the things that human brains are good at. So there's always a role- >> So categorically, how you see security, latency is one, multi-cloud, workload movement, is the areas that you start to see the categorical areas that are never going to go away. >> Yeah, and at a certain point you're going to have things where the platforms get better, and you kind of climb the stack, and more things that only human beings can do in the past you can start to automate things. Like deployment, deployment used to be a human task, now we start to standardize things, have standard parts, have virtualization, now the cloud, now the cloud native technology. That allows you to... Okay, you've standardized things, you've build the right tooling, now you can focus the humans on more important problems, and move at a higher velocity and better quality. >> Lauren: Great. >> Great stuff. Okay, what's going on for you? What are you up to now these days? What events are you going to? What are you working on? what are the cool things you're excited about right now? >> What am I excited about? The dev ops enterprise summit, I've been involved with that for a number of years, that is the best collection of enterprise, big corporation thinking around the whole sphere of transformation. >> John: And it's growing too. >> Yeah, it's growing. There's one now in London, one now going to be in Las Vegas, you know, 1000 to 2000 people. SREcon. SRE is a... It's like a specialized implementation of all the dev ops thinking. I think that's another great place to be. And then devopsdays, Velocity, all the traditional conferences. >> Great community. You've got to say being involved in the dev ops from day one, watching the pioneers, a few with arrows in their back, but now have gone mainstream, super exciting. I think Cooper Netties brings that mainstream, just highlights everything. >> Yeah, that's that platform I was talking about. A lot of the concerns that human beings had to struggle with on a day-to-day basis are now being put into the orchestration and scheduling and the containerization of things. >> Damon, great work. Congratulations on all the work you've done. You've been a real contribution to the industry. >> Thank you. >> Good luck with the business. Thanks for coming on the Cube. >> Yeah, thanks for having me. >> Alright, this Cube live coverage here in Mountain View for Cisco's DEVNET Create. Really the Cisco's foray into cloud native. Really getting at that dev ops culture, solving big problems, programming the networks. Cisco's bringing that together with their communities. Of course, Cube's here covering it. More live coverage after this short break. (electronic music)

>> Voiceover: Live from San Francisco, it's The Cube covering DevNet Create 2017, brought to you by Cisco. >> Welcome back everyone. We're live here in San Francisco, The Cube's exclusive coverage of Cisco's inaugural event DevNet Create. I'm John Furrier with SiliconANGLE. My cohost Peter Burris, general manager of wikibon.com research. Next guest is Damon Edwards, co-founder of Rundeck. He's been on the crowd chats and does event DevOps and the enterprise, the content chair, co-founder of Rundeck, welcome to The Cube. >> Thank you. >> Great to meet you. >> First and we've >> Good to be here. been in line chatting away. Quick though from you, Cisco getting into DevOps, the conversation's pretty straight forward. We think it's awesome that they're doing this. >> Damon: Yeah. >> Good direction, right in line with DevOps, things looking good, middle of the fairway. What do you do next? >> Damon: Yeah, I mean ... >> Where does Cisco take the ball from here and take it home? >> You know, I think it's just more of the same. I think that you can't underestimate the split that's happened in the DevOps have and have nots, that sounds kind of odd, but a lot that we talk about are the unicorns, the high flying special built organizations that really grew up with this in the last five to 10 years. I think where Cisco really plays is in the other 99% of commerce of the world, which is the core classic enterprises. DevOps really hasn't made that deep of a dent yet into that, I guess we call it dark IT, right? The rest of the world the people have to deal with 30 years of, in some places, different technology, skills, acquisitions, mismatches, all the legacy, all the bureaucracy of large organizations, and Cisco has a path into that and a voice of authority into that. So happy to see they're putting such emphasis on these DevOps and Agile ideas and help to drive them into that. >> And they got the app dynamics things going down too, that big acquisition. Their slogan is Where Apps Meet Infrastructure. We always just talk about infrastructure as code. They're talking about programmable networking, which is the same thing. We want more programmable. >> Damon: Right. So how do they make that transition to this new operational model? I mean, networks used to be very fragile, set in stone. >> Damon: Yeah. Someone used to joke, "Hey, they're called NoOps," because they would say no to everything from a developer standpoint. >> Damon: Sure. >> How do they transition from NoOps to a new operational model that's agile and adding value? >> The bigger issue here is that Ops is getting squeezed, right, so it's an existential crisis for them. The reason why they were always the no folks is because they're always spending their time protecting that capacity because they're overrun, they're always outnumbered, first of all, then they're being overrun with all these tickets of new stuff coming in plus incidents happening in the middle, the capacity has always been an issue. Now with this new DevOps, and really digital transformation inspired pressure, it's go, go, go faster, open things up. At the same time the same business folks are saying from the other direction lock things down, don't be the next hack. Don't be the next breach. Don't be the next major outage, right? >> John: It's really a lot of pressure It's a pressure cooker. >> Right. >> So they're squeezed. So the biggest with crisis, how do we relieve that, how do we relieve that pressure? And the key technique is to be able to actually allow other people to participate in what traditionally was only operations tasks. If you allow me to go one step ... >> John: Democratization of operations in a way. >> It is, and what they're doing, you see the organizations that really nailed this, they're dividing up the idea of an operations procedure. It used to be everything was in operations. You defined it, you ran it, and you have all security and management audit control over it. In these new ways what they're doing is they're breaking it up into three pieces to say the ability to define these automated procedures, the ability to execute them, and the ability to have that management control and oversight, let's make those in three discrete parts and let's move that to where the labor capacity makes the most sense. By doing that, operations can free up those bottlenecks, start to decouple more, allow the rest of the organization to move a lot quicker and not be in that horrible position of being squeezed to death and having to tell everybody no. >> There's a number of reasons why it's happening. Sorry. One of the key ones is that, and it brings us back to the Cisco conversation we're asking about this, is that is used to be that operations was tied to a particular asset. The server more often than not. And so a single individual could pool all those things together because a single individual, or single group, had control over virtually all the resources >> Damon: Right. >> that were a part of that. Now we're talking about applications that are inherently distributed, and so we can't look at the process of operations in the same way. This comes back to Cisco. Does the world need to think more discreetly about these new highly distributed, deeply distributed, applications differently, and is that going to catalyze the diffusion of more of these high quality DevOps principals? What do you think? >> Yeah, it has to. If you look at the business driver, which is this digital transformation, a lot of people scoff at because it's like wait, is this 1999? You need a website? What are we talking about, right? But you realize what it is is saying all these disparate systems we used to have, right. I could get my cable bill, but it's just online, it's just a PDF of what they send to the printers, right. But now on it, everything I could do when I call up the customer service agent, I want to do it through my phone or I want to do it on my laptop, and that means all those formerly distinct systems that lived in different windows on a customer service agents desktop and after the little things to check the router status blew up, well I'll just talk past it, right. But now it's really going to matter in this digital world. The business is driving that integration, so where things don't live in isolation anymore, and because of that the complexity and this distributed nature of these services is rising. >> John: Yeah. >> And when that that happens, that makes the operations inherently more difficult and just contributes to that squeeze even more and we got to find a way to relieve that. >> Great point and great analysis. That just picked off what we were talking about on our intro package of the redefinition of what a full stacked developer is. >> Damon: Yeah. >> Now full stack implies you're talking about a distributed application model where there's no isolation anymore so you could almost argue that that's going to be obsolete. It's a full horizontal developer. >> Well logic used to be full stack, but how they connect will be different. >> Which just brings up the notion of, okay, things were in isolation >> Right. >> built to the database, now I go down the network, now a whole new developer category potentially is emerging. Do you feel the same way? >> Damon: Yeah. >> I mean, we're speculating. We don't actually know. >> Sure. I mean, if you are Netflix, who prides itself on it's ability to go out, pay top of market, which means they are the top of market, and attract the best talent, only one can win that game. For everybody else in the world, this idea of we're going to have these polyglot, super human, I-know-everything engineers, it's never going to happen. We have to find a way to use our systems and our processes to allow that kind of integration to happen, and allow those people to define the control procedures and policies for the things that they know about, and then allow that all to integrate to where then we can have other folks operate it and run it. Again, that idea of moving those part around to where we can best take advantage of the labor, otherwise you're just ... You're never going to find it. Go to any conference, NASA DevOps Conference, and ask people how many LinkedIn spam messages do you get a day because the word DevOps is in your profile? >> Yeah. >> Everybody just laughs because it's dozens. You're never going to have that idea so you have to build the systems to recreate that full stack capability. >> And have people that have access to be one, rather than super human that becomes democratized at that level. >> Damon: Yeah. >> It's interesting. One of the things that you guys did at the DevOps Enterprise Summit, I know you were in the content chair. >> Damon: Sure. >> I made a note here for my ... Make sure I get this question to you, was I like this thing you guys touched upon. Is DevOps best left to grow organically or is there a growing need slash desire for an agile manifesto? (laughs) The top down, do the manifesto, or organic ... Thoughts? >> Yeah, I'd say no, because what DevOps is is a series of problem state- It's an umbrella over a bunch of problem statements and a bunch of solutions that keeps evolving. This is why the Devs conferences are so interesting because it's practitioners talking about what's worked for them. I feel like at the highest level, if you really need to have a definition, go ahead and read the Phoenix project or the DevOps handbook. They've done a great job of collating all of that, but at the end of the day it's not one thing. It's not a single practice. There's no single thing you can do to say I'm going to transform a major global financial services company into a fast, nimble operation. There is no one thing. It's a series of things that you have to try over and over again. Look at DevOps as a movement where you can learn from practitioners, apply it to your own organization, see what happens, report back, try some new stuff, and so on and so forth. >> So you could basically have a manifesto, but it's really just more of marching orders. Organically, it has to form on its own. That's basically the same. >> I think there already is. >> You could say hey we have a manifesto, but it's not like this is the playbook. You can get >> Damon: There is >> the handbook to learn. >> no playbook. >> Exactly. Okay, cool. Well, appreciate the insight. Let's talk about your business. What do you guys do? >> Damon: Sure. >> What are some of the things that Rundeck's doing that you're the co-founder of? Share a little bit about the company. >> Yeah, Rundeck is at the what is it, it's an orchestration and scheduling platform and it's used by operations organizations. Generally from large startups, but also large DevBox unicorns, but also a lot of large enterprises. What they're using it for is for defining and improving their operations procedures. What happens after deployment? Where do we define all the procedures to manage all these disparate systems, all these islands of automation. Chef and Puppet was the hottest thing around three years ago and now it's Docker and Kubernetes and everything else, and now we still have our old power shelf stuff, our late logic over there, some OpSquare stuff over there, so what are we going to do? We need a way to define the procedures, expand all those and allow people to participate in that operations world so they can relieve that crunch. We see a lot for automating the creative standard operating procedures like classic Runbook automation, with a next generation twist, we'll say, but we also see a lot of self service operations, meaning that let's let other people participate. Let's let developers define these procedures as Rundeck jobs, and then let operations vet them ... >> That's where you're talking about the operational being relieved a bit. >> Yeah, you have to. You can't just say there's one little group here that's going to deploy and run all of these things in this world. We have to let other people participate in that. Not just for deployment, which is big in the DevOps world, but for what happens after deployment that nobody wants to talk about. All the escalations, all the interruptions, all those problems, Rundeck really plays in that area help people to get that under control. >> Damon, thanks so much for sharing your insight. Congratulations on your startup and great to meet you in person. >> Yeah. >> We've had great chats in our crowd chat. You guys have been awesome with Gene Kim and the community that you're involved with with DevOps for the Enterprise Summit, practitioners sharing. That's a great ethos >> Damon: It's a pretty >> That really aligns >> awesome bet, yeah. >> with what's going on in the industry. Congratulations. More Cube coverage here exclusive of Cisco's inaugural event called DevNet Create, an extension of their DevNet core classic network and developer systems at Cisco. This is an open source one. This is out in the community. Not all Cisco, all part of the community. And of course we're bringing it to you with live coverage. I'm John for Peter Burris. Stay with us. (upbeat music) >> Hi. I'm April Mitchell, and I'm the senior director ...

>>The cube presents, Coon and cloud native con Europe, 2022, brought to you by red hat, the cloud native computing foundation and its ecosystem partners. >>Welcome to Valencia Spain in Coon and cloud native con Europe, 2022. I'm Keith Townsend, along with my host, Paul Gillon senior editor, enterprise architecture at Silicon angle. We are continuing the conversation here at KU con cloud native con around security app defense. Paul, were you aware it was this many security challenges and, and that were native to like cloud native >>Well there's security challenges with every new technology. And as we heard, uh, today from our, some of our earlier guests, uh, containers and Kubernetes naturally introduce new variables in the landscape and that creates the potential vulnerabilities. So there's a whole industry that's evolving around that. And what we've been looking at today, yesterday, we talked very much about managing Kubernetes today. We're talking about many of the nuances of building a, a Kubernetes based environment and security is clearly one of them. >>So welcome our guests on Garrett, head of products. >>Thank >>You and community at deep fence. You know what I'm going. I'm going to start out the question with a pretty interesting security at scale is one of your taglines. >>Absolutely. >>What does that mean? Exactly. >>So Kubernetes is all about scale securing applications and Kubernetes is a completely different game to securing your traditional monolithic legacy enterprise applications. Kubernetes grows it scales it's elastic, and the perimeter around a Kubernetes application is very, very porous. There are lots of entry points. So you can't think about securing a cloud native application. The way that you might have secured a monolith securing a monolith is like securing a castle. You build a wall around it. You put guards on the gate. You control, who comes in and out, and job is more or less done securing a cloud native application. It's like securing a city. People are roaming through the city without checks and balances. There are lots of services in the city that you've got to check and monitor. It's extremely porous. So sec, all of the security problems in Kubernetes with cloud native applications, they're amplified by scale, the size of the application, the number of nodes and the complexity of the application and the way that it's built and delivered. >>That's, uh, kind of a chilling phrase. The perimeter is porous. Uh, yeah, companies are adopting Kubernetes right now. Evidently bringing in all of these new, these new, uh, vulnerability points. Do they know what they're getting into >>Many don't, there's, there's a huge amount of work around trying to help organizations make the transition from thinking about applications as single components to thinking about them as microservices with multiple little, little components, it's a really essential step because that's what allows businesses to evolve, to digitize, to deliver services, using APIs, mobile, mobile apps. So it's a necessary technical change, but it brings with it. Lots of challenges and security is one of those biggest challenges. >>So as I'm thinking about that poorest nature, I can't help, but think, you know, if I have my, my traditional IPS does a really great job of blocking that centralized data center and access to that centralized data center. As I think about that city example that you gave me, I'm thinking, you know what? I have intruders or not even intruders. I have bad actors within my city. You >>Do you, how >>Do, how does deep defense help protect me from those bad actors that are inside or roaming the city? >>So this is the wonderful, unique technology we have within deep fence. So we install little sensors, little lightweight sensors on each host. That's running your application on Kubernetes nodes as a Damon set against Fargate instances on Docker hosts on bare metal. And those sensors install little taps into the network using E B P F and they monitor the workloads. So it's a little bit like having CCTV cameras throughout your city tracking what's happening. There are a lot of solutions which we'll look at what happens on a workload traditional XDR solutions that look for things like process changes or file system changes. And we gather those signals indicators of compromise, but those alone are too little too late. They tell you that a breach has probably already happened. What deep defense does is we also look at the network. We gather network signals. We can see someone using a, a reconnaissance tool roaming through your application, sending probe traffic to try and find weak points. >>We can see them then elevating the level of attack and trying to weaponize a particular exploit that they might have find, or vulnerability that they find. We can see everything that comes into each of the components, not just at the perimeter, but right inside your application. We see what happens in those components process file, integrity, changes. And we see what comes out, attempt exfiltrate, something that looks like a database file or et cetera password. And we put all of these little subtle signals, the indicators of attack, the network based signals and the indicators of compromise. We put those together and we build a picture of the threats against each of the workloads in your cloud, native application. There's lots and lots of background, recon traffic. We see that you generally don't need to worry about that. It's just noise. But as that elevates and you see evidence of exploits and later spread, we identify that we'll let you know, or we can step in and we can proactively block the behavior that's causing those problems. So we can stop someone from accessing a component, or if a component's compromised, we can, we can freeze it and restart it. And this is a key part of the technology within our threat striker security observability platform, >>Uh, false alerts are the bane of the security ministry's existence. What do you do to protect against those? >>So we use a range of heuristics and a degree, a small degree of machine learning to try and piece together. What's happening. It's a complicated picture. So some of your viewers will have heard of a might attack matrix. So a dictionary of techniques and tactics and, and protocols that attackers might use in order to attack an infrastructure. So we gather the signals, those TTPs, and we then build a model to try and understand how those little signals pieced together. So maybe there's, you know, there's a guy with a striped striped vest that is trying the doors in your city, you know, a low level criminal who isn't getting anywhere. We'll pick that up and that's low risk. But then if we see that person infiltrate a building, because they find an open door, then that raises the level of risk. So we monitor the growing level of risk against each workload. >>And once it hits a level of concern, then we let you know, but you can then forensically go back in time and look at all of the signals that surround that. So we don't just tell you, there was an alert and a file was compromised in your workload, do something about it. We tell you the file was compromised. And prior to that, there were these events, process failures. Those could have been caused by network events that are correlated to a vulnerability that we know. And those in, in turn could have been discovered by recon traffic. So we help you build that entire active picture up. Every application's different. You need to have the context to understand and interpret signals that a solution like threat striker gives you, and we give you that context. >>So I would push back. If I'm a platform team, say, you know what? I have a service mesh. I, I have trusted traffic going to trucked traffic going from trusted sources. I'm, I'm cutting off the problem even before it happens. Why should I use, uh, deep fix? >>So a service mesh won't cut off the problem. It'll just hide the problem because a service mesh will just encrypt the traffic between each of the components. It doesn't stop the bad traffic flowing. If a component is compromised, people can still talk to another component and the service mesh happily encrypts it and hides it. What we do. We love service meshes because we can decrypt the traffic or we can inspect the individual application components before they talk to the mesh side car. So we can pull out and see the plane, text traffic. We can identify things that other tools wouldn't have a hope of, of identifying. >>So, you know, you, you just, uh, triggered something. >>Yeah. >>A lot of companies do not like decrypting that traffic after it's been sent, they don't want anyone else, including security tools to see it. Yeah. How do you ensure, how do you serve those clients? >>So we serve those clients by having an architecture that sits entirely on premise in their infrastructure. Their sensitive data never leaves their network, their VPCs, their, their boundary. They install a threat striker console. So this is the tool that does all of the analysis and make the protection decisions. They run that themselves. They deploy the threat, striker sensors in their production environment. They talk over secure links, authenticated to the console. So everything sits within their power view, their level of their degree of control. >>So if, if they're building a, a, a cloud application though, or, or a hybrid cloud application, how do you connect? How do you deal with the cloud side? >>So whether their production environments are next to the threat striker console, whether they're running on remote clouds, our sensors will run in all of those environments and the console will manage a complex hybrid environment. It will show you traffic running in your Kubernetes cluster and AWS traffic Mon running on your VMs on Google traffic, running in your 4g instances on again, on AWS and on your on-prem instances, it gathers that data securely from each of those remote places, sends it to the console that you own and operate securely. So you have full control over what is captured. It's encrypted, it's authenticated, it's streamed back. So it never leaves your level of control. >>Talk to me about the overhead. How is this deployed and managed with MI environment? >>So there are two components, as we've learned, we have the console. All of the work is done on the console, the any necessary decryption, all the calculation that runs on a Kubernetes cluster, that, that you would deploy, that you would scale. So that's fully in your control. Then you need to install little sensors on each of your production environments to bring the data back to the console. >>Now those on pots, or are those in running inside of, uh, containers themselves. >>So they are container based. They're typically deployed as a demon set. So one instance per node in your Kubernetes cluster, they are, we have put a lot of engineering work into making those as lightweight as possible. They do very little analysis themselves. They do a little bit of pre-filtering of network traffic to reduce the bandwidth, and then they pass the packets back to the management console. So our goal is to have the minimal impact on customers, production environments, so that they can scale and operate without an impact on the performance or availability of their applications. And we have customers who are monitoring services running on literally thousands of Kubernetes nodes and streaming the data back to their management console and using that to analyze from a single point of control what's going on in their applications. >>So we hear time and again, CIOs complaining that they have too many point security products. Yes, I think average of 87 in, in, in the enterprise, according to, to one survey, aren't you just another, >>And that is the big challenge with security. There is no silver bullet product that will secure everything that you have. You have your, the what, you're the, what you're securing scales over space from your infrastructure to the containers and the workloads and the application code. It scales over time. Are you secure? Are you putting security measures in, at shift left development when you deploy or are you securing production? And it scales over the environments. There is no silver bullet that will provide best to breed security across that entire set of dimensions. There are large organizations that will present you with holistic solutions, which are a bunch of different solutions with the same logo on them, bundle together under the same umbrella. Those don't necessarily solve the problem. You need to understand the risks that your organization is faced. And then what are the best to breed solutions for each of those risks and for the life cycle of your application at deep fence, we are about securing your production environment. >>Your developers have built applications. They've secured those applications using tools like SNCC, and they've ticked and signed off saying with this list of documented vulnerabilities, my application is secure. It's now ready to go into production. But when I talk to, to application security people to ops people, and I say, are the applications in your Kubernetes environment? Are they secure? They say, look, honestly, I don't know, the developers have signed off something, but that's not what I'm running. I've had to inject things into the application. So it's different. There could have been issues that were, that were discovered after the developers signed it off. The developers made exceptions, but also 60, 80% of the code I'm running in production. Didn't come from my development team. It's infrastructure, it's third party modules. So when you look at security as a whole, you realize there are so many ax axis that you have to consider. There are so many points along these, a axis, and you need to figure out in a kind of a van diagram fashion, how are you going to address security issues at each of those points? So when it comes to production security, if you want a best breed solution for finding vulnerabilities in your production environment, threat map, open source, we'll do that. And then for monitoring attack behavior threat striker enterprise will do that. Then deep defense is a great set of solutions to look at. >>So on. Thanks for stopping by security at layers is a repetitive thing that we hear security experts talk about. Not one solution will solve every problem when it comes to security from Valencia Spain, I'm Keith Townson, along with Paul Gillon and you're watching the Q the leader in high tech coverage.

>> From theCUBE Studios in Palo Alto in Boston, bringing you data-driven insights from theCUBE and ETR. This is "Breaking Analysis" with Dave Vellante. >> When Facebook changed its name to Meta last fall, it catalyzed a chain reaction throughout the tech industry. Software firms, gaming companies, chip makers, device manufacturers, and others have joined in hype machine. Now, it's easy to dismiss the metaverse as futuristic hyperbole, but do we really believe that tapping on a smartphone, or staring at a screen, or two-dimensional Zoom meetings are the future of how we work, play, and communicate? As the internet itself proved to be larger than we ever imagined, it's very possible, and even quite likely that the combination of massive processing power, cheap storage, AI, blockchains, crypto, sensors, AR, VR, brain interfaces, and other emerging technologies will combine to create new and unimaginable consumer experiences, and massive wealth for creators of the metaverse. Hello, and welcome to this week's Wiki Bond Cube Insights, powered by ETR. In this "Breaking Analysis" we welcome in cyber expert, hacker gamer, NFT expert, and founder of ORE System, Nick Donarski. Nick, welcome, thanks so much for coming on theCUBE. >> Thank you, sir, glad to be here. >> Yeah, okay, so today we're going to traverse two parallel paths, one that took Nick from security expert and PenTester to NFTs, tokens, and the metaverse. And we'll simultaneously explore the complicated world of cybersecurity in the enterprise, and how the blockchain, crypto, and NFTs will provide key underpinnings for digital ownership in the metaverse. We're going to talk a little bit about blockchain, and crypto, and get things started there, and some of the realities and misconceptions, and how innovations in those worlds have led to the NFT craze. We'll look at what's really going on in NFTs and why they're important as both a technology and societal trend. Then, we're going to dig into the tech and try to explain why and how blockchain and NFTs are going to lay the foundation for the metaverse. And, finally, who's going to build the metaverse. And how long is it going to take? All right, Nick, let's start with you. Tell us a little bit about your background, your career. You started as a hacker at a really, really young age, and then got deep into cyber as a PenTester. You did some pretty crazy stuff. You have some great stories about sneaking into buildings. You weren't just doing it all remote. Tell us about yourself. >> Yeah, so I mean, really, I started a long time ago. My dad was really the foray into technology. I wrote my first program on an Apple IIe in BASIC in 1989. So, I like to say I was born on the internet, if you will. But, yeah, in high school at 16, I incorporated my first company, did just tech support for parents and teachers. And then in 2000 I transitioned really into security and focused there ever since. I joined Rapid7 and after they picked up Medis boy, I joined HP. I was one of their founding members of Shadowlabs and really have been part of the information security and the cyber community all throughout, whether it's training at various different conferences or talking. My biggest thing and my most awesome moments as various things of being broken into, is really when I get to actually work with somebody that's coming up in the industry and who's new and actually has that light bulb moment of really kind of understanding of technology, understanding an idea, or getting it when it comes to that kind of stuff. >> Yeah, and when you think about what's going on in crypto and NFTs and okay, now the metaverse it's you get to see some of the most innovative people. Now I want to first share a little bit of data on enterprise security and maybe Nick get you to comment. We've reported over the past several years on the complexity in the security business and the numerous vendor choices that SecOps Pros face. And this chart really tells that story in the cybersecurity space. It's an X,Y graph. We've shown it many times from the ETR surveys where the vertical axis, it's a measure of spending momentum called net score. And the horizontal axis is market share, which represents each company's presence in the data set, and a couple of points stand out. First, it's really crowded. In that red dotted line that you see there, that's 40%, above that line on the net score axis, marks highly elevated spending momentum. Now, let's just zoom in a bit and I've cut the data by those companies that have more than a hundred responses in the survey. And you can see here on this next chart, it's still very crowded, but a few call-outs are noteworthy. First companies like SentinelOne, Elastic, Tanium, Datadog, Netskope and Darktrace. They were all above that 40% line in the previous chart, but they've fallen off. They still have actually a decent presence in the survey over 60 responses, but under that hundred. And you can see Auth0 now Okta, big $7 billion acquisition. They got the highest net score CrowdStrike's up there, Okta classic they're kind of enterprise business, and Zscaler and others above that line. You see Palo Alto Networks and Microsoft very impressive because they're both big and they're above that elevated spending velocity. So Nick, kind of a long-winded intro, but it was a little bit off topic, but I wanted to start here because this is the life of a SecOps pro. They lack the talent in a capacity to keep bad guys fully at bay. And so they have to keep throwing tooling at the problem, which adds to the complexity and as a PenTester and hacker, this chaos and complexity means cash for the bad guys. Doesn't it? >> Absolutely. You know, the more systems that these organizations find to integrate into the systems, means that there's more components, more dollars and cents as far as the amount of time and the engineers that need to actually be responsible for these tools. There's a lot of reasons that, the more, I guess, hands in the cookie jar, if you will, when it comes to the security architecture, the more links that are, or avenues for attack built into the system. And really one of the biggest things that organizations face is being able to have engineers that are qualified and technical enough to be able to support that architecture as well, 'cause buying it from a vendor and deploying it, putting it onto a shelf is good, but if it's not tuned properly, or if it's not connected properly, that security tool can just hold up more avenues of attack for you. >> Right, okay, thank you. Now, let's get into the meat of the discussion for today and talk a little bit about blockchain and crypto for a bit. I saw sub stack post the other day, and it was ripping Matt Damon for pedaling crypto on TV ads and how crypto is just this big pyramid scheme. And it's all about allowing criminals to be anonymous and it's ransomware and drug trafficking. And yes, there are definitely scams and you got to be careful and lots of dangers out there, but these are common criticisms in the mainstream press, that overlooked the fact by the way that IPO's and specs are just as much of a pyramid scheme. Now, I'm not saying there shouldn't be more regulation, there should, but Bitcoin was born out of the 2008 financial crisis, cryptocurrency, and you think about, it's really the confluence of software engineering, cryptography and game theory. And there's some really powerful innovation being created by the blockchain community. Crypto and blockchain are really at the heart of a new decentralized platform being built out. And where today, you got a few, large internet companies. They control the protocols and the platform. Now the aspiration of people like yourself, is to create new value opportunities. And there are many more chances for the little guys and girls to get in on the ground floor and blockchain technology underpins all this. So Nick, what's your take, what are some of the biggest misconceptions around blockchain and crypto? And do you even pair those two in the same context? What are your thoughts? >> So, I mean, really, we like to separate ourselves and say that we are a blockchain company, as opposed to necessarily saying(indistinct) anything like that. We leverage those tools. We leverage cryptocurrencies, we leverage NFTs and those types of things within there, but blockchain is a technology, which is the underlying piece, is something that can be used and utilized in a very large number of different organizations out there. So, cryptocurrency and a lot of that negative context comes with a fear of something new, without having that regulation in place, without having the rules in place. And we were a big proponent of, we want the regulation, right? We want to do right. We want to do it by the rules. We want to do it under the context of, this is what should be done. And we also want to help write those rules as well, because a lot of the lawmakers, a lot of the lobbyists and things, they have a certain aspect or a certain goal of when they're trying to get these things. Our goal is simplicity. We want the ability for the normal average person to be able to interact with crypto, interact with NFTs, interact with the blockchain. And basically by saying, blockchain in quotes, it's very ambiguous 'cause there's many different things that blockchain can be, the easiest way, right? The easiest way to understand blockchain is simply a distributed database. That's really the core of what blockchain is. It's a record keeping mechanism that allows you to reference that. And the beauty of it, is that it's quote unquote immutable. You can't edit that data. So, especially when we're talking about blockchain, being underlying for technologies in the future, things like security, where you have logging, you have keeping, whether you're talking about sales, where you may have to have multiple different locations (indistinct) users from different locations around the globe. It creates a central repository that provides distribution and security in the way that you're ensuring your data, ensuring the validation of where that data exists when it was created. Those types of things that blockchain really is. If you go to the historical, right, the very early on Bitcoin absolutely was made to have a way of not having to deal with the fed. That was the core functionality of the initial crypto. And then you had a lot of the illicit trades, those black markets that jumped onto it because of what it could do. The maturity of the technology though, of where we are now versus say back in 97 is a much different world of blockchain, and there's a much different world of cryptocurrency. You still have to be careful because with any fed, you're still going to have that FUD that goes out there and sells that fear, uncertainty and doubt, which spurs a lot of those types of scams, and a lot of those things that target end users that we face as security professionals today. You still get mailers that go out, looking for people to give their social security number over during tax time. Snail mail is considered a very ancient technology, but it still works. You still get a portion of the population that falls for those tricks, fishing, whatever it might be. It's all about trying to make sure that you have fear about what is that change. And I think that as we move forward, and move into the future, the simpler and the more comfortable these types of technologies become, the easier it is to utilize and indoctrinate normal users, to be able to use these things. >> You know, I want to ask you about that, Nick, because you mentioned immutability, there's a lot of misconceptions about that. I had somebody tell me one time, "Blockchain's Bs," and they say, "Well, oh, hold on a second. They say, oh, they say it's a mutable, but you can hack Coinbase, whatever it is." So I guess a couple of things, one is that the killer app for blockchain became money. And so we learned a lot through that. And you had Bitcoin and it really wasn't programmable through its interface. And then Ethereum comes out. I know, you know a lot about Ether and you have solidity, which is a lot simpler, but it ain't JavaScript, which is ubiquitous. And so now you have a lot of potential for the initial ICO's and probably still the ones today, the white papers, a lot of security flaws in there. I'm sure you can talk to that, but maybe you can help square that circle about immutability and security. I've mentioned game theory before, it's harder to hack Bitcoin and the Bitcoin blockchain than it is to mine. So that's why people mine, but maybe you could add some context to that. >> Yeah, you know it goes to just about any technology out there. Now, when you're talking about blockchain specifically, the majority of the attacks happen with the applications and the smart contracts that are actually running on the blockchain, as opposed to necessarily the blockchain itself. And like you said, the impact for whether that's loss of revenue or loss of tokens or whatever it is, in most cases that results from something that was a phishing attack, you gave up your credentials, somebody said, paste your private key in here, and you win a cookie or whatever it might be, but those are still the fundamental pieces. When you're talking about various different networks out there, depending on the blockchain, depends on how much the overall security really is. The more distributed it is, and the more stable it is as the network goes, the better or the more stable any of the code is going to be. The underlying architecture of any system is the key to success when it comes to the overall security. So the blockchain itself is immutable, in the case that the owner are ones have to be trusted. If you look at distributed networks, something like Ethereum or Bitcoin, where you have those proof of work systems, that disperses that information at a much more remote location, So the more disperse that information is, the less likely it is to be able to be impacted by one small instance. If you look at like the DAO Hack, or if you look at a lot of the other vulnerabilities that exist on the blockchain, it's more about the code. And like you said, solidity being as new as it is, it's not JavaScript. The industry is very early and very infantile, as far as the developers that are skilled in doing this. And with that just comes the inexperience and the lack of information that you don't learn until JavaScript is 10 or 12 years old. >> And the last thing I'll say about this topic, and we'll move on to NFTs, but NFTs relate is that, again, I said earlier that the big internet giants have pretty much co-opted the platform. You know, if you wanted to invest in Linux in the early days, there was no way to do that. You maybe have to wait until red hat came up with its IPO and there's your pyramid scheme folks. But with crypto it, which is again, as Nick was explaining underpinning is the blockchain, you can actually participate in early projects. Now you got to be careful 'cause there are a lot of scams and many of them are going to blow out if not most of them, but there are some, gems out there, because as Nick was describing, you've got this decentralized platform that causes scaling issues or performance issues, and people are solving those problems, essentially building out a new internet. But I want to get into NFTs, because it's sort of the next big thing here before we get into the metaverse, what Nick, why should people pay attention to NFTs? Why do they matter? Are they really an important trend? And what are the societal and technological impacts that you see in this space? >> Yeah, I mean, NFTs are a very new technology and ultimately it's just another entry on the blockchain. It's just another piece of data in the database. But how it's leveraged in the grand scheme of how we, as users see it, it can be the classic idea of an NFT is just the art, or as good as the poster on your wall. But in the case of some of the new applications, is where are you actually get that utility function. Now, in the case of say video games, video games and gamers in general, already utilize digital items. They already utilize digital points. As in the case of like Call of Duty points, those are just different versions of digital currencies. You know, World of Warcraft Gold, I like to affectionately say, was the very first cryptocurrency. There was a Harvard course taught on the economy of WOW, there was a black market where you could trade your end game gold for Fiat currencies. And there's even places around the world that you can purchase real world items and stay at hotels for World of Warcraft Gold. So the adoption of blockchain just simply gives a more stable and a more diverse technology for those same types of systems. You're going to see that carry over into shipping and logistics, where you need to have data that is single repository for being able to have multiple locations, multiple shippers from multiple global efforts out there that need to have access to that data. But in the current context, it's either sitting on a shipping log, it's sitting on somebody's desk. All of those types of paper transactions can be leveraged as NFTs on the blockchain. It's just simply that representation. And once you break the idea of this is just a piece of art, or this is a cryptocurrency, you get into a world where you can apply that NFT technology to a lot more things than I think most people think of today. >> Yeah, and of course you mentioned art a couple of times when people sold as digital art for whatever, it was 60, 65 million, 69 million, that caught a lot of people's attention, but you're seeing, I mean, there's virtually infinite number of applications for this. One of the Washington wizards, tokenized portions of his contract, maybe he was creating a new bond, that's really interesting use cases and opportunities, and that kind of segues into the latest, hot topic, which is the metaverse. And you've said yourself that blockchain and NFTs are the foundation of the metaverse, they're foundational elements. So first, what is the metaverse to you and where do blockchain and NFTs, fit in? >> Sure, so, I mean, I affectionately refer to the metaverse just a VR and essentially, we've been playing virtual reality games and all the rest for a long time. And VR has really kind of been out there for a long time. So most people's interpretation or idea of what the metaverse is, is a virtual reality version of yourself and this right, that idea of once it becomes yourself, is where things like NFT items, where blockchain and digital currencies are going to come in, because if you have a manufacturer, so you take on an organization like Nike, and they want to put their shoes into the metaverse because we, as humans, want to individualize ourselves. We go out and we want to have that one of one shoe or that, t-shirt or whatever it is, we're going to want to represent that same type of individuality in our virtual self. So NFTs, crypto and all of those digital currencies, like I was saying that we've known as gamers are going to play that very similar role inside of the metaverse. >> Yeah. Okay. So basically you're going to take your physical world into the metaverse. You're going to be able to, as you just mentioned, acquire things- I loved your WOW example. And so let's stay on this for a bit, if we may, of course, Facebook spawned a lot of speculation and discussion about the concept of the metaverse and really, as you pointed out, it's not new. You talked about why second life, really started in 2003, and it's still around today. It's small, I read recently, it's creators coming back into the company and books were written in the early 90s that used the term metaverse. But Nick, talk about how you see this evolving, what role you hope to play with your company and your community in the future, and who builds the metaverse, when is it going to be here? >> Yeah, so, I mean, right now, and we actually just got back from CES last week. And the Metaverse is a very big buzzword. You're going to see a lot of integration of what people are calling, quote unquote, the metaverse. And there was organizations that were showing virtual office space, virtual malls, virtual concerts, and those types of experiences. And the one thing right now that I don't think that a lot of organizations have grasp is how to make one metaverse. There's no real player one, if you will always this yet, There's a lot of organizations that are creating their version of the metaverse, which then again, just like every other software and game vendor out there has their version of cryptocurrency and their version of NFTs. You're going to see it start to pop up, especially as Oculus is going to come down in price, especially as you get new technologies, like some of the VR glasses that look more augmented reality and look more like regular glasses that you're wearing, things like that, the easier that those technologies become as in adopting into our normal lifestyle, as far as like looks and feels, the faster that stuff's going to actually come out to the world. But when it comes to like, what we're doing is we believe that the metaverse should actually span multiple different blockchains, multiple different segments, if you will. So what ORE system is doing, is we're actually building the underlying architecture and technologies for developers to bring their metaverse too. You can leverage the ORE Systems NFTs, where we like to call our utility NFTs as an in-game item in one game, or you can take it over and it could be a t-shirt in another game. The ability for having that cross support within the ecosystem is what really no one has grasp on yet. Most of the organizations out there are using a very classic business model. Get the user in the game, make them spend their money in the game, make all their game stuff as only good in their game. And that's where the developer has you, they have you in their bubble. Our goal, and what we like to affectionately say is, we want to bring white collar tools and technology to blue collar folks, We want to make it simple. We want to make it off the shelf, and we want to make it a less cost prohibitive, faster, and cheaper to actually get out to all the users. We do it by supporting the technology. That's our angle. If you support the technology and you support the platform, you can build a community that will build all of the metaverse around them. >> Well, and so this is interesting because, if you think about some of the big names, we've Microsoft is talking about it, obviously we mentioned Facebook. They have essentially walled gardens. Now, yeah, okay, I could take Tik Tok and pump it into Instagram is fine, but they're really siloed off. And what you're saying is in the metaverse, you should be able to buy a pair of sneakers in one location and then bring it to another one. >> Absolutely, that's exactly it. >> And so my original kind of investment in attractiveness, if you will, to crypto, was that, the little guy can get an early, but I worry that some of these walled gardens, these big internet giants are going to try to co-op this. So I think what you're doing is right on, and I think it's aligned with the objectives of consumers and the users who don't want to be forced in to a pen. They want to be able to live freely. And that's really what you're trying to do. >> That's exactly it. You know, when you buy an item, say a Skin in Fortnite or Skin in Call of Duty, it's only good in that game. And not even in the franchise, it's only good in that version of the game. In the case of what we want to do is, you can not only have that carry over and your character. So say you buy a really cool shirt, and you've got that in your Call of Duty or in our case, we're really Osiris Protocol, which is our proof of concept video game to show that this all thing actually works, but you can actually go in and you can get a gun in Osiris Protocol. And if we release, Osiris Protocol two, you'll be able to take that to Osiris Protocol two. Now the benefit of that is, is you're going to be the only one in the next version with that item, if you haven't sold it or traded it or whatever else. So we don't lock you into a game. We don't lock you into a specific application. You own that, you can trade that freely with other users. You can sell that on the open market. We're embracing what used to be considered the black market. I don't understand why a lot of video games, we're always against the skins and mods and all the rest. For me as a gamer and coming up, through the many, many years of various different Call of Duties and everything in my time, I wish I could still have some this year. I still have a World of Warcraft account. I wasn't on, Vanilla, Burning Crusade was my foray, but I still have a character. If you look at it that way, if I had that wild character and that gear was NFTs, in theory, I could actually pass that onto my kid who could carry on that character. And it would actually increase in value because they're NFT back then. And then if needed, you could trade those on the open market and all the rest. It just makes gaming a much different thing. >> I love it. All right, Nick, hey, we're out of time, but I got to say, Nick Donarski, thanks so much for coming on the program today, sharing your insights and really good luck to you and building out your technology platform and your community. >> Thank you, sir, it's been an absolute pleasure. >> And thank you for watching. Remember, all these episodes are available as podcasts, just search "Breaking Analysis Podcast", and you'll find them. I publish pretty much every week on siliconangle.com and wikibond.com. And you can reach me @dvellante on Twitter or comment on my LinkedIn posts. You can always email me david.vellante@siliconangle.com. And don't forget, check out etr.plus for all the survey data. This is Dave Vellante for theCUBE Insights, powered by ETR, happy 2022 be well, and we'll see you next time. (upbeat music)

>>Hey, welcome to the live panel. My name is Brett. I am your host, and indeed we are live. In fact, if you're curious about that, if you don't believe us, um, let's just show a little bit of the browser real quick to see. Yup. There you go. We're live. So, all right. So how this is going to work is I'm going to bring in some guests and, uh, in one second, and we're going to basically take your questions on the topic designer of the day, that continuous integration testing. Uh, thank you so much to my guests welcoming into the panel. I've got Carlos, Nico and Mandy. Hello everyone. >>Hello? All right, >>Let's go. Let's go around the room and all pretend we don't know each other and that the internet didn't read below the video who we are. Uh, hi, my name is Brett. I am a Docker captain, which means I'm supposed to know something about Docker. I'm coming from Virginia Beach. I'm streaming here from Virginia Beach, Virginia, and, uh, I make videos on the internet and courses on you to me, Carlos. Hey, >>Hey, what's up? I'm Carlos Nunez. I am a solutions architect, VMware. I do solution things with computers. It's fun. I live in Dallas when I'm moving to Houston in a month, which is where I'm currently streaming. I've been all over the Northeast this whole week. So, um, it's been fun and I'm excited to meet with all of you and talk about CIA and Docker. Sure. >>Yeah. Hey everyone. Uh, Nico, Khobar here. I'm a solution engineer at HashiCorp. Uh, I am streaming to you from, uh, the beautiful Austin, Texas. Uh, ignore, ignore the golden gate bridge here. This is from my old apartment in San Francisco. Uh, just, uh, you know, keeping that, to remember all the good days, um, that that lived at. But, uh, anyway, I work at Patrick Corp and I work on all things, automation, um, and cloud and dev ops. Um, and I'm excited to be here and Mandy, >>Hi. Yeah, Mandy Hubbard. I am streaming from Austin, Texas. I am, uh, currently a DX engineer at ship engine. Um, I've worked in QA and that's kind of where I got my, uh, my Docker experience and, um, uh, moving into DX to try and help developers better understand and use our products and be an advocate for them. >>Nice. Well, thank you all for joining me. Uh, I really appreciate you taking the time out of your busy schedule to be here. And so for those of you in chat, the reason we're doing this live, because it's always harder to do things live. The reason we're here is to answer a question. So we didn't come with a bunch of slides and demos or anything like that. We're here to talk amongst ourselves about ideas and really here for you. So we've, we obviously, this is about easy CII, so we're, we're going to try to keep the conversation around testing and continuous integration and all the things that that entails with containers. But we may, we may go down rabbit holes. We may go veer off and start talking about other things, and that's totally fine if it's in the realm of dev ops and containers and developer and ops workflows, like, Hey, it's, it's kinda game. >>And, uh, these people have a wide variety of expertise. They haven't done just testing, right? We, we live in a world where you all kind of have to wear many hats. So feel free to, um, ask what you think is on the top of your mind. And we'll do our best to answer. It may, might not be the best answer or the correct answer, but we're going to do our best. Um, well, let's get it start off. Uh, let's, let's get a couple of topics to start off with. Uh, th the, the easy CGI was my, one of my three ideas. Cause he's the, one of the things that I'm most excited about is the innovation we're seeing around easier testing, faster testing, automated testing, uh, because as much as we've all been doing this stuff for, you know, 15 years, since 20 years since the sort of Jenkins early days, um, it it's, it seems like it's still really hard and it's still a lot of work. >>So, um, let's go around the room real quick, and everybody can just kind of talk for a minute about like your experience with testing and maybe some of your pain points, like what you don't like about our testing world. Um, and we can talk about some pains, cause I think that will lead us to kind of talk about what, what are the things we're seeing now that might be better, uh, ideas about how to do this. I know for me, uh, testing, obviously there's the code part, but just getting it automated, but mostly getting it in the hands of developers so that they can control their own testing. And don't have to go talk to a person to run that test again, or the mysterious Jenkins platform somewhere. I keep mentioning Jenkins cause it's, it is still the dominant player out there. Um, so for me, I'm, I'm, I, I don't like it when I'm walking into a room and there's, there's only one or two people that know how the testing works or know how to make the new tests go into the testing platform and stuff like that. So I'm always trying to free those things so that any of the developers are enabled and empowered to do that stuff. So someone else, Carlos, anybody, um, >>Oh, I have a lot of opinions on that. Having been a QA engineer for most of my career. Um, the shift that we're saying is everyone is dev ops and everyone is QA. Th the issue I see is no one asked developers if they wanted to be QA. Um, and so being the former QA on the team, when there's a problem, even though I'm a developer and we're all running QA, they always tend to come to the one of the former QA engineers. And they're not really owning that responsibility and, um, and digging in. So that's kind of what I'm saying is that we're all expected to test now. And some people, well, some people don't know how it's, uh, for me it was kind of an intuitive skill. It just kind of fit with my personality, but not knowing what to look for, not knowing what to automate, not even understanding how your API end points are used by your front end to know what to test when a change is made. It's really overwhelming for developers. And, um, we're going to need to streamline that and, and hold their hands a little bit until they get their feet wet with also being QA. >>Right. Right. So, um, uh, Carlos, >>Yeah, uh, testing is like, Tesla is one of my favorite subjects to talk about when I'm baring with developers. And a lot of it is because of what Mandy said, right? Like a lot of developers now who used to write a test and say, Hey, QA, go. Um, I wrote my unit tests. Now write the rest of the test. Essentially. Now developers are expected to be able to understand how testing, uh, testing methodologies work, um, in their local environments, right? Like they're supposed to understand how to write an integration tasks federate into and tasks, a component test. And of course, how to write unit tests that aren't just, you know, assert true is true, right? Like more comprehensive, more comprehensive, um, more high touch unit tests, which include things like mocking and stubbing and spine and all that stuff. And, you know, it's not so much getting those tests. Well, I've had a lot of challenges with developers getting those tests to run in Docker because of usually because of dependency hell, but, um, getting developers to understand how to write tests that matter and mean something. Um, it's, it's, it can be difficult, but it's also where I find a lot of the enjoyment of my work comes into play. So yeah. I mean, that's the difficulty I've seen around testing. Um, big subject though. Lots to talk about there. >>Yeah. We've got, we've already got so many questions coming in. You already got an hour's worth of stuff. So, uh, Nico 81st thoughts on that? >>Yeah, I think I definitely agree with, with other folks here on the panel, I think from a, um, the shift from a skillset perspective that's needed to adopt the new technologies, but I think from even from, uh, aside from the organizational, um, and kind of key responsibilities that, that the new developers have to kinda adapt to and, and kind of inherit now, um, there's also from a technical perspective as there's, you know, um, more developers are owning the full stack, including the infrastructure piece. So that adds a lot more to the plate in Tim's oaf, also testing that component that they were not even, uh, responsible for before. Um, and, um, also the second challenge that, you know, I'm seeing is that on, you know, the long list of added, um, uh, tooling and, you know, there's new tool every other day. Um, and, um, that kind of requires more customization to the testing, uh, that each individual team, um, any individual developer Y by extension has to learn. Uh, so the customization, uh, as well as the, kind of the scope that had, uh, you know, now in conferences, the infrastructure piece, um, uh, both of act to the, to the challenges that we're seeing right now for, um, for CGI and overall testing, um, uh, the developers are saying, uh, in, in the market today. >>Yeah. We've got a lot of questions, um, about all the, all the different parts of this. So, uh, let me just go straight to them. Cause that's why we're here is for the people, uh, a lot of people asking about your favorite tools and in one of this is one of the challenges with integration, right? Is, um, there is no, there are dominant players, but there, there is such a variety. I mean, every one of my customers seems like they're using a different workflow and a different set of tools. So, and Hey, we're all here to just talk about what we're, what we're using, uh, you know, whether your favorite tools. So like a lot of the repeated questions are, what are your favorite tools? Like if you could create it from scratch, uh, what would you use? Pierre's asking, you know, GitHub actions sounds like they're a fan of GitHub actions, uh, w you know, mentioning, pushing the ECR and Docker hub and, uh, using vs code pipeline, I guess there may be talking about Azure pipelines. Um, what, what's your preferred way? So, does anyone have any, uh, thoughts on that anyone want to throw out there? Their preferred pipeline of tooling? >>Well, I have to throw out mine. I might as Jenkins, um, like kind of a honorary cloud be at this point, having spoken a couple of times there, um, all of the plugins just make the functionality. I don't love the UI, but I love that it's been around so long. It has so much community support, and there are so many plugins so that if you want to do something, you don't have to write the code it's already been tested. Um, unfortunately I haven't been able to use Jenkins in, uh, since I joined ship engine, we, most of our, um, our, our monolithic core application is, is team city. It's a dotnet application and TeamCity plays really well with.net. Um, didn't love it, uh, Ms. Jenkins. And I'm just, we're just starting some new initiatives that are using GitHub actions, and I'm really excited to learn, to learn those. I think they have a lot of the same functionality that you're looking for, but, um, much more simplified in is right there and get hubs. So, um, the integration is a lot more seamless, but I do have to go on record that my favorite CICT tools Jenkins. >>All right. You heard it here first people. All right. Anyone else? You're muted? I'm muted. Carlin says muted. Oh, Carla says, guest has muted themselves to Carlos. You got to unmute. >>Yes. I did mute myself because I was typing a lot, trying to, you know, try to answer stuff in the chat. And there's a lot of really dark stuff in there. That's okay. Two more times today. So yeah, it's fine. Yeah, no problem. So totally. And it's the best way to start a play more. So I'm just going to go ahead and light it up. Um, for enterprise environments, I actually am a huge fan of Jenkins. Um, it's a tool that people really understand. Um, it has stood the test of time, right? I mean, people were using Hudson, but 15 years ago, maybe longer. And, you know, the way it works, hasn't really changed very much. I mean, Jenkins X is a little different, but, um, the UI and the way it works internally is pretty familiar to a lot of enterprise environments, which is great. >>And also in me, the plugin ecosystem is amazing. There's so many plugins for everything, and you can make your own if you know, Java groovy. I'm sure there's a perfect Kotlin in there, but I haven't tried myself, but it's really great. It's also really easy to write, um, CIS code, which is something I'm a big fan of. So Jenkins files have been, have worked really well for me. I, I know that I can get a little bit more complex as you start to build your own models and such, but, you know, for enterprise enterprise CIO CD, if you want, especially if you want to roll your own or own it yourself, um, Jenkins is the bellwether and for very good reason now for my personal projects. And I see a lot on the chat here, I think y'all, y'all been agreed with me get hub actions 100%, my favorite tool right now. >>Um, I love GitHub actions. It's, it's customizable, it's modular. There's a lot of plugins already. I started using getting that back maybe a week after when GA and there was no documentation or anything. And I still, it was still my favorite CIA tool even then. Um, and you know, the API is really great. There's a lot to love about GitHub actions and, um, and I, and I use it as much as I can from my personal project. So I still have a soft spot for Travis CAI. Um, you know, they got acquired and they're a little different now trying to see, I, I can't, I can't let it go. I just love it. But, um, yeah, I mean, when it comes to Seattle, those are my tools. So light me up in the comments I will respond. Yeah. >>I mean, I, I feel with you on the Travis, the, I think, cause I think that was my first time experiencing, you know, early days get hub open source and like a free CIA tool that I could describe. I think it was the ammo back then. I don't actually remember, but yeah, it was kind of an exciting time from my experience. There was like, oh, this is, this is just there as a service. And I could just use it. It doesn't, it's like get hub it's free from my open source stuff. And so it does have a soft spot in my heart too. So yeah. >>All right. We've got questions around, um, cam, so I'm going to ask some questions. We don't have to have these answers because sometimes they're going to be specific, but I want to call them out because people in chat may have missed that question. And there's probably, you know, that we have smart people in chat too. So there's probably someone that knows the answer to these things. If, if it's not us, um, they're asking about building Docker images in Kubernetes, which to me is always a sore spot because it's Kubernetes does not build images by default. It's not meant for that out of the gate. And, uh, what is the best way to do this without having to use privileged containers, which privileged containers just implying that yeah, you, you, it probably has more privileges than by default as a container in Kubernetes. And that is a hard thing because, uh, I don't, I think Docker doesn't lie to do that out of the gate. So I don't know if anyone has an immediate answer to that. That's a pretty technical one, but if you, if you know the answer to that in chat, call it out. >>Um, >>I had done this, uh, but I'm pretty sure I had to use a privileged, um, container and install the Docker Damon on the Kubernetes cluster. And I CA I can't give you a better solution. Um, I've done the same. So, >>Yeah, uh, Chavonne asks, um, back to the Jenkins thing, what's the easiest way to integrate Docker into a Jenkins CICB pipeline. And that's one of the challenges I find with Jenkins because I don't claim to be the expert on Jenkins. Is there are so many plugins because of this, of this such a huge ecosystem. Um, when you go searching for Docker, there's a lot that comes back, right. So I, I don't actually have a preferred way because every team I find uses it differently. Um, I don't know, is there a, do you know if there's a Jenkins preferred, a default plugin? I don't even know for Docker. Oh, go ahead. Yeah. Sorry for Docker. And jacon sorry, Docker plugins for Jenkins. Uh, as someone's asking like the preferred or easy way to do that. Um, and I don't, I don't know the back into Jenkins that well, so, >>Well, th the new, the new way that they're doing, uh, Docker builds with the pipeline, which is more declarative versus the groovy. It's really simple, and their documentation is really good. They, um, they make it really easy to say, run this in this image. So you can pull down, you know, public images and add your own layers. Um, so I don't know the name of that plugin, uh, but I can certainly take a minute after this session and going and get that. Um, but if you really are overwhelmed by the plugins, you can just write your, you know, your shell command in Jenkins. You could just by, you know, doing everything in bash, calling the Docker, um, Damon directly, and then getting it working just to see that end to end, and then start browsing for plugins to see if you even want to use those. >>The plugins will allow more integration from end to end. Some of the things that you input might be available later on in the process for having to manage that yourself. But, you know, you don't have to use any of the plugins. You can literally just, you know, do a block where you write your shell command and get it working, and then decide if, for plugins for you. Um, I think it's always under important to understand what is going on under the hood before you, before you adopt the magic of a plugin, because, um, once you have a problem, if you're, if it's all a lockbox to you, it's going to be more difficult to troubleshoot. It's kind of like learning, get command line versus like get cracking or something. Once, once you get in a bind, if you don't understand the underlying steps, it's really hard to get yourself out of a bind, versus if you understand what the plugin or the app is doing, then, um, you can get out of situations a lot easier. That's a good place. That's, that's where I'd start. >>Yeah. Thank you. Um, Camden asks better to build test environment images, every commit in CII. So this is like one of those opinions of we're all gonna have some different, uh, or build on build images on every commit, leveraging the cash, or build them once outside the test pile pipeline. Um, what say you people? >>Uh, well, I I've seen both and generally speaking, my preference is, um, I guess the ant, the it's a consultant answer, right? I think it depends on what you're trying to do, right. So if you have a lot of small changes that are being made and you're creating images for each of those commits, you're going to have a lot of images in your, in your registry, right? And on top of that, if you're building those images, uh, through CAI frequently, if you're using Docker hub or something like that, you might run into rate limiting issues because of Docker's new rate, limiting, uh, rate limits that they put in place. Um, but that might be beneficial if the, if being able to roll back between those small changes while you're testing is important to you. Uh, however, if all you care about is being able to use Docker images, um, or being able to correlate versions to your Docker images, or if you're the type of team that doesn't even use him, uh, does he even use, uh, virgins in your image tags? Then I would think that that might be a little, much you might want to just have in your CIO. You might want to have a stage that builds your Docker images and Docker image and pushes it into your registry, being done first particular branches instead of having to be done on every commit regardless of branch. But again, it really depends on the team. It really depends on what you're building. It really depends on your workflow. It can depend on a number of things like a curse sometimes too. Yeah. Yeah. >>Once had two points here, you know, I've seen, you know, the pattern has been at every, with every, uh, uh, commit, assuming that you have the right set of tests that would kind of, uh, you would benefit from actually seeing, um, the, the, the, the testing workflow go through and can detect any issue within, within the build or whatever you're trying to test against. But if you're just a building without the appropriate set of tests, then you're just basically consuming almond, adding time, as well as all the, the image, uh, stories associated with it without treaty reaping the benefit of, of, of this pattern. Uh, and the second point is, again, I think if you're, if you're going to end up doing a per commit, uh, definitely recommend having some type of, uh, uh, image purging, um, uh, and, and, and garbage collection process to ensure that you're not just wasting, um, all the stories needed and also, um, uh, optimizing your, your bill process, because that will end up being the most time-consuming, um, um, you know, within, within your pipeline. So this is my 2 cents on this. >>Yeah, that's good stuff. I mean, those are both of those are conversations that could lead us into the rabbit hole for the rest of the day on storage management, uh, you know, CP CPU minutes for, uh, you know, your build stuff. I mean, if you're in any size team, more than one or two people, you immediately run into headaches with cost of CIA, because we have now the problem of tools, right? We have so many tools. We can have the CIS system burning CPU cycles all day, every day, if we really wanted to. And so you re very quickly, I think, especially if you're on every commit on every branch, like that gets you into a world of cost mitigation, and you probably are going to have to settle somewhere in the middle on, uh, between the budget, people that are saying you're spending way too much money on the CII platform, uh, because of all these CPU cycles, and then the developers who would love to have everything now, you know, as fast as possible and the biggest, biggest CPU's, and the biggest servers, and have the bills, because the bills can never go fast enough, right. >>There's no end to optimizing your build workflow. Um, we have another question on that. This is another topic that we'll all probably have different takes on is, uh, basically, uh, version tags, right? So on images, we, we have a very established workflow in get for how we make commits. We have commit shots. We have, uh, you know, we know get tags and there's all these things there. And then we go into images and it's just this whole new world that's opened up. Like there's no real consensus. Um, so what, what are your thoughts on the strategy for teams in their image tag? Again, another, another culture thing. Um, commander, >>I mean, I'm a fan of silver when we have no other option. Um, it's just clean and I like the timestamp, you know, exactly when it was built. Um, I don't really see any reason to use another, uh, there's just normal, incremental, um, you know, numbering, but I love the fact that you can pull any tag and know exactly when it was created. So I'm a big fan of bar, if you can make that work for your organization. >>Yep. People are mentioned that in chat, >>So I like as well. Uh, I'm a big fan of it. I think it's easy to be able to just be as easy to be able to signify what a major changes versus a minor change versus just a hot fix or, you know, some or some kind of a bad fix. The problem that I've found with having teams adopt San Bernardo becomes answering these questions and being able to really define what is a major change, what is a minor change? What is a patch, right? And this becomes a bit of an overhead or not so much of an overhead, but, uh, uh, uh, a large concern for teams who have never done versioning before, or they never been responsible for their own versioning. Um, in fact, you know, I'm running into that right now, uh, with, with a client that I'm working with, where a lot, I'm working with a lot of teams, helping them move their applications from a legacy production environment into a new one. >>And in doing so, uh, versioning comes up because Docker images, uh, have tags and usually the tax correlate to versions, but some teams over there, some teams that I'm working with are only maintaining a script and others are maintaining a fully fledged JAK, three tier application, you know, with lots of dependencies. So telling the script, telling the team that maintains a script, Hey, you know, you should use somber and you should start thinking about, you know, what's major, what's my number what's patch. That might be a lot for them. And for someone or a team like that, I might just suggest using commit shots as your versions until you figure that out, or maybe using, um, dates as your version, but for the more for the team, with the larger application, they probably already know the answers to those questions. In which case they're either already using Sember or they, um, or they may be using some other version of the strategy and might be in December, might suit them better. So, um, you're going to hear me say, it depends a lot, and I'm just going to say here, it depends. Cause it really does. Carlos. >>I think you hit on something interesting beyond just how to version, but, um, when to consider it a major release and who makes those decisions, and if you leave it to engineers to version, you're kind of pushing business decisions down the pipe. Um, I think when it's a minor or a major should be a business decision and someone else needs to make that call someone closer to the business should be making that call as to when we want to call it major. >>That's a really good point. And I add some, I actually agree. Um, I absolutely agree with that. And again, it really depends on the team that on the team and the scope of it, it depends on the scope that they're maintaining, right? And so it's a business application. Of course, you're going to have a product manager and you're going to have, you're going to have a product manager who's going to want to make that call because that version is going to be out in marketing. People are going to use it. They're going to refer to and support calls. They're going to need to make those decisions. Sember again, works really, really well for that. Um, but for a team that's maintaining the scripts, you know, I don't know, having them say, okay, you must tell me what a major version is. It's >>A lot, but >>If they want it to use some birds great too, which is why I think going back to what you originally said, Sember in the absence of other options. I think that's a good strategy. >>Yeah. There's a, there's a, um, catching up on chat. I'm not sure if I'm ever going to catch up, but there's a lot of people commenting on their favorite CII systems and it's, and it, it just goes to show for the, the testing and deployment community. Like how many tools there are out there, how many tools there are to support the tools that you're using. Like, uh, it can be a crazy wilderness. And I think that's, that's part of the art of it, uh, is that these things are allowing us to build our workflows to the team's culture. Um, and, uh, but I do think that, you know, getting into like maybe what we hope to be at what's next is I do hope that we get to, to try to figure out some of these harder problems of consistency. Uh, one of the things that led me to Docker at the beginning to begin with was the fact that it wa it created a consistent packaging solution for me to get my code, you know, off of, off of my site of my local system, really, and into the server. >>And that whole workflow would at least the thing that I was making at each step was going to be the same thing used. Right. And that, that was huge. Uh, it was also, it also took us a long time to get there. Right. We all had to, like Docker was one of those ones that decade kind of ideas of let's solidify the, enter, get the consensus of the community around this idea. And we, and it's not perfect. Uh, you know, the Docker Docker file is not the most perfect way to describe how to make your app, but it is there and we're all using it. And now I'm looking for that next piece, right. Then hopefully the next step in that, um, that where we can all arrive at a consensus so that once you hop teams, you know, okay. We all knew Docker. We now, now we're all starting to get to know the manifests, but then there's this big gap in the middle where it's like, it might be one of a dozen things. Um, you know, so >>Yeah, yeah. To that, to that, Brett, um, you know, uh, just maybe more of a shameless plug here and wanting to kind of talk about one of the things that I'm on. So excited, but I work, I work at Tasha Corp. I don't know anyone, or I don't know if many people have heard of, um, you know, we tend to focus a lot on workflows versus technologies, right. Because, you know, as you can see, even just looking at the chat, there's, you know, ton of opinions on the different tooling, right. And, uh, imagine having, you know, I'm working with clients that have 10,000 developers. So imagine taking the folks in the chat and being partnered with one organization or one company and having to make decisions on how to build software. Um, but there's no way you can conversion one or, or one way or one tool, uh, and that's where we're facing in the industry. >>So one of the things that, uh, I'm pretty excited about, and I don't know if it's getting as much traction as you know, we've been focused on it. This is way point, which is a project, an open source project. I believe we got at least, uh, last year, um, which is, it's more of, uh, it's, it is aim to address that really, uh, uh, Brad set on, you know, to come to tool to, uh, make it extremely easy and simple. And, you know, to describe how you want to build, uh, deploy or release your application, uh, in, in a consistent way, regardless of the tools. So similar to how you can think of Terraform and having that pluggability to say Terraform apply or plan against any cloud infrastructure, uh, without really having to know exactly the details of how to do it, uh, this is what wave one is doing. Um, and it can be applied with, you know, for the CIA, uh, framework. So, you know, task plugability into, uh, you know, circle CEI tests to Docker helm, uh, Kubernetes. So that's the, you know, it's, it's a hard problem to solve, but, um, I'm hopeful that that's the path that we're, you know, we'll, we'll eventually get to. So, um, hope, you know, you can, you can, uh, see some of the, you know, information, data on it, on, on HashiCorp site, but I mean, I'm personally excited about it. >>Yeah. Uh I'm to gonna have to check that out. And, um, I told you on my live show, man, we'll talk about it, but talk about it for a whole hour. Uh, so there's another question here around, uh, this, this is actually a little bit more detailed, but it is one that I think a lot of people deal with and I deal with a lot too, is essentially the question is from Cameron, uh, D essentially, do you use compose in your CIO or not Docker compose? Uh, because yes I do. Yeah. Cause it, it, it, it solves so many problems am and not every CGI can, I don't know, there's some problems with a CIO is trying to do it for me. So there are pros and cons and I feel like I'm still on the fence about it because I use it all the time, but also it's not perfect. It's not always meant for CIA. And CIA sometimes tries to do things for you, like starting things up before you start other parts and having that whole order, uh, ordering problem of things anyway. W thoughts and when have thoughts. >>Yes. I love compose. It's one of my favorite tools of all time. Um, and the reason why it's, because what I often find I'm working with teams trying to actually let me walk that back, because Jack on the chat asked a really interesting question about what, what, what the hardest thing about CIS for a lot of teams. And in my experience, the hardest thing is getting teams to build an app that is the same app as what's built in production. A lot of CGI does things that are totally different than what you would do in your local, in your local dev. And as a result of that, you get, you got this application that either doesn't work locally, or it does work, but it's a completely different animal than what you would get in production. Right? So what I've found in trying to get teams to bridge that gap by basically taking their CGI, shifting the CII left, I hate the shift left turn, but I'll use it. >>I'm shifting the CIO left to your local development is trying to say, okay, how do we build an app? How do we, how do we build mot dependencies of that app so that we can build so that we can test our app? How do we run tests, right? How do we build, how do we get test data? And what I found is that trying to get teams to do all this in Docker, which is normally a first for a lot of teams that I'm working with, trying to get them all to do all of this. And Docker means you're running Docker, build a lot running Docker, run a lot. You're running Docker, RM a lot. You ran a lot of Docker, disparate Docker commands. And then on top of that, trying to bridge all of those containers together into a single network can be challenging without compose. >>So I like using a, to be able to really easily categorize and compartmentalize a lot of the things that are going to be done in CII, like building a Docker image, running tests, which is you're, you're going to do it in CII anyway. So running tests, building the image, pushing it to the registry. Well, I wouldn't say pushing it to the registry, but doing all the things that you would do in local dev, but in the same network that you might have a mock database or a mock S3 instance or some of something else. Um, so it's just easy to take all those Docker compose commands and move them into your Yammel file using the hub actions or your dankest Bob using Jenkins, or what have you. Right. It's really, it's really portable that way, but it doesn't work for every team. You know, for example, if you're just a team that, you know, going back to my script example, if it's a really simple script that does one thing on a somewhat routine basis, then that might be a lot of overhead. Um, in that case, you know, you can get away with just Docker commands. It's not a big deal, but the way I looked at it is if I'm, if I'm building, if I build something that's similar to a make bile or rate file, or what have you, then I'm probably gonna want to use Docker compose. If I'm working with Docker, that's, that's a philosophy of values, right? >>So I'm also a fan of Docker compose. And, um, you know, to your point, Carlos, the whole, I mean, I'm also a fan of shifting CEI lift and testing lift, but if you put all that logic in your CTI, um, it changes the L the local development experience from the CGI experience. Versus if you put everything in a compose file so that what you build locally is the same as what you build in CGI. Um, you're going to have a better experience because you're going to be testing something more, that's closer to what you're going to be releasing. And it's also very easy to look at a compose file and kind of, um, understand what the dependencies are and what's happening is very readable. And once you move that stuff to CGI, I think a lot of developers, you know, they're going to be intimidated by the CGI, um, whatever the scripting language is, it's going to be something they're going to have to wrap their head around. >>Um, but they're not gonna be able to use it locally. You're going to have to have another local solution. So I love the idea of a composed file use locally, um, especially if he can Mount the local workspace so that they can do real time development and see their changes in the exact same way as it's going to be built and tested in CGI. It gives developers a high level of confidence. And then, you know, you're less likely to have issues because of discrepancies between how it was built in your local test environment versus how it's built in NCI. And so Docker compose really lets you do all of that in a way that makes your solution more portable, portable between local dev and CGI and reduces the number of CGI cycles to get, you know, the test, the test data that you need. So that's why I like it for really, for local dev. >>It'll be interesting. Um, I don't know if you all were able to see the keynote, but there was a, there was a little bit, not a whole lot, but a little bit talk of the Docker, compose V two, which has now built into the Docker command line. And so now we're shifting from the Python built compose, which was a separate package. You could that one of the challenges was getting it into your CA solution because if you don't have PIP and you got down on the binary and the binary wasn't available for every platform and, uh, it was a PI installer. It gets a little nerdy into how that works, but, uh, and the team is now getting, be able to get unified with it. Now that it's in Golang and it's, and it's plugged right into the Docker command line, it hopefully will be easier to distribute, easier to, to use. >>And you won't have to necessarily have dependencies inside of where you're running it because there'll be a statically compiled binary. Um, so I've been playing with that, uh, this year. And so like training myself to do Docker going from Docker dash compose to Docker space, compose. It is a thing I I'm almost to the point of having to write a shell replacement. Yeah. Alias that thing. Um, but, um, I'm excited to see what that's going, cause there's already new features in it. And it, these built kit by default, like there's all these things. And I, I love build kit. We could make a whole session on build kit. Um, in fact there's actually, um, maybe going on right now, or right around this time, there is a session on, uh, from Solomon hikes, the seat, uh, co-founder of Docker, former CTO, uh, on build kit using, uh, using some other tool on top of build kit or whatever. >>So that, that would be interesting for those of you that are not watching that one. Cause you're here, uh, to do a check that one out later. Um, all right. So another good question was caching. So another one, another area where there is no wrong answers probably, and everyone has a different story. So the question is, what are your thoughts on CII build caching? There's often a debate between security. This is from Quentin. Thank you for this great question. There's often a debate between security reproducibility and build speeds. I haven't found a good answer so far. I will just throw my hat in the ring and say that the more times you want to build, like if you're trying to build every commit or every commit, if you're building many times a day, the more caching you need. So like the more times you're building, the more caching you're gonna likely want. And in most cases caching doesn't bite you in the butt, but that could be, yeah, we, can we get the bit about that? So, yeah. Yeah. >>I'm going to quote Carlos again and say, it depends on, on, you know, how you're talking, you know, what you're trying to build and I'm quoting your colors. Um, yeah, it's, it's got, it's gonna depend because, you know, there are some instances where you definitely want to use, you know, depends on the frequency that you're building and how you're building. Um, it's you would want to actually take advantage of cashing functionalities, um, for the build, uh, itself. Um, but if, um, you know, as you mentioned, there could be some instances where you would want to disable, um, any caching because you actually want to either pull a new packages or, um, you know, there could be some security, um, uh, disadvantages related to security aspects that would, you know, you know, using a cache version of, uh, image layer, for example, could be a problem. And you, you know, if you have a fleet of build, uh, engines, you don't have a good grasp of where they're being cashed. We would have to, um, disable caching in that, in that, um, in those instances. So it, it would depend. >>Yeah, it's, it's funny you have that problem on both sides of cashing. Like there are things that, especially in Docker world, they will cash automatically. And, and then, and then you maybe don't realize that some of that caching could be bad. It's, it's actually using old, uh, old assets, old artifacts, and then there's times where you would expect it to cash, that it doesn't cash. And then you have to do something extra to enable that caching, especially when you're dealing with that cluster of, of CIS servers. Right. And the cloud, the whole clustering problem with caching is even more complex, but yeah, >>But that's, that's when, >>Uh, you know, ever since I asked you to start using build kits and able to build kit, you know, between it's it's it's reader of Boston in, in detecting word, you know, where in, in the bill process needs to cash, as well as, uh, the, the, um, you know, the process. I don't think I've seen any other, uh, approach there that comes close to how efficient, uh, that process can become how much time it can actually save. Uh, but again, I think, I think that's, for me that had been my default approach, unless I actually need something that I would intentionally to disable caching for that purpose, but the benefits, at least for me, the benefits of, um, how bill kit actually been processing my bills, um, from the builds as well as, you know, using the cash up until, you know, how it detects the, the difference in, in, in the assets within the Docker file had been, um, you know, uh, pretty, you know, outweigh the disadvantages that it brings in. So it, you know, take it each case by case. And based on that, determine if you want to use it, but definitely recommend those enabling >>In the absence of a reason not to, um, I definitely think that it's a good approach in terms of speed. Um, yeah, I say you cash until you have a good reason not to personally >>Catch by default. There you go. I think you catch by default. Yeah. Yeah. And, uh, the trick is, well, one, it's not always enabled by default, especially when you're talking about cross server. So that's a, that's a complexity for your SIS admins, or if you're on the cloud, you know, it's usually just an option. Um, I think it also is this, this veers into a little bit of, uh, the more you cash the in a lot of cases with Docker, like the, from like, if you're from images and checked every single time, if you're not pinning every single thing, if you're not painting your app version, you're at your MPN versions to the exact lock file definition. Like there's a lot of these things where I'm I get, I get sort of, I get very grouchy with teams that sort of let it, just let it all be like, yeah, we'll just build two images and they're totally going to have different dependencies because someone happened to update that thing and after whatever or MPM or, or, and so I get grouchy about that, cause I want to lock it all down, but I also know that that's going to create administrative burden. >>Like the team is now going to have to manage versions in a very much more granular way. Like, do we need to version two? Do we need to care about curl? You know, all that stuff. Um, so that's, that's kind of tricky, but when you get to, when you get to certain version problems, uh, sorry, uh, cashing problems, you, you, you don't want those set those caches to happen because it, if you're from image changes and you're not constantly checking for a new image, and if you're not pinning that V that version, then now you, you don't know whether you're getting the latest version of Davion or whatever. Um, so I think that there's, there's an art form to the more you pen, the less you have, the less, you have to be worried about things changing, but the more you pen, the, uh, all your versions of everything all the way down the stack, the more administrative stuff, because you're gonna have to manually change every one of those. >>So I think it's a balancing act for teams. And as you mature, I to find teams, they tend to pin more until they get to a point of being more comfortable with their testing. So the other side of this argument is if you trust your testing, then you, and you have better testing to me, the less likely to the subtle little differences in versions have to be penned because you can get away with those minor or patch level version changes. If you're thoroughly testing your app, because you're trusting your testing. And this gets us into a whole nother rant, but, uh, yeah, but talking >>About penny versions, if you've got a lot of dependencies isn't that when you would want to use the cash the most and not have to rebuild all those layers. Yeah. >>But if you're not, but if you're not painting to the exact patch version and you are caching, then you're not technically getting the latest versions because it's not checking for all the time. It's a weird, there's a lot of this subtle nuance that people don't realize until it's a problem. And that's part of the, the tricky part of allow this stuff, is it, sometimes the Docker can be almost so much magic out of the box that you, you, you get this all and it all works. And then day two happens and you built it a second time and you've got a new version of open SSL in there and suddenly it doesn't work. Um, so anyway, uh, that was a great question. I've done the question on this, on, uh, from heavy. What do you put, where do you put testing in your pipeline? Like, so testing the code cause there's lots of types of testing, uh, because this pipeline gets longer and longer and Docker building images as part of it. And so he says, um, before staging or after staging, but before production, where do you put it? >>Oh man. Okay. So, um, my, my main thought on this is, and of course this is kind of religious flame bait, so sure. You know, people are going to go into the compensation wrong. Carlos, the boy is how I like to think about it. So pretty much in every stage or every environment that you're going to be deploying your app into, or that your application is going to touch. My idea is that there should be a build of a Docker image that has all your applications coded in, along with its dependencies, there's testing that tests your application, and then there's a deployment that happens into whatever infrastructure there is. Right. So the testing, they can get tricky though. And the type of testing you do, I think depends on the environment that you're in. So if you're, let's say for example, your team and you have, you have a main branch and then you have feature branches that merged into the main branch. >>You don't have like a pre-production branch or anything like that. So in those feature branches, whenever I'm doing CGI that way, I know when I freak, when I cut my poll request, that I'm going to merge into main and everything's going to work in my feature branches, I'm going to want to probably just run unit tests and maybe some component tests, which really, which are just, you know, testing that your app can talk to another component or another part, another dependency, like maybe a database doing tests like that, that don't take a lot of time that are fascinating and right. A lot of would be done at the beach branch level and in my opinion, but when you're going to merge that beach branch into main, as part of a release in that activity, you're going to want to be able to do an integration tasks, to make sure that your app can actually talk to all the other dependencies that it talked to. >>You're going to want to do an end to end test or a smoke test, just to make sure that, you know, someone that actually touches the application, if it's like a website can actually use the website as intended and it meets the business cases and all that, and you might even have testing like performance testing, low performance load testing, or security testing, compliance testing that would want to happen in my opinion, when you're about to go into production with a release, because those are gonna take a long time. Those are very expensive. You're going to have to cut new infrastructure, run those tests, and it can become quite arduous. And you're not going to want to run those all the time. You'll have the resources, uh, builds will be slower. Uh, release will be slower. It will just become a mess. So I would want to save those for when I'm about to go into production. Instead of doing those every time I make a commit or every time I'm merging a feature ranch into a non main branch, that's the way I look at it, but everything does a different, um, there's other philosophies around it. Yeah. >>Well, I don't disagree with your build test deploy. I think if you're going to deploy the code, it needs to be tested. Um, at some level, I mean less the same. You've got, I hate the term smoke tests, cause it gives a false sense of security, but you have some mental minimum minimal amount of tests. And I would expect the developer on the feature branch to add new tests that tested that feature. And that would be part of the PR why those tests would need to pass before you can merge it, merge it to master. So I agree that there are tests that you, you want to run at different stages, but the earlier you can run the test before going to production. Um, the fewer issues you have, the easier it is to troubleshoot it. And I kind of agree with what you said, Carlos, about the longer running tests like performance tests and things like that, waiting to the end. >>The only problem is when you wait until the end to run those performance tests, you kind of end up deploying with whatever performance you have. It's, it's almost just an information gathering. So if you don't run your performance test early on, um, and I don't want to go down a rabbit hole, but performance tests can be really useless if you don't have a goal where it's just information gap, uh, this is, this is the performance. Well, what did you expect it to be? Is it good? Is it bad? They can get really nebulous. So if performance is really important, um, you you're gonna need to come up with some expectations, preferably, you know, set up the business level, like what our SLA is, what our response times and have something to shoot for. And then before you're getting to production. If you have targets, you can test before staging and you can tweak the code before staging and move that performance initiative. Sorry, Carlos, a little to the left. Um, but if you don't have a performance targets, then it's just a check box. So those are my thoughts. I like to test before every deployment. Right? >>Yeah. And you know what, I'm glad that you, I'm glad that you brought, I'm glad that you brought up Escalades and performance because, and you know, the definition of performance says to me, because one of the things that I've seen when I work with teams is that oftentimes another team runs a P and L tests and they ended, and the development team doesn't really have too much insight into what's going on there. And usually when I go to the performance team and say, Hey, how do you run your performance test? It's usually just a generic solution for every single application that they support, which may or may not be applicable to the application team that I'm working with specifically. So I think it's a good, I'm not going to dig into it. I'm not going to dig into the rabbit hole SRE, but it is a good bridge into SRE when you start trying to define what does reliability mean, right? >>Because the reason why you test performance, it's test reliability to make sure that when you cut that release, that customers would go to your site or use your application. Aren't going to see regressions in performance and are not going to either go to another website or, you know, lodge in SLA violation or something like that. Um, it does, it does bridge really well with defining reliability and what SRE means. And when you have, when you start talking about that, that's when you started talking about how often do I run? How often do I test my reliability, the reliability of my application, right? Like, do I have nightly tasks in CGI that ensure that my main branch or, you know, some important branch I does not mean is meeting SLA is meeting SLR. So service level objectives, um, or, you know, do I run tasks that ensure that my SLA is being met in production? >>Like whenever, like do I use, do I do things like game days where I test, Hey, if I turn something off or, you know, if I deploy this small broken code to production and like what happens to my performance? What happens to my security and compliance? Um, you can, that you can go really deep into and take creating, um, into creating really robust tests that cover a lot of different domains. But I liked just using build test deploy is the overall answer to that because I find that you're going to have to build your application first. You're going to have to test it out there and build it, and then you're going to want to deploy it after you test it. And that order generally ensures that you're releasing software. That works. >>Right. Right. Um, I was going to ask one last question. Um, it's going to have to be like a sentence answer though, for each one of you. Uh, this is, uh, do you lint? And if you lint, do you lent all the things, if you do, do you fail the linters during your testing? Yes or no? I think it's going to depend on the culture. I really do. Sorry about it. If we >>Have a, you know, a hook, uh, you know, on the get commit, then theoretically the developer can't get code there without running Melinta anyway, >>So, right, right. True. Anyone else? Anyone thoughts on that? Linting >>Nice. I saw an additional question online thing. And in the chat, if you would introduce it in a multi-stage build, um, you know, I was wondering also what others think about that, like typically I've seen, you know, with multi-stage it's the most common use case is just to produce the final, like to minimize the, the, the, the, the, the image size and produce a final, you know, thin, uh, layout or thin, uh, image. Uh, so if it's not for that, like, I, I don't, I haven't seen a lot of, you know, um, teams or individuals who are actually within a multi-stage build. There's nothing really against that, but they think the number one purpose of doing multi-stage had been just producing the minimalist image. Um, so just wanted to kind of combine those two answers in one, uh, for sure. >>Yeah, yeah, sure. Um, and with that, um, thank you all for the great questions. We are going to have to wrap this up and we could go for another hour if we all had the time. And if Dr. Khan was a 24 hour long event and it didn't sadly, it's not. So we've got to make room for the next live panel, which will be Peter coming on and talking about security with some developer ex security experts. And I wanted to thank again, thank you all three of you for being here real quick, go around the room. Um, uh, where can people reach out to you? I am, uh, at Bret Fisher on Twitter. You can find me there. Carlos. >>I'm at dev Mandy with a Y D E N D Y that's me, um, >>Easiest name ever on Twitter, Carlos and DFW on LinkedIn. And I also have a LinkedIn learning course. So if you check me out on my LinkedIn learning, >>Yeah. I'm at Nicola Quebec. Um, one word, I'll put it in the chat as well on, on LinkedIn, as well as, uh, uh, as well as Twitter. Thanks for having us, Brett. Yeah. Thanks for being here. >>Um, and, and you all stay around. So if you're in the room with us chatting, you're gonna, you're gonna, if you want to go to see the next live panel, I've got to go back to the beginning and do that whole thing, uh, and find the next, because this one will end, but we'll still be in chat for a few minutes. I think the chat keeps going. I don't actually know. I haven't tried it yet. So we'll find out here in a minute. Um, but thanks you all for being here, I will be back a little bit later, but, uh, coming up next on the live stuff is Peter Wood security. Ciao. Bye.

>> from Austin, Texas. It's Theo Cube, covering pure storage. Accelerate 2019. Brought to you by pure storage. >> Welcome back to the Cube, The leader and live tech coverage. I'm Lisa Martin with David Dante. We got a pretty cool guests coming up next, guys, you may have seen him here on the Q before. He has back Matt Harris, the head of I T for Mercedes AMG, Petronas Motor Sport. Matt, Welcome back. >> Often a >> way got the car over there with excitement. One of the coolest sports I've ever become involved with. Formula One is this incredible mix of technology strategy. All these crazy things you guys that Mercedes have been partners, customers a cure for about what? 45 years? >> 2015. As a customer, we became partners in 2016. >> I wonder if they like to save Mercedes AMG Petunias Motor Sport has had five consecutive years of both constructors championships driver's championships. You're a great position on both for 2019. It was a little bit of a history about the product that you put out on truck every other week and how pure storage is a facilitator of that. >> Yeah, okay, so it's an interest in a story for those that are interested in Formula One, because what you see on the track looks the same. But realistically, every time he goes out, the guarantee will be different. That level of difference could be a simple wing change or configuration, always based on data that we're learning from during a race again. But every week we also have a different car dependent on the track we're going to. So we have two different worlds that basically were to rate on a minute by minute, hour by hour and day by day at the track. But in the factory, that could be the same sort of it oration. But it could also be into weekly or monthly or year for a car. So all of that is based on data. So everything we do is that businesses revolves around data. We never make a change to the car without me now to back it up with empirical knowledge. Even if the driver turns around and tells us they feel something called, they believe something, we will always make sure we have data to back up that decision, So access to data is critical. Compute performance whether it's high performance, compute for our safety, for instance, whether it's for you as an end user, access to data is critical across everything that we do is time critical Time is our currency really as a business if we slow down your job? Generally, that probably means that you've got less time to make the correct decision. Or maybe you have to turn into a guess or a hunch, which that's never a good place to be in our sport. >> No, I would think not. >> I've I recall, from our conversation last year their rules that say, How many people you can have in your entourage like 60. I think it was yes, and at the time I think you said you got, like, 15 Allocated to data. Is that ratio kind of still holding? I >> still exactly the same in our tracks. On environment, they're still the same in the factory. We have more than that, depending on how many people on what time of day, what day of the week. So on a Friday race day, practice day, we can have a minimum. There'll be 30 people in our race support room will be looking at data along with those other 15. But you can have the whole Aargh department or design department or logistics. Whoever could still be looking at data from the track real time, so we can have as many as 4 to 500 looking at data if they want to. And if that's the right thing going on earlier in the season, you generally get more people looking As the season goes on. It's probably more aargh focused, maybe mechanically if we got something new, or maybe the engine division again in a completely separate building in the U. K 40 miles apart, they've got another set of people that will be looking and trolling through data riel time from the but looking really at the power unit rather than the chassis side. >> And you're generating, like roughly half a terabyte a weekend on a race weekend. Is that still about the same? Or is that growing a car >> perspective? It's just under half a terabyte, but we produce up to another half a terabyte of other supporting data with that GPS data, weather data, video, audio, whatever it would be other information to help with the strategy side of things So we're around 77 50 to 1 terabyte for race weekend, >> and each car has about 300 sensors. I think when we spoke with you last year, or maybe you're half ago is about 200 so that's increasing in terms of all the data being captured every race weekend. But one of the things that I love that matter sizes, you know, we're idea at Mercedes is not that unlike I t at other groups who really rely on high performance systems. But you do put out a new product every two weeks and this really extreme range of conditions, your product is extremely expensive as pretty sexy. Like the portability factor. You have to set up a tea shop, have any 20 weekends a year and set it up in what, 36 hours and take it down in six. >> And a nine year old joke about the taking it down in six is a bit like a Benny Hill sketch. It's obviously choreographed and, well, well rehearsed, but we have all the same systems as any normal business would have the tracks. That environment is very different, though we don't have air conditioning in so all the IittIe equipment has to work at the natural ambient air temperature of the country. We're in this year. Believe it or not, Germany and hungry have been our biggest challenge. We've had for the last 43 to 4 years because they had 45 degree air ambient air temperature. So forget humidity for a minute, which is Another kettle of fish probably affects us a bit more, maybe, than the systems, but we're only chucking that air as fast as we can across the components. So we're not putting any cooling into what is probably around the tolerance of most I T systems. So we have to rely basically on air throughput to terminate. Keep kit. Cool. Now the benefit with pure is actually doesn't create any heat, either. There's no riel heat generation, so it's quite tolerant, which helps us get it doesn't create Maur, but the environment we put it into is quite special. But what we're doing is what any business would want to do. Access toe email file systems. What we're trying to do is give it in a performance fashion. People need to make a decision. So in qualifying, for instance, those 300 sensors. That information that we've got from the car, we've got minutes to make a decision based on data. If it takes you too long to get the data off, you can't then look at the data to make a decision. So we have to make sure data in just from the car and then basically multi access from everybody in the factory or the track side is performance enough to make a decision before the car goes back out again. Otherwise, we're wasting track time. >> So you've always had data in this business. Early days was all analog, and it obviously progressed and thinking about what you want to do, Going forward with data. What kind of information or capabilities don't you have? Where that technology in the future could address >> s so interesting. One is technology of the future. If you know what it is, let me know with what we know right now, I think a lot of it's gonna be about having the ability to have persistent storage. But actually the dynamic of the compute resource eso looking at things like kubernetes or anything like that to turn around and have dynamic resource spin up as and when required to do high performance computer calculations based on the data, maybe to start giving us some automated information, I'm gonna be careful of the M l A. I is for our businesses, it's not quite as simple as others because our senior management very technically capable, and they just see it as advanced statistical analysis. So unless you program, it is not gonna give you an answer. Now we've started to see some things this year were actually the computer is teaching us things we didn't ask it to. So we have got some areas where we're beginning to learn that. That's not necessarily the case now, but for us that access to data moving forward, it's probably gonna be compute. Combined with that underlying storage platform, there's going to be critical onstage. You you heard Robin people talking about the ability to have that always present storage layer with the right computer. That's something for us is going to be critical, because otherwise we're gonna waste money and have resource sat doing nothing. >> Is security >> an issue for you? I mean, it's an issue for everybody, but there isn't a game of honor because you got this, you know, little community that you guys trying to hack each other systems. >> So it's an interesting one inside the sport, Actually, no. Because a few years ago there was a very high profile case where data went between two teams and there was £100 million fine's exclusion from the sport for a season. So that's that's >> too big. You don't mess with that. >> But also, if you think of that from our perspective, we've got the Daimler star on here. We cannot afford to have any of that Brenda brand reputational rubbing off on Damon's. So that's a no no other teams I can't talk for. But we're all fairly sensible between ourselves. What will be interesting moving forward is what technologies air in our sport, but actually of the whether their motor manufacturers or not, is their technology in there that they're interested in. Maybe the battery technology from the power unit side of things is that the power unit itself. So are other things actually more interesting to those other >> places. It legal for you, you know, by the rules of sports, a monitor, just data or captured data, whether it's visual, whatever from your competitors. Eso anything, >> this public? Yes, it's fair game. Okay, so we get given all the teams. Actually, we get a standard set of three or four different streams of information around GPS timing on some video feeds and audio feeds on their publicly consumable by the team's. When I say public for a second on those feeds, we can do what we like. You know that there for us to infer information, which we do a lot off, is what helps our strategy team to turn around and actually predict what we might or might not need to do as far as a pit stop or tire degradation. >> And that's where the human element must come into understanding the competent, like to football coaches who who know each other right? >> Well, yes. And now, if you think if you add to that the human element off Well, what happens if one team strategy person changes? Are they gonna make a different call based on the same data? Is their hunch different? Do they think they know better within a team? You can have that discussion. So what happens in another team where they're cars, not as performance so their mindset. Maybe they're thinking differently. Or maybe a team's got the most performance car of the moment and they think that they're going to do X. And we're like, Well, we're gonna do something different than to try and actually catch them out. So do we. Now don't do the normal thing. >> So let's hope >> Gamification I love it. >> Let's look at all. Make a prediction. 2019 is gonna be another Mercedes AMG way. So at the end of the season, all of the data that you have collected from the cars, all the sensors, all the weather data, GPS, et cetera how does pure facilitate in the off season the design of the 2020 car, for example, Where does where does things like computational fluid dynamics? >> Okay, so all of our production data is on pure, whether it's on a ray or blade somewhere, it's on pure storage across the site. So they're involved. Whether you're talking about design, whether you're talking about final element analysis for hyper a ll, the C f. D. Using high performance computer systems, everything some pure so from that point of view, is making sure we're using the right resource in the right place to get the best performance. Now, see if he's an interesting one because we're regulated by the F A a. About the amount of compute that weaken you. He's now. Because of that, you want it to be as efficient as you possibly can. It's not speed but the efficient use off CPU time. So if a CPU is waiting for data, that's wasted, Okay, so for us, it's trying to make sure that whole ecosystem is as efficient as we can. That's obviously an integral part of everything we do, so whether we're wind tunnel testing, whether we're in the dino, the simulators, but everything basically comes back to trying to understand and correlate the six or seven different places we generate data, trying to make sure that when there's a change in the simulator, we understand that change in the real world or in a diner or in safety. So all of that, what pure do is allow us to have that single place to go and look how I perform and always available. And for me, I don't have to have a story. Jasmine. Yeah, we've got a team of people that actually are thinking about that for us at Pure, You know, there is invested in us these days. Yeah, I walk around here, I'm very fortunate. I get to see all of the senior guys here and there. They are asking me what's going on and how's things with sequel Oracle Because they know exactly what we're doing and they're they're trying to say what's coming. So things like object engine Pierre So we've been talking to pure about using that over the coming months. But what? We're not having it at the moment. Go out and learn it. Actually, they coming in and they're telling us all about it. So they become a virtual extension to my team, which is just amazing. >> Yeah, far more efficient. You're able to focus on a much more things that drive value for the business. As we look at some of the things like the Evergreen business model. What were some of the big ah ha we hear is the right solution for us back in 2015. Is that >> so? Evergreen and love. Your stories were two things at the time that we're just incredible for us because love your storage was basically you could have an array and basically you could use it. And there was no commitment, no anything. But if you like that, you could keep it, obviously, paying for it. Ah, nde. When we did that in the factory, basically, within a week of being in there that the team were like, Whoa, hang on, that's going nowhere. So that was That was a nice, easy one. But Evergreen was an interesting one, which has only really, truly for me. I've always bought into it. But the last probably 18 months we've used it time and time and time again because the improvements with the speed of light x 90 coming envy Emmy drives. When we were looking at capacity, what we did was we turned round and said, Well, actually, we can buy more dense units in the next 90 so we're only buying the extra capacity, but we were getting new technology. So nations, all the innovation that you're putting into their products were getting it. So today, when they were talking about the memory based access, and if your things always sat there going, I can use that. Oh, and there's no there's no work for me, there's no effort. The only thing I gotta worry about is whether I've got capacity for that. Those modules to go in. So Evergreen has worked several times because I don't have to go back to the cap export and go. Could I have another x £1,000,000 please? Why? I need some more storage. Yeah, but you bought some of the other day. Yeah, well, that one. I need to get rid of it because I need a bigger one. And I don't have to do that. Now. I just go in. I'm telling them what the increases for which actually, they can choose Then if they want to increase, they know what the business benefit is rather than just I t has got to turn around and either replace it because of age or the new version doesn't support is not an uplift, not upgrade from the old. One >> I've seen was looking at some of your stats and the case study that's currently online on. Imagine these numbers have gone up 68% reduction in data center Rackspace and saving £100,000 a year and operating costs >> those that would have been probably two years ago. Ish roughly those figures. And the operating cost is a huge improvement for us. Cap Ex is probably the biggest one for me. They were moving forward with cost caps coming into Formula One. That type of thing is gonna be invaluable. Does not happen to do a forklift upgrade of your storage. Well, I wouldn't know what I would do if I had to upgrade what I now own from pure I can't even imagine what? I don't want to turn around town my bosses what that's >> gonna cost. Well, it sounds like you really attacked the op X side with R and D with pure r and D. I kind of like that shifting, you know, labor toe are Andy because you don't want to spend labour on managing storage a raise, make no sense for your business. Okay. What do you want? Pure toe spend? R and D are now, what problem can they saw for? You mean >> so racy is gonna help If I'm really honest, that's actually is gonna help fill a whole quite well for us because we weren't really sure what to put some of that less hot data we were like, Well, where we going to start to put this now? Because we were beginning to fill up the array and the blades. Actually, with a racy no, we can actually use that different class of storage actually, to keep it still online. Still be out to do some machine learning A. I in the future when that comes around. But actually I can now have Maur longevity out of my existing array and blades. So that's brilliant and coming, I think, having I need to be careful, I know some things that are coming. Uh, the active sinking array is brilliant, and we've been using that since it came out. Having that similar or same ability in Blade when it comes will be a very advantageous having those played enclosures. We've gone to multi chassis flash played over the last six weeks, so that for us is great. Once we can start to synchronize between those two, then that's ah, that's another big one for us, for resiliency, for fault, tolerance, but also workload movement. That thing I said about persistent stories, layer, I'm not gonna need to care where it is, and it will be worked out by the storage in the orchestration layer so it can have the storage in the computer in the right place. >> Wow. Great story, Matt, as always. And I think it's Pierre calls this the unfair advantage coming to life. Best of luck for the rest of the 2019 season. >> I'll take it. >> All right, We'll see you next time. >> Thank you. >> Keep before >> for David Dante. I am Lisa Martin. You're watching the Cube from Cure Accelerate in Austin, Texas.

(electronic dance music) (Intel Jingle) (ethereal electronic dance music) ♪ Okay ♪ (upbeat techno dance music) ♪ Oh oh oh oh ♪ ♪ Oh oh oh oh ♪ ♪ Oh oh oh oh oh ♪ ♪ Oh oh oh oh ♪ ♪ Oh oh oh oh oh ♪ ♪ Take it back take it back ♪ ♪ Take it back ♪ ♪ Take it back take it back ♪ ♪ Take it back ♪ ♪ Take it back take it back ♪ ♪ Yeah everybody get loose yeah ♪ ♪ Yeah ♪ ♪ Ye-yeah yeah ♪ ♪ Yeah yeah ♪ ♪ Everybody everybody yeah ♪ ♪ Whoo whoo ♪ ♪ Whoo whoo ♪ ♪ Whoo yeah ♪ ♪ Everybody get loose whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ >> As a courtesy to the presenters and those around you, please silence all mobile devices, thank you. (electronic dance music) ♪ Everybody get loose ♪ ♪ Whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ (upbeat salsa music) ♪ Ha ha ha ♪ ♪ Ah ♪ ♪ Ha ha ha ♪ ♪ So happy ♪ ♪ Whoo whoo ♪ (female singer scatting) >> Ladies and gentlemen, please take your seats. Our program will begin momentarily. ♪ Hey ♪ (female singer scatting) (male singer scatting) ♪ Hey ♪ ♪ Whoo ♪ (female singer scatting) (electronic dance music) ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ ♪ Red red red red ♪ ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ ♪ Red red red red ♪ ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ ♪ Red red red red ♪ ♪ Red don't go ♪ ♪ All hands are in don't go ♪ ♪ In don't go ♪ ♪ Oh red go ♪ ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ ♪ Red red red red ♪ ♪ All hands are red don't go ♪ ♪ All hands are in red red red red ♪ ♪ All hands are in don't go ♪ ♪ All hands are in red go ♪ >> Ladies and gentlemen, there are available seats. Towards house left, house left there are available seats. If you are please standing, we ask that you please take an available seat. We will begin momentarily, thank you. ♪ Let go ♪ ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ (upbeat electronic dance music) ♪ Just make me ♪ ♪ Just make me ♪ ♪ Just make me ♪ ♪ Just make me ♪ ♪ Just make me ♪ ♪ I live ♪ ♪ Just make me ♪ ♪ Just make me ♪ ♪ Hey ♪ ♪ Yeah ♪ ♪ Oh ♪ ♪ Ah ♪ ♪ Ah ah ah ah ah ah ♪ ♪ Just make me ♪ ♪ Just make me ♪ (bouncy techno music) >> Ladies and gentlemen, once again we ask that you please take the available seats to your left, house left, there are many available seats. If you are standing, please make your way there. The program will begin momentarily, thank you. Good morning! This is Lenovo Transform 2.0! (keyboard clicks) >> Progress. Why do we always talk about it in the future? When will it finally get here? We don't progress when it's ready for us. We need it when we're ready, and we're ready now. Our hospitals and their patients need it now, our businesses and their customers need it now, our cities and their citizens need it now. To deliver intelligent transformation, we need to build it into the products and solutions we make every day. At Lenovo, we're designing the systems to fight disease, power businesses, and help you reach more customers, end-to-end security solutions to protect your data and your companies reputation. We're making IT departments more agile and cost efficient. We're revolutionizing how kids learn with VR. We're designing smart devices and software that transform the way you collaborate, because technology shouldn't just power industries, it should power people. While everybody else is talking about tomorrow, we'll keep building today, because the progress we need can't wait for the future. >> Please welcome to the stage Lenovo's Rod Lappen! (electronic dance music) (audience applauding) >> Alright. Good morning everyone! >> Good morning. >> Ooh, that was pretty good actually, I'll give it one more shot. Good morning everyone! >> Good morning! >> Oh, that's much better! Hope everyone's had a great morning. Welcome very much to the second Lenovo Transform event here in New York. I think when I got up just now on the steps I realized there's probably one thing in common all of us have in this room including myself which is, absolutely no one has a clue what I'm going to say today. So, I'm hoping very much that we get through this thing very quickly and crisply. I love this town, love New York, and you're going to hear us talk a little bit about New York as we get through here, but just before we get started I'm going to ask anyone who's standing up the back, there are plenty of seats down here, and down here on the right hand side, I think he called it house left is the professional way of calling it, but these steps to my right, your left, get up here, let's get you all seated down so that you can actually sit down during the keynote session for us. Last year we had our very first Lenovo Transform. We had about 400 people. It was here in New York, fantastic event, today, over 1,000 people. We have over 62 different technology demonstrations and about 15 breakout sessions, which I'll talk you through a little bit later on as well, so it's a much bigger event. Next year we're definitely going to be shooting for over 2,000 people as Lenovo really transforms and starts to address a lot of the technology that our commercial customers are really looking for. We were however hampered last year by a storm, I don't know if those of you who were with us last year will remember, we had a storm on the evening before Transform last year in New York, and obviously the day that it actually occurred, and we had lots of logistics. Our media people from AMIA were coming in. They took the, the plane was circling around New York for a long time, and Kamran Amini, our General Manager of our Data Center Infrastructure Group, probably one of our largest groups in the Lenovo DCG business, took 17 hours to get from Raleigh, North Carolina to New York, 17 hours, I think it takes seven or eight hours to drive. Took him 17 hours by plane to get here. And then of course this year, we have Florence. And so, obviously the hurricane Florence down there in the Carolinas right now, we tried to help, but still Kamran has made it today. Unfortunately, very tragically, we were hoping he wouldn't, but he's here today to do a big presentation a little bit later on as well. However, I do want to say, obviously, Florence is a very serious tragedy and we have to take it very serious. We got, our headquarters is in Raleigh, North Carolina. While it looks like the hurricane is just missing it's heading a little bit southeast, all of our thoughts and prayers and well wishes are obviously with everyone in the Carolinas on behalf of Lenovo, everyone at our headquarters, everyone throughout the Carolinas, we want to make sure everyone stays safe and out of harm's way. We have a great mixture today in the crowd of all customers, partners, industry analysts, media, as well as our financial analysts from all around the world. There's over 30 countries represented here and people who are here to listen to both YY, Kirk, and Christian Teismann speak today. And so, it's going to be a really really exciting day, and I really appreciate everyone coming in from all around the world. So, a big round of applause for everyone whose come in. (audience applauding) We have a great agenda for you today, and it starts obviously a very consistent format which worked very successful for us last year, and that's obviously our keynote. You'll hear from YY, our CEO, talk a little bit about the vision he has in the industry and how he sees Lenovo's turned the corner and really driving some great strategy to address our customer's needs. Kirk Skaugen, our Executive Vice President of DCG, will be up talking about how we've transformed the DCG business and once again are hitting record growth ratios for our DCG business. And then you'll hear from Christian Teismann, our SVP and General Manager for our commercial business, get up and talk about everything that's going on in our IDG business. There's really exciting stuff going on there and obviously ThinkPad being the cornerstone of that I'm sure he's going to talk to us about a couple surprises in that space as well. Then we've got some great breakout sessions, I mentioned before, 15 breakout sessions, so while this keynote section goes until about 11:30, once we get through that, please go over and explore, and have a look at all of the breakout sessions. We have all of our subject matter experts from both our PC, NBG, and our DCG businesses out to showcase what we're doing as an organization to better address your needs. And then obviously we have the technology pieces that I've also spoken about, 62 different technology displays there arranged from everything IoT, 5G, NFV, everything that's really cool and hot in the industry right now is going to be on display up there, and I really encourage all of you to get up there. So, I'm going to have a quick video to show you from some of the setup yesterday on a couple of the 62 technology displays we've got on up on stage. Okay let's go, so we've got a demonstrations to show you today, one of the greats one here is the one we've done with NC State, a high-performance computing artificial intelligence demonstration of fresh produce. It's about modeling the population growth of the planet, and how we're going to supply water and food as we go forward. Whoo. Oh, that is not an apple. Okay. (woman laughs) Second one over here is really, hey Jonas, how are you? Is really around virtual reality, and how we look at one of the most amazing sites we've got, as an install on our high-performance computing practice here globally. And you can see, obviously, that this is the Barcelona supercomputer, and, where else in New York can you get access to being able to see something like that so easily? Only here at Lenovo Transform. Whoo, okay. (audience applauding) So there's two examples of some of the technology. We're really encouraging everyone in the room after the keynote to flow into that space and really get engaged, and interact with a lot of the technology we've got up there. It seems I need to also do something about my fashion, I've just realized I've worn a vest two days in a row, so I've got to work on that as well. Alright so listen, the last thing on the agenda, we've gone through the breakout sessions and the demo, tonight at four o'clock, there's about 400 of you registered to be on the cruise boat with us, the doors will open behind me. the boat is literally at the pier right behind us. You need to make sure you're on the boat for 4:00 p.m. this evening. Outside of that, I want everyone to have a great time today, really enjoy the experience, make it as experiential as you possibly can, get out there and really get in and touch the technology. There's some really cool AI displays up there for us all to get involved in as well. So ladies and gentlemen, without further adieu, it gives me great pleasure to introduce to you a lover of tennis, as some of you would've heard last year at Lenovo Transform, as well as a lover of technology, Lenovo, and of course, New York City. I am obviously very pleasured to introduce to you Yang Yuanqing, our CEO, as we like to call him, YY. (audience applauding) (upbeat funky music) >> Good morning, everyone. >> Good morning. >> Thank you Rod for that introduction. Welcome to New York City. So, this is the second year in a row we host our Transform event here, because New York is indeed one of the most transformative cities in the world. Last year on this stage, I spoke about the Fourth Industrial Revolution, and our vision around the intelligent transformation, how it would fundamentally change the nature of business and the customer relationships. And why preparing for this transformation is the key for the future of our company. And in the last year I can assure you, we were being very busy doing just that, from searching and bringing global talents around the world to the way we think about every product and every investment we make. I was here in New York just a month ago to announce our fiscal year Q1 earnings, which was a good day for us. I think now the world believes it when we say Lenovo has truly turned the corner to a new phase of growth and a new phase of acceleration in executing the transformation strategy. That's clear to me is that the last few years of a purposeful disruption at Lenovo have led us to a point where we can now claim leadership of the coming intelligent transformation. People often asked me, what is the intelligent transformation? I was saying this way. This is the unlimited potential of the Fourth Industrial Revolution driven by artificial intelligence being realized, ordering a pizza through our speaker, and locking the door with a look, letting your car drive itself back to your home. This indeed reflect the power of AI, but it just the surface of it. The true impact of AI will not only make our homes smarter and offices more efficient, but we are also completely transformed every value chip in every industry. However, to realize these amazing possibilities, we will need a structure built around the key components, and one that touches every part of all our lives. First of all, explosions in new technology always lead to new structures. This has happened many times before. In the early 20th century, thousands of companies provided a telephone service. City streets across the US looked like this, and now bundles of a microscopic fiber running from city to city bring the world closer together. Here's what a driving was like in the US, up until 1950s. Good luck finding your way. (audience laughs) And today, millions of vehicles are organized and routed daily, making the world more efficient. Structure is vital, from fiber cables and the interstate highways, to our cells bounded together to create humans. Thankfully the structure for intelligent transformation has emerged, and it is just as revolutionary. What does this new structure look like? We believe there are three key building blocks, data, computing power, and algorithms. Ever wondered what is it behind intelligent transformation? What is fueling this miracle of human possibility? Data. As the Internet becomes ubiquitous, not only PCs, mobile phones, have come online and been generating data. Today it is the cameras in this room, the climate controls in our offices, or the smart displays in our kitchens at home. The number of smart devices worldwide will reach over 20 billion in 2020, more than double the number in 2017. These devices and the sensors are connected and generating massive amount of data. By 2020, the amount of data generated will be 57 times more than all the grains of sand on Earth. This data will not only make devices smarter, but will also fuel the intelligence of our homes, offices, and entire industries. Then we need engines to turn the fuel into power, and the engine is actually the computing power. Last but not least the advanced algorithms combined with Big Data technology and industry know how will form vertical industrial intelligence and produce valuable insights for every value chain in every industry. When these three building blocks all come together, it will change the world. At Lenovo, we have each of these elements of intelligent transformations in a single place. We have built our business around the new structure of intelligent transformation, especially with mobile and the data center now firmly part of our business. I'm often asked why did you acquire these businesses? Why has a Lenovo gone into so many fields? People ask the same questions of the companies that become the leaders of the information technology revolution, or the third industrial transformation. They were the companies that saw the future and what the future required, and I believe Lenovo is the company today. From largest portfolio of devices in the world, leadership in the data center field, to the algorithm-powered intelligent vertical solutions, and not to mention the strong partnership Lenovo has built over decades. We are the only company that can unify all these essential assets and deliver end to end solutions. Let's look at each part. We now understand the important importance data plays as fuel in intelligent transformation. Hundreds of billions of devices and smart IoTs in the world are generating better and powering the intelligence. Who makes these devices in large volume and variety? Who puts these devices into people's home, offices, manufacturing lines, and in their hands? Lenovo definitely has the front row seats here. We are number one in PCs and tablets. We also produces smart phones, smart speakers, smart displays. AR/VR headsets, as well as commercial IoTs. All of these smart devices, or smart IoTs are linked to each other and to the cloud. In fact, we have more than 20 manufacturing facilities in China, US, Brazil, Japan, India, Mexico, Germany, and more, producing various devices around the clock. We actually make four devices every second, and 37 motherboards every minute. So, this factory located in my hometown, Hu-fi, China, is actually the largest laptop factory in the world, with more than three million square feet. So, this is as big as 42 soccer fields. Our scale and the larger portfolio of devices gives us access to massive amount of data, which very few companies can say. So, why is the ability to scale so critical? Let's look again at our example from before. The early days of telephone, dozens of service providers but only a few companies could survive consolidation and become the leader. The same was true for the third Industrial Revolution. Only a few companies could scale, only a few could survive to lead. Now the building blocks of the next revolution are locking into place. The (mumbles) will go to those who can operate at the scale. So, who could foresee the total integration of cloud, network, and the device, need to deliver intelligent transformation. Lenovo is that company. We are ready to scale. Next, our computing power. Computing power is provided in two ways. On one hand, the modern supercomputers are providing the brute force to quickly analyze the massive data like never before. On the other hand the cloud computing data centers with the server storage networking capabilities, and any computing IoT's, gateways, and miniservers are making computing available everywhere. Did you know, Lenovo is number one provider of super computers worldwide? 170 of the top 500 supercomputers, run on Lenovo. We hold 89 World Records in key workloads. We are number one in x86 server reliability for five years running, according to ITIC. a respected provider of industry research. We are also the fastest growing provider of hyperscale public cloud, hyper-converged and aggressively growing in edge computing. cur-ges target, we are expand on this point soon. And finally to run these individual nodes into our symphony, we must transform the data and utilize the computing power with advanced algorithms. Manufactured, industry maintenance, healthcare, education, retail, and more, so many industries are on the edge of intelligent transformation to improve efficiency and provide the better products and services. We are creating advanced algorithms and the big data tools combined with industry know-how to provide intelligent vertical solutions for several industries. In fact, we studied at Lenovo first. Our IT and research teams partnered with our global supply chain to develop an AI that improved our demand forecasting accuracy. Beyond managing our own supply chain we have offered our deep learning supply focused solution to other manufacturing companies to improve their efficiency. In the best case, we have improved the demand, focused the accuracy by 30 points to nearly 90 percent, for Baosteel, the largest of steel manufacturer in China, covering the world as well. Led by Lenovo research, we launched the industry-leading commercial ready AR headset, DaystAR, partnering with companies like the ones in this room. This technology is being used to revolutionize the way companies service utility, and even our jet engines. Using our workstations, servers, and award-winning imaging processing algorithms, we have partnered with hospitals to process complex CT scan data in minutes. So, this enable the doctors to more successfully detect the tumors, and it increases the success rate of cancer diagnosis all around the world. We are also piloting our smart IoT driven warehouse solution with one of the world's largest retail companies to greatly improve the efficiency. So, the opportunities are endless. This is where Lenovo will truly shine. When we combine the industry know-how of our customers with our end-to-end technology offerings, our intelligent vertical solutions like this are growing, which Kirk and Christian will share more. Now, what will drive this transformation even faster? The speed at which our networks operate, specifically 5G. You may know that Lenovo just launched the first-ever 5G smartphone, our Moto Z3, with the new 5G Moto model. We are partnering with multiple major network providers like Verizon, China Mobile. With the 5G model scheduled to ship early next year, we will be the first company to provide a 5G mobile experience to any users, customers. This is amazing innovation. You don't have to buy a new phone, just the 5G clip on. What can I say, except wow. (audience laughs) 5G is 10 times the fast faster than 4G. Its download speed will transform how people engage with the world, driverless car, new types of smart wearables, gaming, home security, industrial intelligence, all will be transformed. Finally, accelerating with partners, as ready as we are at Lenovo, we need partners to unlock our full potential, partners here to create with us the edge of the intelligent transformation. The opportunities of intelligent transformation are too profound, the scale is too vast. No company can drive it alone fully. We are eager to collaborate with all partners that can help bring our vision to life. We are dedicated to open partnerships, dedicated to cross-border collaboration, unify the standards, share the advantage, and market the synergies. We partner with the biggest names in the industry, Intel, Microsoft, AMD, Qualcomm, Google, Amazon, and Disney. We also find and partner with the smaller innovators as well. We're building the ultimate partner experience, open, shared, collaborative, diverse. So, everything is in place for intelligent transformation on a global scale. Smart devices are everywhere, the infrastructure is in place, networks are accelerating, and the industries demand to be more intelligent, and Lenovo is at the center of it all. We are helping to drive change with the hundreds of companies, companies just like yours, every day. We are your partner for intelligent transformation. Transformation never stops. This is what you will hear from Kirk, including details about Lenovo NetApp global partnership we just announced this morning. We've made the investments in every single aspect of the technology. We have the end-to-end resources to meet your end-to-end needs. As you attend the breakout session this afternoon, I hope you see for yourself how much Lenovo has transformed as a company this past year, and how we truly are delivering a future of intelligent transformation. Now, let me invite to the stage Kirk Skaugen, our president of Data Center growth to tell you about the exciting transformation happening in the global Data C enter market. Thank you. (audience applauding) (upbeat music) >> Well, good morning. >> Good morning. >> Good morning! >> Good morning! >> Excellent, well, I'm pleased to be here this morning to talk about how we're transforming the Data Center and taking you as our customers through your own intelligent transformation journey. Last year I stood up here at Transform 1.0, and we were proud to announce the largest Data Center portfolio in Lenovo's history, so I thought I'd start today and talk about the portfolio and the progress that we've made over the last year, and the strategies that we have going forward in phase 2.0 of Lenovo's transformation to be one of the largest data center companies in the world. We had an audacious vision that we talked about last year, and that is to be the most trusted data center provider in the world, empowering customers through the new IT, intelligent transformation. And now as the world's largest supercomputer provider, giving something back to humanity, is very important this week with the hurricanes now hitting North Carolina's coast, but we take this most trusted aspect very seriously, whether it's delivering the highest quality products on time to you as customers with the highest levels of security, or whether it's how we partner with our channel partners and our suppliers each and every day. You know we're in a unique world where we're going from hundreds of millions of PCs, and then over the next 25 years to hundred billions of connected devices, so each and every one of you is going through this intelligent transformation journey, and in many aspects were very early in that cycle. And we're going to talk today about our role as the largest supercomputer provider, and how we're solving humanity's greatest challenges. Last year we talked about two special milestones, the 25th anniversary of ThinkPad, but also the 25th anniversary of Lenovo with our IBM heritage in x86 computing. I joined the workforce in 1992 out of college, and the IBM first personal server was launching at the same time with an OS2 operating system and a free mouse when you bought the server as a marketing campaign. (audience laughing) But what I want to be very clear today, is that the innovation engine is alive and well at Lenovo, and it's really built on the culture that we're building as a company. All of these awards at the bottom are things that we earned over the last year at Lenovo. As a Fortune now 240 company, larger than companies like Nike, or AMEX, or Coca-Cola. The one I'm probably most proud of is Forbes first list of the top 2,000 globally regarded companies. This was something where 15,000 respondents in 60 countries voted based on ethics, trustworthiness, social conduct, company as an employer, and the overall company performance, and Lenovo was ranked number 27 of 2000 companies by our peer group, but we also now one of-- (audience applauding) But we also got a perfect score in the LGBTQ Equality Index, exemplifying the diversity internally. We're number 82 in the top working companies for mothers, top working companies for fathers, top 100 companies for sustainability. If you saw that factory, it's filled with solar panels on the top of that. And now again, one of the top global brands in the world. So, innovation is built on a customer foundation of trust. We also said last year that we'd be crossing an amazing milestone. So we did, over the last 12 months ship our 20 millionth x86 server. So, thank you very much to our customers for this milestone. (audience applauding) So, let me recap some of the transformation elements that have happened over the last year. Last year I talked about a lot of brand confusion, because we had the ThinkServer brand from the legacy Lenovo, the System x, from IBM, we had acquired a number of networking companies, like BLADE Network Technologies, et cetera, et cetera. Over the last year we've been ramping based on two brand structures, ThinkAgile for next generation IT, and all of our software-defined infrastructure products and ThinkSystem as the world's highest performance, highest reliable x86 server brand, but for servers, for storage, and for networking. We have transformed every single aspect of the customer experience. A year and a half ago, we had four different global channel programs around the world. Typically we're about twice the mix to our channel partners of any of our competitors, so this was really important to fix. We now have a single global Channel program, and have technically certified over 11,000 partners to be technical experts on our product line to deliver better solutions to our customer base. Gardner recently recognized Lenovo as the 26th ranked supply chain in the world. And, that's a pretty big honor, when you're up there with Amazon and Walmart and others, but in tech, we now are in the top five supply chains. You saw the factory network from YY, and today we'll be talking about product shipping in more than 160 countries, and I know there's people here that I've met already this morning, from India, from South Africa, from Brazil and China. We announced new Premier Support services, enabling you to go directly to local language support in nine languages in 49 countries in the world, going directly to a native speaker level three support engineer. And today we have more than 10,000 support specialists supporting our products in over 160 countries. We've delivered three times the number of engineered solutions to deliver a solutions orientation, whether it's on HANA, or SQL Server, or Oracle, et cetera, and we've completely reengaged our system integrator channel. Last year we had the CIO of DXE on stage, and here we're talking about more than 175 percent growth through our system integrator channel in the last year alone as we've brought that back and really built strong relationships there. So, thank you very much for amazing work here on the customer experience. (audience applauding) We also transformed our leadership. We thought it was extremely important with a focus on diversity, to have diverse talent from the legacy IBM, the legacy Lenovo, but also outside the industry. We made about 19 executive changes in the DCG group. This is the most senior leadership team within DCG, all which are newly on board, either from our outside competitors mainly over the last year. About 50 percent of our executives were now hired internally, 50 percent externally, and 31 percent of those new executives are diverse, representing the diversity of our global customer base and gender. So welcome, and most of them you're going to be able to meet over here in the breakout sessions later today. (audience applauding) But some things haven't changed, they're just keeping getting better within Lenovo. So, last year I got up and said we were committed with the new ThinkSystem brand to be a world performance leader. You're going to see that we're sponsoring Ducati for MotoGP. You saw the Ferrari out there with Formula One. That's not a surprise. We want the Lenovo ThinkSystem and ThinkAgile brands to be synonymous with world record performance. So in the last year we've gone from 39 to 89 world records, and partners like Intel would tell you, we now have four times the number of world record workloads on Lenovo hardware than any other server company on the planet today, with more than 89 world records across HPC, Java, database, transaction processing, et cetera. And we're proud to have just brought on Doug Fisher from Intel Corporation who had about 10-17,000 people on any given year working for him in workload optimizations across all of our software. It's just another testament to the leadership team we're bringing in to keep focusing on world-class performance software and solutions. We also per ITIC, are the number one now in x86 server reliability five years running. So, this is a survey where CIOs are in a blind survey asked to submit their reliability of their uptime on their x86 server equipment over the last 365 days. And you can see from 2016 to 2017 the downtime, there was over four hours as noted by the 750 CXOs in more than 20 countries is about one percent for the Lenovo products, and is getting worse generation from generation as we went from Broadwell to Pearlie. So we're taking our reliability, which was really paramount in the IBM System X heritage, and ensuring that we don't just recognize high performance but we recognize the highest level of reliability for mission-critical workloads. And what that translates into is that we at once again have been ranked number one in customer satisfaction from you our customers in 19 of 22 attributes, in North America in 18 of 22. This is a survey by TVR across hundreds of customers of us and our top competitors. This is the ninth consecutive study that we've been ranked number one in customer satisfaction, so we're taking this extremely seriously, and in fact YY now has increased the compensation of every single Lenovo employee. Up to 40 percent of their compensation bonus this year is going to be based on customer metrics like quality, order to ship, and things of this nature. So, we're really putting every employee focused on customer centricity this year. So, the summary on Transform 1.0 is that every aspect of what you knew about Lenovo's data center group has transformed, from the culture to the branding to dedicated sales and marketing, supply chain and quality groups, to a worldwide channel program and certifications, to new system integrator relationships, and to the new leadership team. So, rather than me just talk about it, I thought I'd share a quick video about what we've done over the last year, if you could run the video please. Turn around for a second. (epic music) (audience applauds) Okay. So, thank you to all our customers that allowed us to publicly display their logos in that video. So, what that means for you as investors, and for the investor community out there is, that our customers have responded, that this year Gardner just published that we are the fastest growing server company in the top 10, with 39 percent growth quarter-on-quarter, and 49 percent growth year-on-year. If you look at the progress we've made since the transformation the last three quarters publicly, we've grown 17 percent, then 44 percent, then 68 percent year on year in revenue, and I can tell you this quarter I'm as confident as ever in the financials around the DCG group, and it hasn't been in one area. You're going to see breakout sessions from hyperscale, software-defined, and flash, which are all growing more than a 100 percent year-on-year, supercomputing which we'll talk about shortly, now number one, and then ultimately from profitability, delivering five consecutive quarters of pre-tax profit increase, so I think, thank you very much to the customer base who's been working with us through this transformation journey. So, you're here to really hear what's next on 2.0, and that's what I'm excited to talk about today. Last year I came up with an audacious goal that we would become the largest supercomputer company on the planet by 2020, and this graph represents since the acquisition of the IBM System x business how far we were behind being the number one supercomputer. When we started we were 182 positions behind, even with the acquisition for example of SGI from HP, we've now accomplished our goal actually two years ahead of time. We're now the largest supercomputer company in the world. About one in every four supercomputers, 117 on the list, are now Lenovo computers, and you saw in the video where the universities are said, but I think what I'm most proud of is when your customers rank you as the best. So the awards at the bottom here, are actually Readers Choice from the last International Supercomputing Show where the scientific researchers on these computers ranked their vendors, and we were actually rated the number one server technology in supercomputing with our ThinkSystem SD530, and the number one storage technology with our ThinkSystem DSS-G, but more importantly what we're doing with the technology. You're going to see we won best in life sciences, best in data analytics, and best in collaboration as well, so you're going to see all of that in our breakout sessions. As you saw in the video now, 17 of the top 25 research institutions in the world are now running Lenovo supercomputers. And again coming from Raleigh and watching that hurricane come across the Atlantic, there are eight supercomputers crunching all of those models you see from Germany to Malaysia to Canada, and we're happy to have a SciNet from University of Toronto here with us in our breakout session to talk about what they're doing on climate modeling as well. But we're not stopping there. We just announced our new Neptune warm water cooling technology, which won the International Supercomputing Vendor Showdown, the first time we've won that best of show in 25 years, and we've now installed this. We're building out LRZ in Germany, the first ever warm water cooling in Peking University, at the India Space Propulsion Laboratory, at the Malaysian Weather and Meteorological Society, at Uninett, at the largest supercomputer in Norway, T-Systems, University of Birmingham. This is truly amazing technology where we're actually using water to cool the machine to deliver a significantly more energy-efficient computer. Super important, when we're looking at global warming and some of the electric bills can be millions of dollars just for one computer, and could actually power a small city just with the technology from the computer. We've built AI centers now in Morrisville, Stuttgart, Taipei, and Beijing, where customers can bring their AI workloads in with experts from Intel, from Nvidia, from our FPGA partners, to work on their workloads, and how they can best implement artificial intelligence. And we also this year launched LICO which is Lenovo Intelligent Compute Orchestrator software, and it's a software solution that simplifies the management and use of distributed clusters in both HPC and AI model development. So, what it enables you to do is take a single cluster, and run both HPC and AI workloads on it simultaneously, delivering better TCO for your environment, so check out LICO as well. A lot of the customers here and Wall Street are very excited and using it already. And we talked about solving humanity's greatest challenges. In the breakout session, you're going to have a virtual reality experience where you're going to be able to walk through what as was just ranked the world's most beautiful data center, the Barcelona Supercomputer. So, you can actually walk through one of the largest supercomputers in the world from Barcelona. You can see the work we're doing with NC State where we're going to have to grow the food supply of the world by 50 percent, and there's not enough fresh water in the world in the right places to actually make all those crops grow between now and 2055, so you're going to see the progression of how they're mapping the entire globe and the water around the world, how to build out the crop population over time using AI. You're going to see our work with Vestas is this largest supercomputer provider in the wind turbine areas, how they're working on wind energy, and then with University College London, how they're working on some of the toughest particle physics calculations in the world. So again, lots of opportunity here. Take advantage of it in the breakout sessions. Okay, let me transition to hyperscale. So in hyperscale now, we have completely transformed our business model. We are now powering six of the top 10 hyperscalers in the world, which is a significant difference from where we were two years ago. And the reason we're doing that, is we've coined a term called ODM+. We believe that hyperscalers want more procurement power than an ODM, and Lenovo is doing about $18 billion of procurement a year. They want a broader global supply chain that they can get from a local system integrator. We're more than 160 countries around the world, but they want the same world-class quality and reliability like they get from an MNC. So, what we're doing now is instead of just taking off the shelf motherboards from somewhere, we're starting with a blank sheet of paper, we're working with the customer base on customized SKUs and you can see we already are developing 33 custom solutions for the largest hyperscalers in the world. And then we're not just running notebooks through this factory where YY said, we're running 37 notebook boards a minute, we're now putting in tens and tens and tens of thousands of server board capacity per month into this same factory, so absolutely we can compete with the most aggressive ODM's in the world, but it's not just putting these things in in the motherboard side, we're also building out these systems all around the world, India, Brazil, Hungary, Mexico, China. This is an example of a new hyperscale customer we've had this last year, 34,000 servers we delivered in the first six months. The next 34,000 servers we delivered in 68 days. The next 34,000 servers we delivered in 35 days, with more than 99 percent on-time delivery to 35 data centers in 14 countries as diverse as South Africa, India, China, Brazil, et cetera. And I'm really ashamed to say it was 99.3, because we did have a forklift driver who rammed their forklift right through the middle of the one of the server racks. (audience laughing) At JFK Airport that we had to respond to, but I think this gives you a perspective of what it is to be a top five global supply chain and technology. So last year, I said we would invest significantly in IP, in joint ventures, and M and A to compete in software defined, in networking, and in storage, so I wanted to give you an update on that as well. Our newest software-defined partnership is with Cloudistics, enabling a fully composable cloud infrastructure. It's an exclusive agreement, you can see them here. I think Nag, our founder, is going to be here today, with a significant Lenovo investment in the company. So, this new ThinkAgile CP series delivers the simplicity of the public cloud, on-premise with exceptional support and a marketplace of essential enterprise applications all with a single click deployment. So simply put, we're delivering a private cloud with a premium experience. It's simple in that you need no specialists to deploy it. An IT generalist can set it up and manage it. It's agile in that you can provision dozens of workloads in minutes, and it's transformative in that you get all of the goodness of public cloud on-prem in a private cloud to unlock opportunity for use. So, we're extremely excited about the ThinkAgile CP series that's now shipping into the marketplace. Beyond that we're aggressively ramping, and we're either doubling, tripling, or quadrupling our market share as customers move from traditional server technology to software-defined technology. With Nutanix we've been public, growing about more than 150 percent year-on-year, with Nutanix as their fastest growing Nutanix partner, but today I want to set another audacious goal. I believe we cannot just be Nutanix's fastest growing partner but we can become their largest partner within two years. On Microsoft, we are already four times our market share on Azure stack of our traditional business. We were the first to launch our ThinkAgile on Broadwell and on Skylake with the Azure Stack Infrastructure. And on VMware we're about twice our market segment share. We were the first to deliver an Intel-optimized Optane-certified VSAN node. And with Optane technology, we're delivering 50 percent more VM density than any competitive SSD system in the marketplace, about 10 times lower latency, four times the performance of any SSD system out there, and Lenovo's first to market on that. And at VMworld you saw CEO Pat Gelsinger of VMware talked about project dimension, which is Edge as a service, and we're the only OEM beyond the Dell family that is participating today in project dimension. Beyond that you're going to see a number of other partnerships we have. I'm excited that we have the city of Bogota Columbia here, an eight million person city, where we announced a 3,000 camera video surveillance solution last month. With pivot three you're going to see city of Bogota in our breakout sessions. You're going to see a new partnership with Veeam around backup that's launching today. You're going to see partnerships with scale computing in IoT and hyper-converged infrastructure working on some of the largest retailers in the world. So again, everything out in the breakout session. Transitioning to storage and data management, it's been a great year for Lenovo, more than a 100 percent growth year-on-year, 2X market growth in flash arrays. IDC just reported 30 percent growth in storage, number one in price performance in the world and the best HPC storage product in the top 500 with our ThinkSystem DSS G, so strong coverage, but I'm excited today to announce for Transform 2.0 that Lenovo is launching the largest data management and storage portfolio in our 25-year data center history. (audience applauding) So a year ago, the largest server portfolio, becoming the largest fastest growing server OEM, today the largest storage portfolio, but as you saw this morning we're not doing it alone. Today Lenovo and NetApp, two global powerhouses are joining forces to deliver a multi-billion dollar global alliance in data management and storage to help customers through their intelligent transformation. As the fastest growing worldwide server leader and one of the fastest growing flash array and data management companies in the world, we're going to deliver more choice to customers than ever before, global scale that's never been seen, supply chain efficiencies, and rapidly accelerating innovation and solutions. So, let me unwrap this a little bit for you and talk about what we're announcing today. First, it's the largest portfolio in our history. You're going to see not just storage solutions launching today but a set of solution recipes from NetApp that are going to make Lenovo server and NetApp or Lenovo storage work better together. The announcement enables Lenovo to go from covering 15 percent of the global storage market to more than 90 percent of the global storage market and distribute these products in more than 160 countries around the world. So we're launching today, 10 new storage platforms, the ThinkSystem DE and ThinkSystem DM platforms. They're going to be centrally managed, so the same XClarity management that you've been using for server, you can now use across all of your storage platforms as well, and it'll be supported by the same 10,000 plus service personnel that are giving outstanding customer support to you today on the server side. And we didn't come up with this in the last month or the last quarter. We're announcing availability in ordering today and shipments tomorrow of the first products in this portfolio, so we're excited today that it's not just a future announcement but something you as customers can take advantage of immediately. (audience applauding) The second part of the announcement is we are announcing a joint venture in China. Not only will this be a multi-billion dollar global partnership, but Lenovo will be a 51 percent owner, NetApp a 49 percent owner of a new joint venture in China with the goal of becoming in the top three storage companies in the largest data and storage market in the world. We will deliver our R and D in China for China, pooling our IP and resources together, and delivering a single route to market through a complementary channel, not just in China but worldwide. And in the future I just want to tell everyone this is phase one. There is so much exciting stuff. We're going to be on the stage over the next year talking to you about around integrated solutions, next-generation technologies, and further synergies and collaborations. So, rather than just have me talk about it, I'd like to welcome to the stage our new partner NetApp and Brad Anderson who's the senior vice president and general manager of NetApp Cloud Infrastructure. (upbeat music) (audience applauding) >> Thank You Kirk. >> So Brad, we've known each other a long time. It's an exciting day. I'm going to give you the stage and allow you to say NetApp's perspective on this announcement. >> Very good, thank you very much, Kirk. Kirk and I go back to I think 1994, so hey good morning and welcome. My name is Brad Anderson. I manage the Cloud Infrastructure Group at NetApp, and I am honored and privileged to be here at Lenovo Transform, particularly today on today's announcement. Now, you've heard a lot about digital transformation about how companies have to transform their IT to compete in today's global environment. And today's announcement with the partnership between NetApp and Lenovo is what that's all about. This is the joining of two global leaders bringing innovative technology in a simplified solution to help customers modernize their IT and accelerate their global digital transformations. Drawing on the strengths of both companies, Lenovo's high performance compute world-class supply chain, and NetApp's hybrid cloud data management, hybrid flash and all flash storage solutions and products. And both companies providing our customers with the global scale for them to be able to meet their transformation goals. At NetApp, we're very excited. This is a quote from George Kurian our CEO. George spent all day yesterday with YY and Kirk, and would have been here today if it hadn't been also our shareholders meeting in California, but I want to just convey how excited we are for all across NetApp with this partnership. This is a partnership between two companies with tremendous market momentum. Kirk took you through all the amazing results that Lenovo has accomplished, number one in supercomputing, number one in performance, number one in x86 reliability, number one in x86 customers sat, number five in supply chain, really impressive and congratulations. Like Lenovo, NetApp is also on a transformation journey, from a storage company to the data authority in hybrid cloud, and we've seen some pretty impressive momentum as well. Just last week we became number one in all flash arrays worldwide, catching EMC and Dell, and we plan to keep on going by them, as we help customers modernize their their data centers with cloud connected flash. We have strategic partnerships with the largest hyperscalers to provide cloud native data services around the globe and we are having success helping our customers build their own private clouds with just, with a new disruptive hyper-converged technology that allows them to operate just like hyperscalers. These three initiatives has fueled NetApp's transformation, and has enabled our customers to change the world with data. And oh by the way, it has also fueled us to have meet or have beaten Wall Street's expectations for nine quarters in a row. These are two companies with tremendous market momentum. We are also building this partnership for long term success. We think about this as phase one and there are two important components to phase one. Kirk took you through them but let me just review them. Part one, the establishment of a multi-year commitment and a collaboration agreement to offer Lenovo branded flash products globally, and as Kurt said in 160 countries. Part two, the formation of a joint venture in PRC, People's Republic of China, that will provide long term commitment, joint product development, and increase go-to-market investment to meet the unique needs to China. Both companies will put in storage technologies and storage expertise to form an independent JV that establishes a data management company in China for China. And while we can dream about what phase two looks like, our entire focus is on making phase one incredibly successful and I'm pleased to repeat what Kirk, is that the first products are orderable and shippable this week in 160 different countries, and you will see our two companies focusing on the here and now. On our joint go to market strategy, you'll see us working together to drive strategic alignment, focused execution, strong governance, and realistic expectations and milestones. And it starts with the success of our customers and our channel partners is job one. Enabling customers to modernize their legacy IT with complete data center solutions, ensuring that our customers get the best from both companies, new offerings the fuel business success, efficiencies to reinvest in game-changing initiatives, and new solutions for new mission-critical applications like data analytics, IoT, artificial intelligence, and machine learning. Channel partners are also top of mind for both our two companies. We are committed to the success of our existing and our future channel partners. For NetApp channel partners, it is new pathways to new segments and to new customers. For Lenovo's channel partners, it is the competitive weapons that now allows you to compete and more importantly win against Dell, EMC, and HP. And the good news for both companies is that our channel partner ecosystem is highly complementary with minimal overlap. Today is the first day of a very exciting partnership, of a partnership that will better serve our customers today and will provide new opportunities to both our companies and to our partners, new products to our customers globally and in China. I am personally very excited. I will be on the board of the JV. And so, I look forward to working with you, partnering with you and serving you as we go forward, and with that, I'd like to invite Kirk back up. (audience applauding) >> Thank you. >> Thank you. >> Well, thank you, Brad. I think it's an exciting overview, and these products will be manufactured in China, in Mexico, in Hungary, and around the world, enabling this amazing supply chain we talked about to deliver in over 160 countries. So thank you Brad, thank you George, for the amazing partnership. So again, that's not all. In Transform 2.0, last year, we talked about the joint ventures that were coming. I want to give you a sneak peek at what you should expect at future Lenovo events around the world. We have this Transform in Beijing in a couple weeks. We'll then be repeating this in 20 different locations roughly around the world over the next year, and I'm excited probably more than ever about what else is coming. Let's talk about Telco 5G and network function virtualization. Today, Motorola phones are certified on 46 global networks. We launched the world's first 5G upgradable phone here in the United States with Verizon. Lenovo DCG sells to 58 telecommunication providers around the world. At Mobile World Congress in Barcelona and Shanghai, you saw China Telecom and China Mobile in the Lenovo booth, China Telecom showing a video broadband remote access server, a VBRAS, with video streaming demonstrations with 2x less jitter than they had seen before. You saw China Mobile with a virtual remote access network, a VRAN, with greater than 10 times the throughput and 10x lower latency running on Lenovo. And this year, we'll be launching a new NFV company, a software company in China for China to drive the entire NFV stack, delivering not just hardware solutions, but software solutions, and we've recently hired a new CEO. You're going to hear more about that over the next several quarters. Very exciting as we try to drive new economics into the networks to deliver these 20 billion devices. We're going to need new economics that I think Lenovo can uniquely deliver. The second on IoT and edge, we've integrated on the device side into our intelligent devices group. With everything that's going to consume electricity computes and communicates, Lenovo is in a unique position on the device side to take advantage of the communications from Motorola and being one of the largest device companies in the world. But this year, we're also going to roll out a comprehensive set of edge gateways and ruggedized industrial servers and edge servers and ISP appliances for the edge and for IoT. So look for that as well. And then lastly, as a service, you're going to see Lenovo delivering hardware as a service, device as a service, infrastructure as a service, software as a service, and hardware as a service, not just as a glorified leasing contract, but with IP, we've developed true flexible metering capability that enables you to scale up and scale down freely and paying strictly based on usage, and we'll be having those announcements within this fiscal year. So Transform 2.0, lots to talk about, NetApp the big news of the day, but a lot more to come over the next year from the Data Center group. So in summary, I'm excited that we have a lot of customers that are going to be on stage with us that you saw in the video. Lots of testimonials so that you can talk to colleagues of yourself. Alamos Gold from Canada, a Canadian gold producer, Caligo for data optimization and privacy, SciNet, the largest supercomputer we've ever put into North America, and the largest in Canada at the University of Toronto will be here talking about climate change. City of Bogota again with our hyper-converged solutions around smart city putting in 3,000 cameras for criminal detection, license plate detection, et cetera, and then more from a channel mid market perspective, Jerry's Foods, which is from my home state of Wisconsin, and Minnesota which has about 57 stores in the specialty foods market, and how they're leveraging our IoT solutions as well. So again, about five times the number of demos that we had last year. So in summary, first and foremost to the customers, thank you for your business. It's been a great journey and I think we're on a tremendous role. You saw from last year, we're trying to build credibility with you. After the largest server portfolio, we're now the fastest-growing server OEM per Gardner, number one in performance, number one in reliability, number one in customer satisfaction, number one in supercomputing. Today, the largest storage portfolio in our history, with the goal of becoming the fastest growing storage company in the world, top three in China, multibillion-dollar collaboration with NetApp. And the transformation is going to continue with new edge gateways, edge servers, NFV solutions, telecommunications infrastructure, and hardware as a service with dynamic metering. So thank you for your time. I've looked forward to meeting many of you over the next day. We appreciate your business, and with that, I'd like to bring up Rod Lappen to introduce our next speaker. Rod? (audience applauding) >> Thanks, boss, well done. Alright ladies and gentlemen. No real secret there. I think we've heard why I might talk about the fourth Industrial Revolution in data and exactly what's going on with that. You've heard Kirk with some amazing announcements, obviously now with our NetApp partnership, talk about 5G, NFV, cloud, artificial intelligence, I think we've hit just about all the key hot topics. It's with great pleasure that I now bring up on stage Mr. Christian Teismann, our senior vice president and general manager of commercial business for both our PCs and our IoT business, so Christian Teismann. (techno music) Here, take that. >> Thank you. I think I'll need that. >> Okay, Christian, so obviously just before we get down, you and I last year, we had a bit of a chat about being in New York. >> Exports. >> You were an expat in New York for a long time. >> That's true. >> And now, you've moved from New York. You're in Munich? >> Yep. >> How does that feel? >> Well Munich is a wonderful city, and it's a great place to live and raise kids, but you know there's no place in the world like New York. >> Right. >> And I miss it a lot, quite frankly. >> So what exactly do you miss in New York? >> Well there's a lot of things in New York that are unique, but I know you spent some time in Japan, but I still believe the best sushi in the world is still in New York City. (all laughing) >> I will beg to differ. I will beg to differ. I think Mr. Guchi-san from Softbank is here somewhere. He will get up an argue very quickly that Japan definitely has better sushi than New York. But obviously you know, it's a very very special place, and I have had sushi here, it's been fantastic. What about Munich? Anything else that you like in Munich? >> Well I mean in Munich, we have pork knuckles. >> Pork knuckles. (Christian laughing) Very similar sushi. >> What is also very fantastic, but we have the real, the real Oktoberfest in Munich, and it starts next week, mid-September, and I think it's unique in the world. So it's very special as well. >> Oktoberfest. >> Yes. >> Unfortunately, I'm not going this year, 'cause you didn't invite me, but-- (audience chuckling) How about, I think you've got a bit of a secret in relation to Oktoberfest, probably not in Munich, however. >> It's a secret, yes, but-- >> Are you going to share? >> Well I mean-- >> See how I'm putting you on the spot? >> In the 10 years, while living here in New York, I was a regular visitor of the Oktoberfest at the Lower East Side in Avenue C at Zum Schneider, where I actually met my wife, and she's German. >> Very good. So, how about a big round of applause? (audience applauding) Not so much for Christian, but more I think, obviously for his wife, who obviously had been drinking and consequently ended up with you. (all laughing) See you later, mate. >> That's the beauty about Oktoberfest, but yes. So first of all, good morning to everybody, and great to be back here in New York for a second Transform event. New York clearly is the melting pot of the world in terms of culture, nations, but also business professionals from all kind of different industries, and having this event here in New York City I believe is manifesting what we are trying to do here at Lenovo, is transform every aspect of our business and helping our customers on the journey of intelligent transformation. Last year, in our transformation on the device business, I talked about how the PC is transforming to personalized computing, and we've made a lot of progress in that journey over the last 12 months. One major change that we have made is we combined all our device business under one roof. So basically PCs, smart devices, and smart phones are now under the roof and under the intelligent device group. But from my perspective makes a lot of sense, because at the end of the day, all devices connect in the modern world into the cloud and are operating in a seamless way. But we are also moving from a device business what is mainly a hardware focus historically, more and more also into a solutions business, and I will give you during my speech a little bit of a sense of what we are trying to do, as we are trying to bring all these components closer together, and specifically also with our strengths on the data center side really build end-to-end customer solution. Ultimately, what we want to do is make our business, our customer's businesses faster, safer, and ultimately smarter as well. So I want to look a little bit back, because I really believe it's important to understand what's going on today on the device side. Many of us have still grown up with phones with terminals, ultimately getting their first desktop, their first laptop, their first mobile phone, and ultimately smartphone. Emails and internet improved our speed, how we could operate together, but still we were defined by linear technology advances. Today, the world has changed completely. Technology itself is not a limiting factor anymore. It is how we use technology going forward. The Internet is pervasive, and we are not yet there that we are always connected, but we are nearly always connected, and we are moving to the stage, that everything is getting connected all the time. Sharing experiences is the most driving force in our behavior. In our private life, sharing pictures, videos constantly, real-time around the world, with our friends and with our family, and you see the same behavior actually happening in the business life as well. Collaboration is the number-one topic if it comes down to workplace, and video and instant messaging, things that are coming from the consumer side are dominating the way we are operating in the commercial business as well. Most important beside technology, that a new generation of workforce has completely changed the way we are working. As the famous workforce the first generation of Millennials that have now fully entered in the global workforce, and the next generation, it's called Generation Z, is already starting to enter the global workforce. By 2025, 75 percent of the world's workforce will be composed out of two of these generations. Why is this so important? These two generations have been growing up using state-of-the-art IT technology during their private life, during their education, school and study, and are taking these learnings and taking these behaviors in the commercial workspace. And this is the number one force of change that we are seeing in the moment. Diverse workforces are driving this change in the IT spectrum, and for years in many of our customers' focus was their customer focus. Customer experience also in Lenovo is the most important thing, but we've realized that our own human capital is equally valuable in our customer relationships, and employee experience is becoming a very important thing for many of our customers, and equally for Lenovo as well. As you have heard YY, as we heard from YY, Lenovo is focused on intelligent transformation. What that means for us in the intelligent device business is ultimately starting with putting intelligence in all of our devices, smartify every single one of our devices, adding value to our customers, traditionally IT departments, but also focusing on their end users and building products that make their end users more productive. And as a world leader in commercial devices with more than 33 percent market share, we can solve problems been even better than any other company in the world. So, let's talk about transformation of productivity first. We are in a device-led world. Everything we do is connected. There's more interaction with devices than ever, but also with spaces who are increasingly becoming smart and intelligent. YY said it, by 2020 we have more than 20 billion connected devices in the world, and it will grow exponentially from there on. And users have unique personal choices for technology, and that's very important to recognize, and we call this concept a digital wardrobe. And it means that every single end-user in the commercial business is composing his personal wardrobe on an ongoing basis and is reconfiguring it based on the work he's doing and based where he's going and based what task he is doing. I would ask all of you to put out all the devices you're carrying in your pockets and in your bags. You will see a lot of you are using phones, tablets, laptops, but also cameras and even smartwatches. They're all different, but they have one underlying technology that is bringing it all together. Recognizing digital wardrobe dynamics is a core factor for us to put all the devices under one roof in IDG, one business group that is dedicated to end-user solutions across mobile, PC, but also software services and imaging, to emerging technologies like AR, VR, IoT, and ultimately a AI as well. A couple of years back there was a big debate around bring-your-own-device, what was called consumerization. Today consumerization does not exist anymore, because consumerization has happened into every single device we build in our commercial business. End users and commercial customers today do expect superior display performance, superior audio, microphone, voice, and touch quality, and have it all connected and working seamlessly together in an ease of use space. We are already deep in the journey of personalized computing today. But the center point of it has been for the last 25 years, the mobile PC, that we have perfected over the last 25 years, and has been the undisputed leader in mobility computing. We believe in the commercial business, the ThinkPad is still the core device of a digital wardrobe, and we continue to drive the success of the ThinkPad in the marketplace. We've sold more than 140 million over the last 26 years, and even last year we exceeded nearly 11 million units. That is about 21 ThinkPads per minute, or one Thinkpad every three seconds that we are shipping out in the market. It's the number one commercial PC in the world. It has gotten countless awards but we felt last year after Transform we need to build a step further, in really tailoring the ThinkPad towards the need of the future. So, we announced a new line of X1 Carbon and Yoga at CES the Consumer Electronics Show. And the reason is not we want to sell to consumer, but that we do recognize that a lot of CIOs and IT decision makers need to understand what consumers are really doing in terms of technology to make them successful. So, let's take a look at the video. (suspenseful music) >> When you're the number one business laptop of all time, your only competition is yourself. (wall shattering) And, that's different. Different, like resisting heat, ice, dust, and spills. Different, like sharper, brighter OLA display. The trackpoint that reinvented controls, and a carbon fiber roll cage to protect what's inside, built by an engineering and design team, doing the impossible for the last 25 years. This is the number one business laptop of all time, but it's not a laptop. It's a ThinkPad. (audience applauding) >> Thank you very much. And we are very proud that Lenovo ThinkPad has been selected as the best laptop in the world in the second year in a row. I think it's a wonderful tribute to what our engineers have been done on this one. And users do want awesome displays. They want the best possible audio, voice, and touch control, but some users they want more. What they want is super power, and I'm really proud to announce our newest member of the X1 family, and that's the X1 extreme. It's exceptionally featured. It has six core I9 intel chipset, the highest performance you get in the commercial space. It has Nvidia XTX graphic, it is a 4K UHD display with HDR with Dolby vision and Dolby Atmos Audio, two terabyte in SSD, so it is really the absolute Ferrari in terms of building high performance commercial computer. Of course it has touch and voice, but it is one thing. It has so much performance that it serves also a purpose that is not typical for commercial, and I know there's a lot of secret gamers also here in this room. So you see, by really bringing technology together in the commercial space, you're creating productivity solutions of one of a kind. But there's another category of products from a productivity perspective that is incredibly important in our commercial business, and that is the workstation business . Clearly workstations are very specifically designed computers for very advanced high-performance workloads, serving designers, architects, researchers, developers, or data analysts. And power and performance is not just about the performance itself. It has to be tailored towards the specific use case, and traditionally these products have a similar size, like a server. They are running on Intel Xeon technology, and they are equally complex to manufacture. We have now created a new category as the ultra mobile workstation, and I'm very proud that we can announce here the lightest mobile workstation in the industry. It is so powerful that it really can run AI and big data analysis. And with this performance you can go really close where you need this power, to the sensors, into the cars, or into the manufacturing places where you not only wannna read the sensors but get real-time analytics out of these sensors. To build a machine like this one you need customers who are really challenging you to the limit. and we're very happy that we had a customer who went on this journey with us, and ultimately jointly with us created this product. So, let's take a look at the video. (suspenseful music) >> My world involves pathfinding both the hardware needs to the various work sites throughout the company, and then finding an appropriate model of desktop, laptop, or workstation to match those needs. My first impressions when I first seen the ThinkPad P1 was I didn't actually believe that we could get everything that I was asked for inside something as small and light in comparison to other mobile workstations. That was one of the I can't believe this is real sort of moments for me. (engine roars) >> Well, it's better than general when you're going around in the wind tunnel, which isn't alway easy, and going on a track is not necessarily the best bet, so having a lightweight very powerful laptop is extremely useful. It can take a Xeon processor, which can support ECC from when we try to load a full car, and when we're analyzing live simulation results. through and RCFT post processor or example. It needs a pretty powerful machine. >> It's come a long way to be able to deliver this. I hate to use the word game changer, but it is that for us. >> Aston Martin has got a lot of different projects going. There's some pretty exciting projects and a pretty versatile range coming out. Having Lenovo as a partner is certainly going to ensure that future. (engine roars) (audience applauds) >> So, don't you think the Aston Martin design and the ThinkPad design fit very well together? (audience laughs) So if Q, would get a new laptop, I think you would get a ThinkPad X P1. So, I want to switch gears a little bit, and go into something in terms of productivity that is not necessarily on top of the mind or every end user but I believe it's on top of the mind of every C-level executive and of every CEO. Security is the number one threat in terms of potential risk in your business and the cost of cybersecurity is estimated by 2020 around six trillion dollars. That's more than the GDP of Japan and we've seen a significant amount of data breach incidents already this years. Now, they're threatening to take companies out of business and that are threatening companies to lose a huge amount of sensitive customer data or internal data. At Lenovo, we are taking security very, very seriously, and we run a very deep analysis, around our own security capabilities in the products that we are building. And we are announcing today a new brand under the Think umbrella that is called ThinkShield. Our goal is to build the world's most secure PC, and ultimately the most secure devices in the industry. And when we looked at this end-to-end, there is no silver bullet around security. You have to go through every aspect where security breaches can potentially happen. That is why we have changed the whole organization, how we look at security in our device business, and really have it grouped under one complete ecosystem of solutions, Security is always something where you constantly are getting challenged with the next potential breach the next potential technology flaw. As we keep innovating and as we keep integrating, a lot of our partners' software and hardware components into our products. So for us, it's really very important that we partner with companies like Intel, Microsoft, Coronet, Absolute, and many others to really as an example to drive full encryption on all the data seamlessly, to have multi-factor authentication to protect your users' identity, to protect you in unsecured Wi-Fi locations, or even simple things like innovation on the device itself, to and an example protect the camera, against usage with a little thing like a thinkShutter that you can shut off the camera. SO what I want to show you here, is this is the full portfolio of ThinkShield that we are announcing today. This is clearly not something I can even read to you today, but I believe it shows you the breadth of security management that we are announcing today. There are four key pillars in managing security end-to-end. The first one is your data, and this has a lot of aspects around the hardware and the software itself. The second is identity. The third is the security around online, and ultimately the device itself. So, there is a breakout on security and ThinkShield today, available in the afternoon, and encourage you to really take a deeper look at this one. The first pillar around productivity was the device, and around the device. The second major pillar that we are seeing in terms of intelligent transformation is the workspace itself. Employees of a new generation have a very different habit how they work. They split their time between travel, working remotely but if they do come in the office, they expect a very different office environment than what they've seen in the past in cubicles or small offices. They come into the office to collaborate, and they want to create ideas, and they really work in cross-functional teams, and they want to do it instantly. And what we've seen is there is a huge amount of investment that companies are doing today in reconfiguring real estate reconfiguring offices. And most of these kind of things are moving to a digital platform. And what we are doing, is we want to build an entire set of solutions that are just focused on making the workspace more productive for remote workforce, and to create technology that allow people to work anywhere and connect instantly. And the core of this is that we need to be, the productivity of the employee as high as possible, and make it for him as easy as possible to use these kind of technologies. Last year in Transform, I announced that we will enter the smart office space. By the end of last year, we brought the first product into the market. It's called the Hub 500. It's already deployed in thousands of our customers, and it's uniquely focused on Microsoft Skype for Business, and making meeting instantly happen. And the product is very successful in the market. What we are announcing today is the next generation of this product, what is the Hub 700, what has a fantastic audio quality. It has far few microphones, and it is usable in small office environment, as well as in major conference rooms, but the most important part of this new announcement is that we are also announcing a software platform, and this software platform allows you to run multiple video conferencing software solutions on the same platform. Many of you may have standardized for one software solution or for another one, but as you are moving in a world of collaborating instantly with partners, customers, suppliers, you always will face multiple software standards in your company, and Lenovo is uniquely positioned but providing a middleware platform for the device to really enable multiple of these UX interfaces. And there's more to come and we will add additional UX interfaces on an ongoing base, based on our customer requirements. But this software does not only help to create a better experience and a higher productivity in the conference room or the huddle room itself. It really will allow you ultimately to manage all your conference rooms in the company in one instance. And you can run AI technologies around how to increase productivity utilization of your entire conference room ecosystem in your company. You will see a lot more devices coming from the node in this space, around intelligent screens, cameras, and so on, and so on. The idea is really that Lenovo will become a core provider in the whole movement into the smart office space. But it's great if you have hardware and software that is really supporting the approach of modern IT, but one component that Kirk also mentioned is absolutely critical, that we are providing this to you in an as a service approach. Get it what you want, when you need it, and pay it in the amount that you're really using it. And within UIT there is also I think a new philosophy around IT management, where you're much more focused on the value that you are consuming instead of investing into technology. We are launched as a service two years back and we already have a significant number of customers running PC as a service, but we believe as a service will stretch far more than just the PC device. It will go into categories like smart office. It might go even into categories like phone, and it will definitely go also in categories like storage and server in terms of capacity management. I want to highlight three offerings that we are also displaying today that are sort of building blocks in terms of how we really run as a service. The first one is that we collaborated intensively over the last year with Microsoft to be the launch pilot for their Autopilot offering, basically deploying images easily in the same approach like you would deploy a new phone on the network. The purpose really is to make new imaging and enabling new PC as seamless as it's used to be in the phone industry, and we have a complete set of offerings, and already a significant number customers have deployed Autopilot with Lenovo. The second major offering is Premier Support, like in the in the server business, where Premier Support is absolutely critical to run critical infrastructure, we see a lot of our customers do want to have Premier Support for their end users, so they can be back into work basically instantly, and that you have the highest possible instant repair on every single device. And then finally we have a significant amount of time invested into understanding how the software as a service really can get into one philosophy. And many of you already are consuming software as a service in many different contracts from many different vendors, but what we've created is one platform that really can manage this all together. All these things are the foundation for a device as a service offering that really can manage this end-to-end. So, implementing an intelligent workplace can be really a daunting prospect depending on where you're starting from, and how big your company ultimately is. But how do you manage the transformation of technology workspace if you're present in 50 or more countries and you run an infrastructure for more than 100,000 people? Michelin, famous for their tires, infamous for their Michelin star restaurant rating, especially in New York, and instantly recognizable by the Michelin Man, has just doing that. Please welcome with me Damon McIntyre from Michelin to talk to us about the challenges and transforming collaboration and productivity. (audience applauding) (electronic dance music) Thank you, David. >> Thank you, thank you very much. >> We on? >> So, how do you feel here? >> Well good, I want to thank you first of all for your partnership and the devices you create that helped us design, manufacture, and distribute the best tire in the world, okay? I just had to say it and put out there, alright. And I was wondering, were those Michelin tires on that Aston Martin? >> I'm pretty sure there is no other tire that would fit to that. >> Yeah, no, thank you, thank you again, and thank you for the introduction. >> So, when we talk about the transformation happening really in the workplace, the most tangible transformation that you actually see is the drastic change that companies are doing physically. They're breaking down walls. They're removing cubes, and they're moving to flexible layouts, new desks, new huddle rooms, open spaces, but the underlying technology for that is clearly not so visible very often. So, tell us about Michelin's strategy, and the technology you are deploying to really enable this corporation. >> So we, so let me give a little bit a history about the company to understand the daunting tasks that we had before us. So we have over 114,000 people in the company under 170 nationalities, okay? If you go to the corporate office in France, it's Clermont. It's about 3,000 executives and directors, and what have you in the marketing, sales, all the way up to the chain of the global CIO, right? Inside of the Americas, we merged in Americas about three years ago. Now we have the Americas zone. There's about 28,000 employees across the Americas, so it's really, it's really hard in a lot of cases. You start looking at the different areas that you lose time, and you lose you know, your productivity and what have you, so there, it's when we looked at different aspects of how we were going to manage the meeting rooms, right? because we have opened up our areas of workspace, our CIO, CEOs in our zones will no longer have an office. They'll sit out in front of everybody else and mingle with the crowd. So, how do you take those spaces that were originally used by an individual but now turn them into like meeting rooms? So, we went through a large process, and looked at the Hub 500, and that really met our needs, because at the end of the day what we noticed was, it was it was just it just worked, okay? We've just added it to the catalog, so we're going to be deploying it very soon, and I just want to again point that I know everybody struggles with this, and if you look at all the minutes that you lose in starting up a meeting, and we know you know what I'm talking about when I say this, it equates to many many many dollars, okay? And so at the end the day, this product helps us to be more efficient in starting up the meeting, and more productive during the meeting. >> Okay, it's very good to hear. Another major trend we are seeing in IT departments is taking a more hands-off approach to hardware. We're seeing new technologies enable IT to create a more efficient model, how IT gets hardware in the hands of end-users, and how they are ultimately supporting themselves. So what's your strategy around the lifecycle management of the devices? >> So yeah you mentioned, again, we'll go back to the 114,000 employees in the company, right? You imagine looking at all the devices we use. I'm not going to get into the number of devices we have, but we have a set number that we use, and we have to go through a process of deploying these devices, which we right now service our own image. We build our images, we service them through our help desk and all that process, and we go through it. If you imagine deploying 25,000 PCs in a year, okay? The time and the daunting task that's behind all that, you can probably add up to 20 or 30 people just full-time doing that, okay? So, with partnering with Lenovo and their excellent technology, their technical teams, and putting together the whole process of how we do imaging, it now lifts that burden off of our folks, and it shifts it into a more automated process through the cloud, okay? And, it's with the Autopilot on the end of the project, we'll have Autopilot fully engaged, but what I really appreciate is how Lenovo really, really kind of got with us, and partnered with us for the whole process. I mean it wasn't just a partner between Michelin and Lenovo. Microsoft was also partnered during that whole process, and it really was a good project that we put together, and we hope to have something in a full production mode next year for sure. >> So, David thank you very, very much to be here with us on stage. What I really want to say, customers like you, who are always challenging us on every single aspect of our capabilities really do make the big difference for us to get better every single day and we really appreciate the partnership. >> Yeah, and I would like to say this is that I am, I'm doing what he's exactly said he just said. I am challenging Lenovo to show us how we can innovate in our work space with your devices, right? That's a challenge, and it's going to be starting up next year for sure. We've done some in the past, but I'm really going to challenge you, and my whole aspect about how to do that is bring you into our workspace. Show you how we make how we go through the process of making tires and all that process, and how we distribute those tires, so you can brainstorm, come back to the table and say, here's a device that can do exactly what you're doing right now, better, more efficient, and save money, so thank you. >> Thank you very much, David. (audience applauding) Well it's sometimes really refreshing to get a very challenging customers feedback. And you know, we will continue to grow this business together, and I'm very confident that your challenge will ultimately help to make our products even more seamless together. So, as we now covered productivity and how we are really improving our devices itself, and the transformation around the workplace, there is one pillar left I want to talk about, and that's really, how do we make businesses smarter than ever? What that really means is, that we are on a journey on trying to understand our customer's business, deeper than ever, understanding our customer's processes even better than ever, and trying to understand how we can help our customers to become more competitive by injecting state-of-the-art technology in this intelligent transformation process, into core processes. But this cannot be done without talking about a fundamental and that is the journey towards 5G. I really believe that 5G is changing everything the way we are operating devices today, because they will be connected in a way like it has never done before. YY talked about you know, 20 times 10 times the amount of performance. There are other studies that talk about even 200 times the performance, how you can use these devices. What it will lead to ultimately is that we will build devices that will be always connected to the cloud. And, we are preparing for this, and Kirk already talked about, and how many operators in the world we already present with our Moto phones, with how many Telcos we are working already on the backend, and we are working on the device side on integrating 5G basically into every single one of our product in the future. One of the areas that will benefit hugely from always connected is the world of virtual reality and augmented reality. And I'm going to pick here one example, and that is that we have created a commercial VR solution for classrooms and education, and basically using consumer type of product like our Mirage Solo with Daydream and put a solution around this one that enables teachers and schools to use these products in the classroom experience. So, students now can have immersive learning. They can studying sciences. They can look at environmental issues. They can exploring their careers, or they can even taking a tour in the next college they're going to go after this one. And no matter what grade level, this is how people will continue to learn in the future. It's quite a departure from the old world of textbooks. In our area that we are looking is IoT, And as YY already elaborated, we are clearly learning from our own processes around how we improve our supply chain and manufacturing and how we improve also retail experience and warehousing, and we are working with some of the largest companies in the world on pilots, on deploying IoT solutions to make their businesses, their processes, and their businesses, you know, more competitive, and some of them you can see in the demo environment. Lenovo itself already is managing 55 million devices in an IoT fashion connecting to our own cloud, and constantly improving the experience by learning from the behavior of these devices in an IoT way, and we are collecting significant amount of data to really improve the performance of these systems and our future generations of products on a ongoing base. We have a very strong partnership with a company called ADLINK from Taiwan that is one of the leading manufacturers of manufacturing PC and hardened devices to create solutions on the IoT platform. The next area that we are very actively investing in is commercial augmented reality. I believe augmented reality has by far more opportunity in commercial than virtual reality, because it has the potential to ultimately improve every single business process of commercial customers. Imagine in the future how complex surgeries can be simplified by basically having real-time augmented reality information about the surgery, by having people connecting into a virtual surgery, and supporting the surgery around the world. Visit a furniture store in the future and see how this furniture looks in your home instantly. Doing some maintenance on some devices yourself by just calling the company and getting an online manual into an augmented reality device. Lenovo is exploring all kinds of possibilities, and you will see a solution very soon from Lenovo. Early when we talked about smart office, I talked about the importance of creating a software platform that really run all these use cases for a smart office. We are creating a similar platform for augmented reality where companies can develop and run all their argumented reality use cases. So you will see that early in 2019 we will announce an augmented reality device, as well as an augmented reality platform. So, I know you're very interested on what exactly we are rolling out, so we will have a first prototype view available there. It's still a codename project on the horizon, and we will announce it ultimately in 2019, but I think it's good for you to take a look what we are doing here. So, I just wanted to give you a peek on what we are working beyond smart office and the device productivity in terms of really how we make businesses smarter. It's really about increasing productivity, providing you the most secure solutions, increase workplace collaboration, increase IT efficiency, using new computing devices and software and services to make business smarter in the future. There's no other company that will enable to offer what we do in commercial. No company has the breadth of commercial devices, software solutions, and the same data center capabilities, and no other company can do more for your intelligent transformation than Lenovo. Thank you very much. (audience applauding) >> Thanks mate, give me that. I need that. Alright, ladies and gentlemen, we are done. So firstly, I've got a couple of little housekeeping pieces at the end of this and then we can go straight into going and experiencing some of the technology we've got on the left-hand side of the room here. So, I want to thank Christian obviously. Christian, awesome as always, some great announcements there. I love the P1. I actually like the Aston Martin a little bit better, but I'll take either if you want to give me one for free. I'll take it. We heard from YY obviously about the industry and how the the fourth Industrial Revolution is impacting us all from a digital transformation perspective, and obviously Kirk on DCG, the great NetApp announcement, which is going to be really exciting, actually that Twitter and some of the social media panels are absolutely going crazy, so it's good to see that the industry is really taking some impact. Some of the publications are really great, so thank you for the media who are obviously in the room publishing right no. But now, I really want to say it's all of your turn. So, all of you up the back there who are having coffee, it's your turn now. I want everyone who's sitting down here after this event move into there, and really take advantage of the 15 breakouts that we've got set there. There are four breakout sessions from a time perspective. I want to try and get you all out there at least to use up three of them and use your fourth one to get out and actually experience some of the technology. So, you've got four breakout sessions. A lot of the breakout sessions are actually done twice. If you have not downloaded the app, please download the app so you can actually see what time things are going on and make sure you're registering correctly. There's a lot of great experience of stuff out there for you to go do. I've got one quick video to show you on some of the technology we've got and then we're about to close. Alright, here we are acting crazy. Now, you can see obviously, artificial intelligence machine learning in the browser. God, I hate that dance, I'm not a Millenial at all. It's effectively going to be implemented by healthcare. I want you to come around and test that out. Look at these two guys. This looks like a Lenovo management meeting to be honest with you. These two guys are actually concentrating, using their brain power to race each others in cars. You got to come past and give that a try. Give that a try obviously. Fantastic event here, lots of technology for you to experience, and great partners that have been involved as well. And so, from a Lenovo perspective, we've had some great alliance partners contribute, including obviously our number one partner, Intel, who's been a really big loyal contributor to us, and been a real part of our success here at Transform. Excellent, so please, you've just seen a little bit of tech out there that you can go and play with. I really want you, I mean go put on those black things, like Scott Hawkins our chief marketing officer from Lenovo's DCG business was doing and racing around this little car with his concentration not using his hands. He said it's really good actually, but as soon as someone comes up to speak to him, his car stops, so you got to try and do better. You got to try and prove if you can multitask or not. Get up there and concentrate and talk at the same time. 62 different breakouts up there. I'm not going to go into too much detai, but you can see we've got a very, very unusual numbering system, 18 to 18.8. I think over here we've got a 4849. There's a 4114. And then up here we've got a 46.1 and a 46.2. So, you need the decoder ring to be able to understand it. Get over there have a lot of fun. Remember the boat leaves today at 4:00 o'clock, right behind us at the pier right behind us here. There's 400 of us registered. Go onto the app and let us know if there's more people coming. It's going to be a great event out there on the Hudson River. Ladies and gentlemen that is the end of your keynote. I want to thank you all for being patient and thank all of our speakers today. Have a great have a great day, thank you very much. (audience applauding) (upbeat music) ♪ Ba da bop bop bop ♪ ♪ Ba da bop bop bop ♪ ♪ Ba da bop bop bop ♪ ♪ Ba da bop bop bop ♪ ♪ Ba da bop bop bop ♪ ♪ Ba da bop bop bop ♪ ♪ Ba da bop bop bop ba do ♪

welcome back to vmworld 2013 this is our special live coverage live in San Francisco California this is the cube so look at angles flagship program we go out for the advantix track the signal from the noise talk to the tech athletes talk to the entrepreneurs talk to the customers talk to the party stuff to the execs join my coach Dave vellante and we're here the very special guest Sanjay from the new GM of the end-user computing business unit at vmware welcome back to the queue your cube alumni from sa p of which we've done for four years as well it's our fourth year vmware great to see you on the cube nice to be back executive at vmware so what a year it's been the whole theme has changed in 10 years a 10 year anniversary of vmworld defy convention change and our past conversations you can handle that your have so much experience at s 8 p-9 convinced that's made a by convention and and it via more need some help at the end user computing here at strategic area so over to my data center hybrid cloud and use computing pat simplified it down to three areas you're heading up and use a computing strategic to say the least for vmware what's your take of what that is today where has it been and what motivated you to come to vmware from sa p which had great edge mobile mobile analytics everything's happening at sa be great mobility okay you know i think what got you I've always loved being here so so first off thank you guys for having me back i looked at the way in which end users have been using computing and as you know I've been in the business user space practically all my life analytics big data in the last 15 18 months in mobile so I saw this as a great opportunity for a company that was came to extend their brand from the data center to the desktop and whether desktop is going my views of the desktop obviously is not just the laptop for the future of these mobile devices so the desktop of today is clearly going to move into the cloud there's mobile and then there's machines your Tesla your thermostat your refrigerator these are all the ways in which we think about children and these are all going to be end-user computing devices as personal computers absolutely not there is more software today in your car and then there was in the first spacecraft 1970 I believe that or not so from our perspective and you think about the types of players and technology infrastructure players that are going to be strong I believe that needs to be three core disciplines to what that company you have in terms of technology now cover the other aspen tree one was management technology the other security and virtualization and quite frankly I felt the VMware had much better access than any of the other companies to make that happen for what end-user computing the other aspect of it was VMware's always been accompanied this value of innovation we look at the roots of this company it's an innovative product and go to market it's an innovation company I wanted to be close to an innovating team the culture is very much of innovation from product to go to market and then you know from a joking perspective thirdly my commute got 50 yards shorter I used to turn left now I turn right 50 yards shorter that was effective and the campus is nice at the end of this beautiful campus as well I was SI p but I got to ask you about the end-user computing cuz you know one of the things Dave and I were talking about earlier we love that stack that Joe Tucci Pat Gelsinger and Palmer's laid out in 2010 you know four years ago and it was some call it the software mainframe cloud computing and it was beautiful nice we all recognize dad bill in the stack but there was some misfires virtualization expanded he could flash date of fabric all kind of was happening software to find jumped in there and and changed a little bit didn't change the direction but the top of the stack it was some misfires and just didn't feel right was that a factor that come in with a clean sheet of paper was it a turnaround situation was it just ok reboot reset grow what was the the dynamics at the top of the stack that yeah I don't think first off you want to go I mean I felt this was a company that had a tremendous brand 500,000 customers you know 40 50 million but this is a company that's a brand this year so that's always a good place to start you're not creating a brand you're building on that brand that was very very important but as you looked at where the data center was going it's moving to the cloud and cloud computing and we have a clear strategy there to play in cloud computing that was very very important to me but in terms of where the end-user computing opportunity was I saw this as just being the first inning the VDI space virtual desktops it really is a two player market there and I think our competitor isn't innovating very much we have an opportunity to be the innovator and gain market share and overtake them to be number one I'm here to be the number one player in bi but mobile were just in the beginning of that inning if you would the first to second and it's a wide open market social computing we've got social constants a great product Tim Young's the CEO of that company he's the real deal and in social computing we think that those areas desktop mobile social and where they're going to go are at least the first three aspects of where a user computing has a lot a lot of opportunity just Sanjay we the first three shows we ever did we did emc world was the first one we ever did with the Cuban and right after that we did SI p sapphire and then vmworld was always interesting to contrast you know the sort of infrastructure shows the sapphire and we saw the transformation of SI p pretty substantially particularly after the sybase acquisition so you had you know serious management as top management thrust toward mobile and then you also the acquisition of sybase gave you some of the management technology the security and and maybe not the virtualization piece but you really began to change the discourse and you and the customers bought into it so that was I felt a catalyst this there's an outside observer is that true and then what's the catalyst here was it cleaning up sort of what I used to call the misfit toys creating the pivotal piece and getting more focused bringing in the new leader what is that that catalyst you know I think force I was very blessed to see a transformation of saap from systems of record to systems of engagement I was very involved as you know in the analytics to the data and the mobile business much of that catalyst is still valid systems of record the systems our engagement so a lot of what's happening the end user computing area is those systems of engagement that continues that's abroad but then as I looked at the IT trends or the Big Data of mobile of social of cloud there's at least three or four of those now that we have an opportunity to play here in a big way yes there was an opportunity to redefine things with almost a clean slate in many areas and a fantastic team both patent and joe tucci were involved in recruiting me here have a grand vision and a great vision of where this is going they're fantastic executives and then the rest of the executive team from called to jonathan to everybody else here world-class people that i felt i could just culturally fit in very well with and in this area you know as you know business users stuff and end-user computing has been my passion me so it's a very natural area for me too hopefully extend what I've done in the last 15 20 years into something like their help to melt this company and then from a revenue perspective if we can double the revenue this company with hopefully a good par they're coming from and use your computer this will continue to be a very very hopefully well market capitalized company and also you mentioned SI p about you know the cloud they've had some cloud issues we've seen some ships and some some things they ever the mobile they were kicking butt on we saw that right away and you're in that but I looking at your view on the competition because Damon are talking yesterday are the first day about Ballmer's resignation and just did a reorg announcement goodly intelligent edge of the network so the conversation was disruptor or sustainer you know who are you right i mean vmware technology driven company is not sustaining anything still disrupting microsoft obviously kind of sustaining the status quo so so the question is who's your competitors is it a Microsoft is it someone else who's in your rear-view mirror and who's who you looking to laugh on the field I mean clearly if you look at each of our businesses there are different ones but in the core data center stuff traditionally computer in Microsoft but we are far and ahead a market share leader you know in that at least seventy percent plus so that's a very strong position there in the way the cloud is going it's open mark it's a complete open opportunity I think you heard from Pat Gelsinger a message where we're going to embrace an appropriate places OpenStack so you're going to see this not be a combative but a place where it's it's collaborative in some places in the end user computing area we are in some areas number two behind Citrix but I view it as a huge opportunity we're bigger them and as a brand as a company and my ambition here is to play to be number one and in the areas of mobile there is no clear leader it's very much an open area especially relates to mobile management of mobile security in the enterprise mobile and the good news i think in the end user computing especially as you think about the new aspects of mobile there is no one device operating system in the laptop world you guys both have max but windows is still about eighty ninety percent market share their in the device operating world of mobile it's a heterogenous world already from the get-go iOS Android Windows Mobile and that actually creates much more of an opportunity for a Switzerland type of player to be a leader in management security and virtualization so much of those dynamics you know I think requires to being innovative but my gentle attitude on competitors is you don't obsess about it clearly you have to UM ambition to be number one and competition keeps you honest but I'm much more focused not on who's in the rearview mirror competitors I describe some of them in that league but a lot of where we believe we should be going you were talking a little bit before I caught the Internet of Things at the industrial internet and Cisco calls the internet of everything i love the cube because we get to do all these great events we were at the GE industrial internet launch and and I know pivotal so they're a big partner in a part of that right so I wanted to scrape because get to talk to all the smartest people like you and extract their their knowledge so I want to understand the roadmap for the customer so you take down the enterprise with what used to be known as a VDI is it a parallel path to the Internet of Things or the industrial Internet talk about that look I think you know first off you've got to think about where the desktop is today and where the desktop is going because that's the primary aspect of where people have traditionally been using their computing time has been on the desk top 10 for 20 years ago you probably did all your email on a desktop area today a significant part of that is on smartphones okay as little as possible so the world of the time spent between a desktop and a mobile device is changing we've seen it especially since iOS came out now the fact of the matter is that computing inside machines is not not a new concept it's been there for a while but the ability to manage them secure them potentially virtualized on is something that's very nation and one way I believe there'll be an opportunity so my view is that whether it's the desktop whether it's a mobile whether it's a machine the technologies are going to have some common substrate a fabric that are going to be common to all of them but there's going to need to be some miniaturization you can't apply potentially the exact same software you have in the data center to a tiny thermostat and not the beauty of it is we've got smart engineers we have understand the miniaturization aware this technology needs to apply and we're going to play this out i think the machine a machine Internet of Things opportunities well ahead of us we're in the beginning of that but the good opportunity there is it's 50 billion plus things tens of billions of devices and so and so forth the other thing that I think is important is that there are other technologies i mentioned management security virtualization there are other technologies that I think they're also going to play social computing what is the appropriate place for how people are going to collaborate in processes I don't think that's been that it's well understood in the consumer world because you see the facebooks in the LinkedIn but there is some mirror of that in the enterprise which i think is wide open any machine learning big data those kinds of trends will drive a lot of how you're going to collaborate not just between man to man man dies yeah right otherwise the Steelers opportunity that's the automation piece that keeps on coming back as the automation I got to answer since you brought up the thermostat thing and you're kind of riffing on that you've a lot of experience and certainly SI p in the verticals it's interesting mobile has different verticals they know how you talk to financial services government is that a constraint or an opportunity I think it's a great opportunity I think that any company that grows horizontal which is what we've done you know we're fight i'm in three the most baffling stat when Pat and Joe talked to me was that VMware's 500,000 customers that's huge but most of that growth has happened horizontally there's been no gradually an industry verticals ation one of the things we did very well at SAAP was industry verticals there's now SI p is a 40 year old company you'd expect that what we're going to start doing and end-user computing is starting to vertical eyes some of our aspects of how we sell for example in VDI we're finding a number of healthcare places where they want to equip physicians and clinicians with either laptops or devices now where you can get get to their clinical records medical records on a device that's completely locked down and virtualized so that you don't have to worry about that device or that laptop getting locks that's a real real opportunity for virtualization in healthcare the same and government we're seeing the same in many of the very very sophisticated branch and local type of remote you know office type of settings so increasingly we think both the desktop and mobile they're going to be vertical use cases and we'll start building out technology and both solutioning of them that allow them over I want your app sunk in the industry and I think some of them that are very relevant our health care banking federal and then you know several the other sectors where there's lots of employees very distributed and sense and also ones where you've got to ensure that the data doesn't leave their device laptop or mobile Sanjay ponen here inside the cube now with VMware GM at the end user computing group thanks for coming inside the cube I'll give you the final words I want to ask you I'll see your senior executive great leadership move for VMware you can come in with your running shoes on there's no no real delay there so I'm expecting to see some great stuff from you but what's your objective you're gonna get ingratiating from the new culture which is not going to be hard for you again left turn vs right turn your understand tech what's your going to be here your personal objectives over the next couple months as you get in and start to you know put together the plan I mean obviously metrics or clean the objects are clear SDDC hybrid cloud and use a computing Europe and fear piece what are you going to roll out and I think you all as you know in any software company your assets of your people so my first focus is to really understand the fabric of our team of people it's a it's a smaller team than s API to worry about 65,000 people here it's 15,000 but in my own team getting to understand how we can continue to retain and grow great talent we have a fantastic team not just if we remember also in my immediate team and we're going to continue to grow that team and in that I think you'll find great innovation secondly we're going to define goals that are revenue and market share related that a both short-term and long-term to be number one than the undisputed number one in every aspect of our market in some of our markets there are existing competitors being other ones we're completely creating new markets and third we're going to go and make customers enormously successful I think when you make customers successful with great innovation and great people you have a fantastic business right and I could envision you know over a multi-year period imagine that VMware's twice the size that we are today five billion dollar company if a significant part of that could come from end-user computing that's going to be a phantom great you know morale-boosting and better shut the streets down here in San Francisco like to do with oracle openworld right down 23,000 people estimated here everybody else is going right up straight up so vmworld you can a vision that fifty fifty billion dollar Tim you know 39 million billion market cap I mean you could I could see that within i double the revenue you guys do the estimators but double right along with it and then you gotta focus make we talked we talked to pat you got to figure out that your camp and then it yeah we can double the revenue triple mark it was all good problems and now we're dreaming a little bit but I think you guys ringing the future before you create an aftermarket most inspirational thing we could do is help our employees and our customers be in that future and that's what I'm excited to do sanjay pune we're here at vm will be document it's our fourth straight vmworld will be continuing document we're here in the cube thank you for coming on your check athlete looking forward to seeing you with your running shoes on and using computers needs a big lift they have the right guy for a job be right back with the cube with our next guest our friends at Andreessen Horowitz and a hot start up in the space in virtualization I'll be right back after this short break