>> From the Aria Resort in Las Vegas, it's theCUBE. Covering AWS Marketplace. Brought to you by Amazon Web Services. >> Hey welcome back everybody, Jeff Frick here with theCUBE, we're at AWS re:Invent in Las Vegas, I don't know, 50,000, 60,000. I can't wait 'til the number comes in, there's a lot of people at this event. Been coming for years, we actually have nine days of coverage here spread out over three sets in four different locations, but we're kickin' it off tonight, at the AWS Marketplace and Service Catalog event here at the Aria. Come on by there's no lines over here. I'm sure there's giant lines over at the Sands. We're excited to see an old friend and make a new friend, and talk about the service catalogs from some of the experts and Dave Wright, Chief Innovation Officer from ServiceNow, has been on many, many times. >> I have. >> Dave great to see you. >> No, good to be here. >> And our new friend MaSonya Scott, she's Senior Business Development Manager, at AWS Service Catalog. >> Hi, how are you? >> Welcome. >> Thank you. >> So there's a lot of talk about service catalog. We know about the ServiceNow Service Catalog. We got the AWS Service Catalog. But now you guys have brought these two things together. >> Yes. >> Why did you bring it together? How did it happen? How did we get here today? >> So, AWS, 95% of our features are based on what customer feedback. And so we were listening to our customers tell us that, hey it's your innovation in AWS Service Catalog, where you provide the governance, the guardrails, the launch constraints is great but we already have a service catalog with the ideas and tools such as ServiceNow and how can federate that ingest the details and information into ServiceNow so that we can do it in one place? So our developers don't have to swivel chair between two different systems. >> Right. >> So we listened to that feedback. Got requirements, started a proof of concept, and then we built on it and we're now on our third iteration. >> And Dave, what were you hearing your side of the chair? >> So we were getting, customers were coming to us saying they wanted a similar experience they were getting using regular service catalog. So they wanted a unified experience. They wanted the ability to have governance and control over what was happening. But most importantly they wanted us to integrate because they'd say, hey, you two are both strategic platforms for us. We don't want to go to the last mile after to aid the integration so you guys need to work together and sort it out. So, it was very much customer driven. It was customers that were saying, We want you guys to work together more closely. >> I love it. I just love the customer-centric nature because we hear it over and over again. >> Yes. >> And this is kind of a great example of a real instance. And you didn't really care, per se, whose was kind of on top. What are the logging into initially. >> Right. >> You just wanted to get the integration done. >> Yes. >> And it sounds like today, right now it's a ServiceNow log in and then it integrates with the AWS Service catalog-- >> Yes. >> Underneath. >> Right. So for the AWS Service Catalog we state the source of truth for all the resources, the products and the portfolios. And then we sync to ServiceNow Service Catalog through their scheduled job process and we expose products that the ServiceNow administrator wants their end-users to see. So they can order an iPhone and now they can order a web server. >> And where's the identity? Is that in the ServiceNow platform now in terms the rights and access that an individual person has inside of your catalog. >> So we have a scoped app in ServiceNow where you correlate the identities in AWS to a role in ServiceNow. >> Okay. >> So that's that. And then the best thing about the app is that the ServiceNow end users doesn't have direct access to the AWS console. >> Right. They just order what is a compliant, secure product product that they need to have. And then even in the AWS console, the connection only gives the end user role that's assumed access to the AWS Service Catalog. So not even direct resources to EC2 or S3. And so what that enables is that segregation of duty. >> Right. >> And so we put the permissions on the launch constraints and then they deplore products and then you can give the evidence in an audit to what you've provisioned. >> Okay. And then where is this in the life cycle? You said, I think we're kind of past POCs getting into production? >> Yeah our customers are starting to move to production, doing POCs, giving us feedback and as they give us more feedback, we're creating more releases. We've launched our third iteration of features last Monday, the 19th and what we did was we integrated not only just AWS Service Catalog but the ability through AWS Systems Manager to do SSM actions so if you provision a web server, now you can start, stop, reboot it. And so, then once you do that we create a change in ServiceNow's IT change management. So we're moving more from provisioning as well as into operational actions as well. >> So that's what was great for us was if you've got that point of initiation where you know something's happening, we can then update the CMDB in real time, we can start looking at software asset management so we can see what's deployed. And then we've also found this great use cases where we can look at how we actually map the service to then be able to use Amazon's cloud migration products to be able to speed up migrations as well. >> Yes. Yes, and so customers are not only just provisioning storage or EC2's but anything from a cloud formation template workspace, an Amazon workplace. >> Right. >> We can also send those requests through ServiceNow we got a lot of feedback on that. >> Right. >> We have sessions and builder projects today at re:Invent that are showing how that works. >> So it begs the question obviously down the road, you know will kind of the priority switch from the customer perspective? You know, will ServiceNow be integrated in through the marketplace of the service catalog and people access it through that way? >> I think there's no reason why it couldn't be at some point. The only challenge we have at the moment is obviously people using the service catalog to provision all kinds of things as well as AWS components >> Right, right. >> But if you're a core AWS shopper and that's what you're using everything for there's no reason why you couldn't flip that around. >> Right, I was just thinking you know what screen are you on all day, right? You know everybody wants your attention. They want that screen and if that's your work screen, that's your work screen so know you're opening this up, really adds a whole lot of power to the ServiceNow work screen that wasn't there before. >> We've always focused on can it change what the employee experience is like to just try and give them, ironically an Amazon-like experience. >> Yeah. (laughs) >> Before we said it's easy for me to order stuff in the real world for me to just get something from Amazon why couldn't I have exactly that same experience when I wanted to order any piece of IT equipment whether it be physical, virtual, peripherals, whatever. So that's why we're trying to change the experience but it's funny that it's come through that full circle of them going, oh, it would be good if it was like that, and then we end up working with these guys anyway. >> So did you get a cake? (laughing) >> Did I get a cake? I've seen many cakes in my career. But no, I think you need to send me a cake. >> We need to do it, get a go live cake. >> I know, I know >> Yeah you got to get a Go Live cake once you get that first one up and official and ready to roll. >> We ought to do that, take a picture. >> See your product manager. >> It's a huge tradition. It's one of the coolest things of the ServiceNow culture I have to say. >> Yes, yes, yes. >> All right. So any final words on this partnership beyond just continuing to make the improvements getting closer to production and build more functionality? Anything you want to highlight as you turn the calendar on 2018 and 2019's just around the corner? >> So we're looking to get feedback on not just provisioning but going through other management tool services and trying to see what the customers are looking for. So that's one of those key features is just building bigger not just AWS Service Catalog but a connector between the two platforms so that we can continue to create that synergy. >> Excellent. All right, well thanks for taking a few minutes of your day and we'll see you I think in May. (laughing) Is usually when we see you. And we see AWS, I think we had six shows this year. You guys just keep rolling. >> Yes. >> So thanks for taking a few minutes and have a terrific show. >> No great to be here. >> Thank you. >> All right, she's MaSonya, he's Dave and I'm Jeff, you're watching theCUBE. It's the AWS Marketplace Service Catalog Enterprise at the Aria, come on by. Thanks for watching. (upbeat music)

>> Live from Orlando, Florida, it's The CUBE, covering Cisco Live 2018 brought to you by Cisco, Netapp, and the CUBE's ecosystem partners. >> Hello everyone, welcome back. This is the CUBE live in Orlando for Cisco Live 2018, exclusive coverage, I'm John Furrier, cohost of the CUBE. Stu Miniman all week for three days and we have Dave Alante flying in as well, cohost for our kickoff of day two of our three days of coverage, great Dave, good to see you Stu. Good morning, so I think the big news obviously day one in the books. Cisco Live pumping on all cylinders. The parties, we saw great concert last night at the Cohesity party celebrating their 250 million in funding, but the real big news here is Cisco's moving up the stack and the business performance. Dave, you had a chance to scour the landscape last night and yesterday, what did you find out? What's going on with Cisco's business? >> Well the business wise, I mean, this company is actually doing quite well. It's a large company, 50 billion dollars, they're growing at four percent. You don't usually see growth, we've seen how many quarters in a row as IBM, you know, revenues declined. Cisco's reversed that trend and is growing. The other thing about Cisco is it brought about 60 billion dollars from overseas on the tax holiday, which is just amazing. The company is trying to shift its model, more toward a cloud-like model. Stu, you've made the point many times Cisco, like Dell, doesn't have a cloud. So they've got to create a cloud-like model, they've got to go multi-cloud, they've got to be an arms dealer for the cloud. So as a company that's 50 billion dollars, a 200 billion dollar plus market value, which is down from where they were in the halcyon days but still it's a 4X revenue multiple and they throw off over $10 billion dollars in free cash flow a year, so this company's very, very strong and John, we were talking last night about the angle and security and basically a programmable network infrastructure. To me, the big trend is it's all about the data. As the data explodes, the network gets a lot of pressure. >> You know, Stu, I want to get your thoughts on this because we talked on security last night. Talk about companies that have to pivot. Cisco is not pivoting in any capacity. They are dealing with networks that are running the internet, right? So Chuck Robbins just said, "Look it, "we have done a lot of great things" but they're dealing with so much security threats. It's encrypted traffic, they are dealing with a ton of activity so the relevance of Cisco is on an all time high. The opportunity is to take that relevance and build on top of it, and so, we're looking for some signals, Stu. What do you when you squint through the noise and look at Cisco's relevance, obviously you see they run networks. You're moving up the stack with Kubernetes and containers and DevNet's been a great indicator there's a rise of the new normal, but they gotta actually put it together, they got a community. Where is the change happening, Stu, in your opinion? >> Yes, so John, first of all I look at, we've been tracking Cisco's moves in open source for many years. Dave Wright, Lou Tucker, folks we've had on the CUBE. They're very involved in open stack, they're deeply involved, Kubernetes, Ishdio, Diane Greene on stage. So there was that seed of growth and change, but it didn't really push far enough. Where the critique I've had for Cisco and many of the other big legacy companies, is they haven't really embraced cloud as fast as they could. It's good to see where Cisco is and where they're trying to bring their ecosystem. The exciting stuff has been right here, in the DevNet zone. How many events do we go to and companies we talk to? "Oh we need to be relevant to all "these developers out there," well, Susie and her team here, they've got a platform, they've got 500 thousand developers on it. John, you and I interviewed one little startup's netnology. A buddy of mine, actually, Jason Ellerman, worked for this other company called Network to Code. They've got this whole little incubator section here in the DevNet zone. These are hardcore networking people helping to bridge that gap between the network and the developer world. It's open APIs, it's all the things we've been talking about and that really does set the stage for Cisco to help, not only itself, but it's very large channel and partner ecosystem move further into this new, cloud native world. >> I want to get your thoughts real quick. I know we've got to get in day two but, if you look at Cisco, they've done a lot of things early. The human network, they've had telepresence. So they've hit megatrends, but they misfired on timing. The timing-- >> IOT is another >> IOT, they misfired on timing. But again, they had the network to fall back on, which is a core asset and core competency. But if you look at the timing of what they're doing right now, as Pat Gelsinger would say, "You get on the right wave" and what DevNet, to me, proves, Stu, is your point, is that Cisco's on the Cloud Native wave and they have a clear visibility for their network engineers, not to feel like they're not relevant and they have to retrain to learn how to code. What's important and we talked about it yesterday, is that network engineers are instrumental powering. And they're the tier one people. Now, with Cloud Native, there's a path where they can extend their career, not pivot, or reset, it's just becoming more powerful. So if you can be a network engineer, and then code with Cloud Native, you've got the best of both worlds, the power base extends. It's not like "I need to be retrained, my job's going away." No, no, your job is expanding. This is what DevNet has tapped into with DevNet Create, your reaction. >> Well when cloud exploded, everybody wanted infrastructure as code, and to your point, Stu, you remember when IBM launched Bluemix, like "We need developers." You know, Dell, HPE, Lenovo, these companies don't have a strong developer community, even Oracle kinda lost its way with developers. Here comes Cisco allowing Cisco engineers to do infrastructure as code, it's a huge leverage, it's an amazing-- >> Yeah Oracle should take a playbook out of what Cisco's doing, Stu, your thoughts. >> Yeah, absolutely, there's a lot of training. One of the strengths, actually, if you look at this community, it's about training, we talked about it in our open yesterday, John, when you walk in, there's this giant bookstore, people are excited, it's their career and they've been hearing for the last five years, up, you know. Automations gonna kill your job. That the machines are gonna kill your job. They're jumping in and most of them, at least, are understanding that they need to adjust what they're doing, learn, move forward, and embrace some of these options. >> Well, and it's not just, as we were talking earlier, John, it's not just learning python as a generalist, it's applying it specifically to Cisco infrastructure and actually getting stuff done, moving from command line interfaces to a much more facile development environment. Driving value through developer productivity and increasing value up a stack. >> Yeah as Diane Greene said yesterday in the keynote from Google Cloud is mind blowing experiences. I think Cisco is in a great position, they got a lot of core things going on, it's a position of strength. Can they execute, can they secure that network security, can they have that extensibility and the programmability in the network I think is core. I think DevNet's an indicator. Everything else will fall into place, in my opinion, so, day two Dave, thanks for joining us. >> My pleasure, thanks for having me. >> We'll have Dave Alante in the CUBE throughout the day, he's also gonna go out and get some stories. Wrapping it up here on the intro, day two begins. This is the CUBE, thanks for watching. Be right back with more after this short break. (techno music)

>> Narrator: Live from Las Vegas, it's theCube covering ServiceNow Knowledge 2018. Brought to you by ServiceNow. >> Welcome back everyone to theCube's live coverage of ServiceNow Knowledge18 here in Las Vegas. I'm your host Rebecca Knight along with my cohost Dave Vellante. We're joined by Dave Wright. He is the chief innovation officer at ServiceNow. Thanks so much for coming on the program. >> It's a pleasure, always a pleasure. >> Good to see you again Dave. >> Good to see you as well. >> Yeah, you've been around the block. You've been around theCube a few times. >> Around the block, a bad way of putting it but yeah. (laughing) >> So chief innovation officer, we've had a lot of great new product launches at this show. What are you most excited about, and what are you already thinking about when you go back to your office? >> So I think what's been interesting to me is the different way of engaging now, we've got the concept of virtual agent technology and I don't just mean the fact that we've got virtual agents. The fact that it starts to give people alternatives and it gives people alternative ways to come into the system, whether it be through our interface or whether it be through someone else's interface, I start to wonder, what'll happen going forward as we get more and more bot type technologies out. How will you have that one interface that works with all those to get that information back of the chain? How will you almost have a single interface that allows you to connect to all these bots and solve your problems? Because the benefits kind of two fold. One is the bot technology you get from being a customer to coming in and actually doing a request. But the other is you'll eventually be able to take that same technology and apply it to the fulfilled user so the power user because if I'm doing something and I can have an agent that's helping me do it, almost like the agent assist concept, you saw this morning. If I can take that to a next level and have AI running on top of that, then I can make work easier for the people coming in but I can actually improve the people that are in the system and make them more effective. >> Go ahead. >> Go ahead, follow up please. >> No, I was just going to ask about, how you get your ideas? So you're here, you're interacting with customers, you're seeing how they're using your product. So is it interviewing customers to find out their pain points? Is it really just watching, I mean you're the chief innovation officer. How do you spark your own creativity? >> It's a really weird answer. I get most of it off kids, most of it off my kids. So I can tell you a story. We were in Barnes and Noble the other week and they had albums in the, plastic twelve inch albums. >> Rebecca: They're coming back. >> And they cost more than they use to. >> Dave Vellante: Yeah really. >> So I called the kids over, I said look, let's get educated. This is what I use to play music on. And now we moved to CD's and you guys miss CD's and this is why you guys buy music. Now I've got a 12 year old and seven year old. And the 12 year old was saying, well, we don't buy music. And I said yeah, and I thought, no you don't, you rent music. And then my youngest daughter said, why would you want to own a song forever? And I was like, this is interesting. We started having a discussion, >> These are deep, these are deep questions. >> It was while other kids we're over having a sleepover and they're all eating pizza and they were talking about the concept of having a job. They said, how do you decide what you want to do for the rest of your life and how do you do that? And we we're talking about how you do something, you get better. You go to another company, you get better at doing it. You go to another company. And one of them said, it sounds really boring just like doing the same thing. And then one of them had the best answer. She said, don't you think it's a waste of your time? And I said, why is it a waste? And she said, because if you're really good at something, why should you just do it for one company? And I was like, oh so, you're going to be a contactor. (laughing) But what I realize was because this whole generation don't need to own things, they just need to use things, so they don't need to know how to do something, they just know they want to do it. And they don't need to own something, they just need temporary access to it. Then it got me thinking when you talk about where could work go to. Do you get a whole concept of the gig economy becoming a gig enterprise. Because we've got a lot of people in work who've got all these different skills but we force them to do one job. And it might be that someone's doing a job but they've got skills that would be applicable outside of that job but they never get to use them. So have we seen the first generation arrive now where they expect everything to be tass based? And then it gives you control over your own career. Because then you say, well, actually I'm not good at this but I can start a bid for work. I can say to people, hey I'm only a three on a skills racing but if you don't need any complex, I'll take it cause I get to learn. So it's a whole new dynamic and I think when you ask whereabout ideas come from, some of the first stage ideas or the first horizon, I think they come form customers. Some of the second horizon, they come from people who aren't working. It's just trying to imagine how they all develop and whereabout that all goes. >> So you surround yourself with millennials? >> Not even millennials. >> Dave Vellante: They're kind of pre post millennials. >> Almost like the linksters, almost the people who've been born connected. It's definitely a Gen Z thing but it's beyond millennials. I think the millennials had a certain expectation around well it's kind of a negative connotation but before they were called millennials, people use to refer to it as the entitlement generation. And it wasn't because they were entitled, it was because they felt they just got access to everything. So it's like with my kids, they're kind of Gen Z and one of them is a linkster, but you never go to them and say, they never come to you and say, hey, I want to watch a movie and you go, great, let's go to Blockbuster's, let's rent it. They expect it to be just available on demand, available all the time. And that was what I think the kind of millennial generation started being entitled to access to data, then I think you went to the generation where it was everything always connected, no concept of banword. But now I think it's the, the real thing that's changing is the concept of ownership and I think that's where you start to see things like, will the car industry ever be the same because if you don't need to own a car because you're not driven by the same passions that people who own cars are driven by, it's just a way of communicating you don't need a garage on your house, you may as well park the car somewhere else. It comes when you need it. It can change the way cities are laid out. I mean there's so many different routes you can go down with this. >> SO how does that innovation, how does that knowledge that you gain get into ServiceNow products and services? >> That all comes back then to how you, how people are going to face new management dynamics or how people are going to manage things like IOT devices? How are people going to deal with managing work if it is a task based economy? How are people going to start to think about not just working in a system of record, or not just working in a system of engagements, but how are they going to start to build that mesh or that web that links all these different things together? And I think that's where our strand comes. Our strand comes in the ability to be able to link systems of records together. To link users with those backend systems, to be able to manage those complex work processes. That's kind of the core elements. Also I think when you look at what Fred Crasick when he built the platform and he had the whole work flow engine and it is that engine that's kind of the key pallet to the whole company. >> I think the metaphor of mesh, sometimes we talk about a matrix of digital services that becomes ubiquitous beyond a cloud of remote services, is really transforming to this mesh of digital capabilities that are everywhere that do things that Clouds don't do. They sense, they react, they respond, they read, they hear. It's an amazing time that we're entering in innovation. Andy McAfee and Erik Brynjolfsson when they wrote the book Second Machine Age talked about Moore's Law, power innovation but they also talked about the innovation curve reshaping from going from Linears Moore's Law which we've marched to the cadence of Moore's Law for decades in this industry to reshaping, to an expediential curve. And I wonder if we could get your thoughts. We've paused that it's accommodation of sort of data applying machine intelligence to that data and then leveraging Cloud economics at scale is really where the innovation is going to come from in the future. What are your thoughts on that? >> So let me try to understand the question. So you're talking about not actually the way that you've seen the growth from a process prospective but the way you actually see the growth from a machine learning capability being able to analyze that data? >> Applying that layer of machine learning. Maybe use that mesh metaphor, that top level. You know you've got horizontal technology services but then there's this new AI layer on top. The data is the fuel for that AI. >> Absolutely, I think it's the I think people can't even imagine what they can do with that data, people can't even contemplate some of the decisions they can make and it's when people start to look at things in completely different ways, it's when people start to say, well, if we apply machine learning to a user interface for example, could we come up with a better user interface because now if we understand how people interact with the system, could we actually build a better system? Or you see people starting to have this whole butterfly effect around the way that artificial intelligence works. So the best example I heard was from, I was actually at a convention with a girl called Louis Chang and she was talking to me about it. But they were speaking to hospitals. They we're talking about self drive cars and the application machine learning of being able to help cars drive. And they were saying the interest in knock on effect of this was a hospital saying it was going to be a real problem for them having self drive cars. And she said, why's it going to be a problem? And the problem was, if you look across the whole America you have about 20 people a day die because they can't get replacement organs. But 37 percent of the organs come from car crashes. So if you take car crashes out of the equation. So what they were investing in was actually looking at how they do cloning technology for organs. So no one would ever imagine (mumbled speaking) and this is going to improve cloning technology so much. And I think AI's in the same place. Everyone's using it in such a small area that they don't even see the potential of what they could do with it, they don't have any concept of what they could be starting to look at and how they could start to spot transvaterian people. Even on a base level, I was speaking to one of our customers the other night, and they managed to put an AI system in place that when they got a call in off the description of the call they could work out what the customer satisfaction was going to be and if it was going to be a bad satisfaction figure, they could preemp that and put different agents that were more skilled on that particular issue. And they said a few years ago all they were interested in was maybe one day we'll be able to categorize something asymmetrically. But now they can predict how well something's going to be resolved. >> It's very hard to predict isn't it? I mean who would of thought that Alexa would of emerged as one of the best if not the best natural language processing systems or that images of cats on the internet would lead to facial recognition in technology. >> That one especially. >> Could of never predicted that. So, but because you're such a clear thinker and a strategic thinker, I want to ask you to make some predictions. I'm going to run some things by you. You talked about autonomous vehicles for awhile. Do you believe that owning in the future, pick whatever time frame you want, that owning and driving your own car will become the exception? >> Yeah I think it will probably be the people who, well okay, so I definitely think driving your own car will become the exception. I think some people will always want that sense of ownership until we get to a generation that doesn't. I think they'll always be a hard core of people who do want to own and do want to drive and do want that experience, but I think you've already got the issue where congestion's such a level in most areas. Is there any enjoyment out of driving? So I love driving, I love sports cars, I collect them. But if someone said, hey you've got two options, you can sit in a high performance sports car to go to LA or you can sit in a Tesla and it will drive itself and you can read a book. I'm getting in the Tesla. (laughing) >> How about retail? Right for disruption, do you think that large retail stores will essentially, not essentially, it's never complete, but will largely go away? >> I think it depends on the nature of the experience. So I think for a lot of goods that are consumable goods, I can kind of see that going away. I don't think it will go away for luxury goods. I don't think it will go away fully for fashion. I think people always like to look at things and understand things and check fits but for some things that are high consumables maybe even for electronics, I can see those going or I can see it going for things where it's worn product. So something like a shop that just sells sneakers. I can see someone could easily offer a range and say, well look, here's what we sell. When you order something, we'll automatically ship you one size up, one size down, or two variations of color and it will be a free system return the ones you don't want. I think the whole experience of ordering one thing and hoping it works out, I think that will go away. It will be concept of ordering a group of things or maybe it will be applying to artificial intelligence to say, hey you've asked for this color, but we know that people who also ask for that color like this color as well. We're going to ship you them both. You can see how it goes and send us the one back you don't like. >> Okay, let's see. Will machines make better diagnosis than doctors? I've got to say I think you will get to a point where that will happen. Especially if it's things where it's image processing, where it's x-ray processing, MRI processing. Where it's something like process of mental health, then I don't know. Maybe, I'd probably rather have my mental health treated by a person than a questionnaire. But yeah I think the things we're using, image recognition, or things where you're looking at patent distribution or you're looking at even like virus distribution or virus structure, then I think those areas I think you will get to a point where diagnostic issue is better. But you look at where artificial intelligence is from diagnostics now and you go on doctor google and search for something, you know, everything finished with the bottom line, or it could be cancer. >> Dave Vennari: Yeah, you're dead. >> What about will there ever be a revolt, you know in the sense of, technology is so pervasive, and people just say forget it, I'm sick of just being tracked, I just kind of want to have a human to human connection and, >> Dave Vellante: Dream on. >> So are we done for? >> I was speaking to a girl who works for me, Menesha, and she was saying, we were talking on Friday and she said, hey, I was having a coffee with nother girl Cass, and Menesha's in Seattle and Cass in is San Francisco, and I said, oh was she in Seattle or were you in San Francisco and Menesha's a lot younger than me, and she went, no we weren't in the same room. We were just like doing it over video like a virtual coffee. And I was like what, so you both get coffee and sit and have a conversation? And she was like, oh yeah. >> Dave Vellante: Alright, I've got one more, I've got one more. >> Okay, let's hear it, let's hear it. >> Alright last one, it's great, thanks for playing along. >> I know this is fun. >> Financial services is an industry that really hasn't been disrupted. DO you feel like the banks will lose control, the major banks will lose control of payment systems? >> I think there's a lot of conversations now around how much those payment systems open up. Because if you, let's say you do a transaction with Amazon, you do a transaction with Google, how hard would it be for every transaction to be done that way? So rather than, if your setting off a payment for I don't know, gas bills or a car loan payments, rather than giving your bank details, why not give your PayPal details or your Amazon account details or your Google details? That could be, reduce all the banking transactions down to one interface. I think that could happen. I think you could get, well obviously you're already seeing the rise of Blockchain and I'm not a Blockchain expert. I'm itching to find a used case for us with Blockchain but I can't find it yet. But for direct transactions, if both sources can trust each other than yeah, that direct transaction between those two sources, I think that's completely possible. I think there's also areas where, you've seen happen in the past where a banking faces issues from retail coming into banking, so sometimes you'll get the big supermarket chains, especially in Europe they say, okay you're going to get (foreign name) or you're going to get Tesco's Bank, because they've got all our customer loyalty, they've got people waiting to give discounts to if they bank with them, so they can instantly bring, if you said to your shopping account base, hey, if you bank with me we'll give you 20 dollars a week off your grocery shopping, you could probably ring 10 million customers straight away. So I think banking's challenged from other industries that want to get into it, from places where you'll actually go and do each transactions now and from where places where you'll just go and order stuff online and you could filter all that through one place, I think they'll still always be the commercial side of banking. There's always going to be the stocks and bonds, there's still going to be the wealth management, but props for transactional banking, you could start to see a decline. >> Fantastic, thank you. >> I love this futurist talk, it's been a lot of fun. Thank you so much for coming on theCube Dave. >> Alright, thanks for having me, always a pleasure. >> Dave Vellante: Great to see you. >> We will have more from ServiceNow Knowledge18 theCube's live coverage just after this. (upbeat music)

>> Announcer: Live from Orlando, Florida, it's The Cube. Covering Service Now Knowledge 17. Brought to you by Service Now. >> we're back, welcome to Orlando, everybody, this is Service Now Knowledge 17, #Know17. I'm Dave Vellante with my cohost, Jeff Frick. Dave Wright is here, he's the chief strategy officer of Service Now and a long time Cube friend. Good to see you again, David. >> Good seeing you again, guys. So off the keynote, we were just talking about intelligent automation and what's new in your world. New way to work is really kind of the broader theme here, people are changing the way they work. So what is intelligent automation and how does it fit in? >> So what we did when we built intelligent automation is we wanted to come at it from a different angle. So we didn't want to build a product and then look for a solution that it'd work with, we wanted to go out and speak to people and see what are the challenges that they faced. So what we did was we came up with kind of four key areas where people wanted to be able to improve or do things differently. We wanted the capability to be able to predict when something was going to happen from an event perspective. We wanted to be able to use machine learning to be able to augment it. So to be able to perhaps order, categorize, or provide severity, or in the case of change, provide risk analysis. We wanted to be able to do that at a machine level rather than use a human triage level. Then people were coming back saying we feel we're doing a good job, but we want to understand if we're doing a good job, so that was the concept of expanding out the benchmarks program to include more and more benchmarks for people to see how they compared against their peers. And the final element was people wanted to set themselves performance targets, but then they wanted to understand when am I going to get to that target. So what we have to do then was augment the whole performance analytics suite to be able to do predictive analytics. So they're kind of the four core areas that sit in the intelligent automation engine. We can go into as much detail as you want around them, but it's pretty interesting. >> So help us understand, 'cause I get a little confused about, you know, when I hear something like a big announcement coming up at Jakarta, platform, but then I see bits and pieces hit the various products. Can you maybe set that up for us and help us understand. >> Yeah, so what'll happen is the benchmarking, the predictive analytics capability, and the ability to do predictive service usage, they will all appear in Jakarta. And then the actual ML side where we can do the auto-categorization, that will appear in the Kingston release. So by the end of the year, everything that's shown will be available. >> And it hits the platform and then the modules take advantage of that, is that correct? >> Yes, so what is happening at the moment is the initial use cases have gone through around IT. So it's IT looking at well how do we process events so that we can get a precursor to a bigger issue and predict the bigger issue. How do we categorize when someone comes in with an IT request or an IT incidence, how do we make sure it goes to the right people and gets the right categorization. And then what'll happen over time is we'll be able to use that for the security module, we'll be able to use it for customer service, for human resources, because it's all, in the same way we said, it's all a different type of service, it's exactly the same process to be able to categorize, to prioritize, to put a severity on something. And then more long term, we can use this technology to look at all kinds of different files on the system. >> And when you say IT first, it's ITSM and ITOM, is that right? >> Yes, ITSM and ITOM. >> Okay, and so good, I like this, this is a very practical example of, generally, AI, as people don't really know what it is. You're going to tell us that something's going to break before it breaks is usually the use case here. >> What we realized is because we can now start to look at time series data and analyze time series data, there's a few things we can do. So the first thing is we can do corelation, so we can start to link events together, so people didn't spend ages just trying to fix the symptoms, they could go right down to the disease and say well, this is what's causing everything else. The other thing we could build in because we could understand what normal looked like is we could build an anomaly detection. So normally, an event says hey, this has got a high CPU, or this switch has gone down. Now we could say this just looks weird. We've got an activity that never normally happens to this level, or it never normally happens at this time of day, or we've never seen this before on a Saturday. And we can actually generate an anomaly alert at that point. Now, the anomaly alert might be a precursor to a traditional alert where you might get. I think the example used in the actual keynote was we get a large number of user threads on a system, that's probably a precursor to high CPU. So once we've started to be able to do that correlation, the more and more examples you get, the more you can start to predict. So you can say as soon as I get that precursor, I have a level of confidence of when we're going to see the next event. So now you get a brand new type of incidence, you'll get an incident for a predicted failure. So the system will say I've seen this, this, and this, I'm 86% confident we've got two hours and we're going to lose this service. So the whole concept of this was how do you work at light speed. And my whole challenge was what happens when you do it before it happens, is that beyond light speed, it was very difficult to try and wrap your mind around it. >> The speed of light is too damn slow. >> Yeah, it's too slow, no one's going to wait for it. >> I did get a tweet back where someone said if you fix everything before it happens, we'll get no budget because everyone will say nothing ever happens. >> If a tree falls and nobody's around. And so there's a risk, sort of risk scoring algorithm in there that helps you say okay, this one is going to fail and you better take advantage of it. >> Yeah, so if you imagine seeing a precursor to something, you look how many times that precursor has caused that event, that allows you to give a degree of probability as to how likely you think it's going to happen. And it might be you decide to set a threshold and say look, if it's below 50%, don't bother doing it. But if it's above 70%, do it. Or if it's a specific type of issue, if it's something around security, and you're above 90% confidence, I want it flagged as a priority one issue. >> Yeah, but if it's my picnic wiki, so can you inject the notion of value in there, I guess the question. >> Dave: Yes, yeah, you can. >> I want to ask you about this categorization piece, even though it's coming down the road with Kingston. That's been a challenge for organizations in so many different use cases. I mean, the one I can think of, you know, is like email archiving and the federal rules of civil procedure, all that stuff when electronic records became admissible. And everybody sort of scrambled to categorize. But it was manual, they were using tags, it just didn't work, it didn't scale. So the answer was always technology to auto-categorize at the point of creation or use. But even then, it was complicated and the math kind of worked but you couldn't apply it. What's changed now and what's the secret sauce behind it? Was that part of the DX Continuum acquisition, maybe you can explain that. >> So we acquired DX Continuum, that gave us eight really bright math Ph.Ds who were data scientists, who could come in, who could look at data in a different way. But I think technology also drove it. So you've got the ability to have the compute power to be able to do the number crunching, but you've got the volume of data as well, I think the more volume of data you get, the more accurate it is. So we found if we're going to train auto-categorization, we need between 50 and 100,000 records to be able to get to a degree of accuracy. And then obviously, we can just keep on doing it again and again and that accuracy gets better and better over time. But even when we ran this out of the box on our system for the very first time before we'd rewritten it on the platform, first time we ran it through, it was 82% accurate straight off. Now, the real interesting thing about when you do something like categorization, it's almost as important what you get right as not guessing when you're going to get it wrong. So we wanted to be be very sure that they system would say I am 100% confident that this is where this is. But if I don't know it, I'm not going to guess. I'm not going to say well, it's 75% confident, so I'm going to say it's this. At that point, you want to say I just don't know. So these, 18%, for example, in this case, I don't know. And then over time, you get to reprocess the things that you don't know, and that percentage gradually goes up. So now, I think in-house, we're running into the 90% region. >> So the math, though, has been around forever. I mean, things like support vector machines and there are other techniques. What is it about this day and age that has allowed us to effectively apply that math and solve this problem? >> So I think what you get now, if you look at the DX Continuum technology used, I think it was five different methodologies for being able to interrogate. And it was neural nets, it was using base, but I think what gives you the big advantage is people have always taken live data and then tried to do this prediction. That's probably the wrong way to do it. If you take historical data and then run it, you just find out which one works. And if this algorithm is working the best for you based on the way you structure your data, then that's the algorithm you focus on. And that's exactly the way predictive analytics works. What we do is we were initially looking, saying okay, well we've got these three different models we can use. We can use projection, we can use seasonal trend lows, we can use AREMA with the auto-regressive moving average type solution. Which one are we going to use? And then we realized we didn't need to guess. What we could do is we could give the system historical data and say which one of these most accurately maps and then use that algorithm for that data set. Because every data set is different, so you might look at one data set where it's really spiky, so you don't want to use projection because if you choose the wrong points, your projection of them is effectively out. So it might be, in that case, you want to use STL and be able to smooth out some of the curves. So you have to, every time you want to do predictive analytics around a specific data set, you need to work out what mathematical model you need to use. >> So the data is then training the models and the models are your models, correct? >> Yes, yeah. >> And now you tell the customer, and I'm sure you do, that this is your data and your data is not going to be shared with anybody outside of your instance. But the model, the gray area between the model and the data, they start to blend together. Is there concern in your customer base about oh, I don't want the model that you train going to my competitors, or is this a different world where they feel as though hey, I want to learn, like, security. What are you seeing there? >> So this is the uniqueness that we, you don't get a generic ML where we look at everyone's instance and train across that. We can only train for your instance. And that's because everyone does things differently. You go to some companies where their highest priority issue is a sev-9, whereas another customer would have sev-1, so you've got people doing different implementations like that. But let's say I tried to do everyone's, and I went through and I said look at this description, this is a networking issue, so I'm going to categorize it as networking. And you haven't got a networking category, you've got networking infrastructure or networking hardware, then it fails. So I have to build a model that's very specific to your instance. So every time we do this, we'll build it for each customer. So it's kind of customized artificial intelligence machine learning models that sit within your instance. >> So my data, your model that you're basically applying for me and only me. Period, the end. >> Yeah, so we do the training on your data and we inject that model, which is your model, back into your instance. >> And now, the benchmarks, you guys have been talking about benchmarks for a while, this is sort of taken it to a new level. So how do you roll that out, how do you charge for it, what's the strategy there? >> So what people do is they effectively subscribe to it. So they're willing to share their data, we're at that point, allowing them, so it's almost a community issue, at this point, everyone is sharing data across the systems. Now, we added another nine benchmarks in the Jakarta release and now I think there's 16 benchmarks. Ive been mainly focused around IT and ITOM, but as we get more and more customers coming on in CSM and more on HR and more on security, we'll be able to start to introduce the whole concept of benchmarking those as well. But the thing you can do now is you don't just see the benchmark and how you perform, we can also use analytics to show how you're trending as well. So you might be better than people of a similar size or people in the same industry, but it might be that you're trending down and you're actually going to start to get close to being worse than them. So the concept here is you can take corrective measures. But also, it gives a lot of power to customers, not just to be able to say I think I'm doing a good job, but to be able to go to senior management and say this is how customers that look like us are currently performing. This is how customers in the finance sector perform. This is how customers with 100,000 people or more perform. And they can see look, we're leading in this, this, and this area, and they can see where they're not leading, and they can actually start to see how they'd address that. Or it might even be that you start to build relationships where they could say to their account manager who are the people who have got this best in performance type thing, could we meet with them, could we exchange with them? The evolution of this will be on the performance analytics side when we start to get to Kingston and beyond will be to be able to do not just the predictive analytics, but to be able to do modeling and to be able to do what-if. And the end goal is we've gotten to the point where we've got predictive, you want to get to the point where you get to prescriptive. Where the system says this is where you are, if you do this, this is where you'll get. >> That's what I was going to ask you, is it intuitive to the client, what they should do, and what role does Service Now play in advising them. And you're saying in the future, the machine is actually going to-- >> Yeah, could be able to say hey, well, if you want to, let's say you want to improve your problem closure rates, you could say well, when you look at other customers, an indicator of this is people have gotten much better first call incident closure. So what you need to do is you need to focus on closing first call incidents because that's going to then have the knock on effect to driving down the way you resolve problems. So we'll be able to get to that, but we'll also be able to allow people to actually model different things. So they could say what happens if I increase this by 10%? What happens if I put another 10 people working on this particular assignment group, what's the effect going to be, and actually start to do those what-if models, and then decide what you're going to do. >> To prioritize the investment to get the numbers down. It's interesting too, 'cause it's a continuous process, as you mentioned, it's this whole do the review once a year, do your KPIs. That's just not the way it works anymore, you don't have time. And to use the integration of the real time streaming data, which is interesting that you said not necessarily always what you want to use first compared to the historical data that's driving the actual business models and the algorithms. >> I think the thing about the whole benchmark concept is it's constantly being updated. So it's not like you take a snapshot and you say okay, we can improve and move here, you see if everyone else is improving at the same time. So there might just be a generic industry trend that everyone is moving in a certain direction. It might be that as we start to see more things coming online from an IOT perspective, I'll be interested to see whether people's CMDBs start to expand. Because I don't know if people have yet established whether IT is going to be responsible for IOT. Because it's using the same protocol for its messaging, how are you going to process those events, how are you going to deal with all that. >> So I guess it's the man versus machine, machines have always replaced humans. But for the first time, it really is happening quickly with cognitive functions. And one of your speakers at the CIO event, Andrew McCafee and his colleague Erik Brynjolfsson have written a book. And in that book, they talked about the middle class getting kind of hollowed out and they theorize that a big part of that is machines replacing them. One of the stats is the median income for U.S. workers has dropped from $55,000 to $50,000 over the last decade. And they posited that cognitive functions are replacing humans, and you see it everywhere. Billboards, the kiosks at airports, et cetera. Should we be alarmed by that? What is your personal opinion here? And I know it's a scary topic for a lot of IT vendors, but it's reality and you're a realist and you're a futurist. What are your thoughts, share them with us. >> People have different views on this. If you look at the view of executives, they see this see this as potentially creating more jobs. If you look at the workforce, I completely agree with you, there's a massive fear that yeah, this is going to take my job away. I think what happens over time is jobs will shift, people will start doing different things. You can go back 150 years and find that 90% of America is working farmland. And you can come now and you can find out they're like 2%. >> Not too many software engineers either back then. >> Not too many. Hard to get that mainframe in the field. What I think you can do is you can not just use AI or machine learning to be able to replace the mundane jobs or the very repetitive jobs, you can actually start to reverse that process. So one of the things we see is initially, when people were talking about concepts like chat bots, it was all about how do you externalize it, how do you have people coming in and being able to interface to a machine. But you can flip that and you can actually have a bot become a virtual assistant. Then what you're doing is you're enabling the person who's dealing with the issue to actually be better than they were. An interesting example is if you look at something like the way people analyze sales prospects. So in the past, people would have a lot of different opportunities they were working on. And the good sales guys would be able to isolate what's going to happen, what's not going to happen. What I can do is can run something like a machine learning algorithm across that and predict which deals are most likely to come in. I then can have a sales guy focusing on those, I've actually improved the skills of that sales guy by using ML and AI to actually get in there. I think a lot of times, you'll be able to move people from a job that was kind of repetitive and dull and be able to augment their skills and perhaps allow them to do a job that they couldn't have done before. So I'm pretty confident just based on the impact that this is going to have from a productivity perspective, where this is going to go from a job perspective. There's a really cool McKinsey report and it talks about the impact of the steam engine on what that drove on productivity and that was a .3% increase in productivity year and year over 50 years. But the prediction around artificial intelligence is it'll produce a productivity increase of 1.4% for the next 50 years. So you're looking at something that people are predicting could be five times as impactful as the industrial revolution. That's pretty significant. >> Next machine age, this is a huge topic. We're out of time, but I would love for you, Dave, to come back to our Silicon Valley studio and maybe talk about this in more depth because it's a really important discussion. >> I'm always around, happy to do it. >> Thanks very much for coming on The Cube it's great to see you again. >> All right, thanks, guys. >> All right, keep it right there, everybody, we're back with our next guest right after this short break. Be right back.

>> Voiceover: Live from Orlando, Florida, it's theCUBE, covering ServiceNow Knowledge17. Brought to you by ServiceNow. (upbeat electronic music) >> Welcome back to sunny Orlando, everybody. This is ServiceNow Knowledge17 #Know17. I'm Dave Vellante with Jeff Frick. John Donahoe is here as the newly-minted CEO and President of ServiceNow, fresh off the keynote, fresh off 49 days in. John, welcome to theCUBE, thanks for coming on. >> Thank you very much, it's great to be here. >> John: So how'd you feel up there? You had the theater in the round, you were working the audience, I loved how you walked on the stage and really got into it. How's it feel? >> Well, what I love about ServiceNow, is it's a community-based business and a community-based company. And so, we had 15,000 members of our community out there, and that community feeling is, I think, one of the real powers of the movement that's called ServiceNow and of the ethos of this company. So, I loved that, I fed off that energy. >> So, at the risk of some repetition, a little bit of background about yourself, a former Bain, former eBay CEO, you shared that with the audience. What is relevant about your background to the ServiceNow experience that you expect to have? >> Well, you know it's funny Dave, I spent the first 20 years of my career at Bain doing business transformation. And a lot of what I talked about today was digital transformation, that is, every company is trying to transform. And I spent the first 20 years of my career focused on that. And then we talked a lot about great customer experiences. Well, the consumer world and consumer-based applications like eBay, or PayPal, or many other consumer applications, are defining the new standards of what kind of easy, simple, intuitive experiences are possible. And employees are consumers at home and they're increasingly expecting the same kind of great experiences they have at home at work, and as customers of enterprises. And so I think you're going to see the world of consumer and enterprise converging. And so that's why I'm very excited about being a part of ServiceNow. >> So, you talked to the audience, as I say, about your background. You're a family man, you've got Four children. >> John: Yeah >> Jeff: Pictures on stage; which I love. You know, it really kind of goes with the folksy, you know, history of this company and the community base. Not too many people put their family photo up on the keynote. I thought it was great. >> John: Yeah, well, they're my bosses, so... (all laughing) >> Dave: Well, like you said, they make you humble >> John: Yeah. >> Dave: and you learn a lot from them, so... So I appreciated you starting that. I've got Four kids, Jeff's got kids, and so... >> John: That's great. >> Dave: And you're hosting a women in tech breakfast tomorrow, a real passion of ours, so, maybe talk about that a little bit. >> Well, I just think it's really, really important. And, people ask me: "Why do you think that way?" I think it's good business, right? At the end of the day, the ultimate thing we do to succeed in business is we need to attract, develop, and retain the very best people, >> Dave: Right. >> John: and by definition, 50% of the workforce is female. And so, to not be aggressively trying to cultivate that part of our team is to miss an opportunity. And doing it well is hard, but if you do it well, it could be a source of competitive advantage. So, I care deeply about it professionally, and then also personally as a father of a daughter, the question I ask men that have daughters and say: "Do you want your daughter to grow up and be part of a work environment that's even better than the one they would have been if they'd come at your time?" And almost all of us say, "Yes!" >> Jeff: Of course >> John: So, it's a responsibility we all share. >> So, I want to ask about your management philosophy. You know, I've heard the term, of course you have too, "benevolent dictator". You use the term, >> "servant leadership". >> "servant leadership". >> John: Yeah. >> Dave: Which starts at the customer on top. Explain your philosophy there. >> Well, it's a way I learned to lead early in my career; which is: that it's the opposite of a classic pyramid. Right, where the CEO's on top and everything's underneath. No, this is an upside-down triangle, where the reason we're here is to serve our customers, to serve our employees as they serve our customers, to serve the purpose and to the extent you can, to serve the communities in which we are part of. And my experience is that: building that deeply into the culture of a company breeds a level of commitment and a level of long-term orientation that's really important. And ServiceNow's had that from the beginning. Think about Fred Luddy embodied that. He was a brilliant technologist, and he said, "You know what, I'm going to recruit a CEO" "before the company goes public who has those skills." So, he recruited Frank, right? And Fred stayed involved. Frank embodied servant leadership. Frank could've stayed forever. Frank said I was the right CEO to serve this purpose from 75 million to a Billion Four. And then he started to looking for someone that's the right person to serve for the next generation; which is me. So this notion of stewardship, we're all here to serve our customers and try to make our purpose come alive over a long period of time. And I think it's the most enduring motivation and inspiration we can have. And it keeps the customer front and center. >> Well, so one of the first things you did in your first 100 days, you said you wanted to see 100 customers, you actually accomplished that in 45 days. So, first of all congratulations, first of all how'd you do that? (all laughing) >> Well, I went at a roadshow to 10 cities across the U.S. and just packed my days full of meetings with customers. And they were individual meetings, and we had some group meetings, some lunches and dinners. And those are some of the best because you get a conversation going. I had Four or Five, Six customers around a breakfast table or dinner table and we start talking about their issues. And, the dynamic in every situation was they would start sharing with each other. They would say, "Well, how are you addressing this?" And they'd starting saying they have similar issues, similar challenges, similar ideas of how they're going to address it. So, the power, that community power, I was seeing firsthand in smaller settings. And for me, it was just so energizing because our limitation of how quickly we can get better is well we understand our customer's needs, and also understand their feedback about where we can get better. >> Well it's interesting, you said you were a customer when you ran eBay... >> John: Yes. >> Jeff: of ServiceNow, so that's kind of some of your background knowledge of the company. When you went out on your tour, what were some of the things that surprised you that you didn't know even though you had been kind of a ServiceNow customer in the past? >> Well, I think what I hadn't fully understood was the power of the ServiceNow platform, and how it's getting pulled into new areas across the company. So, it's getting pulled to customer-facing applications, customer-facing processes like Ashley at GE is talking about. >> Jeff: Right. >> John: And it makes sense, right? I know at eBay and PayPal, we really worried a lot about how do we handle inbound contacts from our users. And password reset was the #1 inbound contact. (dave laughing) Well, password reset is a perfect process that can be handled in an automated in a self-help way; which is ultimately what the customer wants. >> Jeff: Right. >> John: And ServiceNow can help enable that. And so, as I was sort of surprised and delighted by how this platform is getting pulled into new use cases, that in many ways are back to what Fred Luddy imagined when he founded the company. The interesting thing is, Fred founded the company as a platform to serve all services, businesses, business processes across the enterprise. And then, but platforms don't generate revenue, They don't sell. So, he found an application: ITSM; which was the first application, and it took off. And so ServiceNow began to be known as the IT company. But that was never what Fred envisioned. It was a company that enabled and empowered IT to simplify and automate and transform the entire company. >> It's interesting, password reset. Because it seems like such a simple process. And it doesn't necessarily seem like a high-value process. But in fact, it's hugely high-value for the customer. It's hugely cumbersome in terms of the time it takes. So, to automate something that seems so simple as password reset, has huge implications in terms of efficiency inside and customer satisfaction on the outside. What a great example. >> Well, and here's what's so interesting about that example: Is, it touches multiple parts of the company. Because, people actually, your password is your security. And you could automate changing it in a way that was insecure. But, you've got to do it in a way that it's the convenience that we want to reset our passwords, but we want to know we're safe. And so, that password reset flow has to touch security, it has to touch engineering, it has to touch operations and customer support, it has to touch the customer's record, and so it's a classic multi-function, multi-discipline flow, but you want to make that easy and simple for a user, and yet also have them feel safe. Simple and safe is hard to do. >> John, you mentioned Ashley from GE, I want to talk about digital transformation. It's one of those terms you hear a lot at these conferences, sometimes it's amorphous, it's kind of like A.I. We'll talk about that if we have time. But Jeff, I love your quote. We follow GE quite closely, and Jeffrey Immelt said: "I went to bed an industrial giant," "and I woke up a software company one day." >> John: Yep. >> Dave: And you see this everywhere. So what is digital transformation to you and the customer's that you've been talking to? >> Well, here's, technology and software in particular on one hand is disrupting every company in every industry. I view that as a motivation. I view that as a wake-up call for all of us, including a software company. And, software is an opportunity. An opportunity to make changes and advancements at a pace and a magnitude that's been unparallelled in business history. So every company needs to define how they're going to use technology, how they're going to use software, how they're going to use digital capability to their advantage. To their advantage with their own consumers, their own customers, either industrial customer or a consumer in a consumer business, and how to use it to change the employee's experience and improve it. So, employees are spending time not on manual tasks; which now can be done by technology, but on higher value-added activities, and then how you can operate a global enterprise in an effective and efficient manner. And so, technology is an offensive weapon if you will, an offensive tool, is something that's on the mind of every CEO, and every company. And that's where they're looking for how do they have a few trusted partners. A few trusted technology partners that help them navigate their way through that, help them drive their way through, and that's ultimately what ServiceNow is. >> So these are big ideas, and they involve a lot of different constituencies within your customer base. Obviously, your IT peeps, as we like to say, but the CIO, who's role is changing, and also the line of business folks. So these are big, heavy lifts that you can't do alone. You've got to have an ecosystem to do that. When we did our first Knowledge in 2013, the SIs were a lot of companies frankly that we never even heard of. And now, you're seeing all the big SIs. I don't even want to name them because I'll forget some. But, your partner strategy is critical to achieving that vision that you just laid out, isn't it? >> Absolutely, Absolutely. Because it takes both of us. It takes our software and then their capabilities to help our shared customers, shared clients, implement the software, and do it increasingly in a way that is as configurable as possible; which means as minimum customization as possible, and also as quickly as possible. And our partner ecosystem's an essential partner in doing that. And there's the big SIs, and then also some of the smaller ones. I spent some time with customers in some smaller cities where they're saying having local capabilities, local teams, that were trained and certified on ServiceNow was really important to them. Often they end up being acquired by or joining the bigger SIs over time, but that sort of grass roots opportunity. Because that's also job creation. That's job creation in communities. I got to see how talented, computer-literate, software-literate people in different cities around the world are seeing an opportunity to create a livelihood by helping customers integrate ServiceNow in the most effective way. >> So two years ago, Frank Slootman in his keynote said that the CIO's role is changing and they're becoming business people. >> John: Yes. >> Dave: And kind of challenged CIOs, if you don't speak wallet you better start learning that language, the "lingua franca" of the business. So, you obviously agree with that. But, how is the CIO role changing, and how does it support other roles within the organization, that you're trying to apply ServiceNow to? >> Well, I have a really, Jeff, a really outside-in... Or, Dave, really outside-in...sorry about that. >> Dave: It's alright. >> John: I've had a lot of names this morning. >> Jeff: I'm sure you have. >> Dave: That's pretty good. >> John: Outside-In view of this. Which is through the eyes of the customer, alright? The CEO is thinking about: "Alright, I've got to serve our customers better," "I've got to retain our customers" "and serve our customers better." "And then I've got to tract and retain employees" as we've been talking about. "And I need the digital capability," "I need technology to help us do that." Their going to turn to the most technically-literate person in the C-suite to help do that. That's the CIO, right? And so the CIO by very definition has to play a broader role of partnering with the business unit leaders, with the functional leaders, to drive that end-to-end business transformation or digital transformation. And the CIOs that I met are ready to take on that challenge. They couldn't have done that before the cloud technologies that give them the ability to play offense. But these cloud technologies now cut across, they don't just sit in IT, they cut across all of the enterprise. >> Jeff: Right, right. >> John: And so, I would say there's almost this gigantic sucking sound, if you will, to use an old Ross Perot-ism, that IT and the CIO are being asked to play this role, be change agents, strategic change agents, across the enterprise. And they're ready to do that, but they do need to speak business in business terms, and business value, and business value means: Are we serving our customers better? What's our customer NPS? What's our customer response time? What's our customer retention? They need to speak employee value terms: What's our ability to retain our best employees? What's their satisfaction? And then of course they have to speak the business terms of efficiency, right? Are we being more productive and more efficient as we're serving our customers and as we're serving our employees? And so, the CIOs I met and the IT professionals I met, are asking for help to translate what they do into that business language. And the very best ones are doing it. And I think you'll see that trend continue more and more. >> And they've got to have automation, and they've got to have efficiency because their budgets aren't going up commiserately with their increased responsibility to drive this digital transformation. So they've got to wring that extra value out of the tools and processes and people that they have, and that's where you really help them quite a bit. I think I saw a quote the other day that someone went from 60 days to Two days in a business process, amazing. >> Well, and it's interesting because companies are investing more in technology than they ever have. If you take the broad technology spend, they're investing more in technology. But, they expect to get productivity and efficiency, not just out of IT, but across the entire enterprise. >> Jeff: Across the board. >> John: And that's the opportunity: More investment, greater productivity, greater value for customers and employees. >> You talked yesterday to the financial analyst about the sort of execution machine that you inherited. Personally, I think you have a great CFO, one of the best if not the best in the business. So I presume you're not going to be spending a lot of your time trying to restructure reporting and counting beans, no pejorative intended there. So, what do you bring to the organization? Where are you going to spend your time? And what are your main goals over the next mid-term and long-term? >> Well, as you said, I'm blessed. Mike Scarpelli, I think, is a world-class CFO and the best in the industry and I'm honored and thrilled to work with him. Same with Dave Schneider and Kevin Haverty who run our sales force. And now CJ Desai, our Chief Product Officer, Dan Rogers, we've got a really strong team. My focus is to have us continue our current momentum, continue the current execution that we're focusing on. But then, to begin to sort of chart a course for 2018, 2019, 2020, and beyond as we go from being a billion-dollar company, to a four, to five-billion dollar company, to beyond to a 10-billion dollar company. And the nice news is that it's building on top of this very solid foundation. As we evolve from being what has been an IT-focused platform company to be more of a digital transformation platform and company. And helping our clients, helping our customers, achieve their aims and their goals, and being one of the few trusted technology partners. Every company has a few trusted technology partners and we want ServiceNow to be one of those. And, to do that, you've got to be viewed as mission-critical and adding real value, both of which I think we are. >> Dave: So you could joke, you know, don't mess it up. >> John: Yes. >> Dave: Okay, and take it to another level; which really is kind of what seems to be your expertise. Bringing it into the line of business is talking to the CEO and other C-level executives. And actually, marrying the expertise of the CIO has cross-organizational purview, leveraging that capability and super-powering that. >> Exactly. Exactly. You know, it's interesting. If I were to look back on the last 15 years, the C-suite role that has changed the most in the last 15 years has been that of the CFO. 15 years ago CFOs were being counters. >> Dave: Yeah. >> John: Right? Today, as you said, as Mike Scarpelli and Bob Swan, my previous CFO at eBay and the best CFOs, they drive value across the enterprise. Right? They're almost COOs in their mindset. They work with business units, and they add enormous value. So that job has become significantly more important and powerful. I see the same thing happening with the CIO over the next Five to 10 years where the CIOs role with grow, and expand, and broaden. And that's exciting. >> Well, you know, one of the things, actually, you know, we come to these conferences, and there's obviously a lot of messaging, but we try to understand how that messaging actually fits with what customers are doing. One of the things that you guys are messaging this year is light speed. And so, when you talk about the CFO and the changing role, it brings up, to my mind anyway, light speed requires a new set of metrics, and listening to, like Scarpelli, talk yesterday, he's all over the metrics. And these aren't, you know, your typical, you know, EBITDA metrics, they are just a new set. Do you see that happening within, not only ServiceNow, but within your customer base, where the so-called, I'll call them, "light speed" metrics are emerging? >> Absolutely. I mean, you saw the example of Dave Wright going through the machine learning, and how the machine learning capability, when applied to the ServiceNow platform, applied to specific problems, helps you fix problems before they happen in an automated fashion. Imagine that, right? That's light speed. Dave said it so well on stage. (all laughing) That's even faster than light speed. And so, you begin to see, alright, how do you measure, in delivering a great customer experience, how do you measure the reductions of problems? How do you measure the prevention of problems that provides greater availability, greater reliability, greater consistency, of a customer's experience? Now, ultimately that measure will be in customer NPS or some other customer metrics. But, some of the subordinate metrics I think you will see a growing number of what I would call L2, L3 metrics, that is, a dashboard of how to run a great company around customers, employees, and financials. >> Alright John, I know you're super busy, we've got to leave it there. Thank you so much for coming on theCUBE and congratulations on the role, great keynote, and best of luck. We'll be watching. >> John: Thanks very much Dave, thanks >> You're welcome, alright. >> From me, congratulations. Keep it right there, buddy, we'll be right back with our next guest. This is theCUBE, we're live from ServiceNow, Knowledge17. Be right back. (upbeat electronic music)

>> Good Live from Las Vegas. It's the cute covering knowledge sixteen Brought to you by service. Now carry your host David, Dante and Jeffrey. >> Oh, >> welcome back to knowledge. Sixteen everybody, this is the cubicle wall to wall coverage. We got the events. We extract the signal from the noise. This is Day one for us will be going Three days of knowledge extraction from knowledge. Sixteen. Ray Wong is here. He's the founder and principal analyst and chairman of Consolation Research. Up and coming Smoking Hot research company. Ray, Always a pleasure to see you. Thanks for coming >> on. Excited to be here, man. It's been a world one week of events, so >> I'LL say So you were You were down. It's Sapphire, right? You were over it on Tampa Amplify And >> I'm Austin s Wait after this race, a >> normal week for you >> It's a normal week for all of us. >> So impressed You were telling us off camera that you were at one of the earlier knowledge events down in San Diego. So you've got a lot of experience with this company, >> you know, it was in a tent. It was outside they had detected. I think it's like a park. I'm not even sure what it was. I just But remember, there's one one hundred fifty people next. There's like five hundred people. Three years later, it's pretty wild. >> So they've come out of the blue and really, you know, escalated a lot of momentum. The latest billion dollar software company with a plan to get to four billion. So stepping back a second just looking at the software landscape, one has to be impressed with the progress that service now is made. What's your take on the industry and service now in particular? >> Well, I think what people don't understand this service now is a platform, right? There's a business model platform or the way that we used to look at paga or the way we used to look at a lot of those companies that were actually sit in the middle. That orchestration what's changes? Because everything's in the cloud. What we now have the ability to abstract orchestrating doing away that we've never seen before, right so you can take specific business problems. Take the heart of what's actually happened on the idle piece. Use it to not just manage the process, but also do the analytics and the monitoring. So when we get the things like Coyote coyotes really about having a set of smart services and being well. To put that in the construct is a lot of the opportunity that we see going forward >> so high. So I said three years ago in the Cube after I saw the platform capabilities and said, Wow, this is a collision course with sales force Investor's Business Daily wrote a article today. Collision course of sales for so glad they caught up with Theo. But But, I mean, it's you could kind of see it coming together. And now you Frank lays out this vision this morning. Have you got the AARP estate, the C R M estate and tea or a service management Rather kind of bridging those two. How do you see it? >> No, we definitely see this as a platform play. Now here's what's interesting is the lots of the developments, and you see this all the time has been happening in the APP to have side of the House package. APS have kind of been at a standstill for innovation compared to what's going on on the customs side. And so every so often we see that flip on platforms. This is the beginning of that flip, more than one person said. I it is going to be the end of the affair, right, because we're going to put all the intelligence into the interaction. You don't have to go to the specific app. No. And the fact is, what becomes important is the ability, the orchestration, the intelligence, the recommendation and what you want to build to get to the part where I'm making the right set of recommendations to augment the next set of processes. That's what gets really powerful and these platforms that are emerging on, What's the next set of clouds? That's going to be where we're going to see a lot of this advancement. >> So the FBI essentially becomes the product. Is that kind of? >> It's the orchestration of the AP eyes, the way the context was delivered against those AP eyes and more importantly, how we actually pulled together those journeys, like a couple things that we talk about time mass personalization of scale, lots of context, right, so rolls relationship, identity weather, location, time, all important, Then choose your own adventure journeys the ability to actually abstract different processes from different places and bring them together, and the more importantly, we call intention driven design, which is. I'm gonna give you three or four choices. Learn over time. Take that machine learning. Then apply that the next set of recommendations and then start building against that. And that power sits on the network. That power sits in these new platforms. >> So you're here speaking to the service now customers about customer experience, right? It's something we hear a lot about. Your an expert in that in that space. What did you say? What was the reaction? What was the feedback? >> Well, I think the important thing is we're seeing new business models and you hear me say this before it's we're in a post sale on demand, attention, economy. And what that means is everything after the sale is what's happening right now. That's the service. That's the experience. Peace. The on demand pieces were accessing smaller, smaller slices of a product. Maybe not even a product, a service, maybe not even a service, and incite maybe not even insight and experience. And then, more importantly, it's an attention to come. If you're not capturing my time and attention, which is mind share, or if you're not saving me time and money, I don't care. And That's what we're in. We're in. These business moms are built around. This is interesting. Came out of the Oracle Marketing cloud shows Well, same thing. Just smaller and smaller slices of attention based on the way you interact with all the other applications you have. You don't have time to give somebody the big story. You've got to get him when you can. They could be standing in line. They look at their phones, are in the middle of their kids, switching innings at the baseball game. And you got to get in that little tiny video that in between time is so important because you don't close there. You lose him, right? And it's not for something really big. It's move them along the needle down. The journal. Correct. >> What do you make of this, Dave? Dave Wright was just not talking about the new state of work. IBM has been talking about a new way to work in. He is kind of running the collaboration, you know, group. Now you you talk about millennials and how they work. What are you seeing in state of work? >> Well, a lot of the research we're looking on the future of work is by one of my colleagues, Alain Le Pastilles, and what he's been really looking as this shift in terms of conversations as a service. He's been looking at the shift in terms of intelligent collaboration. Right, and all this stuff is actually leading the point where we're actually using technology to augment ability. Teo do decisions had a lot more automation than we had him before. But then cognitive assistance pop up right and they help make a smarter. And they learned from our different our actions and all that's starting to come into the workplace, which is exciting and a little bit creepy and scary at the same time. >> So what's the What's the What's new with Constellation? You guys are growing. Bring it on. New analyst Cranking out Want to research? Your event keeps growing? Give us the update on Constellation. >> You know, I think the big thing is this digital transformation story we've been talking about for the last five to six years is huge. The next set is really not about transformation. It's about finding growth in times where there is no growth. That's where we're going to talk about the next five years at our conference. Really? Talking about what are those factors, right? We gotta jump start growth. Global GDP is growing two to three percent at best. Every company has a target of like five to ten. Someone's gonna lose, and it's gonna be very interesting. >> So you think that growth is going to come through productivity improvements or investments in technology? Actually, Dr sort of new productivity levels were taking away from >> someone else. I think we're taking me for someone else. That's what I'm really scared about, that they're smart growth that's sustainable and helps people with the jobs and the job transitions. And there's what we've been doing, which a lot of destructive Cross, which is actually limiting all of the jobs and actually making it harder to grow in the long run. >> Well, so yeah, we've talked about this on the Cuba lot machines replacing humans, which they've always replaced humans. But it seems to be now happening at the cognitive level. That's scary. I know you guys to the valley, wags. You know the seasonal nervous right now, You guys, you more sanguine? Then the VCs air >> well with these three big areas where we see a lot of investment. Deep learning happens to be one of them, right? We see a lot of medicine going off. Some of the smartest people I know are all focused and on deep learning. Very interesting thing. If you look at that university, California, Irvine there's a whole department around. This artificial intelligence that just lifted itself up became a private corporation. So there's very unfeeling things there. There's nanotech, which is also some erasers, things on the material science piece that's also playing a big role. And then, of course, there's stem cells in the biotech piece. Those three things are converging, and you know it's more than just building out the Star Trek roadmap that Apple's been doing. It's a lot bigger than that. There's some big societal shift that are happening. >> What, what's next for you? You say you're heading Teo. That's sweet, but we're So we work. We find Ray Juan. I'm >> off this sweet world, Max. There's a monetary it next week. There's a whole bunch of other events picking up in June as well as you. You're going to be at them, but I think we do our retreat every year at the end of the year. May June, we're going to be at Stanford, the faculty club. All the constellation folks get together on. Then we go back out into the field and it's a crazy summer as well. I don't know when this stops making, so yeah, you could always find him on Twitter That that's but I looked for you guys when I'm where you're at is where the events are. >> Well, hopefully our past will continue to cross. We love having you in the Cube was a great guests. Really appreciate your time. Thanks for coming on. >> You know, Thanks for having have a >> great conference. All right. They've travelled, right, everybody. We'LL be back after this short break. This's the Cube or live from knowledge. Sixteen, right? >> Service now is the

live from Las Vegas Nevada it's the kue covering knowledge 15 brought to you by service now hello and welcome back live here in Las Vegas is the cube our flagship program we go out to the events and expect to see them from the noise I'm John Ford the founder silicon atoms on my coach Dave vellante co-founder Wikibon calm and our next guest is Dave right chief strategy officer at servicenow great to see you again congratulations the keynote this morning I do you feel I'm pretty pumped it was good fun I mean I've known I've know Fred for 20 years and I've watched him do these type of things for 20 years so to be on stage with him yeah it was it was big balada a lot of people happy in the key know first of all packed house great crowd congratulations but really a lot of who odds on the UI I and the clean interface work a lot of cooler than me a lot of really big cheers on the private instances right which really sets the table for a developer run so you know I think you guys are going to see my prediction is via rocket scientists predict this but do developer it's gonna get some significant traction certainly sold out here yeah Howie your Creator con so yeah we've got like the the 1200 people are crazy going which was a sellout but I think you're right the whole the ability now to get an instance that's obviously what's going to drive the developer community in the past it was really easy to develop something if you're a customer but coming in from the outside not so easy now the fact people can get an instance by signing up to the program so amazon has been very successful we follow those guys will do all their events cuban one things that I'm really impressed with Amazon is their ability to just unleash new stuff machine learning as a service last year was canisius redshift fastest-growing piece of their business they keep on adding on to their core building blocks with raji c 2 s 3 and a variety of the stuff they are queuing messaging alaska p so all the great stuff developers have been building that integrated stackin for agility more performance i got to ask you what's your plan because you guys are really building out that platform we talk to them in our in our office when you came by there's some core building blocks right what is the new blocks that you're announcing here and what's the vision and strategy that you get to take nasi developer enablement is one one of those court building blocks day what are the new building blocks and and are you going to take that same approach like amazon and just it's a tsunami of releases and being yeah so so what we'll do is we'll we'll take the platform that we've got now and obviously we see this community now starting to build out in the platform wheels from a features perspective what we're looking to do is get anyone to build anything that's managing anything to do with what that's the that's the main driver if you're giving someone a task that they need to do this should be the place where people go to do it now the the drive around this is is to try and get people to just not waste as much time as they are wasting in the past so we'll continue to innovate in the platform you'll see there's some new products that you can see they've already been built as modules that we haven't announced at the keynotes but they're actually down at the booths so you can go down and you can see some of the analytics stuff some of the security incident management stuff but what we've I think what we've realized as a company is we can we can never build everything you know there's there's just certain areas where people come in and go I've got the expertise just give me a platform let me build on us and that's why you see people going out there into areas that we didn't expect that's why you've got people doing medical asset management while you've got people there are pharmaceutical type apps so so really for a vertical ization perspective I'm hoping that we see a lot of independent developers or partners coming up for this because when you get people coming up this is what really excites me on the platform you get people coming up saying hey we want to we want to build on your platform I'm we don't access to your Salesforce because we're going to sell to a completely different set of people we just want to be able to build in your platform have your availability levels have your recovery levels that's where the big citing side is from you guys are doing it but i think is really the holy grail unintended given we had money python on last night in john cleese but you got the disruption and you're also innovating which is a really rare thing to see in the business by friday know you guys winning in amazon has that same thing they're disrupting the market in some say raise to 0 when put the shift values shifting somewhere else but they're also innovating so at the same time you guys are a little bit different the sense that you're in the enterprise so you have enterprise-grade mindset and building a born in the cloud like platform so I want you to comment on where you see the disruption and the innovation you can share the audience that dynamic and how you guys view that a are you aware of it is it a flywheel for your grow than what your comments on this so what I think the disconnect is now is it's the fact that software that you use outside of the enterprise is better than the software that you use inside of the enterprise now that's that's created a kind of a generation gap where people just arrived and look at enterprise software and go why are you doing it this way well in a way why haven't we got the same experience we have with other applications that link requesters with providers so you'll see what you mean why haven't i got the uber experience why haven't i got the Airbnb experience that that's the same process I want something you provided give me something that connects yes okay sure is between yeah so so why couldn't we why couldn't we reinvent the way that people interact with enterprise software and why couldn't we make it a more immersive experience and that was all that was what a lot of the stuff you saw today around the mobile side of it a lot of that's trying to drive towards getting people into this type of mode of working and way of thinking but yeah we want to get to the point where you can you can join a company as a 22 year old and you log onto the system for the first time you go this is cool as opposed to like phony your dad and say and dad I'm on some system can you tell me how it works and with the innovation I'm amazon is example they say okay pay by the drink but you're up and running you're standing up stuff quick it's a cloud term what's your equivalent corollary to that innovation so actually be on the innovation type of service now what is your core innovation when you go to flow say wait what's your innovation message to the customers is it standing up stuff quick redefining processes workflows so I think I think it's I think it's actually creating processes so it's crazy sorry I'm screwing up on accents now I almost went processes processes that news been in mind what it is is about being able to the innovation is to be able to give something structure that didn't have structure so the best example I always used as you you go around different areas of business and you talk to people and you say use the 80 example you say hey you know I see spends all its money being as good as it was last year and everyone laughs at it but the US then well how how do you perform what are your guys do every day they haven't really got an answer so it's being able to take some kind of unstructured work format and being able to say well I can give you a system everyone engages in the same way where everyone gets to manage work in the same way or when you get to understand exactly what your business is doing so it's that I think the real innovation is to be able to create a true system of engagement that sits on top of a system of record that's that's what it's all about so David struck by your keynote today you and Fred were sort of taking us back in time 2004 2006 eight the downturn 2012 the IPO and you did a great job of saying okay remember what the world was like back then there was Facebook really didn't have any users at least that weren't college students right right Google had an IPO dan just sort of took us through the the litany of innovations that have occurred and everybody talked about the consumerization of IT as the chief strategy officer do you basically look at what's happening in consumer tech and say okay we can do that as well you guys used to use the Amazon example right or do you have a different methodology how do you predict sort of where things are going I think it's I think kind of like the eraser change becomes very hard to predict I talked about the razor change at the start but the his figures that we didn't use when we started to extrapolate it around adoption you just get things moving moving so quickly now I think but the challenge is to try and not necessarily emulate what everyone else is doing but you need to be able to some move ahead of us and I think the rather than rather than directly copying something is looking to the themes that you see happening at that level so you could have gone back to 2 2004 and and said well we've already got these type of social media solutions this is the way people are going to work but then it took whatever it was three and a half years for Google to get 50 million users now most companies aren't going to wait that long for an adoption curve even though that's a really fast curve so so it's been able to predict what technology exists now in the consumer world that you think is going to end up having a major lead in place going forward so how are people going to interact you see a lot of startups coming up now where people start to do work in different ways which one of those that you think is going to be successful so one of the ones we took a gamble on is the visual dashboard concept we've seen more and more people integrate in different ways I think the way you see you see companies like slack and click doing doing different work around how they get people to integrate together a lot of people have got got good ideas and it's seeing how people want to interact with those I think a big driver of big influence was looking at what developers use how what tools are developers using to develop because that kind of influence is what they develop and that kind of influence is where they'll end up being and what about your developer story obviously is a 1200 people come in a greater con the other private private instances which is great for DevOps like mindset cloud guys who love to see in boxing probably pushing code and testing and doing all that on the fly work which is the new normal um developers are worried you know that they you know for example Twitter as a problem with the developer ecosystem by putting developers out of business the balance is you guys have a roadmap yeah and you don't want to put it up with a business but up there in the in the in the lane of your swim lane is behind as you balance that to be honest if it if we build an application it does something and someone else builds an application that does the same thing I don't really care I mean I just want customers to choose which the best one is for them it really it really doesn't make that much difference to us I mean there might be a mine of financial impact on on which license it consumes but fundamentally at the end of the day it's still building that community it's still getting people on the system because the I think the great thing about service now is what once you're in the system it's the capability of whereabouts you can go from that point on so someone I mean think there's already multiple HR products out there there's already multiple products doing a mobile asset management that I'm fine some areas we don't play in some areas we do but yeah for me I don't see it as a competition I I think it's it was plenty of beach head out there so yeah you guys have been able I mean fred was on the queue earlier and one of the things I thought was really insightful that he mentioned among this whole interview was that when he asked them about the future he actually brought up Internet of sins and he said the use cases are emerging because the capabilities weren't there right in the past yeah I use the thermostat example they correlate the nest which is kind of like a mainstream but that brings up the point there are new use cases emerging that are potentially worth a lot of money maybe his lifestyle business for developer or full on venture back business by innovating a workflow that's now new and relevant yeah and you guys are on that you agree with that I mean that's how you guys see hundred percent ok so I'm a developer I'm an entrepreneur what's what's what's your message to me like how do I do that what advice would you give me and doing that so there's plenty of I mean there's plenty of material out there and I was to actually develop on the platform the first thing and I'm I'm not a developer have encoded for years the first thing the first thing i do once i had an instance is I try and start off the process of looking for a looking for something that I do on a daily basis that frustrates me so I can pull this up easy because I do this almost every other day checking into a hotel so check into a hotel I do something online I booked the room and then I get there and you get questions like well do you want a high room in my room do you want to smoke in room no smoking to embed what why can I just select it at the front when it gets there why doesn't it know of previous histories what my preference would be why do I have to still give a credit card to be swiped when you find something that you do on a daily basis or an interaction that you do or you're you're asking someone for a service my focus would be how could I find a better way of doing that because yeah because they're the things that people are going to buy so also you know Fred also mentioned the whole email thing and you know as a lot people trying to crack the email code IBM's doing some stuff around new way to work and email his business trying to crack this code for years i hate's email but we still use it certainly our kids my kids don't use email or voicemail for that matter but the new way to do this is to actually have messaging in and mobile app so i want you to comment on this as a lead-in to the question of productivity you get put on a survey how is the ServiceNow value proposition impacting the productivity piece but fred is teasing out is this is a productivity raffle right you know you're going into the email as an example but this other way other productivity opportunities you guys are eliminating or process improvement here so that i think it's i think what it's more about is it's uh it's about the delivery of information at the right time so it's kind of the the equivalence i always used to explain it is it's it's the difference between constantly going to your mailbox to see if you've got mail or a telephone ring I mean when cell phone rings yet you've got to do something but the amount of time you can spend just checking if there is something for you to do is pointless I think I think it adds it had structure around being able to prioritize things I mean that's what people that's what people can't really do at the moment you get a request yeah okay how am I going to do the request the the innovation around driving things out of out of email is one thing but I think the the process of being able to bring other systems potentially onto a single system is something else that drives a lot of benefits but i would say at the moment people use email because emails ubiquitous and that is the main focus and I I don't think to say to people who don't live an email living service now that's never going to happen that's why we needed to get that whole mobile app out in place because you you need something where you're getting work delivered like a telephone ringing why ups saying hey it's going to be there in 20 minutes that's that's what you want is your case pattern that you see from a pro to be standpoint crush your broad customer base out there is it onboarding here the kpmg a pretty solid yeah what is the consistent pattern that rears its head over and over again we say yeah we're killing it there a productivity we're so great work so it tends to go it still tends to start off in a teak and then I T we tend to see the next move through is is hey char the next moves are after that tends to be facilities and the other sides of the company other parts of the businesses legal finance marketing they have an interest in it as well but that tends to be the flow that we see people going through and it can be it can be multiple things I mean people people first of all start to look at the the onboarding situation but then they start to look at well how do we do candidate management so how we can actually handle the recruitment side and then people come in with the kind of 10 gentle things as I'm the conversation the other day about some about someone at a university but someone at a university saying well what I need to do is I need to handle student recruitment so so when when a company comes in on campus and wants to recruit people how do we communicate to people that they're on campus and then how do we actually track people coming in and applying at that level so people come up with solutions like that we get a lot of things around hospital management where there's productivity issues where people are saying well how can we actually start to manage things more effectively from a medical perspective be at Medical assets be a hospital beds any area like thats it is the problem I have and this is why the platform so good in the partner markets so good if you could sit and write down use cases all day I mean you feel the scrolling anything as a service that that's what it feels like sometimes I want to ask you about the innovation curve so you know it's interesting at the micro level we're talking about all the waste that goes on in organizations but at the macro level productivity numbers actually look pretty good productivities going up employments not following productivity which is you know a concern yeah and you guys potentially are going to add to that problem right in theory the so it seems to me that the opportunity is to replace that that that gap between things that we're doing they're wasting our time and apply that to new innovation prize will bethe bend the innovation curve that if you will so I'm wondering do you have examples of that starting to occur in your customer base or do you as a visionary do you have a vision as to how that might occur so I I think this kind of two elements to this you you look at the survey that we probably still Monday and we're saying that that other the thousand managers we surveyed in America in the US the spend around 15 hours out of a 40-hour week doing this type of administration SAS now I think there's there's two ways to look at that one is the benefit to the business of being able to drive productivity the others the fact that those 15 hours that you're wasting on admin you're probably doing it in your own time you've probably got some kind of knock on and work life balance around this but I I look at examples that I've had from a perspective of how I've worked with things before and this is uh this is another good use case example so before strategy when I was running all the engineer the pre-sales engineering team here if someone wanted a resource they come to me hey Dave we need a resource in this company at this side and it email me and i would spend ages basically re roots in emails to the manager to say hey if you got anyone in England have you got anyone the Netherlands so it took like two days and we wrote a full system where someone could just come in and request the resource it got recent to the right manager in the right region my emails probably went down around eight hundred a week where I wasn't getting requests coming into production of 800 800 emails a week because people just weren't asking me for real there's a dude up in the right place you can work work your Anakin reassign it if I if I go away for a week I can just say so my next manager down hey can you look after it this week but I'm damned if I'm gonna give my inbox Yeah right yeah i'll go through Drogo's rewrite it works faster that's the line in your inbox it's gone dropped off the end okay so example of one how did you use that time that you freed up think I might be how I ended up where I am NOT okay so but but this is a good example yeah because you look again a lot the the big thinkers worried that you know Instagram and Facebook have way more photos than right eastman kodak ever had and they employed far fewer people yet they're worth a lot more you know so so it's people like you that have the freed up time and the vision to create these new you know ideas and you get me get more time to focus on things and look at how things it done so are you seeing that within the customer base yet because a lot of what you're doing is sort of cleaning up messes alright are you seeing it's been a there's enough time now I would think you're starting to see glimpses of oh yeah sort of shifting it's not so easy to say okay I got to take somebody who's a whatever mid-level manager doing X and albums that put them on innovation so you see you see the shift now if people people started to move outside of IT into general service the interesting drive is a lot of people who are nit who would drive an IT service the company on the side okay we want to move this further we see the vision for where we could go with service management a lot of times what they do is they move that person outside of IT and they'll say okay we're going to crease global business services or global shared services and actually put you make it happen run enough division when they do happen and everyone says everyone to a letter says it's easy it's a it's easier to let the vision flow down sometimes it is to try and push it up from 80 because a lot of people I'll say let's say I t go to legal legal sitting there saying your IT what are you buddy bugging me for but if someone comes through from the toppling goes we want to redefine like how service is consumed by your group people are okay yeah that sounds interesting show me he'll show me what you've got so in our last minute here I want to get the chessboard out Dave and I always like to do the chessboard of the market you're doing strategy see you're going to run the chessboard you know okay that with the team so what's on the chest boy what moves are you making what's your key strategy right now how would you describe it to how you guys how do you describe to analysts customers and what are the key things that you're focused on in terms of the big moves you're right so so kind of think of it in three directions so think of it the first direction we're focused on is the extension of service management how does it get service management out across the enterprise the second area will focused on what can we do to complete the 80 stay so if you think of the ATT stack is a LM a Tom 80s m.a.c financial management what can we actually build out in that stack beer through building or beer through acquiring this year we spent a lot of time on item because I some hasn't changed in 25 years so probably worth changing it the third elements is is innovation so what do we focus on around how people interact with the system how they engage with the system what their experiences with the system and I think the interesting thing now is looking at how many of those elements in the in the IT staff actually expand out across the rest of the business unit so initially we came up with a concept of IT financial management's to be honest your major will scrap that it may as well it may all be dealing with service financial management because once you've got that data you can then track it across any business unit that you're doing so though kind of the three vectors we okay so let's talk about the API economy as the workdays a big system you guys have customers have work day but you guys have an HR appt is that to build connectors I mean is connectors a way for customers to deal with the data portability is the end of the day the systems of engagements interesting right so there are many systems of Records out there yeah I mean there's different approaches people take some people say well my first move is going to be sir modernized the front end bill the single friends and where everyone goes through to all these other systems and where it were a workday customer interface to work day but the a lot of the drive cases just to to be able to to just manage the work that comes into the system so we we focus on let's say the HR example we focus on knowledge case and request that that's kind of it you know you come in and you're processing one of those type of orders and then it might be that in order to complete that case that comes in the HR fulfiller is actually living the life and work day to do it and they're doing the work and work done and it gets updated and pass back so as ours is more defining how you actually engaged to generate that works estas and the customers just not a lot of heavy lifting on the customers and they don't have to rip and replace work day in this case they can come in and get a point solution with all the goodness of service now behind it and I mean as they go if they quantity family in service now we front-end rsap system with its surf you raise of a helmet request you do it now it is he confronted a lot of systems yet you know instead of having a lot of front ends but you do not many people have to use all the front ends then and no for productivity perspective you get someone in siege from one UI that's it they're done across the board so the platform goodness there is it's flexible you guys have an enablement model that developers now onboarding you got customers getting the ability to rapidly deploy stuff fast nit which is a good problem space to work right and then as you go to adjacent he not really have to do a lot of medieval activities in the platform just to grow right I mean you wouldn't believe the speed we turned around the whole security incident system that was that was amazing well this is awesome congratulations certainly we're certainly impressed with the software and we saw our up there in your keynote great you i love the real-time synchronous stuff you know and getting stuff pushed to you as a will be the future that's certainly greater coding angular you get bootstrap all the stuff going on real cutting-edge stuff that we've been playing with so we we were super impressed and congratulations on your success they've right chief strategy officer in charge of the chess board with it with the management team up at servicenow making it all happen this the cube sharing all the data with you we right back after this short thank you you

okay we're back this is Dave Volante I'm back I was just meeting with Joe Tucci and Mike cappellas and in an analyst breakout and got some good information I'll share with you a moment this is Silicon angle TVs continuous coverage of EMC world and we're live here in Las Vegas and we have a good friend Dave Cahill from SolidFire on we met SolidFire a year ago at EMC world the CEO Dave Wright popped out of Rackspace conceived and founded SolidFire to be exclusively focused on the cloud service provider market flash all flash array focused on the cloud service provider market like no other company most companies sell flash arrays all flash array sort of broad set of use cases SolidFire is uniquely focusing on the cloud service provider space and we're going to get into that with with David Cahill David welcome to the cube it would be back so you moved to Colorado a lot of interesting personal stuff going on and it's it's it's great to see you you know doing so well personally and it seems like SolidFire is really making some progress you guys are as I said before are uniquely positioned in the cloud service provider space but so why don't we get into it maybe give us the bumper sticker because you could maybe maybe add some color to what I just said yeah and then give us an update on where we're at yeah sure so so guys that are building large-scale multi tenant clouds it's a unique customer set in the last year has done nothing but validate that for us we've been in early access with a handful of partners and our cloud service providers in that regard and continue to expand out that program now and it's it's as evident now as it was then that this customer set has unique challenges around scale around automation around performance and around efficiency that you don't traditionally see in the prize and so we continue to be laser focused on that customer set large-scale multi-tenant clouds and there's plenty of them being built yeah so um so where are you at you guys go through your beta program and yeah so we're heading the crap out of the kick in the beating the crap out of the system we are heads down charging towards full GA later in the year but the purpose of the early access program really is was to get some select cloud service providers to beat the crap out of the system and let them continue to you know evolve the services that they're gonna offer based on the SolidFire system and and make it a better offering GA both from a infrastructure standpoint but also from a services standpoint because you know these guys are advancing the way that we think about the cloud cloud 100 was let's move your data to the cloud cloud 2.0 is let's move your apps to the cloud and so that's a mindset shift which requires evangelism on the part of the cloud service provider to the end customer in addition to the infrastructure right if you if you if you crack the code on the economics of high performance in the cloud you open it up to a much broader application set that's so um so actually Dave I want to see if it call inaudible here so you are you hanging out here you got it something to do after this so we are I'm around okay so Sanjay merchandani was the CIO of EMC we're gonna lose them if we don't bring him on I realized now look at the schedule yeah I take off for 20 minutes everything gets behind so if you wouldn't mind I want to bring take a quick break when I bring Sanjay in interview him and then bring you back and then pick this up with me okay all right so listen keep it right there we're going to come right back with Sanjay merchandani CIO of EMC we're right back you the cube is this conceptual box if you will we bring people inside of the cube and then we share ideas the cube is a comfortable place it's a place where people feel happy and are happy to share their knowledge with the world and we're happy to be ambassadors of that knowledge transfer yeah can I get okay we're back and this is the segment with Sanjay Mirchandani CIO of EMC now Santi has been on the cube a couple of times and really has been leading emcs transformation efforts internally so the company's not just talking about transformation actually transforming I was at the CIO event in October EMC CIO event Sanjay really he noted that event and was the sort of highlight at that show working with a number of EMC CIOs to help them understand how EMC was transforming Sanjay was a really first of all welcome to the cube thank you good to be here and so that was a great event it was the MCS first real effort to bring together CIOs and and they used you EMC usually was a showcase which is smart you guys are doing some internal transformations but there was a lot of interest around what you were doing obviously a lot of talk about infrastructure transformation but also new metrics and things like that what did you take away from that event well you know the whole thing is that people want proof points the whole thing today is about proof points and we've been on this journey first in virtualization then we move that to cloud and we've now incorporated obviously big data into that but nobody builds infrastructure for the sake of infrastructure you want to drive value out of it and we translated value for the business for EMC is a customer internally around agility speed time to market and there's been a shift in the way our internal customers think about things because it's all about hey give it was faster doesn't have to be perfect out of the gate but give it us quicker so we could work together and get it right so we've been we've been we've built out our cloud and now we're working through the layers of in layers on top of that of that cloud of you words are things like platform-as-a-service true business intelligence as a service connectivity between our infrastructure and our legacy applications or if I have the liberty of building our new applications how do you do that and then on top of all of that these devices we're having thousands of these devices a month into the network how do you bring a true user experience and give our users productivity outside of email mm-hmm on this device so that's what we took away that customers were interested in these layers so so when I hear something like VI as a service I think I get excited as a business person I said can I get access to a self-service bi portal right and actually begin to interact with data you know without having to call up you know an army of IT people is that the vision is that you're actually doing that right right and right so talk about the hello yes we should go it's actually very exciting because it's the first layer of value that we're adding directly on top of our cloud infrastructure right so the number one area where you have rogue IT or shadow IT whatever you like to call it is some form of business reporting so users will say IT can't provide me my reports fast enough or IT can't provide me the reports the way I want them or in the format that I want them or as frequently as I want so it's usually shadow IT usually the big percentage of it is there on some kind of reporting system so what we decided to do was we built a cloud infrastructure we've got the capabilities we've got green plumbing plays so what we're doing is we're creating as much of this data that the custom that our internal customers want access to give them one version of the truth so you take away the noise about where is the data and instead spend time on two things helping our internal customers build the skills to do the analytics the way they wanted and give them data scientists as a service as a human service to really enable them because we see the data left to right nobody else does all elements of data within the company mm-hmm so so we give them data scientists as a service and we'll give them the ability will give them skills around tool sets that they want to use a Microsoft reporting tool or SAS or something else on top of the green flap we're enabling the platform we're enabling some competency around the tools when we're enabling data scientists with subject matter expertise in the data and then the and then our internal customers can go off and have a nice day with that information any way they want it so how do you deal with the issue of credentials like who gets to see you which data well obviously we put business rules behind all that so our security officers involved you know and we we are now tearing the data based on access based on you know profiles etc so all of that has to come together so it's not an all-or-nothing formula you know we're bringing best practices into play and and making sure those those are things that you understand how to do in a traditional world right and and if it's rogue IT or shadow IT as you you know that now comes into picture so you have better control over that stuff yeah so um we actually just did you mentioned shadow IT we just did a survey on IT transformation we had one of the questions we asked is you know what percent of your your IT budget or organization's IT budget is managed by a centralized organization and only about when I say only about 38% said 100% yeah so if more than half had some kind of shadow IT and about 20% had a 25% of the spend or more going to shadow I mean and let's be honest it was cloud computing stuff that was in the arsenal of IT for years is out in the open you can get access to the credit card for the same amount of infrastructure and in a drop of a hat that my IT guys need so it's just shadow IT has gone out of the dark corners of the organization right into the open into the plow yeah it's okay you know and so it's a whack-a-mole syndrome yeah so we're saying you got to either embrace it or get out of the way yeah and so you know the pitch that my my leadership team and I are making to our organization is we have to be the brokers of value it's not about authorship it's not about where it was built or where it was written it's about how soon can we add value to the business and we have to be the brokers of value all right and not it's not all about hey if it wasn't written here it isn't good enough for this for this company so yeah you've always been very forward-thinking about that I mean you know shadow IT freaks out some people oh we got to pull it in but you're like okay fine so now I want to tie it into the messaging that you were hearing at EMC world so it's it's IT transformation transform IT or sorry its transformation transform IT business and in yourself yeah we've said okay IT transformation that's about the cloud the new new cloud infrastructure Bob as well the business transformation is about data unlocking data value data value and then self obviously will you make cloud architect maybe that's a piece of what I'm gonna talk about to are so-so is that a reasonable way to look at what the messaging is and how that maps from a practitioners perspective and I'm trying to squint through okay how much of that is marketing and how much is actually implementable so you've talked about the the cloud transformation internally at EMC IT as a service um how about the data piece you talked about bi self-service bi but how about even going beyond that you're actually getting into that point where you're leveraging that yeah are you able to monetize yes great question by the way and there's lots of new answers to that to that question because when you chunk something down to saying you know IT is about you know transforming I tease about infrastructure well transforming IT is about infrastructure self service automation cataloging and creating the capability to present IT as a service did that make sense yeah my goal is to break down the big black box of IT into little box black boxes of IT so customers internally can pick and choose what they want at the price points they want and at the service level they want and I present that up and as much of an automated Service Catalog as I can now that is transforming IT there's a lot of process transformation alongside technology transformation and the you as human transformation which I'll get to in a minute once I built that what do our internal customers want they want big data we talk about big data they want Anytime Anywhere computing capabilities so if you've got that sleek little MacBook Air in front of you or the latest Android device that has showed up at your door or an iOS device they want to be able to compute any way they like on any form factor any screen anywhere we have to render that so for us today Mobile is an opt-out strategy so you ever tell me explicitly that you don't want mobile when I give you a solution it's automatically opt-in yeah two years ago it was the other way round hello I mean okay now how do you do that you do that based on the fact that I've got a cloud infrastructure and I'm building mobile capabilities on top of that bad infrastructure to expose elements of that data manage those devices create that user experience on top of that infrastructure security apps the hole in your login monitoring authentication you know so on and so forth and so how do you do that so that's that's to be transforming you know the business how they use it how they consume it what they want to do with it etc said differently in the first so transformed IT transformed the business is transformed IT was building the factory floor building the production line it was all about IT transform the business is all about the business it's where you're building the widgets you want off that factory floor transform you is what gets the lease attention but it's probably the most pivotal thing in all of this is the bits are gonna be just really cool bits on the on the data center floor unless somebody knows what to do with them and really drive value with it and so for me the focus of my leadership team and myself is not so much just about the architectural roadmap but it's bringing the thousands of people that are involved with IT whether it be our own people or partners that helped us along with us in this journey in a way that they're showing us the way I mean I could come up with s best roadmaps somebody's got to make them happen yeah and I think you're hitting on a really important point you know the people piece we always sort of ignore that we talk about the technology but you know well when you look at the spending that goes on in this industry the vast majority of his own people which you know on the one hand says okay that's important we're investing in our people but we're in a labor-intensive IT economy and and that's stifling innovation you've talked frequently as have your colleagues about the 70/30 mix 70% goes to running the business 30% goes to the innovation but decades of infrastructure investment in silos have really stifled yes innovation and so yes you got attack the processing and the people problem right or else that's not gonna change which slaves to that yeah trust me that's that's what it is yeah and so so that in order for us to move the industry forward Palmer talks about getting deeper into the business integration you can't get there you know if you're you know stuck in all this infrastructure right you sort of bring the first five minutes of my presentation you know and and but that's exactly true you know we've we've you know we say 70% is lights on 30 percent 25 30 percent is innovation it's not even innovation it's just new stuff compared to old stuff yeah it's not me I mean yeah yeah that's that's the binary call you need to get beyond that into true innovation and and you know that that takes a lot of effort and people are so stuck in I gotta get this done I gotta get this out you know I gotta work do this work around I got a triage this problem that the technology and the processes are so institutionally complex the business has gone this way I teeka's continue to run this way because we haven't had time to move this way I think today and I say today I mean the period of the technology that were in is the technology lends itself to agility the business is open to how it needs it and open and and welcoming to how it wants it consumed the technology good enough iterate agile and it's up to IT to adapt at this point to say I'm willing to bring those two things together and really change how I do things for the business that makes sense yeah and well it does especially when the context of the IT services discussion we had earlier and we talked about you said binary you know it's either you're you're maintaining or you're doing something else right I think when organizations if you can present IT as a service can start to really align with their their their objectives of their entry to like a portfolio right run the business grow the business transform the business right and maybe align it to business unit and really start to make IT a much more fundamental part of the strategic plan and the operating plan and that's what excites me listen I had one more question for you I've been hearing a lot about propel I heard first heard a couple months ago we heard more about it last week at sa P sapphire you did yeah okay yep that Jo was just talking about Jo Tucci so you know I know talk about propel yeah I didn't use that word but he talked about OSAP and he said hey it's going live soon I heard it's going live this summer but my fifth great so what's that all about okay so you know as as here's how I like I like to think about it for a few years we were building on infrastructure and it was a drive for efficiency in the business so you it's what I call you know when you start trimming the fat but you got to build back some muscle and the muscle we were trying to build back was a cloud infrastructure and applications that took us into the future right the business wasn't slowing down their plans because I couldn't keep up with them they were going just as fast as they had to go driving shareholder value creating new markets new products getting and doing the things they had to do we were working with 10 12 year-old legacy systems like every other company in our class it grow fast grow globally acquire companies you're just trying to tread water sometimes and just stay afloat we made a conscious call up two and a half years ago to revamp our core systems align a business systems no different than a retail bank pulling out their core retail banking systems and back-end systems and putting in new ones once they've used on a main route for many years very trivial but we just we didn't just stop at the a player we're completely building out this this new line of business solutions on and on what is essentially an EMC VMware RSA and partner friendly technology so it's s ap on the top and the a player Vblock architecture we've used in the spring frameworks gem fire all of the other products you know the middleware products that that allow us to move into the cloud from VMware all built on a V you know running on everything V yeah right so the only thing that we're bringing over over 12 years is data that we're spending a lot of time transforming so they're ready for big data and the database physically everything else is brand-spanking-new so at every layer of that stack we are transforming IT the business and ourselves I mean if you know what I encapsulate the the the the theme for this event we're living it July 5th my team's been working for the last couple of years the last couple of months have been torture as you would imagine anything of the scale you know we closed the quarter we turn on the lights the next morning and we're in a new system and we got to take our users through it so you know the teams in the next you know stellar job but we still have a little bit ahead of us so I said you'll be in the beach but Sanjay's team as the IT I always pulls the shorts we don't get we don't get a long weekend we don't get a very long month actually Dante merchandani one of the best CIOs in the business we had Oliver Bushman on last week and other real innovators I really appreciate names good to be here as always I keep it right there and we'll be right back