>> Narrator: Live, from San Jose, in the heart of Silicon Valley, it's The Cube. Covering, DataWorks Summit, 2017. Brought to you by Hortonworks. >> Welcome back to The Cube. We are live on day two of the DataWorks Summit. From the heart of Silicon Valley. I am Lisa Martin, my co-host is George Gilbert. We're very excited to be joined by our next guest from DataTorrent, we've got Nathan Trueblood, VP of Product, hey Nathan. >> Hi. >> Lisa: And, the man who gave me my start in high tech, 12 years ago, the SVP of Marketing, Jeff Bettencourt. Welcome, Jeff. >> Hi, Lisa, good to see ya. >> Lisa: Great to see you, too, so. Tell us about the SVP of Marketing, who is DataTorrent, what do you guys do, what are doing in the big data space? >> Jeff: So, DataTorrent is all about real time streaming. So, it's really taken a different paradigm to handling information as it comes from the different sources that are out there, so you think, big IOT, you think, all of these different new things that are creating pieces of information. It could be humans, it could be machines. Sensors, whatever it is. And taking that in realtime, rather than putting it traditionally just in a data lake and then later on coming back and investigating the data that you stored. So, we started about 2011, started by some of the early founders, people that started Yahoo. And, we're pioneers in Hadoop with Hadoop yarn. This is one of the guys here, too. And so we're all about building realtime analytics for our customers, making sure that they can get business decisions done in realtime. As the information is created. And, Nathan will talk a little bit about what we're doing on the application side of it, as well. Building these hard application pipelines for our customers to assist them to get started faster. >> Lisa: Excellent. >> So, alright, let's turn to those realtime applications. Umm, my familiarity with DataTorrent started probably about five years ago, I think, where it was, I think the position is, I don't think that there was so much talk about streaming but it was like, you know, realtime data feed, but, now we have, I mean, streaming is sort of center of gravity. Sort of, appear to big data. >> Nathan: Yeah. >> So, tell us how someone whose building apps, should think about the two solution categories how they compliment each other and what sort of applications we can build now that we couldn't build before? >> So, I think the way I look at it, is not so much two different things that compliment each other, but streaming analytics and realtime data processing and analytics is really just a natural progression of where big data has been going. So, you know, when we were at Yahoo and we're running Hadoop in scale, you know, first thing on the scene was just simply the ability to produce insight out of a massive amount of data. But then there was this constant pressure, well, okay, now we've produced that insight in a day, can you do it in an hour? You know, can you do it in half an hour? And particularly at Yahoo at the time that Ah-mol, our CTO and I were there, there was just constant pressure of can you produce insight from a huge volume of data more quickly? And, so we kind of saw at that time, two major trends. One, was that we were kind of reaching a limit of where you could go with the Hadoop and batch architecture at that time. And so a new approach was required. And that's what really was sort of, the foundation of the Apache Apex project and of DataTorrent the company, was simply realizing that a new approach was required because the more that Yahoo or other businesses can take information from the world around them and take action on that as quickly as possible, that's going to make you more competitive. So I'd look at streaming as really just a natural progression. Where, now it's possible to get inside and take action on data as close to the time of data creation as possible and if you can do that, then, you're going to be competitive. And so we see this coming across a whole bunch of different verticals. So that's how I kind of look at the sort of it's not too much complimentary, as a trend in where big data is going. Now, the kinds of things that weren't possible before this, are, you know, the kinds of applications where now you can take insight whether it's from IOD or from sensors or from retail, all the things that are going on. Whereas before, you would land this in a data lake, do a bunch of analysis, produce some insight, maybe change your behavior, but ultimately, you weren't being as responsive as you could be to customers. So now what we are seeing, why I think the center of mass is moved into realtime and streaming, is that now it's possible to, you know, give the customer an offer the second they walk into a store. Based on what you know about them and their history. This was always something that the internet properties were trying to move towards, but now we see, that same technology is being made available across a whole bunch of different verticals. A whole bunch of different industries and that's why you know, when you look at Apex and DataTorrent, we're involved not only in things like adtech, but in industrial automation and IOT, and we're involved in, you know, retail and customer 360 because in every one of these cases, insurance, finance, security and fraud prevention, it's a huge competitive advantage if you can get insight and make a decision, close to the time of the data creation. So, I think that's really where the shift is coming from. And then the other thing I would mention here, is that a big thrust of our company, and of Apache Apex and this is, so we saw streaming was going to be something that every one was going to need. The other thing we saw from our experience at Yahoo, was that, really getting something to work at a POC level, showing that something is possible, with streaming analytics is really only a small part of the problem. Being able to take and put something into production at scale and run a business on it, is a much bigger part of the problem. And so, we put into both the Apache Apex problem as well as into our product, the ability to not only get insight out of this data in motion, but to be able to put that into production at scale. And so, that's why we've had quite a few customers who have put our product, in production at scale and have been running that way, you know, in some cases for years. And so that's another sort of key area where we're forging a path, which is, it's not enough to do POC and show that something is possible. You have to be able to run a business on it. >> Lisa: So, talk to us about where DataTorrent sits within a modern data architecture. You guys are kind of playing in a couple of, integrated in a couple of different areas. What goes through what that looks like? >> So, in terms of a modern data architecture, I mean part of it is what I just covered in that, we're moving sort of from a batch to streaming world where the notion of batch is not going away, but now when you have something, you know a streaming application, that's something that's running all the time, 24/7, there's no concept of batch. Batch is really more the concept of how you are processing data through that streaming application so, what we're seeing in the modern data architecture, is that, you know, typically you have people taking data, extracting it and eventually loading it into some kind of a data lake, right? What we're doing is, shifting left of the data lake. You know, analyzing information when it's created. Produce insight from it, take action on it, and then, yes, land it in the data lake, but once you land it in the data lake, now, all of the purposes of what you're doing with that data have shifted. You know, we're producing insight, taking action to the left of the data lake and then we use that data lake to do things, like train your you know, your machine learning model that we're then going to use to the left of the data lake. Use the data lake to do slicing and dicing of your data to better understand what kinds of campaigns you want to run, things like that. But ultimately, you're using the realtime portion of this to be able to take those campaigns and then measure the impacts you're having on your customers in realtime. >> So, okay, cause that was going to be my followup question, which is, there does seem to be a role, for a historical repository for richer context. >> Nathan: Absolutely. >> And you're acknowledging that. Like, did the low legacy analytics happen first? Then, store up for a richer model, you know, later? >> Nathan: Correct. >> Umm. So, there are a couple things then that seem to be like requirements, next steps, which is, if you're doing the modeling, the research model, in the cloud, how do you orchestrate its distribution towards the sources of the realtime data, umm, and in other words, if you do training up in the cloud where you have, the biggest data or the richest data. Is DataTorrent or Apex a part of the process of orchestrating the distribution and coherence of the models that should be at the edge, or closer to where the data sources are? >> So, I guess there's a couple different ways we can think about that problem. So, you know we have customers today who are essentially providing into the streaming analytics application, you know, the models that have been trained on the data from the data lake. And, part of the approach we take in Apex and DataTorrent, is that you can reload and be changing those models all of the time. So, our architecture is such that it's full tolerant it stays up all the time so you can actually change the application and evolve it over time. So, we have customers that are reloading models on a regular basis, so that's whether it's machine learning or even just a rules engine, we're able to reload that on a regular basis. The other part of your question, if I understood you, was really about the distribution of data. And the distribution of models, and the distribution of data and where do you train that. And I think that you're going to have data in the cloud, you're going to have data on premises, you're going to have data at the edge, again, what we allow customers to do, is to be able to take and integrate that data and make decisions on it, regardless kind of where it lives, so we'll see streaming applications that get deployed into the cloud. But they may be synchronized in some portion of the data, to on premises or vis versa. So, certainly we can orchestrate all of that as part of an overall streaming application. >> Lisa: I want to ask Jeff, now. Give us a cross section of your customers. You've got customers ranging from small businesses, to fortune 10. >> Jeff: Yep. >> Give us some, kind of used cases that really took out of you, that really showcased the great potential that DataTorrent gives. >> Jeff: So if you think about the heritage of our company coming out of the early guys that were in Yahoo, adtech is obviously one that we hit hard and it's something we know how to do really really well. So, adtech is one of those things where they're constantly changing so you can take that same model and say, if I'm looking at adtech and saying, if I applied that to a distribution of products, in a manufacturing facility, it's kind of all the same type of activities, right? I'm managing a lot of inventory, I'm trying to get that inventory to the right place at the right time and I'm trying to fill that aspect of it. So that's kind of where we kind of started but we've got customers in the financial sector, right, that are really looking at instantaneous type of transactions that are happening. And then how do you apply knowledge and information to that while you're bringing that source data in so that you can make decisions. Some of those decisions have people involved with them and some of them are just machine based, right, so you take the people equation out. We kind of have this funny thing that Guy Churchward our CEO talks about, called the do loop and the do loop is where the people come in and how do we remove people out of that do loop and really make it easier for companies to act, prevent? So then if you take that aspect of it, we've got companies like in the publishing space. We've got companies in the IOT space, so they're doing interview management, stuff like that, so, we go from very you know, medium sized customers all the way up to very very large enterprises. >> Lisa: You're really turning up a variety of industries and to tech companies, because they have to be these days. >> Nathan: Right, well and one other thing I would mention, there, which is important, especially as we look at big data and a lot of customer concern about complexity. You know, I mentioned earlier about the challenge of not just coming up with an idea but being able to put that into production. So, one of the other big ares of focus for DataTorrent, as a company, is that not only have we developed platform for streaming analytics and applications but we're starting to deliver applications that you can download and run on our platform that deliver an outcome to a customer immediately. So, increasingly as we see in different verticals, different applications, then we turn those into applications we can make available to all of our customers that solve business problems immediately. One of the challenges for a long time in IT is simply how do you eliminate complexity and there's no getting away from the fact that this is big data in its complex systems. But to drive mass adoption, we're focused on how can we deliver outcomes for our customers as quickly as possible and the way to do that is by making applications available across all these different verticals. >> Well you guys, this has been so educational. We wish you guys continued success, here. It sounds like you're really being quite disruptive in an of yourselves, so if you haven't heard of them, DataTorrent.com, check them out. Nathan, Jeff, thanks so much for giving us your time this afternoon. >> Great, thanks for the opportunity. >> Lisa: We look forward to having you back. You've been watching The Cube, live from day two of the DataWorks Summit, from the heart of Silicon Valley, for my co-host George Gilbert, I'm Lisa Martin, stick around, we'll be right back. (upbeat music)

>> Announcer: Live from San Jose in the heart of Silicon Valley, It's theCUBE covering DataWorks Summit 2017. Brought to you by Hortonworks. >> Welcome back to theCUBE. We are live at the DataWorks Summit on day two. We have had a great day and a half learning a lot about the next generation of big data, machine learning, artificial intelligence, I'm Lisa Martin, and my co-host is George Gilbert. We are next joined by a CUBE alumni, Ron Bodkin, the VP and General Manager of Artificial Intelligence for Teradata. Welcome back to theCUBE! >> Well thank you Lisa, it's nice to be here. >> Yeah, so talk to us about what you're doing right now. Your keynote is tomorrow. >> Ron: Yeah. >> What are you doing, what is Teradata doing in helping customers to be able to leverage artificial intelligence? >> Sure, yeah so as you may know, I ha`ve been involved in this conference and the big data space for a long time as the founding CEO of Think Big Analytics. We were involved in really helping customers in the beginning of big data in the enterprise. And so, we are seeing a very similar trend in the space of artificial intelligence, right? The rapid advances in recent years in deep learning have opened up a lot of opportunity to really create value from all the data the customers have in their data ecosystems, right? So Teradata has a big role to play in having high quality product, Teradata database, analytic ecosystem products such as Hadoop, such as QueryGrid for connecting these systems together, right? So what we're seeing is our customers are very excited by artificial intelligence, but what we're really focused on is how do they get to the value, right? What can they do that's really going to get results, right? And we bring this perspective of having this strong solutions approach inside of Teradata, and so we have Think Big Analytics consulting for data science, we now have been building up experts in deep learning in that organization, working with customers, right? We've brought product functionality so we're innovating around how do we keep pushing the Teradata product family forward with functionality around streaming with listeners. Functionality like the ability to, how do you take GPU and start to think about how can we add that and make that deploy efficiently inside our customer's data center. How can you take advantage of innovation in open source with projects like TensorFlow and Keras becoming important for our customers. So we're seeing is a lot of customers are excited about use cases for artificial intelligence. And tomorrow in the keynote I'm going to touch on a few of them, ranging from applications like preventative maintenance, anti-fraud in banking, to e-commerce recommendations and we're seeing those are some of the examples of use cases where customers are saying hey, there's a lot of value in combining traditional machine learning, wide learning, with deep learning using neural nets to generalize. >> Help us understand if there's an arc where there's the mix of what's repeatable and what's packagable, or what's custom, how that changes over time, or whether it's just by solution. >> Yeah, it's a great question. Right, I mean I think there's a lot of infrastructure that any of these systems need to rest on. So having data infrastructure, having quality data that you can rely on is foundational, and so you need to get that installed and working well as a beginning point. Obviously having repeatable products that manage data with high SLAs and supporting not use production use, but also how do you let data scientists analyze data in a lab and make that work well. So there's that foundational data layer. Then there's the whole integration of the data science into applications, which is critical, analytics, ops, agile ways of making it possible to take the data and build repeatable processes, and those are very horizontal, right? There's some variation, but those work the same in a lot of use cases. At this stage, I'd say, in deep learning, just like in machine learning generally, you still have a lot of horizontal infrastructure. You've got Spark, you've got TensorFlow, those are support use case across many industries. But then you get to the next level, you get specific problems, and there's a lot of nuance. What modeling techniques are going to work, what data sets matter? Okay, you've got time series data and a problem like fraud. What techniques are going to make that work well? And recommendations, you may have a long tail of items to think about recommending. How do you generalize across the long tail where you can't learn. People who use some relatively small thing or go to an obscure website, or buy an obscure product, there's not enough data to say are they likely to buy something else or do something else, but how do you categorize them so you get statistical power to make useful recommendations, right? Those are things that are very specific that there's a lot of repeatability and a specific solution area of. >> This is, when you talk about the data assets that might be specific to a customer and then I guess some third party or syndicated sources. If you have an outcome in mind, but not every customer has the same inventory of data, so how do you square that circle? >> That's a great question. And I really think that's a lot of the opportunity in the enterprise of applying analytics, so this whole summit DataWorks is about hey, the power of your data. What you can get by collecting your data in a well-managed ecosystem and creating value. So, there's always a nuance. It's like what's happening in your customers, what's your business process, what's special about how you interact, what's the core of your business? So I guess my view is that the way anybody that wants to be a winner in this new digital era and have processes that take advantage of artificial intelligence is going to have to use data as a competitive advantage and build on their unique data. So because we see a lot of times enterprises struggle with this. There's a tendency to say hey, can we just buy a package off the shelf SaaS solution and do that? And for context, for things that are the same for everybody in an industry, that's a great choice. But if you're doing that for your core differentiation of your business, you're in deep trouble in this digital era. >> And that's a great place, sorry George, really quickly. That this day and age, every company is a technology company. You mentioned a use case in banking, fraud detection, which is huge. There's tremendous value that can be gleaned from artificial intelligence, and there's also tremendous risk to them. I'm curious, maybe just kind of a generalization. Where are your customers on this journey in terms of have they, are you going out to customers that have already embraced Hadoop and have a significant amount of data that they say, all right, we've got a lot of data here, we need to understand the context. Where are customers in that maturity evolution? >> Sure, so I'd say that we're really fast-approaching the slope of enlightenment for Hadoop, which is to say the enthusiasm of three years ago when people thought Hadoop was going to do everything have kind of waned and there's now more of an appreciation, like there's a lot of value in having a data warehouse for high value curated data for large-scale use. There's a lot of value in having a data lake of fairly raw data that can be used for exploration in the data science arena. So there's emerging, like what is the best architecture for streaming and how do you drive realtime decisions, and that's still very much up in the air. So I'd say that most of our customers are somewhere on that journey, I think that a lot of them have backed off from their initial ambitions that they bought a little too much of the hype of all that Hadoop might do and they're realizing what it is good for, and how they really need to build a complementary ecosystem. The other thing I think is exciting though is I see the conversation is moving from the technology to the use cases. People are a lot more excited about how can we drive value and analytics, and let's work backwards from the analytics value to the data that's going to support it. >> Absolutely. >> So building on that, we talk about sort of what's core and if you can't have something completely repeatable that's going to be core to your sustainable advantage, but if everyone is learning from data, how does a customer achieve a competitive advantage or even sustain a competitive advantage? Is it orchestrating learning that feeds, that informs processes all across the business, or is it just sort of a perpetual Red Queen effect? >> Well, that's a great question. I mean, I think there's a few things, right? There's operational excellence in every discipline, so having good data scientists, having the right data, collecting data, thinking about how do you get network effects, those are all elements. So I would say there's a table-stakes aspect that if you're not doing this, you're in trouble, but then if you are it's like how do you optimize and lift your game and get better at it? So that's an important fact that you see companies that say how do we acquire data? Like one of the things that you see digital disruptors, like a Tesla, doing is changing the game by saying we're changing the way we work with our customers to get access to the data. Think of the difference between every time you buy a Tesla you sign over the rights for them to collect and use all your data, when the traditional auto OEMs are struggling to get access to a lot of the data because they have intermediaries that control the relationship and aren't willing to share. And a similar thing in other industries, you see in consumer packaged goods. You see a lot of manufacturers there are saying how do we get partnerships, how do we get more accurate data? The old models of going out to the Nielsens of the world and saying give us aggregates, and we'll pay you a lot to give us a summary report, that's not working. How do we learn directly in a digital world about our consumers so we can be more relevant? So one of the things is definitely that control of data and access to data, as well as we see a lot of companies saying what are the acquisitions we can make? What are start ups and capabilities that we can plug in, and complement to get data, to get analytic capability that we can then tailor for our needs? >> It's funny that you mention Tesla having more cars on the road, collecting more data than pretty much anyone else at this point. But then there's like Stanford's sort of luminary for AI, Fei-Fei Li. She signed on I think with Toyota, because she said they sell 10 million cars a year, I'm going to be swimming in data compared to anyone else, possible exception of GM or maybe some Chinese manufacturer. So where does, how can you get around scale when using data at scale to inform your models? How would someone like a Tesla be able to get an end run around that? So that's the battle, the disruptor comes in, they're not at scale, but they maybe change the game in some way. Like having different terms that give them access to different kinds of data, more complete data. So that's sort of part of the answer, is to disrupt an industry you need a strategy what's different, right, like in Tesla's case an electric vehicle. And they've been investing in autonomous vehicles with AI, of course everybody in the industry is seeing that and is racing. I mean, Google really started that whole wave going a long time ago as another potential disruptor coming in with their own unique data asset. So, I think it's all about the combination of capabilities that you need. Disruptors often bring a commitment to a different business process, and that's a big challenge is a lot of times the hardest things are the business processes that are entrenched in existing organizations and disruptors can say we're rethinking the way this gets done. I mean, the example of that in ride sharing, the Ubers and Lyfts of the world, deities where they are re-conceiving what does it mean to consume automobile services. Maybe you don't want to own a car at all if you're a millennial, maybe you just want to have access to a car when you need to go somewhere. That's a good example of a disruptive business model change. >> What are some things that are on the intermediate-term horizon that might affect how you go about trying to create a sustainable advantage? And here I mean things like where deep learning might help data scientists with feature engineering so there's less need for, you can make data scientists less of a scarce resource. Or where there's new types of training for models where you need less data? Those sorts of things might disrupt the practice of achieving an advantage with current AI technology. >> You know, that's a great question. So near-term, the ability to be more efficient in data science is a big deal. There's no surprise that there's a big talent gap, big shortage of qualified data scientists in the enterprise and one of the things that's exciting is that deep learning lets you get more information out of the data, so it learns more so that you'd have to do less future engineering. It's not like a magic box you just pour in raw data to deep learning and out comes the answers, so you still need qualified data scientists, but it's a force multiplier. There's less work to do in future engineering, and therefore you get better results. So that's a factor, you're starting to see things like a hyperparameter search where people will create neural networks that search for the best machine learning model, and again get another level of leverage. Now, today doing that is very expensive. The amount of hardware to do that, very few organizations are going to spend millions of dollars to sort of automate the discovery of models, but things are moving so fast. I mean, even just in the last six weeks to have Nvidia and Google both announce significant breakthroughs in hardware. And I just had a colleague forward me a paper for recent research that says hey this technique could produce a hundred times faster results in deep learning convergence. So you've got rapid advances in investment in the hardware and the software. Historically software improvements have outstripped hardware improvements throughout the history of computing, so it's quite reasonable to expect you'll have 10 thousand times the price performance for deep learning in five years. So things that today might cost a hundred million dollars and no one would do, could cost 10 thousand dollars in five years, and suddenly it's a no-brainer to apply a technique like that to automate something instead of hiring more scarce data scientists that are hard to find, and make the data scientists more productive so they're spending more time thinking about what's going on and less time trying out different variations of how do I configure this thing, does this work, does this, right? >> Oh gosh, Ron, we could keep chatting away. Thank you so much for stopping by theCUBE again, we wish you the best of luck in your keynote tomorrow. I think people are going to be very inspired by your passion, your energy, and also the tremendous opportunity that is really sitting right in front of us. >> Thank you, Lisa, it's a very exciting time to be in the data industry, and the emergence of AI and the enterprise, I couldn't be more excited by it. >> Oh, excellent, well your excitement is palpable. We want to thank you for watching. We are live on theCUBE at the DataWorks Summit day 2, #dws17. For my cohost George Gilbert, I'm Lisa Martin, stick around. We'll be right back. (upbeat electronic melody)

>> Announcer: Live from San Jose, in the heart of Silicon Valley, it's theCUBE, covering DataWorks Summit 2017. Brought to by Hortonworks. >> Welcome back to theCUBE, we are live, on day two of the DataWorks Summit. I'm Lisa Martin. #DWS17, join the conversation. We've had a great day and a half. We have learned from a ton of great influencers and leaders about really what's going on with big data, data science, how things are changing. My cohost is George Gilbert. We're joined by my old buddy, the COO of Hortonworks, Rajnish Verma. Raj, it's great to have you on theCUBE. >> It's great to be here, Lisa. Great to see you as well, it's been a while. >> It has, so yesterday on the customer panel, the Raj I know had great conversation with customers from, Duke Energy was one. You also had Black Knight on the financial services side. >> Rajnish: And HSC. >> Yes, on the insurance side, and one of the things that, a couple things that really caught my attention, one was when Duke said, kind of, where they were using data and moving to Hadoop, but they are now a digital company. They're now a technology company that sells electricity and products, which I thought was fantastic. Another thing that I found really interesting about that was they all talked about the need to leverage big data, and glean insights and monetize that, really requires this cultural shift. So I know you love customer interactions. Talk to us about what you're seeing. Those are three great industry examples. What are you seeing? Where are customers on this sort of maturity model where big data and Hadoop are concerned? >> Sure, happy to. So one thing that I enjoy the most about my job is meeting customers and talking to them about the art of the possible. And some of the stuff that they're doing, and, which was only science fiction, really, about two or three years ago. And they're a couple of questions that you've just asked me as to where they are on their journey, what are they trying to accomplish, et cetera. I remember about, five, seven, 10 years ago where Marc Andreessen said "Software is eating the world." And to be honest with you, now, it's now more like every company is a data company. I wouldn't say data is eating the world, but without effective monetization of your data assets, you can't be a force to reckon with as a company. So that is a common theme that we are seeing irrespective of industry, irrespective of customer, irrespective of really the size of the customer. The only thing that sort of varies is the amount and complexity of data, from one company to the other. Now, when, I'm new to Hortonworks as you know. It's really my fifth month here. And one of the things that I've seen and, Lisa, as you know, are coming from TIBCO. So we've been dealing with data. I have been involved with data for over a decade and a half now, right. So the difference was, 15 years ago, we were dealing with really structured data and we actually connected the structured data and gleaned insights into structured data. Now, today, a seminal challenge that every CIO or chief data officer is trying to solve is how do you get actionable insights into semi-structured and unstructured data. Now, so, getting insights into that data first requires ability to aggregate data, right. Once you've aggregated data, you also need a platform to make sense of data in real-time, that is being streamed at you. Now once you do those two things, then you put yourself in a position to analyze that data. So in that journey, as you asked, where our customers are. Some are defining their data aggregation strategy. The others, having defined data aggregation, they're talking about streaming analytics as a platform, and then the others are talking about data science and machine learning and deep learning, as a journey. Now, you saw the customer panel yesterday. But the one point I'd like to make is, it's not only the Duke Energies and the Black Knights of the world, or the HSC, who I believe are big, large firms that are using data. Even a company like, an old agricultural company, or I shouldn't say old but steeped in heritage is probably the right word. 96, 97 year old agricultural company that's in the animal feed business. Animal feed. Multi-billion dollar animal feed business. They use data to monetize their business model. What they say is, they've been feeding animals for the last 70 years. Sp now they go to a farmer and they have enough data about how to feed animals, that they can actually tell the farmer, that this hog that you have right now, which is 17 pounds, I can guarantee you that I will have him or her on a nutrition that, by four months, it'll be 35 pounds. How much are you willing to pay? So even in the animal feed business, data is being used to drive not only insights, but monetization models. >> Wow. >> So. >> That's outstanding. >> Thank you. >> So in getting to that level of sophistication, it's not like every firm sort of has the skills and technology in place to do that. What are some of the steps that you find that they typically have to go through to get to that level of maturity? Like, where do they make mistakes? Where do they find the skills to manage on-prem infrastructure, if it is on-premmed? What about, if they're trying to do a hybrid cloud setup. How complex is that? >> I think that's where the power of the community comes through at multiple levels. So we're committed to the open-source movement. We're committed to the community-based development of data. Now, this community-based business model does a few things. Firstly, it keeps the innovation at the leading edge, bleeding edge, number one. But as you heard the panel talk about yesterday, one of the biggest benefits that our customers see of using open source, is, sure economics is good, but that's not the leading reason. Keeping up with innovation, very high up there. Avoiding when to lock in, again very, very high up there. But one of the biggest reasons that CIOs gave me for choosing open source as a business model is more to do with the fact that they can attract good talent, and without open source, you can't actually attract talent. And I can relate to that because I have a sophomore at home. And it just happened to me that she's 15 now but she's been using open source since she was 11. The iPhone and, she downloads an application for free. She uses it, and if she stretches the limit of that, then she orders something more in a paid model. So the community helps people do a few things. Be able to fail fast if they need to. The second is, it lowers the barriers of entry, right. Because it's really free. You can have the same model. The third is, you can rely on the community for support and methodologies and best practices and lessons learned from implementations. The fourth is, it's a great hiring ground in terms of bringing people in and attracting Millennial talent, young talent, and sought-after talent. So that's really probably the answer that I would have for that. >> When you talk about the business model, the open-source business model and the attraction on the customer side, that sounded like there's this analogy with sort of the agro-business customer in the sense that there are offering data along with their traditional product. If your traditional product is open-source data management, what a room started telling us this morning was the machine learning that goes along with operating not only your own sort of internal workloads but customers, and being to offer prescriptive advice on operations, essentially IT operations. Is that the core, will that become the core of sort of value-add through data for an open-source business model like yours? >> I don't want to be speculative but I'll probably answer it another way. I think our vision, which was set by our founder Rob Bearden, and he took you guys through that yesterday, was way back when, we did say that our mission in life is to manage the world's data. So that mission hasn't changed. And the second was, we would do it as a open-source community or as a big contributing part of that community. And that has really not changed. Now, we feel that machine learning and data science and deep learning are areas that we're very, very excited about, our customers are very, very excited about. Now, the one thing that we did cover yesterday and I think earlier today as well, I'm a computer science engineer. And when I was in college, way back when, 25 years ago, I was interested in AI and ML. And it has existed for 50 years. The reason why it hasn't been available to the common man, so as to speak, is because of two reasons. One is, it did not have a source of data that it could sit on top of, that makes machine learning and AI effective. Or at least not a commercially-viable option to do so. Now, there is one. The second is, the compute power required to run some of the large algorithms that really give you insights into machine learning and AI. So we've become the platform on which customers can take advantage of excellent machine learning and AI tools to get insights. Now, that is two independent sort of categories. One is the open source community providing the platform. And then what tools the customer has used to apply data science and machine learning, so. >> So, all right. I'm thinking something that is slightly different and maybe the nuance is making it tough to articulate. But it's how can Hortonworks take the data platform and data science tools that you use to help understand how to operate important works, whether it's on a customer prem, or in the cloud. In other words, how can you use machine learning to make it a sort of a more effective and automated manage service? >> Yeah, and I think that's, the nuance's not lost in me. I think what I'm trying to sort of categorize is, for that to happen, you require two things. One is data aggregator across on-prem and cloud. Because when you have data which is multi-tenancy, you have a lot of issues with data security, data governance, all the rest of it. Now, that is what we plan to manage for the world, so as to speak. Now, on top of that, customers who require to have data science or deep learning to be used, we provide that platform. Now, whether that is used as a service by the customer, which we would be happy to provide, or it is used inhouse, on-prem, on various cloud models, that's more a customer decision. We don't want to force that decision. However, from the art of the possible perspective, yes it's possible. >> I love the mission to manage the world's data. >> Thank you. >> That's a lofty goal, but yesterday's announcements with IBM were pretty, pretty transformative. In your opinion as chief operating officer, how do you see this extension of this technology and strategic partnership helping Hortonworks on the next level of managing the world's data? >> Absolutely, it's game-changing for us. We're very, very excited. Our colleagues are very, very excited about the opportunity to partner. It's also a big validation of the fact that we now have a pretty large open-source community that contributes to this cause. So we're very excited about that. The opportunity is in actually our partnering with a leader in data science, machine learning, and AI, a company that has steeped in heritage, is known for game-changing, next technology moves. And the fact that we're powering it from a data perspective is something that we're very, very excited and pleased about. And the opportunities are limitless. >> I love that, and I know you are a game-changer, in your fifth month. We thank you so much, Raj, for joining us. It was great to see you. Continued success, >> Thank you. >> at managing the world's data and being that game-changer, yourself, and for Hortonworks as well. >> Thank you Lisa, good to see you. >> You've been watching theCUBE. Again, we're live, day two of the DataWorks Summit, #DWS17. For my cohost, George Gilbert, I'm Lisa Martin. Stick around guys, we'll be right back with more great content. (jingle)

>> Announcer: Live from San Jose, in the heart of Silicon Valley, it's theCUBE, covering DataWorks Summit 2017. Brought to you by Hortonworks. >> Hey, welcome back to theCUBE. Day two of the DataWorks Summit, I'm Lisa Martin with my cohost, George Gilbert. We've had a great day and a half so far, learning a ton in this hyper-growth, big data world meets IoT, machine learning, data science. George and I are excited to welcome our next guests. We have Josh Klahr, the VP of Product Management from AtScale. Welcome George, welcome back. >> Thank you. >> And we have Prashanthi Paty, the Head of Data Engineering for GoDaddy. Welcome to theCUBE. >> Thank you. >> Great to have you guys here. So, wanted to kind of talk to you guys about, one, how you guys are working together, but two, also some of the trends that you guys are seeing. So as we talked about, in the tech industry, it's two degrees of Kevin Bacon, right. You guys worked together back in the day at Yahoo. Talk to us about what you both visualized and experienced in terms of the Hadoop adoption maturity cycle. >> Sure. >> You want to start, Josh? >> Yeah, I'll start, and you can chime in and correct me. But yeah, as you mentioned, Prashanthi and I worked together at Yahoo. It feels like a long time ago. In our central data group. And we had two main jobs. First job was, collect all of the data from our ad systems, our audience systems, and stick that data into a Hadoop cluster. At the time, we were kind of doing it while Hadoop was kind of being developed. And the other thing that we did was, we had to support a bunch of BI consumers. So we built cubes, we built data marts, we used MicroStrategy, Tableau, and I would say the experience there was a great experience with Hadoop in terms of the ability to have low-cost storage, scale out data processing of all of, what were really, billions and billions, tens of billions of events a day. But when it came to BI, it felt like we were doing stuff the old way. And we were moving data off cluster, and making it small. In fact, you did a lot of that. >> Well, yeah, at the end of the day, we were using Hadoop as a staging layer. So we would process a whole bunch of data there, and then we would scale it back, and move it into, again, relational stores or cubes, because basically we couldn't afford to give any accessibility to BI tools or to our end users directly on Hadoop. So while we surely did a large-scale data processing in Hadoop layer, we failed to turn on the insights right there. >> Lisa: Okay. >> Maybe there's a lesson in there for folks who are getting slightly more mature versions of Hadoop now, but can learn from also some of the experiences you've had. Were there issues in terms of, having cleaned and curated data, were there issues for BI with performance and the lack of proper file formats like Parquet? What was it that where you hit the wall? >> It was both, you have to remember this, we were probably one of the first teams to put a data warehouse on Hadoop. So we were dealing with Pig versions of like, 0.5, 0.6, so we were putting a lot of demand on the tooling and the infrastructure. Hadoop was still in a very nascent stage at that time. That was one. And I think a lot of the focus was on, hey, now we have the ability to do clickstream analytics at scale, right. So we did a lot of the backend stuff. But the presentation is where I think we struggled. >> So would that mean that you did do, the idea is that you could do full resolution without sampling on the backend, and then you would extract and presumably sort of denormalize so that you could, essentially run data match for subject matter interests. >> Yeah, and that's exactly what we did is, we took all of this big data, but to make it work for BI, which were two things, one was performance. It was really, can you get an interactive query and response time. And the other thing was the interface. Can a Tableau user connect and understand what they're looking at. You had to make the data small again. And that was actually the genesis of AtScale, which is where I am today, was, we were frustrated with this, big data platform and having to then make the data small again in order to support BI. >> That's a great transition, Josh. Let's actually talk about AtScale. You guys saw BI on Hadoop as this big white space. How have you succeeded there, and then let's talk about what GoDaddy is doing with AtScale and big data. >> Yeah, I think that we definitely learned, we took the learnings from our experience at Yahoo, and we really thought about, if we were to start from scratch, and solve the problem the way we wanted it to be solved, what would that system look like. And it was a few things. One was an interface that worked for BI. I don't want to date myself, but my experience in the software space started with OLAP. And I can tell you OLAP isn't dead. When you go and talk to an enterprise, a fortune 1000 enterprise and you talk about OLAP, that's how they think. They think in terms of measures and dimensions and hierarchies. So one important thing for us was to project an OLAP interface on top of data that's Hadoop native. It's Hive tables, Parquet, ORC, you kind of talk about all of the mess that may sit underneath the covers. So one thing was projecting that interface, the other thing was delivering performance. So we've invested a lot in using the Hadoop cluster natively to deliver performing queries. We do this by creating aggregate tables and summary tables and being smart about how we route queries. But we've done it in a way that makes a Hadoop admin very happy. You don't have to buy a bunch of AtScale servers in addition to your Hadoop cluster. We scale the way the Hadoop cluster scales. So we don't require separate technology. So we fit really nicely into that Hadoop ecosystem. >> So how do you make, making the Hadoop admin happy is a good thing. How do you make the business user happy, who needs now, as we were here yesterday, to kind of merge more with the data science folks to be able to understand or even have the chance to articulate, "These are the business outcomes "we want to look for and we want to see." How do you guys, maybe, under the hood, if you will, AtScale, make the business guys and gals happy? >> I'll share my opinion and then Prashanthi can comment on her experience but, as I've mentioned before, the business users want an interface that's simple to use. And so that's one thing we do, is, we give them the ability to just look at measures and dimensions. If I'm a business, I grew up using Excel to do my analysis. The thing I like most as an analyst is a big fat wide table. And so that's what, we make an underlying Hadoop cluster and what could be tens or hundreds of tables look like a single big fat wide table for a data analyst. You talk to a data scientist, you talk to a business analyst, that's the way they want to view the world. So that's one thing we do. And then, we give them response times that are fast. We give them interactivity, so that you could really quickly start to get a sense of the shape of the data. >> And allowing them to get that time to value. >> Yes. >> I can imagine. >> Just a follow-up on that. When you have to prepare the aggregates, essentially like the cubes, instead of the old BI tools running on a data mart, what is the additional latency that's required from data coming fresh into the data lake and then transforming it into something that's consumption ready for the business user? >> Yeah, I think I can take that. So again, if you look at the last 10 years, in the initial period, certainly at Yahoo, we just threw engineering resources at that problem, right. So we had teams dedicated to building these aggregates. But the whole premise of Hadoop was the ability to do unstructured optimizations. And by having a team find out the new data coming in and then integrating that into your pipeline, so we were adding a lot of latency. And so we needed to figure out how we can do this in a more seamless way, in a more real-time way. And get the, you know, the real premise of Hadoop. Get it at the hands of our business users. I mean, I think that's where AtScale is doing a lot of the good work in terms of dynamically being able to create aggregates based on the design that you put in the cube. So we are starting to work with them on our implementation. We're looking forward to the results. >> Tell us a little bit more about what you're looking to achieve. So GoDaddy is a customer of AtScale. Tell us a little bit more about that. What are you looking to build together, and kind of, where are you in your journey right now? >> Yeah, so the main goal for us is to move beyond predefined models, dashboards, and reports. So we want to be more agile with our schema changes. Time to market is one. And performance, right. Ability to put BI tools directly on top of Hadoop, is one. And also to push as much of the semantics as possible down into the Hadoop layer. So those are the things that we're looking to do. >> So that sounds like a classic business intelligence component, but sort of rethought for a big data era. >> I love that quote, and I feel it. >> Prashanthi: Yes. >> Josh: Yes. (laughing) >> That's exactly what we're trying to do. >> But that's also, some of the things you mentioned are non-trivial. You want to have this, time goes in to the pre-processing of data so that it's consumable, but you also wanted it to be dynamic, which is sort of a trade-off, which means, you know, that takes time. So is that a sort of a set of requirements, a wishlist for AtScale, or is that something that you're building on your own? >> I think there's a lot happening in that space. They are one of the first people to come out with their product, which is solving a real problem that we tried to solve for a long time. And I think as we start using them more and more, we'll surely be pushing them to bring in more features. I think the algorithm that they have to dynamically generate aggregates is something that we're giving quite a lot of feedback to them on. >> Our last guest from Pentaho was talking about, there was, in her keynote today, the quote from I think McKinsey report that said, "40% of machine learning data is either not fully "exploited or not used at all." So, tell us, kind of, where is big daddy regarding machine learning? What are you seeing? What are you seeing at AtScale and how are you guys going to work together to maybe venture into that frontier? >> Yeah, I mean, I think one of the key requirements we're placing on our data scientists is, not only do you have to be very good at your data science job, you have to be a very good programmer too to make use of the big data technologies. And we're seeing some interesting developments like very workload-specific engines coming into the market now for search, for graph, for machine learning, as well. Which is supposed to give the tools right into the hands of data scientists. I personally haven't worked with them to be able to comment. But I do think that the next realm on big data is this workload-specific engines, and coming on top of Hadoop, and realizing more of the insights for the end users. >> Curious, can you elaborate a little more on those workload-specific engines, that sounds rather intriguing. >> Well, I think interactive, interacting with Hadoop on a real-time basis, we see search-based engines like Elasticsearch, Solr, and there is also Druid. At Yahoo, we were quite a bit shop of Druid actually. And we were using it as an interactive query layer directly with our applications, BI applications. This is our JavaScript-based BI applications, and Hadoop. So I think there are quite a few means to realize insights from Hadoop now. And that's the space where I see workload-specific engines coming in. >> And you mentioned earlier before we started that you were using Mahout, presumably for machine learning. And I guess I thought the center of gravity for that type of analytics has moved to Spark, and you haven't mentioned Spark yet. We are not using Mahout though. I mentioned it as something that's in that space. But yeah, I mean, Spark is pretty interesting. Spark SQL, doing ETL with Spark, as well as using Spark SQL for queries is something that looks very, very promising lately. >> Quick question for you, from a business perspective, so you're the Head of Engineering at GoDaddy. How do you interact with your business users? The C-suite, for example, where data science, machine learning, they understand, we have to have, they're embracing Hadoop more and more. They need to really, embracing big data and leveraging Hadoop as an enabler. What's the conversation like, or maybe even the influence of the GoDaddy business C-suite on engineering? How do you guys work collaboratively? >> So we do have very regular stakeholder meeting. And these are business stakeholders. So we have representatives from our marketing teams, finance, product teams, and data science team. We consider data science as one of our customers. We take requirements from them. We give them peek into the work we're doing. We also let them be part of our agile team so that when we have something released, they're the first ones looking at it and testing it. So they're very much part of the process. I don't think we can afford to just sit back and work on this monolithic data warehouse and at the end of the day say, "Hey, here is what we have" and ask them to go get the insights from it. So it's a very agile process, and they're very much part of it. >> One last question for you, sorry George, is, you guys mentioned you are sort of early in your partnership, unless I misunderstood. What has AtScale help GoDaddy achieve so far and what are your expectations, say the next six months? >> We want the world. (laughing) >> Lisa: Just that. >> Yeah, but the premise is, I mean, so Josh and I, we were part of the same team at Yahoo, where we faced problems that AtScale is trying to solve. So the premise of being able to solve those problems, which is, like their name, basically delivering data at scale, that's the premise that I'm very much looking forward to from them. >> Well, excellent. Well, we want to thank you both for joining us on theCUBE. We wish you the best of luck in attaining the world. (all laughing) >> Josh: There we go, thank you. >> Excellent, guys. Josh Klahr, thank you so much. >> My pleasure. Prashanthi, thank you for being on theCUBE for the first time. >> No problem. >> You've been watching theCUBE live at the day two of the DataWorks Summit. For my cohost George Gilbert, I am Lisa Martin. Stick around guys, we'll be right back. (jingle)

>> Announcer: Live from San Jose, in the heart of Silicon Valley, it's theCUBE covering DataWorks Summit 2017. Brought to you by Hortonworks. >> Good morning, welcome to theCUBE. We are live at day 2 of the DataWorks Summit, and have had a great day so far, yesterday and today, I'm Lisa Martin with my co-host George Gilbert. George and I are very excited to be joined by a multiple CUBE alumni, the co-founder and VP of Engineering at Hortonworks Arun Murthy. Hey, Arun. >> Thanks for having me, it's good to be back. >> Great to have you back, so yesterday, great energy at the event. You could see and hear behind us, great energy this morning. One of the things that was really interesting yesterday, besides the IBM announcement, and we'll dig into that, was that we had your CEO on, as well as Rob Thomas from IBM, and Rob said, you know, one of the interesting things over the last five years was that there have been only 10 companies that have beat the S&P 500, have outperformed, in each of the last five years, and those companies have made big bets on data science and machine learning. And as we heard yesterday, these four meta-trains IoT, cloud streaming, analytics, and now the fourth big leg, data science. Talk to us about what Hortonworks is doing, you've been here from the beginning, as a co-founder I've mentioned, you've been with Hadoop since it was a little baby. How is Hortonworks evolving to become one of those big users making big bets on helping your customers, and yourselves, leverage machine loading to really drive the business forward? >> Absolutely, a great question. So, you know, if you look at some of the history of Hadoop, it started off with this notion of a data lake, and then, I'm talking about the enterprise side of Hadoop, right? I've been working for Hadoop for about 12 years now, you know, the last six of it has been as a vendor selling Hadoop to enterprises. They started off with this notion of data lake, and as people have adopted that vision of a data lake, you know, you bring all the data in, and now you're starting to get governance and security, and all of that. Obviously the, one of the best ways to get value over the data is the notion of, you know, can you, sort of, predict what is going to happen in your world of it, with your customers, and, you know, whatever it is with the data that you already have. So that notion of, you know, Rob, our CEO, talks about how we're trying to move from a post-transactional world to a pre-transactional world, and doing the analytics and data sciences will be, obviously, with me. We could talk about, and there's so many applications of it, something as similar as, you know, we did a demo last year of, you know, of how we're working with a freight company, and we're starting to show them, you know, predict which drivers and which routes are going to have issues, as they're trying to move, alright? Four years ago we did the same demo, and we would say, okay this driver has, you know, we would show that this driver had an issue on this route, but now, within the world, we can actually predict and let you know to take preventive measures up front. Similarly internally, you know, you can take things from, you know, mission-learning, and log analytics, and so on, we have a internal problem, you know, where we have to test two different versions of HDP itself, and as you can imagine, it's a really, really hard problem. We have the support, 10 operating systems, seven databases, like, if you multiply that matrix, it's, you know, tens of thousands of options. So, if you do all that testing, we now use mission-learning internally, to look through the logs, and kind of predict where the failures were, and help our own, sort of, software engineers understand where the problems were, right? An extension of that has been, you know, the work we've done in Smartsense, which is a service we offer our enterprise customers. We collect logs from their Hadoop clusters, and then they can actually help them understand where they can either tune their applications, or even tune their hardware, right? They might have a, you know, we have this example I really like where at a really large enterprise Financial Services client, they had literally, you know, hundreds and, you know, and thousands of machines on HDP, and we, using Smartsense, we actually found that there were 25 machines which had bad NIC configuration, and we proved to them that by fixing those, we got a 30% to put back on their cluster. At that scale, it's a lot of money, it's a lot of cap, it's a lot of optics So, as a company, we try to ourselves, as much as we, kind of, try to help our customers adopt it, that make sense? >> Yeah, let's drill down on that even a little more, cause it's pretty easy to understand what's the standard telemetry you would want out of hardware, but as you, sort of, move up the stack the metrics, I guess, become more custom. So how do you learn, not just from one customer, but from many customers especially when you can't standardize what you're supposed to pull out of them? >> Yeah so, we're sort of really big believers in, sort of, doctoring your own stuff, right? So, we talk about the notion of data lake, we actually run a Smartsense data lake where we actually get data across, you know, the hundreds of of our customers, and we can actually do predictive mission-learning on that data in our own data lake. Right? And to your point about how we go up the stack, this is, kind of, where we feel like we have a natural advantage because we work on all the layers, whether it's the sequel engine, or the storage engine, or, you know, above and beyond the hardware. So, as we build these models, we understand that we need more, or different, telemetry right? And we put that back into the product so the next version of HDP will have that metrics that we wanted. And, now we've been doing this for a couple of years, which means we've done three, four, five turns of the crank, obviously something we always get better at, but I feel like, compared to where we were a couple of years ago when Smartsense first came out, it's actually matured quite a lot, from that perspective. >> So, there's a couple different paths you can add to this, which is customers might want, as part of their big data workloads, some non-Hortonworks, you know, services or software when it's on-prem, and then can you also extend this management to the Cloud if they want to hybrid setup where, in the not too distant future, the Cloud vendor will be also a provider for this type of management. >> So absolutely, in fact it's true today when, you know, we work with, you know, Microsoft's a great partner of ours. We work with them to enable Smartsense on HDI, which means we can actually get the same telemetry back, whether you're running the data on an on-prem HDP, or you're running this on HDI. Similarly, we shipped a version of our Cloud product, our Hortonworks Data Cloud, on Amazon and again Smartsense preplanned there, so whether you're on an Amazon, or a Microsoft, or on-prem, we get the same telemetry, we get the same data back. We can actually, if you're a customer using many of these products, we can actually give you that telemetry back. Similarly, if you guys probably know this we have, you were probably there in an analyst when they announced the Flex Support subscription, which means that now we can actually take the support subscription you have to get from Hortonworks, and you can actually use it on-prem or on the Cloud. >> So in terms of transforming, HDP for example, just want to make sure I'm understanding this, you're pulling in data from customers to help evolve the product, and that data can be on-prem, it can be in a Microsoft lesur, it can be an AWS? >> Exactly. The HDP can be running in any of these, we will actually pull all of them to our data lake, and they actually do the analytics for us and then present it back to the customers. So, in our support subscription, the way this works is we do the analytics in our lake, and it pushes it back, in fact to our support team tickets, and our sales force, and all the support mechanisms. And they get a set of recommendations saying Hey, we know this is the work loads you're running, we see these are the opportunities for you to do better, whether it's tuning a hardware, tuning an application, tuning the software, we sort of send the recommendations back, and the customer can go and say Oh, that makes sense, the accept that and we'll, you know, we'll update the recommendation for you automatically. Then you can have, or you can say Maybe I don't want to change my kernel pedometers, let's have a conversation. And if the customer, you know, is going through with that, then they can go and change it on their own. We do that, sort of, back and forth with the customer. >> One thing that just pops into my mind is, we talked a lot yesterday about data governance, are there particular, and also yesterday on stage were >> Arun: With IBM >> Yes exactly, when we think of, you know, really data-intensive industries, retail, financial services, insurance, healthcare, manufacturing, are there particular industries where you're really leveraging this, kind of, bi-directional, because there's no governance restrictions, or maybe I shouldn't say none, but. Give us a sense of which particular industries are really helping to fuel the evolution of Hortonworks data lake. >> So, I think healthcare is a great example. You know, when we started off, sort of this open-source project, or an atlas, you know, a couple of years ago, we got a lot of traction in the healthcare sort of insurance industry. You know, folks like Aetna were actually founding members of that, you know, sort of consortium of doing this, right? And, we're starting to see them get a lot of leverage, all of this. Similarly now as we go into, you know, Europe and expand there, things like GDPR, are really, really being pardoned, right? And, you guys know GDPR is a really big deal. Like, you pay, if you're not compliant by, I think it's like March of next year, you pay a portion of your revenue as fines. That's, you know, big money for everybody. So, I think that's what we're really excited about the portion with IBM, because we feel like the two of us can help a lot of customers, especially in countries where they're significantly, highly regulated, than the United States, to actually get leverage our, sort of, giant portfolio of products. And IBM's been a great company to atlas, they've adopted wholesale as you saw, you know, in the announcements yesterday. >> So, you're doing a Keynote tomorrow, so give us maybe the top three things, you're giving the Keynote on Data Lake 3.0, walk us through the evolution. Data Lakes 1.0, 2.0, 3.0, where you are now, and what folks can expect to hear and see in your Keynote. >> Absolutely. So as we've, kind of, continued to work with customers and we see the maturity model of customers, you know, initially people are staying up a data lake, and then they'd want, you know, sort of security, basic security what it covers, and so on. Now, they want governance, and as we're starting to go to that journey clearly, our customers are pushing us to help them get more value from the data. It's not just about putting the data lake, and obviously managing data with governance, it's also about Can you help us, you know, do mission-learning, Can you help us build other apps, and so on. So, as we look to there's a fundamental evolution that, you know, Hadoop legal system had to go through was with advance of technologies like, you know, a Docker, it's really important first to help the customers bring more than just workloads, which are sort of native to Hadoop. You know, Hadoop started off with MapReduce, obviously Spark's went great, and now we're starting to see technologies like Flink coming, but increasingly, you know, we want to do data science. To mass market data science is obviously, you know, people, like, want to use Spark, but the mass market is still Python, and R, and so on, right? >> Lisa: Non-native, okay. >> Non-native. Which are not really built, you know, these predate Hadoop by a long way, right. So now as we bring these applications in, having technology like Docker is really important, because now we can actually containerize these apps. It's not just about running Spark, you know, running Spark with R, or running Spark with Python, which you can do today. The problem is, in a true multi-tenant governed system, you want, not just R, but you want specifics of a libraries for R, right. And the libraries, you know, George wants might be completely different than what I want. And, you know, you can't do a multi-tenant system where you install both of them simultaneously. So Docker is a really elegant solution to problems like those. So now we can actually bring those technologies into a Docker container, so George's Docker containers will not, you know, conflict with mine. And you can actually go to the races, you know after the races, we're doing data signs. Which is really key for technologies like DSX, right? Because with DSX if you see, obviously DSX supports Spark with technologies like, you know, Zeppelin which is a front-end, but they also have Jupiter, which is going to work the mass market users for Python and R, right? So we want to make sure there's no friction whether it's, sort of, the guys using Spark, or the guys using R, and equally importantly DSX, you know, in the short map will also support things like, you know, the classic IBM portfolio, SBSS and so on. So bringing all of those things in together, making sure they run with data in the data lake, and also the computer in the data lake, is really big for us. >> Wow, so it sounds like your Keynote's going to be very educational for the folks that are attending tomorrow, so last question for you. One of the themes that occurred in the Keynote this morning was sharing a fun-fact about these speakers. What's a fun-fact about Arun Murthy? >> Great question. I guess, you know, people have been looking for folks with, you know, 10 years of experience on Hadoop. I'm here finally, right? There's not a lot of people but, you know, it's fun to be one of those people who've worked on this for about 10 years. Obviously, I look forward to working on this for another 10 or 15 more, but it's been an amazing journey. >> Excellent. Well, we thank you again for sharing time again with us on theCUBE. You've been watching theCUBE live on day 2 of the Dataworks Summit, hashtag DWS17, for my co-host George Gilbert. I am Lisa Martin, stick around we've got great content coming your way.

>> Narrator: Live from San Jose, in the heart of Silicon Valley, it's theCUBE. Covering DataWorks Summit 2017, brought to you by Hortonworks. (digitalized music) >> Welcome back to theCUBE. We are live at day one of the DataWorks Summit, in the heart of Silicon Valley. I'm Lisa Martin with theCUBE; my co-host George Gilbert. We're very excited to be joined by our two next guests. Going to be talking about a lot of the passion and the energy that came from the keynote this morning and some big announcements. Please welcome Madhu Kochar, VP of analytics and product development and client success at IBM, and Jamie Engesser, VP of product management at Hortonworks. Welcome guys! >> Thank you. >> Glad to be here. >> First time on theCUBE, George and I are thrilled to have you. So, in the last six to eight months doing my research, there's been announcements between IBM and Hortonworks. You guys have been partners for a very long time, and announcements on technology partnerships with servers and storage, and presumably all of that gives Hortonworks Jamie, a great opportunity to tap into IBM's enterprise install base, but boy today? Socks blown off with this big announcement between IBM and Hortonworks. Jamie, kind of walk us through that, or sorry Madhu I'm going to ask you first. Walk us through this announcement today. What does it mean for the IBM-Hortonworks partnership? Oh my God, what an exciting, exciting day right? We've been working towards this one, so three main things come out of the announcement today. First is really the adoption by Hortonworks of IBM data sciences machine learning. As you heard in the announcement, we brought the machine learning to our mainframe where the most trusted data is. Now bringing that to the open source, big data on Hadoop, great right, amazing. Number two is obviously the whole aspects around our big sequel, which is bringing the complex-query analytics, where it brings all the data together from all various sources and making that as HDP and Hadoop and Hortonworks and really adopting that amazing announcement. Number three, what we gain out of this humongously, obviously from an IBM perspective is the whole platform. We've been on this journey together with Hortonworks since 2015 with ODPI, and we've been all champions in the open source, delivering a lot of that. As we start to look at it, it makes sense to merge that as a platform, and give to our clients what's most needed out there, as we take our journey towards machine learning, AI, and enhancing the enterprise data warehousing strategy. >> Awesome, Jamie from your perspective on the product management side, what is this? What's the impact and potential downstream, great implications for Hortonworks? >> I think there's two things. I think Hortonworks has always been very committed to the open source community. I think with Hortonworks and IBM partnering on this, number one is it brings a much bigger community to bear, to really push innovation on top of Hadoop. That innovation is going to come through the community, and I think that partnership drives two of the biggest contributors to the community to do more together. So I think that's number one is the community interest. The second thing is when you look at Hadoop adoption, we're seeing that people want to get more and more value out of Hadoop adoption, and they want to access more and more data sets, to number one get more and more value. We're seeing the data science platform become really fundamental to that. They're also seeing the extension to say, not only do I need data science to get and add new insights, but I need to aggregate more data. So we're also seeing the notion of, how do I use big sequel on top of Hadoop, but then I can federate data from my mainframe, which has got some very valuable data on it. DB2 instances and the rest of the data repositories out there. So now we get a better federation model, to allow our customers to access more of the data that they can make better business decisions on, and they can use data science on top of that to get new learnings from that data. >> Let me build on that. Let's say that I'm a Telco customer, and the two of you come together to me and say, we don't want to talk to you about Hadoop. We want to talk to you about solving a problem where you've got data in applications and many places, including inaccessible stuff. You have a limited number of data scientists, and the problem of cleaning all the data. Even if you build models, the challenge of integrating them with operational applications. So what do the two of you tell me the Telco customer? >> Yeah, so maybe I'll go first. So the Telco, the main use case or the main application as I've been talking to many of the largest Telco companies here in U.S. and even outside of U.S. is all about their churn rate. They want to know when the calls are dropping, why are they dropping, why are the clients going to the competition and such? There's so much data. The data is just streaming and they want to understand that. I think if you bring the data science experience and machine learning to that data. That as said, it doesn't matter now where the data resides. Hadoop, mainframes, wherever, we can bring that data. You can do a transformation of that, cleanup the data. The quality of the data is there so that you can start feeding that data into the models and that's when the models learn. More data it is, the better it is, so they train, and then you can really drive the insights out of it. Now data science the framework, which is available, it's like a team sport. You can bring in many other data scientists into the organization who could have different analyst reports to go render for or provide results into. So being a team support, being a collaboration, bringing together with that clean data, I think it's going to change the world. I think the business side can have instant value from the data they going to see. >> Let me just test the edge conditions on that. Some of that data is streaming and you might apply the analytics in real time. Some of it is, I think as you were telling us before, sort of locked up as dark data. The question is how much of that data, the streaming stuff and the dark data, how much do you have to land in a Hadoop repository versus how much do you just push the analytics out too and have it inform a decision? >> Maybe I can take a first thought on it. I think there's a couple things in that. There's the learnings, and then how do I execute the learnings? I think the first step of it is, I tend to land the data, and going to the Telecom churn model, I want to see all the touch points. So I want to see the person that came through the website. He went into the store, he called into us, so I need to aggregate all that data to get a better view of what's the chain of steps that happened for somebody to churn? Once I end up diagnosing that, go through the data science of that, to learn the models that are being executed on that data, and that's the data at rest. What I want to do is build the model out so that now I can take that model, and I can prescriptively run it in this stream of data. So I know that that customer just hung up off the phone, now he walked in the store and we can sense that he's in the store because we just registered that he's asking about his billing details. The system can now dynamically diagnose by those two activities that this is a churn high-rate, so notify that teller in the store that there's a chance of him rolling out. If you look at that, that required the machine learning and data science side to build the analytical model, and it required the data-flow management and streaming analytics to consume that model to make a real-time insight out of it, to ultimately stop the churn from happening. Let's just give the customer a discount at the end of the day. That type of stuff; so you need to marry those two. >> It's interesting, you articulated that very clearly. Although then the question I have is now not on the technical side, but on the go-to market side. You guys have to work very very closely, and this is calling at a level that I assume is not very normal for Hortonworks, and it's something that is a natural sales motion for IBM. >> So maybe I'll first speak up, and then I'll let you add some color to that. When I look at it, I think there's a lot of natural synergies. IBM and Hortonworks have been partnered since day one. We've always continued on the path. If you look at it, and I'll bring up community again and open source again, but we've worked very well in the community. I think that's incubated a really strong and fostered a really strong relationship. I think at the end of the day we both look at what's going to be the outcome for the customer and working back from that, and we tend to really engage at that level. So what's the outcome and then how do we make a better product to get to that outcome? So I think there is a lot of natural synergies in that. I think to your point, there's lots of pieces that we need to integrate better together, and we will join that over time. I think we're already starting with the data science experience. A bunch of integration touchpoints there. I think you're going to see in the information governance space, with Atlas being a key underpinning and information governance catalog on top of that, ultimately moving up to IBM's unified governance, we'll start getting more synergies there as well and on the big sequel side. I think when you look at the different pods, there's a lot of synergies that our customers will be driving and that's what the driving factors, along with the organizations are very well aligned. >> And VPF engineering, so there's a lot of integration points which were already identified, and big sequel is already working really well on the Hortonworks HDP platform. We've got good integration going, but I think more and more on the data science. I think in end of the day we end up talking to very similar clients, so going as a joined go-to market strategy, it's a win-win. Jamie and I were talking earlier. I think in this type of a partnership, A our community is winning and our clients, so really good solutions. >> And that's what it's all about. Speaking of clients, you gave a great example with Telco. When we were talking to Rob Thomas and Rob Bearden earlier on in the program today. They talked about the data science conversation is at the C-suite, so walk us through an example of whether it's a Telco or maybe a healthcare organization, what is that conversation that you're having? How is a Telco helping foster what was announced today and this partnership? >> Madhu: Do you want to take em? >> Maybe I'll start. When we look in a Telco, I think there's a natural revolution, and when we start looking at that problem of how does a Telco consume and operate data science at a larger scale? So at the C-suite it becomes a people-process discussion. There's not a lot of tools currently that really help the people and process side of it. It's kind of an artist capability today in the data science space. What we're trying to do is, I think I mentioned team sport, but also give the tooling to say there's step one, which is we need to start learning and training the right teams and the right approach. Step two is start giving them access to the right data, etcetera to work through that. And step three, giving them all the tooling to support that, and tooling becomes things like TensorFlow etcetera, things like Zeppelin, Jupiter, a bunch of the open source community evolved capabilities. So first learn and training. The second step in that is give them the access to the right data to consume it, and then third, give them the right tooling. I think those three things are helping us to drive the right capabilities out of it. But to your point, elevating up to the C-suite. It's really they think people-process, and I think giving them the right tooling for their people and the right processes to get them there. Moving data science from an art to a science, is I would argue at a top level. >> On the client success side, how instrumental though are your clients, like maybe on the Telco side, in actually fostering the development of the technology, or helping IBM make the decision to standardize on HDP as their big data platform? >> Oh, huge, huge, a lot of our clients, especially as they are looking at the big data. Many of them are actually helping us get committers into the code. They're adding, providing; feet can't move fast enough in the engineering. They are coming up and saying, "Hey we're going to help" "and code up and do some code development with you." They've been really pushing our limits. A lot of clients, actually I ended up working with on the Hadoop site is like, you know for example. My entire information integration suite is very much running on top of HDP today. So they are saying, OK what's next? We want to see better integration. So as I called a few clients yesterday saying, "Hey, under embargo this is something going to get announced." Amazing, amazing results, and they're just very excited about this. So we are starting to get a lot of push, and actually the clients who do have large development community as well. Like a lot of banks today, they write a lot of their own applications. We're starting to see them co-developing stuff with us and becoming the committers. >> Lisa: You have a question? >> Well, if I just were to jump in. How do you see over time the mix of apps starting to move from completely custom developed, sort of the way the original big data applications were all written, down to the medal-ep in MapReduce. For shops that don't have a lot of data scientists, how are we going to see applications become more self-service, more pre-packaged? >> So maybe I'll give a little bit of perspective. Right now I think IBM has got really good synergies on what I'll call vertical solutions to vertical organizations, financial, etcetera. I would say, Hortonworks has took a more horizontal approach. We're more of a platform solution. An example of one where it's kind of marrying the two, is if you move up the stack from Hortonworks as a platform to the next level up, which is Hortonworks as a solution. One of the examples that we've invested heavily in is cybersecurity, and in an Apache project called Metron. Less about Metron and more about cybersecurity. People want to solve a problem. They want to defend an attacker immediately, and what that means is we need to give them out-of-the-box models to detect a lot of common patterns. What we're doing there, is we're investing in some of the data science and pre-packaged models to identify attack vectors and then try to resolve that or at least notify you that there's a concern. It's an example where the data science behind it, pre-packaging that data science to solve a specific problem. That's in the cybersecurity space and that case happens to be horizontal where Hortonwork's strength is. I think in the IBM case, there's a lot more vertical apps that we can apply to. Fraud, adjudication, etcetera. >> So it sounds like we're really just hitting the tip of the iceberg here, with the potential. We want to thank you both for joining us on theCUBE today, sharing your excitement about this deepening, expanding partnership between Hortonworks and IBM. Madhu and Jamie, thank you so much for joining George and I today on theCUBE. >> Thank you. >> Thank you Lisa and George. >> Appreciate it. >> Thank you. >> And for my co-host George Gilbert, I am Lisa Martin. You're watching us live on theCUBE, from day one of the DataWorks Summit in Silicon Valley. Stick around, we'll be right back. (digitalized music)

>> (Announcer) Live from San Jose, in the heart of Silicon Valley, it's theCUBE covering DataWorks Summit 2017, brought to you by Hortonworks. >> Hi everybody, this is George Gilbert, Big Data and Analytics Analyst with Wikibon. We are wrapping up our show on theCUBE today at DataWorks 2017 in San Jose. It has been a very interesting day, and we have a special guest to help us do a survey of the wrap-up, George Chow from Simba. We used to call him Chief Technology Officer, now he's Technology Fellow, but when we was explaining the different in titles to me, I thought he said Technology Felon. (George Chow laughs) But he's since corrected me. >> Yes, very much so >> So George and I have been, we've been looking at both Spark Summit last week and DataWorks this week. What are some of the big advances that really caught your attention? >> What's caught my attention actually is how much manufacturing has really, I think, caught into the streaming data. I think last week was very notable that both Volkswagon and Audi actually had case studies for how they're using streaming data. And I think just before the break now, there was also a similar session from Ford, showcasing what they are doing around streaming data. >> And are they using the streaming analytics capabilities for autonomous driving, or is it other telemetry that they're analyzing? >> The, what is it, I think the Volkswagon study was production, because I still have to review the notes, but the one for Audi was actually quite interesting because it was for managing paint defect. >> (George Gilbert) For paint-- >> Paint defect. >> (George Gilbert) Oh. >> So what they were doing, they were essentially recording the environmental condition that they were painting the cars in, basically the entire pipeline-- >> To predict when there would be imperfections. >> (George Chow) Yes. >> Because paint is an extremely high-value sort of step in the assembly process. >> Yes, what they are trying to do is to essentially make a connection between downstream defect, like future defect, and somewhat trying to pinpoint the causes upstream. So the idea is that if they record all the environmental conditions early on, they could turn around and hopefully figure it out later on. >> Okay, this sounds really, really concrete. So what are some of the surprising environmental variables that they're tracking, and then what's the technology that they're using to build model and then anticipate if there's a problem? >> I think the surprising finding they said were actually, I think it was a humidity or fan speed, if I recall, at the time when the paint was being applied, because essentially, paint has to be... Paint is very sensitive to the condition that is being applied to the body. So my recollection is that one of the finding was that it was a narrow window during which the paint were, like, ideal, in terms of having the least amount of defect. >> So, had they built a digital twin style model, where it's like a digital replica of some aspects of the car, or was it more of a predictive model that had telemetry coming at it, and when it's an outside a certain bounds they know they're going to have defects downstream? >> I think they're still working on the predictive model, or actually the model is still being built, because they are essentially trying to build that model to figure out how they should be tuning the production pipeline. >> Got it, so this is sort of still in the development phase? >> (George Chow) Yeah, yeah >> And can you tell us, did they talk about the technologies that they're using? >> I remember the... It's a little hazy now because after a couple weeks of conference, so I don't remember the specifics because I was counting on the recordings to come out in a couples weeks' time. So I'll definitely share that. It's a case study to keep an eye on. >> So tell us, were there other ones where this use of real-time or near real-time data had some applications that we couldn't do before because we now can do things with very low latency? >> I think that's the one that I was looking forward to with Ford. That was the session just earlier, I think about an hour ago. The session actually consisted of a demo that was being done live, you know. It was being streamed to us where they were showcasing the data that was coming off a car that's been rigged up. >> So what data were they tracking and what were they trying to anticipate here? >> They didn't give enough detail, but it was basically data coming off of the CAN bus of the car, so if anybody is familiar with the-- >> Oh that's right, you're a car guru, and you and I compare, well our latest favorite is the Porche Macan >> Yes, yes. >> SUV, okay. >> But yeah, they were looking at streaming the performance data of the car as well as the location data. >> Okay, and... Oh, this sounds more like a test case, like can we get telemetry data that might be good for insurance or for... >> Well they've built out the system enough using the Lambda Architecture with Kafka, so they were actually consuming the data in real-time, and the demo was actually exactly seeing the data being ingested and being acted on. So in the case they were doing a simplistic visualization of just placing the car on the Google Map so you can basically follow the car around. >> Okay so, what was the technical components in the car, and then, how much data were they sending to some, or where was the data being sent to, or how much of the data? >> The data was actually sent, streamed, all the way into Ford's own data centers. So they were using NiFi with all the right proxy-- >> (George Gilbert) NiFi being from Hortonworks there. >> Yeah, yeah >> The Hortonworks data flow, okay >> Yeah, with all the appropriate proxys and firewall to bring it all the way into a secure environment. >> Wow >> So it was quite impressive from the point of view of, it was life data coming off of the 4G modem, well actually being uploaded through the 4G modem in the car. >> Wow, okay, did they say how much compute and storage they needed in the device, in this case the car? >> I think they were using a very lightweight platform. They were streaming apparently from the Raspberry Pi. >> (George Gilbert) Oh, interesting. >> But they were very guarded about what was inside the data center because, you know, for competitive reasons, they couldn't share much about how big or how large a scale they could operate at. >> Okay, so Simba has been doing ODBC and JDBC drivers to standard APIs, to databases for a long time. That was all about, that was an era where either it was interactive or batch. So, how is streaming, sort of big picture, going to change the way applications are built? >> Well, one way to think about streaming is that if you look at many of these APIs, into these systems, like Spark is a good example, where they're trying to harmonize streaming and batch, or rather, to take away the need to deal with it as a streaming system as opposed to a batch system, because it's obviously much easier to think about and reason about your system when it is traditional, like in the traditional batch model. So, the way that I see it also happening is that streaming systems will, you could say will adapt, will actually become easier to build, and everyone is trying to make it easier to build, so that you don't have to think about and reason about it as a streaming system. >> Okay, so this is really important. But they have to make a trade-off if they do it that way. So there's the desire for leveraging skill sets, which were all batch-oriented, and then, presumably SQL, which is a data manipulation everyone's comfortable with, but then, if you're doing it batch-oriented, you have a portion of time where you're not sure you have the final answer. And I assume if you were in a streaming-first solution, you would explicitly know whether you have all the data or don't, as opposed to late arriving stuff, that might come later. >> Yes, but what I'm referring to is actually the programming model. All I'm saying is that more and more people will want streaming applications, but more and more people need to develop it quickly, without having to build it in a very specialized fashion. So when you look at, let's say the example of Spark, when they focus on structured streaming, the whole idea is to make it possible for you to develop the app without having to write it from scratch. And the comment about SQL is actually exactly on point, because the idea is that you want to work with the data, you can say, not mindful, not with a lot of work to account for the fact that it is actually streaming data that could arrive out of order even, so the whole idea is that if you can build applications in a more consistent way, irrespective whether it's batch or streaming, you're better off. >> So, last week even though we didn't have a major release of Spark, we had like a point release, or a discussion about the 2.2 release, and that's of course very relevant for our big data ecosystem since Spark has become the compute engine for it. Explain the significance where the reaction time, the latency for Spark, went down from several hundred milliseconds to one millisecond or below. What are the implications for the programming model and for the applications you can build with it. >> Actually, hitting that new threshold, the millisecond, is actually a very important milestone because when you look at a typical scenario, let's say with AdTech where you're serving ads, you really only have, maybe, on the order about 100 or maybe 200 millisecond max to actually turn around. >> And that max includes a bunch of things, not just the calculation. >> Yeah, and that, let's say 100 milliseconds, includes transfer time, which means that in your real budget, you only have allowances for maybe, under 10 to 20 milliseconds to compute and do any work. So being able to actually have a system that delivers millisecond-level performance actually gives you ability to use Spark right now in that scenario. >> Okay, so in other words, now they can claim, even if it's not per event processing, they can claim that they can react so fast that it's as good as per event processing, is that fair to say? >> Yes, yes that's very fair. >> Okay, that's significant. So, what type... How would you see applications changing? We've only got another minute or two, but how do you see applications changing now that, Spark has been designed for people that have traditional, batch-oriented skills, but who can now learn how to do streaming, real-time applications without learning anything really new. How will that change what we see next year? >> Well I think we should be careful to not pigeonhole Spark as something built for batch, because I think the idea is that, you could say, the originators, of Spark know that it's all about the ease of development, and it's the ease of reasoning about your system. It's not the fact that the technology is built for batch, so the fact that you could use your knowledge and experience and an API that actually is familiar, should leverage it for something that you can build for streaming. That's the power, you could say. That's the strength of what the Spark project has taken on. >> Okay, we're going to have to end it on that note. There's so much more to go through. George, you will be back as a favorite guest on the show. There will be many more interviews to come. >> Thank you. >> With that, this is George Gilbert. We are DataWorks 2017 in San Jose. We had a great day today. We learned a lot from Rob Bearden and Rob Thomas up front about the IBM deal. We had Scott Gnau, CTO of Hortonworks on several times, and we've come away with an appreciation for a partnership now between IBM and Hortonworks that can take the two of them into a set of use cases that neither one on its own could really handle before. So today was a significant day. Tune in tomorrow, we have another great set of guests. Keynotes start at nine, and our guests will be on starting at 11. So with that, this is George Gilbert, signing out. Have a good night. (energetic, echoing chord and drum beat)

>> Announcer: Live, from San Jose, in the heart of Silicon Valley, it's theCUBE, covering DataWorks Summit 2017. Brought to you by Hortonworks. (electronic music fading) >> Hi everybody, this is George Gilbert. We're watching theCUBE. We're at DataWorks 2017 with my good friend Sri Raghavan from Teradata, and Sri, let's kick this off. Tell us, bring us up to date with what Teradata's been doing in the era of big data and advanced analytics. >> First of all, George, it's always great to be back with you. I've done this before with you, and it's a pleasure coming back, and I always have fun doing this. So thanks for having me and Teradata on theCUBE. So, a lot of things have been going on at Teradata. As you know, we are the pioneer in the enterprise data warehouse space. We've been so for the past 25 plus years, and, you know, we've got an incredible amount of goodwill in the marketplace with a lot of our key customers and all that. And as you also know, in the last, you know, five or seven years or so, between five and seven years, we've actually expanded our portfolio significantly to go well beyond the enterprise data warehouse into advanced analytics. We've got solutions for the quote-unquote the big data, advanced analytics space. We've acquired organizations which have significant amount of core competence with enormous numbers of years of experience of people who can deliver us solutions and services. So it's fair to say, as an understatement, that we have, we've come a long way in terms of being a very formidable competitor in the marketplace with the kinds of, not only our core enterprise data warehouse solutions, but also advanced analytics solutions, both as products and solutions and services that we have developed over time. >> So I was at the Influencer Summit, not this year but the year before, and the thing, what struck me was you guys articulated very consistently and clearly the solutions that people build with the technology as opposed to just the technology. Let's pick one, like Customer Journey that I remember that was used last year. >> Sri: Right. >> And tell us, sort of, what are the components in it, and, sort of, what are the outcomes you get using it? >> Sure. First of all, thanks for picking on that point because it's a very important point that you mentioned, right? It's not- in today's world, it can't just be about the technology. We just can't go on and articulate things around our technology and the core competence, but we also have to make a very legitimate case for delivering solutions to the business. So, our, in fact, our motto is: Business solutions that are technology-enabled. We have a strong technology underpinning to be able to deliver solutions like Customer Journey. Let me give you a view into what Customer Journey is all about, right? So the idea of the Customer Journey, it's actually pretty straightforward. It's about being able to determine the kind of experience a customer is having as she or he engages with you across the various channels that they do business with you at. So it could be directly they come into the store, it could be online, it could be through snail mail, email, what have you. The point is not to look at Customer Journey as a set of disparate channels through which they interact with you, but to look at it holistically. Across the various areas of encounters they have with you and engagements they have with you, how do you determine what their overall experience is, and, more importantly, once you determine what their overall experience is, how can you have certain kinds of treatments that are very specific to the different parts of the experience and make their experience and engagement even better? >> Okay, so let me jump in for a second there. >> We've seen a lot of marketing automation companies come by and say, you know, or come and go having said over many generations, "We can help you track that." And they all seem to, like, target either ads or email. >> Correct. >> There's like, the touchpoints are constrained. How do you capture a broader, you know, a broader journey? >> Yeah, to me it's not just the touchpoints being constrained, although all the touchpoints are constrained. To me, it's almost as if those touchpoints are looked at very independently, and it's very orthogonal too, right? I look at only my online experience versus a store experience versus something else, right? And the assumption in most cases is that they're all not related. You know, sometimes, I may not come directly to the store, right, but the reason why I'm not coming to the store is because, to buy things, because, you know, I have seen an advertisement somewhere which says, "Look, go online and purchase a product." So whatever the case might be, the point is each part of the journey is very interrelated, and you need to understand this is as well. Now, the question that you asked is, "How do you, for instance, collect all this information? "Where do you store it?" >> George: And how do you relate it ... >> And, exactly, and how do you connect the various points of interaction, right? So for one thing, and let me just, sort of, go a little bit tangential and go into some architecture, the marchitecture, if you will that allows us to be able to, first of all, access all of this data. As you can imagine, the types and the sources of data are quite a bit, are pretty disparate, particularly as the number of channels by which you can engage with me as an organization has expanded, so do the number of sources. So, you know, we have to go to place A, where there's a lot of CRM information for instance, or place B, where it's a lot of online information, weblogs and web servers and what have you, right? So, we have to go to, for instance, some of these guys would have put all this information in a big data lake. Or they could have stored it in an EDW, in an enterprise data warehouse. So we've put in place a technology, an architecture, which allows us to be able to connect to all these various sources, be it Teradata products, or non-Terada- third-party sources, we don't care. We have the capability to connect all to, to these different data sources to be able to access information. So that's number one. Number two is how do you normalize all of this information? So as you can well imagine, right, webs logs servers are very different in their data makeup as apposed to CRM solutions, highly structured information. So we need a way to be able to bring them together, to connect a singular user ID across the different sources, so we have filtering, you know, data filters in place that extracts information from weblogs, let's say it's a XML file. So we extract all that information, and we connect it. We, ultimately, all of that information comes to you in a structured manner. >> And can it, can it be realtime reactive? In other words when- >> Sri: Absolutely. >> someone comes to- >> Sri: Absolutely. >> you know, a channel where you need to anticipate and influence. >> Very good question. In fact, I think we will be doing a big disservice to our customers if we did not have realtime decisioning in place. I mean, the whole idea is for us to be able to provide certain treatments based on what we anticipate your reactions are going to be to certain, let's say if it's a retail store, let's say to certain product coupons we've placed, which says, you know, come online, and basically behavior we think there's a 90% chance that tomorrow morning you're going to come back, you know, through our online portal and buy the products. And because of the fact that our analytics allows us to be able to predict your behavior tomorrow morning, as soon as you land on the online portal, we will be able to provide certain treatment to you that takes advantage of that. Absolutely. >> Techy question: because you're anticipating, does that mean you've done the prediction runs, batch, >> Sri: Absolutely. >> And so you're just serving up the answer. >> Yeah, the business level answer is absolutely. In fact, we have, as part of our advanced analytics solution, we have pre-built algorithms that take all this information that I've talked to you about, where it's connected all that information across the different sources, and we apply algorithms on top of that to be able to deliver predictive models. Now, these models, once they are actually applied as and when the data comes in, you know, you can operationalize them. So the thing to be very clear here, a key part of the Teradata story, is that not only are we in a position to be able to provide the infrastructure which allows you to be able to collect all the information, but we provide the analytic capabilities to be able to connect all of the data across the various sources and at scale, to do the analytics on top of all that disparate data, to deliver the model, and, as an important point, to operationalize that model, and then to connect it back in the feedback loop. We do the whole thing. >> That's, there's a lot to unpack in there, and I called our last guest dense. What I was actually trying to say, we had to unpack a dense answer, so it didn't come out quite that, quite right. So I won't make that mistake. >> Sri: That's a very backhanded compliment there. (George laughing) >> So, explain to me though, the, I know from all the folks who are trying to embed predictive analytics in their solutions, the operationalizing of the model is very difficult, you know, to integrate it with the system of record. >> Yeah, yeah, yeah. >> How do, you know, how do you guys do that? >> So a good point. There are two ways by which we do it. One is we have something called the AppCenter. It's called Teradata AppCenter. The AppCenter is a core capability of some of the work we've done so far, in fact we've had it for the last, I don't know, four years or so. We've actually expanded it across, uh, to include a lot of the apps. So the idea behind the AppCenter is that it's a framework for us to be able to develop very specific apps for us to be able to deliver the model so that next time, as and when realtime data comes in, when you connect to a database for instance. So the way the app works is that you set up the app. There's a code that we've created, it's all prebuilt code that he put behind that app, and it runs, the app runs. Every time the data is refreshed, you can run the app, and it automatically comes up with visualizations which allow you to be able to see what's happening with your customers in realtime. So that's one way to operationalize. In fact, you know, if you come by to our booth, we can show you a demo as to how the AppCenter works. The other say by which we've done it is to develop a software development kit where we actually have created an operationalization. So, as an, I'll give you an example, right? We developed an app, a realtime operationalization app where the folks in the call center are assessing whether you should be given a loan to buy a certain kind of car, a used car, brand new car, what have you the case might be. So what happens is the call center person takes information from you, gets information about, you know, what your income level is, you know, how long you've been working in your existing job, what have you. And those are parameters that are passed into the screen- >> By the way, I should just say, on the income level, it's way too low for my taste. >> Those are, um, those are comments I'll take, uh, later. >> Off slide. >> But, I mean, you got a brand new Armani suit, so you're not doing badly. But, uh, so what happens is, you know, as and when the data goes into the parameters, right, the call center person just clicks on the button, and the model which sits behind the app picks up all the parameters, runs it, and spews out a likelihood score saying that this person is 88% likely- >> So an AppCenter is not just a full end to end app, it also can be a model. >> AppCenter can include the model which can be used to operationalize as and when the data comes in. >> George: Okay. >> It's a very core part of our offering. In fact, AppCenter is, I can't stress how important, I can't stress enough how important it is to our ability to operationalize our various analytic models. >> Okay, one more techy question in terms of how that's supported. Is the AppCenter running on Aster or the models, are they running on Aster, uh, the old Aster database or Teradata? >> Well, just to be clear, right, so the Aster solution is called Aster Analytics of which one foreign factor contains a database, but you have Aster which is in Hadoop, you have Aster in the Cloud, you have Aster software only, so there's a lot of difference between these two, right? So AppCenter sits on Aster, but right now, it's not just the Aster AppCenter. It's called the Teradata AppCenter which sits on, with the idea is that it will sit on Teradata products as well. >> George: Okay. >> So again, it's a really core part of our evolution that we've come up with. We're very proud of it. >> On that note, we have to wrap it up for today, but to be continued. >> Sri: Time flies when you're having fun. >> Yes. So this is George Gilbert. I am with Sri Raghavan from Teradata. We are at DataWorks 2017 in San Jose, and we will be back tomorrow with a whole lineup of exciting new guests. Tune in tomorrow morning. Thanks. (electronic music)

>> Man's Voiceover: Live, from San Jose, in the heart of Silicon Valley, it's theCUBE, covering DataWorks Summit 2017, brought to you by Hortonworks. (upbeat music) >> Welcome back to theCUBE, we are live at Day One of the DataWorks Summit, we've had a great day here, I'm surprised that we still have our voices left. I'm Lisa Martin, with my co-host George Gilbert. We have been talking with great innovators today across this great community, folks from Hortonworks, of course, IBM, partners, now I'd like to welcome back to theCube, who was here this morning in the green shoes, the CTO of Hortonworks, Scott Gnau, welcome back Scott! >> Great to be here yet again. >> Yet again! And we have another CTO, we've got CTO corner over here, with CUBE Alumni and the CTO of SyncSort, Tendu Yogurtcu Welcome back to theCUBE both of you >> Pleasure to be here, thank you. >> So, guys, what's new with the partnership? I know that syncsort, you have 87%, or 87 of the Fortune 100 companies are customers. Scott, 60 of the Fortune 100 companies are customers of Hortonworks. Talk to us about the partnership that you have with syncsort, what's new, what's going on there? >> You know there's always something new in our partnership. We launched our partnership, what a year and a half ago or so? >> Yes. And it was really built on the foundation of helping our customers get time to value very quickly, right and leveraging our mutual strengths. And we've been back on theCUBE a couple of times and we continue to have new things to talk about whether it be new customer successes or new feature functionalities or new integration of our technology. And so it's not just something that's static and sitting still, but it's a partnership that was had a great foundation in value and continues to grow. And, ya know, with some of the latest moves that I'm sure Tendu will bring us up to speed on that Syncsort has made, customers who have jumped on the bandwagon with us together are able to get much more benefit than originally they even intended. >> Let me talk about some of the things actually happening with Syncsort and with the partnership. Thank you Scott. And Trillium acquisition has been transformative for us really. We have achieved quite a lot within the last six months. Delivering joint solutions between our data integration, DMX-h, and Trillium data quality and profiling portfolio and that was kind of our first step very much focused on the data governance. We are going to have data quality for Data Lake product available later this year and this week actually we will be announcing our partnership with Collibra data governance platform basically making business rules and technical meta data available through the Collibra dashboards for data scientists. And in terms of our joint solution and joint offering for data warehouse optimization and the bundle that we launched early February of this year that's in production, a large complex production deployment's already happened. Our customers access all their data all enterprise data including legacy data, warehouse, new data sources as well as legacy main frame in the data lake so we will be announcing again in a week or so change in the capture capabilities from legacy data storage into Hadoop keeping that data fresh and giving more choices to our customers in terms of populating the data lake as well as use cases like archiving data into cloud. >> Tendu, let me try and unpack what was a very dense, in a good way, lot of content. Sticking my foot in my mouth every 30 seconds (laughter) >> Scott Voiceover: I think he called you dense. (laughter) >> So help us visualize a scenario where you have maybe DMX-h bringing data in you might have changed it at capture coming from a live data base >> Tendu Voiceover: Yes. and you've got the data quality at work as well. Help us picture how much faster and higher fidelity the data flow might be relative to >> Sure, absolutely. So, our bundle and our joint solution with Hortonworks really focuses on business use cases. And one of those use cases is enterprise data warehouse optimization where we make all data, all enterprise data accessible in the data lake. Now, if you are an insurance company managing claims or you are building a data as a service, Hadoop is a service architecture, there are multiple ways that you can keep that data fresh in the data lake. And you can have changed it at capture by basically taking snap-shots of the data and comparing in the data lake which is a viable method of doing it. But, as the data volumes are growing and the real time analytics requirements of the business are growing we recognize our customers are also looking for alternative ways that they can actually capture the change in real time when the change is just like less than 10% of the data, original data set and keep the data fresh in the data lake. So that enables faster analytics, real time analytics, as well as in the case that if you are doing something from on-premise to the cloud or archiving data, it also saves on the resources like the network bandwidth and overall resource efficiency. Now, while we are doing this, obviously we are accessing the data and the data goes through our processing engines. What Trillium brings to the table is the unmatched capabilities that are on profiling that data, getting better understanding of that data. So we will be focused on delivering products around that because as we understand data we can also help our customers to create the business rules, to cleanse that data, and preserve the fidelity of the data and integrity of the data. >> So, with the change data capture it sounds like near real time, you're capturing changes in near real time, could that serve as a streaming solution that then is also populating the history as well? >> Absolutely. We can go through streaming or message cues. We also offer more efficient proprietary ways of streaming the data to the Hadoop. >> So the, I assume the message cues refers to, probably Kafka and then your own optimized solution for sort of maximum performance, lowest latency. >> Yes, we can do either true Kafka cues which is very efficient as well. We can also go through proprietary methods. >> So, Scott, help us understand then now the governance capabilities that, um I'm having a senior moment (laughter) I'm getting too many of these! (laughter) Help us understand the governance capabilities that Syncsort's adding to the, sort of mix with the data warehouse optimization package and how it relates to what you're doing. >> Yeah, right. So what we talked about even again this morning, right the whole notion of the value of open squared, right open source and open ecosystem. And I think this is clearly an open ecosystem kind of play. So we've done a lot of work since we initially launched the partnership and through the different product releases where our engineering teams and the Syncsort teams have done some very good low-level integration of our mutual technologies so that the Syncsort tool can exploit those horizontal core services like Yarn for multi tendency and workload management and of course Atlas for data governance. So as then the Syncsort team adds feature functionality on the outside of that tool that simply accrete's to the benefit of what we've built together. And so that's why I say customers who started down this journey with us together are now going to get the benefit of additional options from that ecosystem that they can plug in additional feature functionality. And at the same time we're really thrilled because, and we've talked about this on many times right, the whole notion of governance and meta data management in the big data space is a big deal. And so the fact that we're able to come to the table with an open source solution to create common meta data tagging that then gets utilized by multiple different applications I think creates extreme value for the industry and frankly for our customers because now, regardless of the application they choose, or the applications that they choose, they can at least have that common trusted infrastructure where all of that information is tagged and it stays with the data through the data's life cycle. >> So you're partnership sounds very very symbiotic, that there's changes made on one side that reflect the other. Give us an example of where is your common customer, and this might not be, well, they're all over the place, who has got an enterprise data warehouse, are you finding more customers that are looking to modernize this? That have multi-cloud, core edge, IOT devices that's a pretty distributed environment versus customers that might be still more on prem? What's kind of the mix there? >> Can I start and then I will let you build on. I want to add something to what Scott said earlier. Atlas is a very important integration point for us and in terms of the partnership that you mentioned the relation, I think one of the strengths of our partnership is at many different levels it's not just executive level, it's cross functional and also from very close field teams, marketing teams and engineering field teams working together And in terms of our customers, it's really organizations are trying to move toward modern data architecture. And as they are trying to build the modern data architecture there are the data in motion piece I will let Scott talk about, data in rest piece and as we have so much data coming from cloud, originating through mobile and web in the enterprise, especially the Fortune 500, that we talk, Fortune 100 we talked about, insurance, health care, Talco financial services and banking has a lot of legacy data stores. So our, really joint solution and the couple of first use cases, business use cases we targeted were around that. How do we enable these data stores and data in the modern data architecture? I will let Scott >> Yeah, I agree And so certainly we have a lot of customers already who are joint customers and so they can get the value of the partnership kind of cuz they've already made the right decision, right. I also think, though, there's a lot of green field opportunity for us because there are hundreds if not thousands of customers out there who have legacy data systems where their data is kind of locked away. And by the way, it's not to say the systems aren't functioning and doing a good job, they are. They're running business facing applications and all of that's really great, but that is a source of raw material that belongs also in the data lake, right, and can be, can certainly enhance the value of all the other data that's being built there. And so the value, frankly, of our partnership is really creating that easy bridge to kind of unlock that data from those legacy systems and get it in the data lake and then from there, the sky's the limit, right. Is it reference data that can then be used for consistency of response when you're joining it to social data and web data? Frankly, is it an online archive, and optimization of the overall data fabric and off loading some of the historical data that may not even be used in legacy systems and having a place to put it where it actually can be accessed. And so, there are a lot of great use cases. You're right, it's a very symbiotic relationship. I think there's only upside because we really do complement each other and there is a distinct value proposition not just for our existing customers but frankly for a large set of customers out there that have, kind of, the data locked away. >> So, how would you see do you see the data warehouse optimization sort of solution set continuing to expand its functional footprint? What are some things to keep pushing out the edge conditions, the realm of possibilities? >> Some of the areas that we are jointly focused on is we are liberating that data from the enterprise data warehouse or legacy architectures. Through the syncs or DMX-h we actually understand the path that data travel from, the meta data is something that we can now integrate into Atlas and publish into Atlas and have Atlas as the open data governance solution. So that's an area that definitely we see an opportunity to grow and also strengthen that joint solution. >> Sure, I mean extended provenance is kind of what you're describing and that's a big deal when you think about some of these legacy systems where frankly 90% of the costs of implementing them originally was actually building out those business rules and that meta data. And so being able to preserve that and bring it over into a common or an open platform is a really big deal. I'd say inside of the platform of course as we continue to create new performance advantages in, ya know, the latest releases of Hive as an example where we can get low latency query response times there's a whole new class of work loads that now is appropriate to move into this platform and you'll see us continue to move along those lines as we advance the technology from the open community. >> Well, congratulations on continuing this great, symbiotic as we said, partnership. It sounds like it's incredible strong on the technology side, on the strategic side, on the GTM side. I'd loved how you said liberating data so that companies can really unlock its transformational value. We want to thank both of you for Scott coming back on theCUBE >> Thank you. twice in one day. >> Twice in one day. Tendu, thank you as well >> Thank you. for coming back to theCUBE. >> Always a pleasure. For both of our CTO's that have joined us from Hortonworks and Syncsort and my co-host George Gilbert, I am Lisa Martin, you've been watching theCUBE live from day one of the DataWorks summit. Stick around, we've got great guests coming up (upbeat music)

>> Narrator: Live from San Jose, in the heart of Silicon Valley, it's the Cube, covering DataWorks Summit 2017. Brought to you by Hortonworks. >> Hey, welcome back to the Cube, I'm Lisa Martin with my co-host, Peter Buress. We are live on day one of the DataWorks Summit in Silicon Valley. We've had a great day so far, talking about innovation across different, different companies, different use cases, it's been really exciting. And now, please welcome our next guest, David Lyle from Informatica. You are driving business transformation services. >> Yes. >> Lisa: Welcome to the Cube. >> Well thank you, it's good to be here. >> It's great to have you here. So, tell us a little about Informatica World, Peter you were there with the Cube. Just recently some of the big announcements that came out of there, Informatica getting more aggressive with cloud movement, extending your master data management strategy, and you also introduce a set of AI capabilities around meta-data. >> David: Exactly. >> So, looking at those three things, and your customer landscape, what's going on with Informatica customers, where are you seeing these great new capabilities be, come to fruition? >> Absolutely, well one of the areas that is really wonderful that we're using in every other aspect of our life is using the computer to do the logical things it should, and could, be doing to help us out. So, in this announcement at Informatica World, we talked about the central aspect of meta-data finally being the true center of Informatica's universe. So bringing in meta-data-- >> And customer's universes. >> Well, and customer's universes, so the, not seeing it as something that sits over here that's not central, but truly the thing that, is where you should be focusing your attention on. And so Informatica has some card carrying PhD artificial intelligence machine learning engineers, scientists, that we have hired, that have been working for several years, that have built this new capability called CLAIRE. That's the marketing term for it, but really what it is, it's helping to apply artificial intelligence against that meta-data, to use the computer to do things for the developer, for the analyst, for the architect, for the business people, whatever, that are dealing with these complex data transformation initiatives that they're doing. Where in the past what's been happening is whatever product you're using, the product is basically keeping track of all the things that the scientist or analyst does, but isn't really looking at that meta-data to help suggest the things, that they, that maybe has already been done before. Or domains of data. Why, how come you have to tell the system that this is an address? Can't the system identify that when data looks like this, it's an address already? We think about Shazam and all these other apps that we have on our phones that can do these fantastic things with music. How come we can't do those same things with data? Well, that's really what CLAIRE can actually do now is discover these things and help. >> Well, I want to push now a little bit. >> David: Sure, sure. >> So, historically meta-data was the thing that you created in the modeling activity. >> David: Right. >> And it wasn't something that you wanted to change, or was expected to change frequently. >> In fact, in the world of transaction processing, you didn't want to change. >> Oh, yeah. And especially you get into finance apps, and things like that, you want to keep that slow. >> Exactly. >> Yeah. >> And meta-data became one of those things that often had to be secured in a different way, and was one of those reasons why IT was always so slow. >> Yeah. >> Because of all these concerns about what's the impact on meta-data. >> Yeah. >> We move into this big data world, and we're bringing forward many of the same perspectives on how we should treat meta-data, and what you guys are doing is saying "that's fine, keep the meta-data of that data, but do a better job of revealing it, and how it connects-- >> David: Exactly. >> and how it could be connected." And we talked about this with Bill Schmarzo just recently-- >> Good friend of mine. >> Yeah, the data that's in that system can also be applied to that system. >> Yeah. >> It doesn't have to be a silo. And what CLAIRE is trying to do is remove some of the artificial barriers-- >> Exactly. >> Of how we get access to data that are founded by organization, or application, or system. >> David: Right. >> And make it easier to find that data, use that data, and trust the data. >> Exactly. >> Peter: I got that right? >> You've totally got that right. So, if we think about all these systems in a organization as this giant complex air ball, that in the past we may have had pockets of meta-data here and there that weren't really exposed, or controlled in the right way in the first place. But now bringing it together. >> But also valuable in the context of the particular database or system-- >> Yep. >> that was running. It wasn't the meta-data that was guarded as valuable-- >> Right. that just provided documentation for what was in the data. >> Exactly, exactly. So, but now with this ability to see it, really for the first time, and understand how it connects and impacts with other systems, that are exchanging data with this, or viewing data with this. We can understand then if I need, occasionally, to make a change to the general ledger, or something, I can now understand what impact on different KPIs, and the calculations stream of tableaux, business objects, cognos, micro strategy, quick, whatever. That, what else do I need to change? What else do I need to test? That's something computers are good at. Something that humans have had to do manually up to this point. And that, that's what computers are for. >> Right. >> So questions for you on the business side. Since we look at-- >> Yeah. >> Businesses are demanding real time access to data to make real time decisions, manage costs, be competitive, and that's driving cloud, it's driving IOTs, it's driving big data and analytics. You talked about CLAIRE, and the implications of it across different people within an organization. >> Right. Meta-data, how does a C-Sweet, or a senior manager care-- >> David: Good point. >> About meta-data? >> They don't, and that's why we don't talk about the word architecture. Typically we see sweet folks we don't use the word meta-data. We see sweet folks, instead we talk about things like solving the problem of time, to get the application, or information that you need, reducing that time by being able to see and change and retest the things that need to be. So we just change the discussion to either dollars, or time, or of course those are really equivalent. >> But really facilitated by this-- >> Exactly. >> Artificial intelligence. >> It's facilitated by this artificial intelligence. It can also then lead to the, when we get into data lakes, ensuring that those data lakes are, understood better, trusted better, that people are being able to see what other people are actually using. And in other words we kind of bring, somewhat, the Amazon.com website model to the data lake, so that people know, okay, if I'm looking of a product, or data set, that looks like this for my, our, processing data science utility, or what I want to do. Then these are the data sets that are out there, that may be useful. This is how many people have used them, or who those other people are, and are those people kind of trusted, valid, people that have done similar stuff to what I want to do before? Anyway, all that information we're used to when we buy products from Amazon, we bring that now to the data lake that you're putting together, so that you can actually prevent it, kind of, from being a swamp and actually get value at it. Once again, it's the meta-data that's the key to that, of getting the value out of that data. >> Have you seen historically that, you're working with customers that, have or are already using hadoop. >> David: That's right. >> They've got data lakes. >> Oh yeah. >> Have you seen that historically they haven't really thought about meta-data as driving this much value before, is this sort of a, not a new problem, but are you seeing that it's not been part of their-- >> It's a new. >> strategic approach. >> That's right, it's a new solution. I think you talk to anybody, and they knew this problem was coming. That with a data lake, and the speed that we're talking about, if you don't back that up with the corresponding information that you need to really digest, you can create a new mess, a new hairball, faster than you ever created the original hairball you're trying to fix in the first place. >> Lisa: Nobody likes a hairball. >> Nobody likes a hairball, exactly. >> Well it also seems as though, for example at the executive level, do I have a question? Can I get this question answered? How do I get this question answered? How can I trust the answer that I get? In many respects that's what you guys are trying to solve. >> David: Exactly, exactly. >> So, it's not, hey what you need to do is invest a whole bunch in the actual data, or copying data, or moving a bunch of data around. You're just starting with the prob, with the observation, with the proposition. Yes, you can answer this question, here's how you're going to do it, and you can trust it because of this trail-- >> David: Exactly. >> Of activities based on the meta-data. >> Exactly, exactly. So, it's about helping to, hate to use the phrase again, but "detangle" that hairball, so that, or at least manage it a bit, so that we can begin to move faster and solve these problems with a hell of a lot more confidence. So we have-- >> Can we switch gears? >> Absolutely. >> Certainly. >> Let's switch gears and talk about transformations. >> Yeah. >> I know that's something that is near and dear to your heart, and something you're spending a lot of time with clients in. >> Yeah. >> How, how do you approach, when a customer comes to you, how are they approaching the transformation, and what are they, what's the conversation that you're having with them? >> Well, it's interesting that the phrase has, and I'm even thinking of changing our group's title to digital transformation services, not just because it's hot, but because, frankly, the fluid or the thing, the glue, that really makes that happen is data in these different environments. But the way that we approach it is by, well understanding what the business capabilities are that are affected by the transformation that is being discussed. Looking at and prioritizing those capabilities based upon the strategic relevance of that capability, along with the opportunity to improve, and multiplying those together, we can then take those and rank those capabilities, and look at it in conjunction with, what we call a business view of the company. And from that we can understand what the effects are on the different parts of the organization, and create the corresponding plans, or roadmaps that are necessary to do this digital transformation. We actually bought a little stealth acquisition of a company two years ago, that's kind of the underpinnings of what my team does, that is extremely helpful in being able to drive these kinds of complex transformations. In fact, big companies, a lot, several in this room in a way, are going through the transformation of moving from a traditional software license sale transaction with the customer to a subscription, monthly transaction. That changes marketing. That changes sales. That changes customer support. That changes R&D. Everything Changes. >> Everything, yeah. >> How do you coordinate that? What is the data that you need in order to calculate a new KPI for how I judge how well I'm doing in my company? Annual recurring revenue, or something. It's a, these are all, they get into data governance. You get into all these different aspects, and that's what our team's tool and approach is actually able to credibly go in, and lay out this road map for folks that is shocking, kind of, in how it's making complex problems manageable. Not necessarily simple. Actually it was Bill Schmarzo, on the, he told me this 15 years ago. Our problem is not to make simple problems mundane, our problem, or what we're trying to do, is make complex problems manageable. I love that. >> Sounds like something-- >> I love that. >> Bill would say. >> That's an important point though about not saying "we're going to make it simple-- >> No. >> we're going to make it manageable." >> David: Exactly. >> Because that's much more realistic. >> David: Right. >> Don't you think? >> David: Exactly, exactly. The fact-- >> I dunno, if we can make them simple, that's good too. >> That would be nice. >> Oh, we'd love that >> Yeah. >> Oh yeah. >> When it happens, it's beautiful. >> That's art. >> Right, right. >> Well, your passion and your excitement for what you guys have just announced is palpable. So, obviously just coming off that announcement, what's next? We look out the rest of the calendar year, what's next for Informatica and transforming digital businesses? >> I think it is, you could say the first 20 years, almost, of Informatica's existence was building that meta-data center of gravity, and allowing people to put stuff in, I guess you could say. So going forward, the future is getting value out. It's continually finding new ways to use, in the same way, for instance, Apple is trying to improve Siri, right? And each release they come out with more capabilities. Obviously Google and Amazon seems to be working a little better, but nevertheless, it's all about continuous improvement. Now, I think, the things that Informatica is doing, is moving that, power of using that meta-data also towards helping our customers more directly with the business aspect of data in a digital transformation. >> Excellent. Well, David, thank you so much for joining us on the Cube. We wish you continued success, I'm sure the Cube be back with Informatica in the next round. >> Excellent. >> Thanks for sharing your passion and your excitement for what you guys are doing. Like I said, it was very palpable, and it's always exciting to have that on the show. So, thank you for watching. I'm Lisa Martin, for my co-host Peter Burress, we thank you for watching the Cube again. And we are live on day one of the Dataworks summit from San Jose. Stick around, we'll be right back.

>> Announcer: Live from San Jose in the heart of Silicon Valley, it's theCube. Covering DataWorks Summit 2017. Brought to you by Hortonworks. >> Hey, welcome back to theCUBE. We are live on day one of the DataWorks Summit in the heart of Silicon Valley. I'm Lisa Martin with my co-host Peter Burgess. Just chatting with our next guest about the Warriors win yesterday we're also pretty excited about that. David Hseih the SVP of Marketing from Qubole, hi David. >> David: Hey, thanks for having me. >> Welcome to theCUBE, we're glad you still have a voice after no doubt cheering on the home team last night. >> It was a close call 'cause I was yelling pretty loud yesterday. >> So talk to us about you the SVP of Marketing for Qubole. Big data platform in the cloud. You guys just had a big announcement a few weeks ago. >> David: Right. >> What are your thoughts, what's going on with Qubole? What's going on with big data? What are you seeing in the market? So you know we're a cloud-native data platform and you know when we talk to customers, we're really, you know, they're really complaining about how they're just struggling with complexity and the barriers to entry and you know, they're really crying out for help. And the good news I suppose is we're in an industry that has a very high pace of innovation. That's great right. Spark has had eight versions now in two years, but that pace of innovation is, you know, making the complexity even harder. I was watching Cloudera bragging about how their new product is a combination of 24 open source projects. You know that's tough stuff, right. So if you're a practitioner trying to get big data operationalized in your company. And trying to scale the use of data and analytics across the company. The nature of open source is it's designed for flexibility. Right, the source codes public, you have all these options, configuration settings et cetera. But moving those into production and then scaling them in a reliable way is just crushing practitioners. And so data teams are suffering, and I think frankly it's bad for our industry, because, you know, Gardner's talking about a, you know, 80% failure rate of big data projects by 2018. Think about that, what industry can survive when 70 or 80% of the projects fail? >> Well I think what's let me push on that a little bit. Because I think that the concern is about, is not about 70 to 80% of the efforts to reach an answer in a complex big data thing, it's going to fail. We can probably accommodate that, but what we can't accommodate is failure in the underlying infrastructure. >> David: Absolutely. >> So the research we've done, suggest something as well that we are seeing an enormous amount of time spent on the underlying infrastructure. And there's a lot of failures there. People would say, I have a question, I want to know if there's an answer and try to get to that answer, and not getting the answer they want, >> David: Yep. or getting a different answer. That kind of failure is still okay. >> David: Right. >> Because that's experience, you get more and more and more. >> David: Absolutely. >> So it's not the failure in the data science side or the application side. >> Actually I would say getting to an answer you don't like, is a form of success. Like you have an idea, you try it out, that's all great. >> So what Gardner is really saying it's failure in the implementation of the infrastructure. >> That's exactly right. >> So it's the administrative and operational sides. >> Correct, it's a project that didn't deliver then resolve. If the end result what you hoped, great. >> You couldn't even answer your question. >> Exactly, couldn't even answer the question. >> So let me test something on you Dave, David. We've been carrying a thesis at Wikibon for awhile that it looks like opensource is proving that it's very good at mimicking, and not quite as good at inventing. >> David: Right. >> So by that I mean if you put an operating, drop an operating system in front of Linus Torvalds he can look at that and say I can do that. >> David: Right. >> And do a great job of it. If you put a development tool same kind of thing. But big data is very complex, a lot of it, an enormous number of usecases. >> David: Correct. >> And open source has done a good job at a tool level and it looks as though the tools are being built to make other tools more valuable, >> David: Ha, right. >> As opposed to making it easy for a business to operationalize data science and the use of big data in their business. Would you agree or disagree with that? >> I yeah, I think that sort of like fundamentally the philosophy of open source. You know I'm going to do my work, something I need for me, but I'm going to share it with everybody else. And they can contribute. But at the end of the day, you know, unlike commercial software, there's sort of no one throat to choke. Right and there's nobody who is going to guarantee the interoperability and the success of the piece of software that you're trying to deploy. >> There's mot even a real coherent vision in many respects. >> David: No, absolutely not. >> What the final product's going to end up looking like. >> So what you have is a lot of really great cutting edge technology that a lot of really smart people, sort of poured their hearts and souls into. But that's a little different than trying to get to an end result. And, you know. Like it or not, commercial software packages are designed to deliver the result you pay for. Open source being sort of philosophically, very different I think breeds you know inherent complexity. And that complexity right now, is I think the root of the problem in our industry. >> So give us an example David, you know, you're a Marketing guy, I'm a marketing gal. >> Sure. >> Give us an example of a customer, maybe one of your favorite examples, where are you helping them? They're struggling here, they've made significant investments from an infrastructure perspective. They know there's value in the data, >> David: Yup. varying degrees as we've talked about before. How does Qubole get in there and start helping this usecase customer start to optimize, and really start making this big data project successful? >> That's a great question. So there's really two things, number one is that we are a SAAS based platform in the cloud and what we do basically is make big data into more of a turnkey service. So actually the other day, I was sort of surfing the internet, and we have a customer from Sonic Drive-In. You know they do hamburgers and stuff. >> Lisa: Oh yeah. >> And they're doing a bunch of big data, and this guy was at a data science meet, talking about. We didn't put him up to this, he just volunteered. He was talking about how we made his life so much easier. Why, because all of the configurations stuff, the settings, and you know, how to manage costs, was basically filling out a form and setting policy and parameters. And not having to write scripts and figure out all these configuration settings. If I set this one this way and that one that way, what happens. You know, we have a sort of more curated environment that makes that easy. But the thing that I'm really excited about is we think this is the time to really look at having data platforms that can you know, build or run autonomously. Today companies have to hire really expensive, really highly skilled, super smart data engineers, and data ops people to run their infrastructure. And you know, if you look at studies, we're about a 180,000 people short of the number of data engineers, data ops this industry needs. So try to scale by adding more smart people is super hard. Right but instead if you could start to get machines to do what people are doing. Just faster, cheaper, more reliably. Then you can scale your data platform. So we basically, made an announcement a couple weeks ago, kind of about the industry's first autonomous data platform. And what we're building, are software agents that can take over certain types of data management tasks so that data engineers don't have to do it. Or don't have to be up at three in the morning making sure everything is going right. >> And from a market segmentation perspective where's your sweet spot for that? Enterprise, SMB, somewhere in the middle? >> The bigger you have to scale. It's not about company size it's really about sort of the scope and scale of your big data efforts. So you know, the more people you have using it, then the more data you have. The more you want automation to make things easier. It's sort of true of any industry, it's certainly going to be true of the big data industry. >> Peter: Yeah more complexity in the question set, >> Correct. >> The more complexity-- >> Or the more users you have, the more it gives. Adds more data sources. >> Which presumable is going to be correlated. >> Absolutely correct. >> Which is we can use a big data project to ascertain that. >> Well in fact that sort of what we're doing. Because we're a SAAS platform we take in the metadata from what our customers are doing. What users, what clusters, what queries, which tables, all that stuff. We basically use machine learning and artificial intelligence to analyze how you're using your data platform. And tell you what you could do better or automates stuff that you don't have to do anymore. >> So we've presumed that the industry at some point of time, the big data industry at some point of time, is going to start moving it's attention to things like machine learning and A.I., you know, up into applications. >> David: Yep. >> Are we going to see the big data industry basically more pretty rapidly into more of inservice or application conversation, or is it going to kind of are we going to see a rebirth, as folks try to bring a more coherent approach to the existing, many of the tools that are here right now. >> David: Right. >> What do you think? >> Well I think, we're going to see some degree of industry consolidation, and you're going to see vendors, you know, and you're seeing it today. Try to simplify and consolidate. Right so some of that is moving stack towards applications some of that is about repackaging their offerings and adding simplicity. It's about using artificial intelligence to make the operational platform itself easier. I think you'll see a variety of those things, because you know, companies have too many places where they can stumble in their deployment. And you know, it's going to be, you know, the vendor community has to step in and simplify those things to basically gain greater adoption. >> So if you think about it, what is, I mean I have my own idea, but what do you think the metric that businesses should be using as they conceive of how to source different tools and invest in different tools, put things together. I think it's increasingly we're going to talk about time to value. What do you think? >> I think time to value is one. I think another one you could look at is the number of people who have access to the data to create insights. Right so you know, you can say a 100% of my company has access to the data and analytics that they need to help their function run better. Whatever it is, that's a pretty awesome accomplishment. And you know, there's a bunch of people who may or may not have 100% but they're pretty close, right. And they've really become a data driven enterprise. And then you have lots of companies what are sort of stuck with, okay we have this usecase running, thank goodness. Took us two years and a couple million bucks and now they're trying to figure out how to get to the next step. And so they have five users who are able to use their data platform successfully. That's you know, I think that's a big measure of success. >> So I want to talk quickly about, if I may about the cloud. >> David: Yeah. >> Because it's pretty clear there are a number of, that there are some very, very large shops. >> David: Yep. >> That are starting to conceive of important parts of their overall approach to data. >> David: Right. >> And putting things into the cloud. There's a lot of advantages of doing it that way. At the same time they're also thinking about, and how I'm going to integrate, the models that I generate out of big data back into applications that might be running in a lot of different places. >> Right. >> That suggests there's going to be a new challenge on the horizon. Of how do we think about end to end bringing applications together with predictable date of movement and control and other types of activities. >> David: Yeah. >> Do you agree that's on the horizon of how we think about end to end performance across multiple different clouds? >> I think that's coming, you know, I think I'm still surprised at how many people have not figured out that the economic and agility advantages of cloud, are so great, that'd you'd be honestly foolish not to, you know, consider cloud and have that proactive way to migrate there. And so there is just you know a shocking amount of companies that are still plotting away, you know, and building their own prime infrastructures et cetera. And they still have hesitancy and questions about the cloud. I do think that you're right, but I think what you're talking about is, you know, three to five years out for the mainstream in the industry. Certainly there are early adopters you know, who have sort of gotten there. They're talking about that now. But as sort of a mainstream phenomenon I think that's a couple years out. >> Excuse me Peter, one of the things that just kind of made me think of was, you know, these companies as what you're saying, that is till had hesitancy regarding cloud. >> Right. >> And kind of vendor lock in popped into my head. And that kid of brought me back to one of the things that you were mentioning in the beginning. Open source, complexity there. >> David: Yep. >> Are you seeing, or are you helping companies to go back to more of that commercialized proprietary software. Are you seeing a shift in enterprises being less concerned about lock-in because they want simplicity? >> You know that's a great question. I think in the big data space it's hard to avoid, you know, sort of going down the open source path. I think what people are getting concerned about is getting locked into a single cloud vendor. So more and more of the conversations we have are about, what are your multi-cloud and eventually cross-cloud capabilities? >> Peter: That's the question I just asked, right. >> Exactly so I think more and more of that's coming to the front. I was with a large, very large healthcare company a week ago, and I said, what's your cloud strategy? And they said we have a no vendor left behind policy. So you know our, we're standardized on Azure, we've got a bunch of pilots on AWS, and we're planning to move from a data warehousing vendor to Oracle in the cloud. Ha so, I think for large companies a lot of them can't control the fact that different division, departments, whatever will use different clouds. So architecturally, they're going to have to start to think about using these multi-cloud, cross-cloud you know, scenarios. And you know, most large companies, given a choice, will not bet the farm on a single cloud provider. And you know, we're great partners and we love Amazon, but every time they have you know, an S3 outage like they had a few months ago. You know, it really makes people think carefully about what their infrastructure is and how they're dealing with reliability. >> Well in fairness they don't have that many, >> They don't, it only takes one. >> That's right, that's right, and there's reasons to suspect that there will be increased specialization of services in the cloud. >> David: Correct. >> So I mean it's going to get more complex as we go as well. >> David: Oh absolutely correct. >> Not less. >> Well David Hseih, SVP of Marketing at Qubole. Thank you so much for joining, >> Thank you. >> And sharing your insights with Peter and myself. It's been very insightful. >> Right. >> So this is another great example of how we've been talking about the Warriors and food, Sonic was brought up into play here. >> David: Exactly, go Sonic. Very exciting you never know what's going to happen on theCUBE. So for David and Peter, I am Lisa Martin, You're watching Day One, of the Data Work Summit, in the heart of Silicon Valley. But stick around because we've got more great content coming your way.

>> Voiceover: Live from San Jose in the heart of Silicon Valley, it's The Cube covering DataWorks Summit 2017. Brought to you by: Hortonworks. >> Hey, welcome back to The Cube. We are live on day one of the DataWorks Summit in the heart of Silicon Valley. I'm Lisa Martin with my co-host Peter Burris. Not only is this day one of the DataWorks Summit, this is the day after the Golden State Warriors won the NBA Championship. Please welcome our next guess, the CTO of Dell AMC, Bill Shmarzo. And Cube alumni, clearly sporting the pride. >> Did they win? I don't even remember. I just was-- >> Are we breaking news? (laughter) Bill, it's great to have you back on The Cube. >> The Division III All-American from-- >> Cole College. >> 1947? >> Oh, yeah, yeah, about then. They still had the peach baskets. You make a basket, you have to climb up this ladder and pull it out. >> They're going rogue on me. >> It really slowed the game down a lot. (laughter) >> All right so-- And before we started they were analyzing the game, it was actually really interesting. But, kick things off, Bill, as the volume and the variety and the velocity of data are changing, organizations know there's a tremendous amount of transformational value in this data. How is Dell AMC helping enterprises extract and maximize that as the economic value of data's changing? >> So, the thing that we find is most relevant is most of our customers don't give a hoot about the three V's of big data. Especially on the business side. We like to jokingly say they care of the four M's of big data, make me more money. So, when you think about digital transformation and how it might take an organization from where they are today to sort of imbed digital capabilities around data and analytics, it's really about, "How do I make more money?" What processes can I eliminate or reduce? How do I improve my ability to market and reach customers? How do I, ya know-- All the things that are designed to drive value from a value perspective. Let's go back to, ya know, Tom Peters kind of thinking, right? I guess Michael Porter, right? His value creation processes. So, we find that when we have a conversation around the business and what the business is trying to accomplish that provides the framework around which to have this digital transformation conversation. >> So, well, Bill, it's interesting. The volume, velocity, variety; three V's, really say something about the value of the infrastructure. So, you have to have infrastructure in place where you can get more volume, it can move faster, and you can handle more variety. But, fundamentally, it is still a statement about the underlying value of the infrastructure and the tooling associated with the data. >> True, but one of the things that changes is not all data is of equal value. >> Peter: Absolutely. >> Right? So, what data, what technologies-- Do I need to have Spark? Well, I don't know, what are you trying to do, right? Do I need to have Kafka or Ioda, right? Do I need to have these things? Well, if I don't know what I'm trying to do, then I don't have a way to value the data and I don't have a way to figure out and prioritize my investment and infrastructure. >> But, that's what I want to come to. So, increasingly, what business executives, at least the ones who we're talking to all the time, are make me more money. >> Right. >> But, it really is, what is the value of my data? And, how do I start pricing data and how do I start thinking about investing so that today's data can be valuable tomorrow? Or the data that's not going to be valuable tomorrow, I can find some other way to not spend money on it, etc. >> Right. >> That's different from the variety, velocity, volume statement which is all about the infrastructure-- >> Amen. >> --and what an IT guy might be worried about. So, I've done a lot of work on data value, you've done a lot of work in data value. We've coincided a couple times. Let's pick that notion up of, ya know, digital transformation is all about what you do with your data. So, what are you seeing in your clients as they start thinking this through? >> Well, I think one of the first times it was sort of an "aha" moment to me was when I had a conversation with you about Adam Smith. The difference between value in exchange versus value in use. A lot of people when they think about monetization, how do I monetize my data, are thinking about value in exchange. What is my data worth to somebody else? Well, most people's data isn't worth anything to anybody else. And the way that you can really drive value is not data in exchange or value in exchange, but it's value in use. How am I using that data to make better decisions regarding customer acquisition and customer retention and predictive maintenance and quality of care and all the other oodles of decisions organizations are making? The evaluation of that data comes from putting it into use to make better decisions. If I know then what decision I'm trying to make, now I have a process not only in deciding what data's most valuable but, you said earlier, what data is not important but may have liability issues with it, right? Do I keep a data set around that might be valuable but if it falls into the wrong hands through cyber security sort of things, do I actually open myself up to all kinds of liabilities? And so, organizations are rushing from this EVD conversation, not only from a data evaluation perspective but also from a risk perspective. Cause you've got to balance those two aspects. >> But, this is not a pure-- This is not really doing an accounting in a traditional accounting sense. We're not doing double entry book keeping with data. What we're really talking about is understand how your business used its data. Number one today, understand how you think you want your business to be able to use data to become a more digital corporation and understand how you go from point "a" to point "b". >> Correct, yes. And, in fact, the underlying premise behind driving economic value of data, you know people say data is the new oil. Well, that's a BS statement because it really misses the point. The point is, imagine if you had a barrel of oil; a single barrel of oil that can be used across an infinite number of vehicles and it never depleted. That's what data is, right? >> Explain that. You're right but explain it. >> So, what it means is that data-- You can use data across an endless number of use cases. If you go out and get-- >> Peter: At the same time. >> At the same time. You pay for it once, you put it in the data lake once, and then I can use it for customer acquisition and retention and upsell and cross-sell and fraud and all these other use cases, right? So, it never wears out. It never depletes. So, I can use it. And what organizations struggle with, if you look at data from an accounting perspective, accounting tends to value assets based on what you paid for it. >> Peter: And how you can apply them uniquely to a particular activity. A machine can be applied to this activity and it's either that activity or that activity. A building can be applied to that activity or that activity. A person's time to that activity or that activity. >> It has a transactional limitation. >> Peter: Exactly, it's an oar. >> Yeah, so what happens now is instead of looking at it from an accounting perspective, let's look at it from an economics and a data science perspective. That is, what can I do with the data? What can I do as far as using the data to predict what's likely to happen? To prescribe actions and to uncover new monetization opportunities. So, the entire approach of looking at it from an accounting perspective, we just completed that research at the University of San Francisco. Where we looked at, how do you determine economic value of data? And we realized that using an accounting approach grossly undervalued the data's worth. So, instead of using an accounting, we started with an economics perspective. The multiplier effect, marginal perpetuity to consume, all that kind of stuff that we all forgot about once we got out of college really applies here because now I can use that same data over and over again. And if I apply data science to it to really try to predict, prescribe, and monetize; all of a sudden economic value of your data just explodes. >> Precisely because of your connecting a source of data, which has a particular utilization, to another source of data that has a particular utilization and you can combine them, create new utilizations that might in and of itself be even more valuable than either of the original cases. >> They genetically mutate. >> That's exactly right. So, think about-- I think it's right. So, congratulations, we agree. Thank you very much. >> Which is rare. >> So, now let's talk about this notion of as we move forward with data value, how does an organization have to start translating some of these new ways of thinking about the value of data into investments in data so that you have the data where you want it, when you want it, and in the form that you need it. >> That's the heart of why you do this, right? If I know what the value of my data is, then I can make decisions regarding what data am I going to try to protect, enhance? What data am I going to get rid of and put on cold storage, for example? And so we came up with a methodology for how we tie the value of data back to use cases. Everything we do is use case based so if you're trying to increase same-store sales at a Chipotle, one of my favorite places; if you're trying to increase it by 7.1 percent, that's worth about 191 million dollars. And the use cases that support that like increasing local even marketing or increasing new product introduction effectiveness, increasing customer cross-sale or upsell. If you start breaking those use cases down, you can start tying financial value to those use cases. And if I know what data sets, what three, five, seven data sets are required to help solve that problem, I now have a basis against which I can start attaching value to data. And as I look across at a number of use cases, now the valued data starts to increment. It grows exponentially; not exponentially but it does increment, right? And it gets more and more-- >> It's non-linear, it's super linear. >> Yeah, and what's also interesting-- >> Increasing returns. >> From an ROI perspective, what you're going to find that as you go down these use cases, the financial value of that use case may not be really high. But, when the denominator of your ROI calculation starts approaching zero because I'm reusing data at zero cost, I can reuse data at zero cost. When the denominator starts going to zero ya know what happens to your ROI? In infinity, it explodes. >> Last question, Bill. You mentioned The University of San Francisco and you've been there a while teaching business students how to embrace analytics. One of the things that was talked about this morning in the keynote was Hortonworks dedication to the open-source community from the beginning. And they kind of talked about there, with kids in college these days, they have access to this open-source software that's free. I'd just love to get, kind of the last word, your take on what are you seeing in university life today where these business students are understanding more about analytics? Do you see them as kind of, helping to build the next generation of data scientists since that's really kind of the next leg of the digital transformation? >> So, the premise we have in our class is we probably can't turn business people into data scientists. In fact, we don't think that's valuable. What we want to do is teach them how to think like a data scientist. What happens, if we can get the business stakeholders to understand what's possible with data and analytics and then you couple them with a data scientist that knows how to do it, we see exponential impact. We just did a client project around customer attrition. The industry benchmark in customer attrition is it was published, I won't name the company, but they had a 24 percent identification rate. We had a 59 percent. We two X'd the number. Not because our data scientists are smarter or our tools are smarter but because our approach was to leverage and teach the business people how to think like a data scientist and they were able to identify variables and metrics they want to test. And when our data scientists tested them they said, "Oh my gosh, that's a very highly predicted variable." >> And trust what they said. >> And trust what they said, right. So, how do you build trust? On the data science side, you fail. You test, you fail, you test, you fail, you're never going to understand 100 percent accuracy. But have you failed enough times that you feel comfortable and confident that the model is good enough? >> Well, what a great spirit of innovation that you're helping to bring there. Your keynote, we should mention, is tomorrow. >> That's right. >> So, you can, if you're watching the livestream or you're in person, you can see Bill's keynote. Bill Shmarzo, CTO of Dell AMC, thank you for joining Peter and I. Great to have you on the show. A show where you can talk about the Warriors and Chipotle in one show. I've never seen it done, this is groundbreaking. Fantastic. >> Psycho donuts too. >> And psycho donuts and now I'm hungry. (laughter) Thank you for watching this segment. Again, we are live on day one of the DataWorks Summit in San Francisco for Bill Shmarzo and Peter Burris, my co-host. I am Lisa Martin. Stick around, we will be right back. (music)

>> Announcer: Live from San Jose in the heart of Silicon Valley, it's The Cube covering DataWorks Summit 2017. Brought to you by Horton works. >> Hi. Welcome back to The Cube. We are live at day one of the DataWorks Summit in San Jose, in the heart of Silicon Valley, hosted by Hortonworks. We've had a great day so far. Lots of innovation. Lots of great announcements. We're very excited to be joined by one of this week's keynotes and Cube alumni, Joe Goldberg, Innovation Evangelist at BMC Software. Welcome back to The Cube. >> Thank you very much. Always a pleasure to be here. >> Exactly and we're happy to have you back. So, talk to us, what's happening with BMC? What are you guys doing there? What are people going to learn in your keynote on Thursday? >> So BMC has been really working with all of our customers to modernize, not only our tool chain, but the way automation is used and deployed throughout the organization. We actually did a survey recently, The State of Automation. We got pretty much the kind of results we would've expected, but this let us really sort of make tangible what we have sort of always felt was, you know the state of this kind of approach to how critical automation is in the enterprise. We had a response from leaders and CXOs that 93% thought that automation was key to helping them make that digital transformation that everyone is involved in today. So, that's been one of the key elements that has really kind of driven everything that we've been doing with BMC today. >> Now, BMC's known especially for handling workflows that operate more than a batch work >> Joe Goldberg: Yes So high certainty, very much predictability in terms of when things going to happen, how long's it going to take, what action's going to take place. Very, very complex types of processing takes place. I'm always fascinated and I've talked to other customers that are wondering about this when you come back to the State of Automation that we want to move, everybody wants to move to interactive. >> Joe Goldberg: Yes. >> But often the jump to interactive takes place well in advance of predictability of how the data's actually being constructed and put together and aggregated in the back end. Talk a little bit about the priorities. How does one...? Cause it's really not a chicken and egg kind of a problem. How does one anticipate excellence in the other? So what we've been hearing and actually I think of the previous Hortonworks or DataWorks Summit, we had one of our customers talk about their approach to what was a fundamental data architecture for them, which was the separation between the speed and batch layer. And I think you hear an awful lot of that kind of conversation. And they run in parallel and from our perspective managing the batch layer really underpins the kind of real actionable insides that you can extract from the speed layer, which is focusing on capturing that very small percentage of what is really the signal in the data, but then being able to take that and enrich it with what you've been collecting and managing using the batch layer. I think that that's the kind of approach that we've seen from a lot of customers, where certainly all of the cool stuff and the focus is on the interactive and the realtime and streaming. But in order to really be able to be predictive, because you know there's no magic, we still don't know how to tell the future. The only to be able to do that is by making sure that you are basing yourself on history that is well, sort of collected, curated, make sure that you have actually captured it, that you've enriched it from a variety of different sources. And that's where we come in. What we have been focusing on is providing a set of facilities for managing batch that is... I talk about hyper heterogeneity, I know that's a mouthful, but that's really what the new enterprise environment is like. So you add or you know, a layer on top of your conventional applications and your conventional data, all of this new data formats and data does now arriving in real time in high volume. I think that taking that kind of an approach is really the only way that you can ensure that you are capturing all of your... Ingesting all of the data that's coming in from all of your endpoints, including you know, IOT applications and really being able to combine it with all of the corporate sort of knowledge that you've accumulated through your traditional sources. >> So, batches historically meant, again a lot of precise code, it had to be written to handle complex jobs and it scared off a lot of folks into thinking about interactive. In the last 10 years, there's been some pretty significant advances in how we think about putting together batch workflows, become much more programmable. How does control (mumbles) and some of the other tool set that BNC provides, How does it fit into? How does it look more like the types of application development, tasks and methods that are becoming increasingly popular, as you think about delivering the outcomes of big data processing to other applications or to other segments? >> So, you know that's very, that's a great question. Its almost like, thanks for the set up. So, you can see. >> Well let's not ask it then. (laughs) >> You can see the shirt that I'm wearing and of course this is very intentional, but our history has been that we've come from the data center, operations focus. And the transition in the marketplace today has been that really the focus has shifted, whether you talk about shift left or everything as code, where the new methods of building and delivering applications really look at everything manual that is done, coding to create an application that's done upfront. And then the rigger for enterprise operations is built in through this automated delivery pipeline. And so, obviously you have to invert this kind of approach that we've had in terms of layering management tools on at the very end and instead you have to be able to inject them into your application early. So, we feel that certainly it's true for all applications and it's I think doubly true in data applications, that the automation and the operational instrumentation is an equal partner to your business logic under the code that you write and so it needs to be created right upfront and then moved together with all of the rest of your application components through that delivery pipeline in a CIDC fashion. And so that is what we have done. And again that what the concept is of Jawless. >> So, as you think about what the next step is, is batch going to, presumably batch will be sustained as mode of operation. How is it going to become even more comfortable to a lot of the development methodologys as we move forward? How do you think it's going to be evolved as a tool for increasing the amount of predictability in that back end? >> So, I think that the key to continuing to evolve this Jawless code approach is to enable developers to be able to build and work with that operational plumbing in the same way they work with their business logic. >> Or any other resource? >> Exactly. So, you know, you think about what are the tools that developers have today when they build, whether you're writing in Java or C or R or Scala, there are development environments, there are these tools that let you test that let you step through your logic to be able to identify and find any flaws, you know sort of bugs in your code. And in order for jawless code to really meet the test of being code, we are working on providing the same kind of capabilities to work with our objects that developers expect to have for programming languages. >> So Joe, I'm not going to shift us back last question here. Kind of looking at more of a business industry level, to do big data write, to bring Hadoop to an enterprise successfully, what are some of the mission critical elements that c-suite really needs to embrace in order to be successful across big industries, like healthcare, financial services, Telco? >> So, I think they have to be able to apply the same requirements and the test for how a big data application moves into their enterprise in terms of, not only how it's operated, but how is it made accessible to all of the constituents that need to use it. One of the key elements we hear frequently is that, and I think it's a danger that when technicians solely create what is the end deliverable tool, it frequently is very technical and it has to be consumable by the people that actually need to use it. And so you have to strike this balance between providing sufficient technical sophistication and business usability and I think that that's kind of a goal for being successful in implementing any kind of technology and certainly big data. >> Excellent. Well, Joe Goldberg, thank you so much for coming back to the Cube and joining my cohost, Peter Burris and I for this great chat. And people can watch your keynote on Thursday. >> Yes. >> This week, on the 15th of June. So again for my cohost Peter Burris. I am Lisa Martin. Thanks so much for watching the Cube live, again at day one of the DataWorks Summit. Stick around. We'll be right back. (upbeat music)

>> Narrator: Live from San Jose, in the heart of Silicon Valley, it's theCUBE! Covering Data Works Summit 2017. Brought to you by Hortonworks. >> Welcome back to theCUBE. I'm Lisa Martin with my co-host George Gilbert. We are live on day one of the Data Works Summit in San Jose in the heart of Silicon Valley. Great buzz in the event, I'm sure you can see and hear behind us. We're very excited to be joined by a couple of fellows from IBM. A very longstanding Hortonworks partner that announced a phenomenal suite of four new levels of that partnership today. Please welcome Asad Mahmood, Analytics Cloud Solutions Specialist at IBM, and medical doctor, and Linton Ward, Distinguished Engineer, Power Systems OpenPOWER Solutions from IBM. Welcome guys, great to have you both on the queue for the first time. So, Linton, software has been changing, companies, enterprises all around are really looking for more open solutions, really moving away from proprietary. Talk to us about the OpenPOWER Foundation before we get into the announcements today, what was the genesis of that? >> Okay sure, we recognized the need for innovation beyond a single chip, to build out an ecosystem, an innovation collaboration with our system partners. So, ranging from Google to Mellanox for networking, to Hortonworks for software, we believe that system-level optimization and innovation is what's going to bring the price performance advantage in the future. That traditional seamless scaling doesn't really bring us there by itself but that partnership does. >> So, from today's announcements, a number of announcements that Hortonworks is adopting IBM's data science platforms, so really the theme this morning of the keynote was data science, right, it's the next leg in really transforming an enterprise to be very much data driven and digitalized. We also saw the announcement about Atlas for data governance, what does that mean from your perspective on the engineering side? >> Very exciting you know, in terms of building out solutions of hardware and software the ability to really harden the Hortonworks data platform with servers, and storage and networking I think is going to bring simplification to on-premises, like people are seeing with the Cloud, I think the ability to create the analyst workbench, or the cognitive workbench, using the data science experience to create a pipeline of data flow and analytic flow, I think it's going to be very strong for innovation. Around that, most notable for me is the fact that they're all built on open technologies leveraging communities that universities can pick up, contribute to, I think we're going to see the pace of innovation really pick up. >> And on that front, on pace of innovation, you talked about universities, one of the things I thought was really a great highlight in the customer panel this morning that Raj Verma hosted was you had health care, insurance companies, financial services, there was Duke Energy there, and they all talked about one of the great benefits of open source is that kids in universities have access to the software for free. So from a talent attraction perspective, they're really kind of fostering that next generation who will be able to take this to the next level, which I think is a really important point as we look at data science being kind of the next big driver or transformer and also going, you know, there's not a lot of really skilled data scientists, how can that change over time? And this is is one, the open source community that Hortonworks has been very dedicated to since the beginning, it's a great it's really a great outcome of that. >> Definitely, I think the ability to take the risk out of a new analytical project is one benefit, and the other benefit is there's a tremendous, not just from young people, a tremendous amount of interest among programmers, developers of all types, to create data science skills, data engineering and data science skills. >> If we leave aside the skills for a moment and focus on the, sort of, the operationalization of the models once they're built, how should we think about a trained model, or, I should break it into two pieces. How should we think about training the models, where the data comes from and who does it? And then, the orchestration and deployment of them, Cloud, Edge Gateway, Edge device, that sort of thing. >> I think it all comes down to exactly what your use case is. You have to identify what use case you're trying to tackle, whether that's applicable to clinical medicine, whether that's applicable to finance, to banking, to retail or transportation, first you have to have that use case in mind, then you can go about training that model, developing that model, and for that you need to have a good, potent, robust data set to allow you to carry out that analysis and whether you want to do exploratory analysis or you want to do predictive analysis, that needs to be very well defined in your training stage. Once you have that model developed, then we have certain services, such as Watson Machine Learning, within data science experience that will allow you to take that model that you just developed, just moments ago, and just deploy that as a restful API that you can then embed into an application and to your solution, and in that solution you can basically use across industry. >> Are there some use cases where you have almost like a tiering of models where, you know, there're some that are right at the edge like, you know, a big device like a car and then, you know, there's sort of the fog level which is the, say, cell towers or other buildings nearby and then there's something in the Cloud that's sort of like, master model or an ensemble of models, I don't assume that's like, Evel Knievel would say you know, "Don't try that at home," but sort-of, is the tooling being built to enable that? >> So the tooling is already in existence right now. You can actually go ahead right now and be able to build out prototypes, even full-level, full-range applications right on the Cloud, and you can do that, you can do that thanks to Data Science Experience, you can do that thanks to IBM Bluemix, you can go ahead and do that type of analysis right there and not only that, you can allow that analysis to actually guide you along the path from building a model to building a full-range application and this is all happening on the Cloud level. We can talk more about it happening on on-premise level but on the Cloud level specifically, you can have those applications built on the fly, on the Cloud and have them deployed for web apps, for moblie apps, et cetera. >> One of the things that you talked about is use cases in certain verticals, IBM has been very strong and vertically focused for a very long time, but you kind of almost answered the question that I'd like to maybe explore a little bit more about building these models, training the models, in say, health care or telco and being able to deploy them, where's the horizontal benefits there that IBM would be able to deliver faster to other industries? >> Definitely, I think the main thing is that IBM, first of all, gives you that opportunity, that platform to say that hey, you have a data set, you have a use case, let's give you the tooling, let's give you the methodology to take you from data, to a model, to ultimately that full range application and specifically, I've built some applications specific to federal health care, specifically to address clinical medicine and behavioral medicine and that's allowed me to actually use IBM tools and some open source technologies as well to actually go out and build these applications on the fly as a prototype to show, not only the realm, the art of the possible when it comes to these technologies, but also to solve problems, because ultimately, that's what we're trying to accomplish here. We're trying to find real-world solutions to real-world problems. >> Linton, let me re-direct something towards you about, a lot of people are talking about how Moore's law slowing down or even ending, well at least in terms of speed of processors, but if you look at the, not just the CPU but FPGA or Asic or the tensor processing unit, which, I assume is an Asic, and you have the high speed interconnects, if we don't look at just, you know what can you fit on one chip, but you look at, you know 3D what's the density of transistors in a rack or in a data center, is that still growing as fast or faster, and what does it mean for the types of models that we can build? >> That's a great question. One of the key things that we did with the OpenPOWER Foundation, is to open up the interfaces to the chip, so with NVIDIA we have NVLink, which gives us a substantial increase in bandwidth, we have created something called OpenCAPI, which is a coherent protocol, to get to other types of accelerators, so we believe that hybrid computing in that form, you saw NVIDIDA on-stage this morning, and we believe especially for deploring the acceleration provided for GPUs is going to continue to drive substantial growth, it's a very exciting time. >> Would it be fair to say that we're on the same curve, if we look at it, not from the point of view of, you know what can we fit on a little square, but if we look at what can we fit in a data center or the power available to model things, you know Jeff Dean at Google said, "If Android users "talk into their phones for two to three minutes a day, "we need two to three times the data centers we have." Can we grow that price performance faster and enable sort of things that we did not expect? >> I think the innovation that you're describing will, in fact, put pressure on data centers. The ability to collect data from autonomous vehicles or other N points is really going up. So, we're okay for the near-term but at some point we will have to start looking at other technologies to continue that growth. Right now we're in the throws of what I call fast data versus slow data, so keeping the slow data cheaply and getting the fast data closer to the compute is a very big deal for us, so NAND flash and other non-volatile technologies for the fast data are where the innovation is happening right now, but you're right, over time we will continue to collect more and more data and it will put pressure on the overall technologies. >> Last question as we get ready to wrap here, Asad, your background is fascinating to me. Having a medical degree and working in federal healthcare for IBM, you talked about some of the clinical work that you're doing and the models that you're helping to build. What are some of the mission critical needs that you're seeing in health care today that are really kind of driving, not just health care organizations to do big data right, but to do data science right? >> Exactly, so I think one of the biggest questions that we get and one of the biggest needs that we get from the healthcare arena is patient-centric solutions. There are a lot of solutions that are hoping to address problems that are being faced by physicians on a day-to-day level, but there are not enough applications that are addressing the concerns that are the pain points that patients are facing on a daily basis. So the applications that I've started building out at IBM are all patient-centric applications that basically put the level of their data, their symptoms, their diagnosis, in their hands alone and allows them to actually find out more or less what's going wrong with my body at any particular time during the day and then find the right healthcare professional or the right doctor that is best suited to treating that condition, treating that diagnosis. So I think that's the big thing that we've seen from the healthcare market right now. The big need that we have, that we're currently addressing with our Cloud analytics technology which is just becoming more and more advanced and sophisticated and is trending towards some of the other health trends or technology trends that we have currently right now on the market, including the Blockchain, which is tending towards more of a de-centralized focus on these applications. So it's actually they're putting more of the data in the hands of the consumer, of the hands of the patient, and even in the hands of the doctor. >> Wow, fantastic. Well you guys, thank you so much for joining us on theCUBE. Congratulations on your first time being on the show, Asad Mahmood and Linton Ward from IBM, we appreciate your time. >> Thank you very much. >> Thank you. >> And for my co-host George Gilbert, I'm Lisa Martin, you're watching theCUBE live on day one of the Data Works Summit from Silicon Valley but stick around, we've got great guests coming up so we'll be right back.

>> Announcer: Live, from San Jose, in the heart of Silicon Valley, it's The Cube, covering DataWorks Summit 2017. Brought to you by Hortonworks. >> Welcome back to The Cube. We are live at DataWorks Summit 2017. I'm Lisa Martin with my cohost, George Gilbert. We've just come from this energetic, laser light show infused keynote, and we're very excited to be joined by one of the keynotes today, the CTO of Hortonworks, Scott Gnau. Scott, welcome back to The Cube. >> Great to be here, thanks for having me. >> Great to have you back here. One of the things that you talked about in your keynote today was collaboration. You talked about the modern data architecture and one of the things that I thought was really interesting is that now where Horton Works is, you are empowering cross-functional teams, operations managers, business analysts, data scientists, really helping enterprises drive the next generation of value creation. Tell us a little bit about that. >> Right, great. Thanks for noticing, by the way. I think the next, the important thing, kind of as a natural evolution for us as a company and as a community is, and I've seen this time and again in the tech industry, we've kind of moved from really cool breakthrough tech, more into a solutions base. So I think this whole notion is really about how we're making that natural transition. And when you think about all the cool technology and all the breakthrough algorithms and all that, that's really great, but how do we then take that and turn it to value really quickly and in a repeatable fashion. So, the notion that I launched today is really making these three personas really successful. If you can focus, combining all of the technology, usability and even some services around it, to make each of those folks more successful in their job. So I've broken it down really into three categories. We know the traditional business analyst, right? They've Sequel and they've been doing predictive modeling of structured data for a very long time, and there's a lot of value generated from that. Making the business analyst successful Hadoop inspired world is extremely valuable. And why is that? Well, it's because Hadoop actually now brings a lot more breadth of data and frankly a lot more depth of data than they've ever had access to before. But being able to communicate with that business analyst in a language they understand, Sequel, being able to make all those tools work seamlessly, is the next extension of success for the business analyst. We spent a lot of time this morning talking about data scientists, the next great frontier where you bring together lots and lots and lots and lots of data, for instance, Skin and Math and Heavy Compute, with the data scientists and really enable them to go build out that next generation of high definition kind of analytics, all right, and we're all, certainly I am, captured by the notion of self-driving cars, and you think about a self-driving car, and the success of that is purely based on the successful data science. In those cameras and those machines being able to infer images more accurately than a human being, and then make decisions about what those images mean. That's all data science, and it's all about raw processing power and lots and lots and lots of data to make those models train and more accurate than what would otherwise happen. So enabling the data scientist to be successful, obviously, that's a use case. You know, certainly voice activated, voice response kinds of systems, for better customer service; better fraud detection, you know, the cost of a false positive is a hundred times the cost of missing a fraudulent behavior, right? That's because you've irritated a really good customer. So being able to really train those models in high definition is extremely valuable. So bringing together the data, but the tool set so that data scientists can actually act as a team and collaborate and spend less of their time finding the data, and more of their time providing the models. And I said this morning, last but not least, the operations manager. This is really, really, really important. And a lot of times, especially geeks like myself, are just, ah, operations guys are just a pain in the neck. Really, really, really important. We've got data that we've never thought of. Making sure that it's secured properly, making sure that we're managing within the regulations of privacy requirements, making sure that we're governing it and making sure how that data is used, alongside our corporate mission is really important. So creating that tool set so that the operations manager can be confident in turning these massive files of data to the business analyst and to the data scientist and be confident that the company's mission, the regulation that they're working within in those jurisdictions are all in compliance. And so that's what we're building on, and that stack, of course, is built on open source Apache Atlas and open source Apache Ranger and it really makes for an enterprise grade experience. >> And a couple things to follow on to that, we've heard of this notion for years, that there is a shortage of data scientists, and now, it's such a core strategic enabler of business transformation. Is this collaboration, this team support that was talked about earlier, is this helping to spread data science across these personas to enable more of the to be data scientists? >> Yeah, I think there are two aspects to it, right? One is certainly really great data scientists are hard to find; they're scarce. They're unique creatures. And so, to the extent that we're able to combine the tool set to make the data scientists that we have more productive, and I think the numbers are astronomical, right? You could argue that, with the wrong tool set, a data scientist might spend 80% or 90% of his or her time just finding the data and only 10% working on the problem. If we can flip that around and make it 10% finding the data and 90%, that's like, in order of magnitude, more breadth of data science coverage that we get from the same pool of data scientists, so I think that from an efficiency perspective, that's really huge. The second thing, though, is that by looking at these personas and the tools that we're rolling out, can we start to package up things that the data scientists are learning and move those models into the business analysts desktop. So, now, not only is there more breadth and depth of data, but frankly, there's more depth and breadth of models that can be run, but inferred with traditional business process, which means, turning that into better decision making, turning that into better value for the business, just kind of happens automatically. So, you're leveraging the value of data scientists. >> Let me follow that up, Scott. So, if the, right now the biggest time sync for the data scientist or the data engineer is data cleansing and transformation. Where do the cloud vendors fit in in terms of having trained some very broad horizontal models in terms of vision, natural language understanding, text to speech, so where they have accumulated a lot of data assets, and then they created models that were trained and could be customized. Do you see a role for, not just mixed gen UI related models coming from the cloud vendors, but for other vendors who have data assets to provide more fully baked models so that you don't have to start from scratch? >> Absolutely. So, one of the things that I talked about also this morning is this notion, and I said it this morning, kind of opens where open community, open source, and open ecosystem, I think it's now open to the third power, right, and it's talking about open models and algorithms. And I think all of those same things are really creating a tremendous opportunity, the likes of which we've not seen before, and I think it's really driving the velocity in the market, right, so there's no, because we're collaborating in the open, things just get done faster and more efficiently, whether it be in the core open source stuff or whether it be in the open ecosystem, being able to pull tools in. Of course, the announcement earlier today, with IBMs Data Science Experience software as a framework for the data scientists to work as a team, but that thing in and of itself is also very open. You can plug in Python, you can plug in open source models and libraries, some of which were developed in the cloud and published externally. So, it's all about continued availability of open collaboration that is the hallmark of this wave of technology. >> Okay, so we have this issue of how much can we improve the productivity with better tools or with some amount of data. But then, the part that everyone's also point out, besides the cloud experience, is also the ability to operationalize the models and get them into production either in Bespoke apps or packaged apps. How's that going to sort of play out over time? >> Well, I think two things you'll see. One, certainly in the near term, again, with our collaboration with IBM and the Data Science Experience. One of the key things there is not only, not just making the data scientists be able to be more collaborative, but also the ease of which they can publish their models out into the wild. And so, kind of closing that loop to action is really important. I think, longer term, what you're going to see, and I gave a hint of this a little bit in my keynote this morning, is, I believe in five years, we'll be talking about scalability, but scalability won't be the way we think of it today, right? Oh, I have this many petabytes under management, or, petabytes. That's upkeep. But truly, scalability is going to be how many connected devices do you have interacting, and how many analytics can you actually push from model perspective, actually out to the center or out to the device to run locally. Why is that important? Think about it as a consumer with a mobile device. The time of interaction, your attention span, do you get an offer in the right time, and is that offer relevant. It can't be rules based, it has to be models based. There's no time for the electrons to move from your device across a power grid, run an analytic and have it come back. It's going to happen locally. So scalability, I believe, is going to be determined in terms of the CPU cycles and the total interconnected IOT network that you're working in. What does that mean from your original question? That means applications have to be portable, models have to be portable so that they can execute out to the edge where it's required. And so that's, obviously, part of the key technology that we're working with in Portworks Data Flow and the combination of Apache Nifi and Apache Caca and Storm to really combine that, "How do I manage, not only data in motion, but ultimately, how do I move applications and analytics to the data and not be required to move the data to the analytics?" >> So, question for you. You talked about real time offers, for example. We talk a lot about predicted analytics, advanced analytics, data wrangling. What are your thoughts on preemptive analytics? >> Well, I think that, while that sounds a little bit spooky, because we're kind of mind reading, I think those things can start to exist. Certainly because we now have access to all of the data and we have very sophisticated data science models that allow us to understand and predict behavior, yeah, the timing of real time analytics or real time offer delivery, could actually, from our human being perception, arrive before I thought about it. And isn't that really cool in a way. I'm thinking about, I need to go do X,Y,Z. Here's a relevant offer, boom. So it's no longer, I clicked here, I clicker here, I clicked here, and in five seconds I get a relevant offer, but before I even though to click, I got a relevant offer. And again, to the extent that it's relevant, it's not spooky. >> Right. >> If it's irrelevant, then you deal with all of the other downstream impact. So that, again, points to more and more and more data and more and more and more accurate and sophisticated models to make sure that that relevance exists. >> Exactly. Well, Scott Gnau, CTO of Hortonworks, thank you so much for stopping by The Cube once again. We appreciate your conversation and insights. And for George Gilbert, I am Lisa Martin. You're watching The Cube live, from day one of the DataWorks Summit in the heart of Silicon Valley. Stick around, though, we'll be right back.

>> Announcer: Live from Munich, Germany, it's The CUBE, covering DataWorks Summit Europe 2017. Brought to you by Heartenworks. >> Okay, welcome back everyone, we are here live in Munich, Germany For DataWorks 2017, the DataWorks Summit, formally Hadoop Summit. I'm John Furrier with Silicone Angle's theCUBE, my co-host Dave Vellante, wrapping up day two of coverage here with Christoph Schubert, who's the Senior Director of SAP Big Data, handles all the go-to-market for SAP Big Data, @sapbigdata is the Twitter handle. You have a great shirt there, Go Live >> Go Live or go home. (Laughs) >> John: You guys are a part. Welcome to theCUBE. >> Christoph: Thank you, I appreciate it. >> Thanks for joining us and on the wrap up. You and I have known each other, we've known each other for a long time. We've been in many Sapphires together, we've had many conversations around the role of data, the role of architecture, the role of how organizations are transforming at the speed of business, which is SAP, it's a lot of software that powers business, under transformation right now. You guys are no stranger to analytics, we have the HANA Cloud Platform now. >> Christoph: We know a thing or two about that, yeah. (laughs) >> You know a little bit about data and legacy as well. You guys power pretty much most of the Fortune 100, if not all of them. What's your thoughts on this? >> Yeah, good point. On the topic of some numbers, about 75% of the world GDP runs through SAP systems eventually. So yes, we know a thing or two about transactional and analytical systems, definitely. >> John: And you're a partner with Hortonworks >> With Hortonworks and other Cloud providers, Hadoop Providers, certainly, absolutely but in this case, Hortonworks. We have, specifically, a solution that runs on Hadoop Spark and that allows, actually, our customers to unify much, much larger data sets with a system of records that we now do so many of them around the world for new and exciting new cases. >> And you were born in Munich. This is your hometown. >> This is actually a home gig for me, exactly. So, yes, unfortunately I'll also be presenting in English but yeah, I want to talk German, Bavarian, all the time. (laughs) >> I see my parents tonight. >> I wish we could help you >> but we don't speak Bavarian. But we do like to drink the beer though. It's the fifth season but a lot of great stuff here in Germany. Dave, you guys, I want to get your thoughts on something. I wanted to get you, just 'cause you're both, you're like an analyst, Christoph as well. I know you're over at SAP but, you know, you have such great industry expertise and Dave obviously covers the stuff everyday. I just think that the data world is so undervalued, in my mind. I think the ecosystem of startups that are coming out in the, out of the open source ecosystems, which are well-defined, by the way, and getting better. But now you have startups doing things like VIMTEC, we just had a bank on. Startups creating value and things like block chain on the horizon. Other new paradigms are coming on, is going to change the landscape of how wealth is created and value is created and charged. So, you've got a whole new tsunami of change. What's your thoughts on how this expands and obviously, certainly, Hortonworks as a public company and Cloudera is going public, so you expect to see that level up in valuation. >> They're in the process, yes. >> But I still think they're both undervalued. Your thoughts. >> Well it's not just the platform, right? and that what, I think, where Hadoop also came from. The legacy of Hadoop is that you don't have to really think about how you want to use your data. You have to, don't think ahead what kind of schema you want to apply and how you want to correlate your data. You can create a large data lake, right? That's the term that was created a long time ago, that allows customers to just collect all that data and think in the second stage about what to use with it and how to correlate it. And that's exactly, now, we're also seeing in the third stage, to not just create analytics but also creating applications instead of analytics or on top of analytics, correlating with data that also drives the business, the core business, from an OLTP perspective or also from an OLAP perspective. >> I mean, Dave, you were the one who said Amazon's a trillion dollar TAM, will be the first trillion dollar company and you were kind of, but you looked at the thousand points of Live with Cloud enables, all these aggregated all together, what's your thoughts on valuation of this industry? Because if Hortonworks continues on this peer play and they've got Cloudera coming in and they're doing well, you could argue that they're both undervalued companies if you count the ecosystem. >> Well, we always knew that big data was going to be a heavy lift, right? And I would agree with what Christoph was saying, was that Hadoop is profound in that it was no schema on right and ship five magabytes of code to a pedabyte of data. But it was hard to get that right. And I remember something you said, John, at one of our early SAP Sapphires, When the big data meme was just coming through. You said, "You know, SAP is not just big data, it's fast data". And you were talking about bringing transaction and analytic data together. >> John: Right. >> Again, something that has only recently been enabled. And you think about, you know, continuous streaming. I think that, now, big data has sort of entered the young-adulthood phase, we're going to start seeing steep part of that S-curve returns, and I think the hype will be realized. I think it is undervalued, much like the internet was. It was overvalued, then nobody wanted to touch it, and then it became. Actually, if you think back to 1999, the internet was undervalued in terms of what it actually achieved. >> John: Yeah. >> I think the same or similar thing is going to happen with big data. And since we have an SAP guest on, I'll say as well, We all remember the early days of ERP. >> Mhm, oh yeah. >> It wasn't clear >> Nope. >> Who was going to emerge as the king. >> Right. >> There were a few solutions. You're right. >> That's right. And, as well, something else we said about big data, it was the practitioners of ERP that made the most money, that created the most value and the same thing is happening here. >> Yeah. In fact, on that topic, I believe that 2017 and 2018 will be the big years for big data, so to speak. >> John: Uh huh. >> In fact, because of some statistics. >> John: In what way? >> Well, we just did >> Adoption, S-curve? >> Right, exactly. Utilizing the value of big data. You're talking about valuation here, right? 75% of CEOs of the top 1000 believe that the next three years are more important to their business than the last 50. And so that tells me that they're willing to invest. Not just the financial market, where I believe really run the most sophisticated big data analytics and models today. They had real use cases with real results very quickly. And so, they showed many how it's done. They created sort of the new role of a data scientist. They have roles like an AML officer. It's a real job, they do nothing else but anti-money laundering, right? So, in that industry they've shown us how to do that and I think others will follow. >> Yeah, and I think that when you look at this whole thing about digital transformation, it's all about data. >> John: Yeah. >> I mean, if you're serious about digital transformation, you must become a data-driven company and you have to hop on that curb. Even if you're talking to the, you know, bank today who got on in 2014, which was relatively late, but the pace at which they're advancing is astronomical. >> John: Yeah. >> I don't remember his name, a British mathematician, created, about 11 years already, that according to the phrase "Data is the new oil". >> John: Mhm. >> And I think it's very true because crude oil, in its original form, you also can't use it. >> John: It has to be refined. >> Right, exactly. It has to be refined to actually use it and use the value of it. Same thing with data. You have to distill it, you have to correlate it, you have to align it, you have to relate it to business transactions so the business really can take advantage of it. >> And then we're seeing, you know, to your point, you've got, I don't know, a list of big data companies that are now in public is growing. It's still small, not much profit. >> I mean, I just think, and this is while I'm getting your reaction, I mean, I'm just reading right now some news popping on my dashboard. Google just released some benchmarks on the TPU, the transistor processing unit, >> Dave: Right. >> Basically a chip dedicated to machine learning. >> Yep. >> You know, so, you're going to start to see some abstraction layers develop, whether it's a hardened-top processor hardware, you guys have certainly done innovation on the analytic side, we've seen that with some of the specialty apps. Just to make things go faster. I mean, so, more and more action is coming, so I would agree that this S-curve is coming. But the game might shift. I mean, this is not an easy, clear path. There's bets being made in big data and there's potential for huge money shift, of value. >> See, one of the things I see, and we talked to Hortonworks about this, the new president, you know, betting all on open source. I happen to think a hybrid model is going to win. I think the rich get richer here. SAP, IBM, even Oracle, you know, they can play the open source game and say, "Hey, we're going to contribute to open source, we're going to participate, we're going to utilize open source, but we're also going to put the imprimatur of our install base, our business model, our trusted brands behind so-called big data." We don't really use that term as much anymore. It's the confluence of not only the technology but the companies who, what'd you say, 75% of the world's transactions run though SAP at some point? >> Christoph: Yeah. >> With companies like SAP behind it, and others, that's when this thing, I think, really takes off. >> What I think a lot of people don't realize, and I've been a customer, also, for a long time before I joined the vendor side, and what is under-realized is the aspect of risk management. Once you have a system and once you have business processes digitized and they run your business, you can't introduce radical changes overnight as quickly anymore as you'd like or your business would like. So, risk management is really very important to companies. That's why you see innovation within organizations not necessarily come from the core digitization organization within their enterprise, it often happens on the outside, within different business units that are closer to the product or to the customer or something. >> Something else that's happening, too, that I wanted to address is this notion of digitization, which is all about data, allows companies to jump industries. You're seeing it everywhere, you're seeing Amazon getting into content, Apple getting into financial services. You know, there's this premise out there that Uber isn't about taxicabs, it's about logistics. >> John: Yeah. >> And so you're seeing these born-digital, born in the cloud companies now being able to have massive impacts across different industries. Huge disruption creates, you know, great opportunities, in my view. >> Christoph: Yeah. >> David: What do you think? >> I mean, I just think that the disruption is going to be brutal, and I want to, I'm trying to synthesize what's happening in this show, and you know, you're going to squint through all the announcements and the products, really an upgrade to 2.6, a new data platform. But here in Europe the IOT thing just, to me, is a catalyst point because it's really a proof point to where the value is today. >> David: Mhm. >> That people can actually look at and say, "This is going to have an impact on our business tier digitization point" and I think IOT is pulling the big data industry and cloud together. And I think machine learning and things that come over the top on it are only going to make it go faster. And so that intersection point, where the AI, augmented intelligence, is going to come in, I think that's where you're going to start to see real proof points on value proposition of data. I mean, right now it's all kind of an inner circle game. "Oh yeah, got to get the insights, optimize this process here and there" and so there's some low hanging fruit, but the big shifting, mind blowing, CEO changing strategies will come from some bigger moves. >> To that point, actually, two things I want to mention that SAP does in that space, specifically, right? Startups, we have a program actually, SAP.io, that Bill McDermont also recently introduced again, where we invest in startups in this space to help foster innovation faster, right? And also connecting that with our customers. >> John: What is it called? >> SAP.io Something to look out for. And on the topic of IOT, we made, also, an announcement at the beginning of the year, Project Leonardo. >> Yeah. >> It's a commitment, it's a solution set, and it's also an investment strategy, right? We're committed in this market to invest, to create solutions, we have solutions already in the cloud and also in primus. There are a few companies we also purchased in conjunction with Loeonardo, RT specifically. Some of our customers in the manufacturing space, very strong opportunity for IOT, sensor collection, creating SLAs for robotics on the manufacturing floor. For example, we have a complete solution set to make that possible and realize that for our customers and that's exactly a perfect example where these sensor applications in IOT, edge, compute rich environments come together also with a core where, then, a system of references like machine points, for example, matter because if you manage the SLA for a machine, for example, you just not only monitor it, you want to also automatically trigger the replacement of a part, for example, and that's why you need an SAP component, as well. So, in that space, we're heavily investing, as well. >> The other think I want to say about IOT is, I see it, I mean, cloud and big data have totally disrupted the IT business. You've seen Dell buying EMC, HP had to get out of the cloud business, Oracle pivoted to the cloud, SAP obviously, going hard after the cloud. Very, very disruptive, those two trends. I see IOT as not necessarily disruptive. I see those who have the install base as adopting IOT and doing very, very well. I think it's maybe disruptive to the economy at large, but I think existing companies like GE, like Siemens, like Dimar, are going to do very, very well as a result of IOT. I mean, to the extent they embrace digitization, which they would be crazy not to. >> Alright guys, final thoughts. What's your walkaway from this show? Dave, we'll start with you. >> I was going to say, you know, Hadoop has definitely not failed, in my mind, I think it's been wildly successful. It is entering this new phase that I call sort of young-adulthood and I think it's, we know it's gone mainstream into the enterprise, now it's about, okay, how do I really drive the value of data, as we've been discussing, and hit that steep part of the S-curve. Which, I agree, it's going to be within the next two years, you're going to start to see massive returns. And I think this industry is going to be realized, looked back, it was undervalued in 2017. >> Remember how long it took to align on TCP/IP? (laughter) >> Walk away, I mean interoperability was key with TCP/IP. >> Christoph: Yeah. One of the things that made things happen. >> I remember talking about it. (laughter) >> Yeah, two megabits per second. Yeah, but I mean, bringing back that, what's your walkaway? Because is it a unification opportunity? Is it more of an ecosystem? >> A good friend of mine, also at SAP on the West Coast, Andreas Walter, he shared an observation that he saw in another presentation years ago. It was suits versus hoodies. Different kind of way to run your IT shop, right? Top-down structure, waterfall projects, and suits, open source, hack it, quickly done, you know, get in, walk away, make money. >> Whoa, whoa, whoa, the suits were the waterfall, hoodies was the agile. >> Christoph: That's correct. >> Alright, alright, okay. >> Christoph: Correct. So, I think that it's not just the technology that's coming together, it's mindsets that are coming together. And I think organizationally for companies, that's the bigger challenge, actually. Because one is very subscribed, change control oriented, risk management aware. The other is very progressive, innovative, fast adopters. That these two can't bring those together, I think that's the real challenge in organizations. >> John: Mhm, yeah. >> Not the technology. And on that topic, we have a lot of very intelligent questions, very good conversations, deep conversations here with the audience at this event here in Munich. >> Dave, my walkaway was interesting because I had some preconceived notions coming in. Obviously, we were prepared to talk about, and because we saw the S1 File by Cloudera, you're starting to see the level of transparency relative to the business model. One's worth one billion dollars in private value, and then Hortonworks pushing only 2700 million in a public market, which I would agree with you is undervalued, vis a vis what's going on. So obviously, you're going to see my observation coming in from here is that I think that's going to be a haircut for Cloudera. The question is how much value will be chopped down off Cloudera, versus how much value of Hortonworks will go up. So the question is, does Cloudera plummit, or does Cloudera get a little bit of a haircut or stay and Hortonworks rises? Either way, the equilibrium in the industry will be established. The other option would be >> Dave: I think the former and the numbers are ugly, let's not sugarcoat it. And so that's got to change in order for this prediction that we're making. >> John: Former being the haircut? >> Yeah, the haircut's going to happen, I think. But the numbers are really ugly. >> But I think the question is how far does it drop and how much of that is venture. >> Sure. >> Venture, arbitrage, or just how they are capitalized but Hortonworks could roll up. >> But my point is that those numbers have to change and get better in order for our prediction to come true. Okay, so, but in your second talk, sorry to interrupt you but >> No, I like a debate and I want to know where that line is. We'll be watching. >> Dave: Yeah. >> But the value in, I think you guys are pointing out but I walk away, is IOT is bigger here, and I already said that, but I think the S-curve is, you're right on. I think you're going to start to see real, fast product development around incorporating data, whether that's a Hortonworks model, which seems to be the nice unifying, partner-oriented one, that's going to start seeing specialized hardware that people are going to start building chips for using flash or other things, and optimizing hard complexities. You pointed that out on the intro yesterday. And putting real product value on the table. I think the cards are going to start hitting the table in ecosystem, and what I'm seeing is that happening now. So, I think just an overall healthy ecosystem. >> Without a doubt. >> Okay. >> Great. >> Any final comments? >> Let's have a beer. >> Great to see you in Munich. (laughter) >> We'll have a beer, we had a pig knuckle last night, Dave. We had some sauerkraut. >> Christoph: (speaks foreign word) >> Yeah, we had the (speaks foreign word). Dave, we'll grab the beer, thanks. Good to be with you again. Thanks to the crew, thanks to everyone watching. >> Thanks, John. >> The CUBE, signing off from Munich, Germany for DataWorks 2017. Thanks for watching, see ya next time. (soft techno music)