>> Narrator: Live from San Francisco, it's the CUBE. Covering Samsung Developer Conference 2017, brought to you by Samsung. >> Okay, welcome back everyone. We are here live with the CUBE coverage where Cloud Native and the SmartThings Conference from Samsung Developer Conference. I'm John Furrier, the founder, the co-founder of SiliconANGLE Media. Co-host of the cube here with Redg Snodgrass, who's the chairman of ReadWrite and ReadWrite Labs. >> Hello everybody. >> Also been an entrepreneur, he's done the Wearable World events, done a lot of things in tech, riding the waves. You seen them, a lot of action going on, Redg. Want to get your the thoughts as we wrap up day one of two days of wall-to-wall coverage of the cubes, Samsung Developer Conference, a lot going on. You know Samsung, they're trying to play their best hand that possible. Obviously, they're not going to come out and say, We're not really ready for primetime, for the cloud. But the reality is, they're not ready for primetime for the cloud and IoT. However, huge strides in positioning, messaging, and the self awareness of their stove pipes. They are series of stove pipes that they've recognized, We've got to make this a 2.0 Bixby that crosses across all of Samsung, open up IoT. >> Redg: Which I thought was great. >> Open ecosystem, everything else, to me, is a work in progress, kind of, cover the, hide the ball, a little bit, I mean, what's your thoughts? Do you agree or what's your reaction? >> Oh man, I was on a panel earlier today. And somebody was like, oh, this is great. And I wanted to go back to, back when we did the open API service with Alcatel-Lucent, when we roll out all this stuff for the telcos. I mean, it's just, it's a lot of hype, initially. But what I do like about it is it seems like there's a dogged commitment to creating all the different documentations necessary and bringing that in, I mean, if they really put the full marketing weight behind it, this could get really interesting really fast. I mean, they own almost every device in your home already. >> Well, I said the word hide-the-ball. Maybe I should take a step back and not be too harsh. What I mean by that is, they're not hiding the ball on purpose, I think they're, by design, and I think Greg mentioned this earlier. Greg Narain said, they're doing it by design. And I think that that's a good call. SmarterThings is a good positioning because it highlights multiple devices and connecting it together. I think if they played the data card and the cloud too much, they would've overplayed their hand, and it's not needed. I mean, do you think it's needed? I mean, I don't think it's needed. >> Well, one of the biggest problems with IoT right now is that you have multiple different silos creating data. And then all those data silos have to figure out how to come together and talk about it. I mean, it seems like they're taking a step out, and saying, hey, we want to build that solution. Which is great, I'm more interested in the orchestration between different OSs, like, how are they really going to do that? Because it, we talked a lot about, when you build one of these ecosystems, you're really just building an economy. And the more open that you let your economy, right, the more business models come in, the more people that can be there. And so, if we were to start thinking about these OSs as real economies, like what do you need to have economy work? >> Well, I think this is why, we were talking earlier, I think that you had a good point. I think that validates what I'm thinking out loud here, which is, why play the data card. They don't need to because it's still open-book. They still got to figure it out, and that's not a bad thing. They play with their best hand, which is the consumer hand. >> Redg: It's consumerism is where they're at >> The devices are awesome, the screen on the phones are phenomenal, they got TVs. They got a little bit of a family hub going on with the living room, kitchen thing, with the refrigerators. That's IoT, they got healthcare because it's a device issue. So they're working their way from the consumer edge into the industrial edge. Now, if you're in the IT world, you have security problems. So most people that we talk to, at the humans, they say, hey John, my plate is full, I got to staff up my DevOps and my application developers. I got to unbolt security from my IT department, make that report to the board as a profit center now. And I got all this machine learning and Cloud Ops, and you want me to do what? Like, instrument my entire factory with this IoT thing? So people are holding the brakes. >> Well, I mean think about it. Every day, right, you're confronted with another executive that has like fallen on a sword of a major security hack, a major security issue. And so, as an executive of a major like business unit, with a technology group in front of you, you're sitting there making all these decisions every day. And it used to, you used to come and say, okay, we're going to make decisions every eight, nine months. And you have this big waterfall thing in front of you. And you know that, from your vendors, that. >> John: It's predictable >> Everything was predictable, and now it's like, oh man, I got to get into this Google Glass stuff, and I've got, no, now it's wearables, and wearables, that doesn't work, I need my IoT infrastructure stuff. And so we're moving the court, you know, away from all these CIO, CTOs consistently of what they need to think about next. >> It's interesting, if you look at the stack, go back to the old 80s OSI model, you got the lower level stack, middleware, and then application stacks. If you follow the data, and the networks, and the packets, how it moves, you can almost see the trends, batch versus real time. And I think what we've seen in the big data world, in data sciences, which can be analytics, obviously specialty industry. But the role of data and realtime, self-driving cars, really highlights this really huge wave coming, which is how that people dealt with data and software, the relationship between software and data was different. You store it in a database, build the database, call the database, get the data out, load it in, slow, monolithic, siloed. But now you have data that you need in really low latency at any given time, in any different app, from any different database, in less than a millisecond how do you do that. >> Well, think of it. >> John: That takes intelligence. >> About two years ago, I had a great conversation with a big packet moving company that managed most of the packet movement for most of the internet. And we were talking about, what does it look like per person in the US in the next like three or four years? And it could be up to a petabyte a day at a per person. Now that sounds awesome because if you look at all the different like videos we watch, it's like, oh, that's great, really cool flying car. You know, connecting windows, no one's really doing the math on that. And if it's a petabyte per day per person, like in the US a year even, or you know. I could see models where it could be a month. Think about what that does to the network load. We just don't have the math to be able, you know, possibility to handle that. >> This is why the decentralization with Blockchain is interesting. Even though Blockchain is hyped up, I think it's fundamental to the internet, as this Dr. Wong from Alibaba, who told me that last week. He said it was like a TCP/IP, I agree with him because you have distributed computers, which we know about. We've been there, done that, but now you got decentralized and distributed, two different concepts at the same time. That's a fundamental paradigm shift. >> Well, I mean it's just, so, I mean, you got to. >> It's intoxicating to think about what that disrupts. >> No, no, I love it, I mean, honestly, I've fallen in love with narrow band networks the last week. For some reason, I'm the weirdest person on the planet. Because it's such a solution for security. It's such a solution for a lot of this back calling and data that we're going to have. It'll be interesting to look at, but when you think about the pure math on this. >> John: Are you back calling data or are you back calling compute? >> Oh, well it's so. >> That's a different conversation. The trend is, don't move the data. Throw the compute at it because compute is, this is an architectural renaissance happening, people are re-imagining. >> How many, how many startup. >> In global infrastructure. >> Execs can even like draw architecture? Right, with all the lame startups, I mean, when was the last time you saw like somebody pitch. When they came to pitch, it's like, let me talk about my architecture. >> John: That should be the first slide. >> It should be the slide that you talk about as an executive and everything, I don't see. >> If he can't get on the whiteboard. >> Startups deliver architecture. >> If you can't get on the whiteboard and lay out an architecture on fundamentally the core engine of your technology, you shouldn't get funded. >> Well, so that is a major issue that's happening right now because I do think that we have this group think where we've disallowed a lot of R&D thinking. We don't do longterm R&D before we get a product to market. And now, like all. >> John: Sometimes you can't. Sometimes you have to sprint out and put a stake in the ground and iterate. >> Think about all of the connected device product. How do you test the connected device product to scale? Right, I mean the iPhone, you know Samsung, everybody has all these devices out there, they're getting this data, it's coming in they can actually iterate on that product and make decisions, right? >> Well, that brings up a good point. We saw this at the Cube at VMWorld. For the first time we heard people grumbling in the hallways like, you know, I love the ENC tries, but they just haven't tested this use case. And the use case was a new workload that had unique characteristics. In this case they needed low latency. It was an edge device, so it was mandatory to have no latency with all this was trickling data in. But in this case, they had set up their virtual SAN in a tiered basis. And they needed a certain hardware configuration with vSAN. And they've never tested the hardware stack with the software stack. So it's just one of those things that the hardware vendor just never imagined, you can't QA the unknown. So this is where I'd see Samsung doing things like in-chip and seeing what Intel's doing with some of their FPGA stuff. You can see that these infrastructure guys got to bring that DevOps concept to the consumer world. >> Redg: Oh, it's going to be so hard. >> Which is programming the. >> Redg: So hard. >> The hardware at will. >> Yeah, well. >> John: Like the cloud DevOps ethos. What do you think of that? >> Yeah, no, no, no, look, I mean, I'm such a big fan of being able to get your product in people's hands, to be able to see the use cases, develop them out and push that forward. You know, big corporations can do that. You have 10 iterations of almost every iPhone right now, with thousands of engineers iterating on it. So when you look at like the competitor, which is your device right now, versus every other piece of IoT technology that isn't been perfected or anything. Our biggest issue is we're driven by the success of the smartphone for every other piece of technology today. And that's, that makes it hard to drive adoption for any other devices. >> So I get your thoughts on this, 'cause we wrap up day one. Obviously, let's talk about the developers that they're targeting, okay. >> Okay. >> The Samsung developers that they're targeting is the same kind of developers that Apple's targeting. Let's just call it out, however, you see voice-activated touch, you're seeing the services tools, now they're bringing in an IoT. You're not hearing Apple talk about IoT. This is unique, you got Google onstage, wink, wink, hey, everybody we're here, we're Google, Android, coming together. What is in the mind of the developer in the Samsung ecosystem right now, what's your take on it, what's the psychology of that developer? >> I built an app at one point in time. It was dating app a long time ago, right, with some other guys, they built it, I was just the mouth. It's called Scout and we were on the Simian platform, and the iPhone, and we were on web, we were on mobile web. And in the iPhone app store, all with one engineer. And it was really hard because we had real-time chat. It was just so much crazy things. At the end of the day, what always matters is, again, you're building economies, you're not building fun playgrounds or anything else like that. And if your economy is, your platform is the easiest to use, it has the capabilities and advantages that are the norm, right, you'll win. Bass Diffusion is great it's this guy out here, he won a Nobel prize, but what Bass Diffusion says, in order for you to win in a market, you need two things, imitation and innovation. Imitation, for instance, in TVs, is your TV black and white, is it color. As things move up, innovation eventually overtakes, and always becomes innovation. So when you look at like what's needed in market, the platform that is the easiest to use, the platform that has the most capable imitative qualities, it's just very easy for you to push things to market universally from OS to OS, along with certain pieces of innovation around business models, certain API capabilities that may make it easier for them to deliver revenues. If those are the things that are delivered, that we see pushed out, a good blend of imitation and innovation, the win. It's that person that actually can deliver it. >> Well, we're seeing gaming in entertainment really driving change, Netflix earnings just came out. They blew it away again, you're seeing the cord cutters are clearly there. >> So much for Disney, right? >> E-commerce, yeah, I mean, Amazon's still got to make some moves too, even though they were still winning. No one's really falling out of the chair for Prime. I mean, no, I don't know a lot of people who rigorously turn on Prime, they shop on Prime, but not necessarily watching any entertainment. So I'm a little critical of Amazon on that. But, then again, but Amazon's doing the right thing. Netflix, Amazon, YouTube, you're seeing a culture of digital entertainment shifting. E-commerce is shifting, and now you got web services. I think Amazon encapsulates, in my mind, a great strategy, retail and services, but if you extend that out to the rest of the world, voice-activated apps, you can blend in commerce entertainment, you can replicate Amazon. I mean, they could replicate everything out there in the open. >> Amazon is so good at understanding where they fit in the stack and then, pushing the edge case further and further and further along. They're really brilliant, versus like VMware that's like, oh man, we can make apps, no problem. They went to make apps, and it didn't work out so well, they're great with VMs, so. >> John: They're great with operators in the enterprise, not so much with DevOps. >> No, no, no, no, and it's. >> They got pivotal for that now. Michael Dell bought everyone up. >> Yeah, exactly. It's understanding where you fit in the stack and being able to take advantage of it strategically. I mean, like I said, I think Samsung's positioned really well, I mean, I wouldn't have come and hung out with everybody if I was like, ah, I'm going to be bored all day. There's a lot of really exciting things. >> We got a lot of eye candy, no doubt about it. I love their TVs, love their screens. The new Samsung phone, is spectacular, you what I mean. >> I'm pretty ecstatic. >> It was the first phone that wanted me to get transferred off my iPhone. And I ended up getting the little junior Samsung here, but. >> Oh no, well it'll be interesting as they start to connect their platform together as all a lot of these other developers start pushing the pieces of their strategy together. Remember, it's like whenever you throw a strategy out here like this, it's like you have a big puzzle with a lot of empty pieces. >> I mean, the question I have for you is, let's just close out the segment. What do you think, what area should Samsung really be doubling down on or peddling faster, I should say. What should be developing faster? Is it the open APIs, is it the cloud? And they got to get the open ecosystem going, in my opinion. That's my take, what do you think they should be working on the most right now? >> Yeah, I mean like look, cloud is going to be really, really, there's a lot of competitors out in cloud. There's a lot of multiple, there's a lot of choices, right. Where I've seen them like really do well, I'll go back to the fact that I firmly believe that Google never really monetized the Android that Samsung did that a lot better. And so, by looking at the different points in the market, where they're good, I mean, their ecosystem is solid. I mean, yes, I mean it seems like the sexy thing is Apple, but I've talked to several developers, and I know where they make their money, and they do a strong amount of revenue, if not equivalent to where the iPhone is, at least from what I've heard so far. >> The android market share it's not shabby at all. >> Not, so. >> Damn good. >> So they've, they've been able to do this, like, from that, taken that Android stack, applying that imitation and innovation on top of it, fascinatingly so, I wouldn't count them out for this. And I'm pretty encouraged to see all the other aspects, but I like the ecosystem built out too. >> Redg Snodgrass, ReadWrite Labs, quick plug for you. What's going on in your world? Got some recent activities happening, please share update. >> So, yeah it's great, so we just launched our IOT revolution event series where we look at the atomic unit of different markets. And what that means is, we find the real buyers and sellers, a lot like what Debbie Lann, who I love, did. And we look at the buyers and sellers together, along with the top series A startups, all around newsworthy issues. And so, whatever it's like, is it hacking and Russia. You know, then we'll get cybersecurity experts up, and we'll talk about those issues from an executive point of view. And that's the thing that's making me most excited because I get to have all these conversations with people. It will be on video, onstage, November 13th, is the first one, it's a private event, but we'll work out anybody. >> Where's it going to be? >> It'll be in San Francisco, around 100 Broadway. So it's kind of a quiet thing, but I'd love for everybody to come if you're interested. >> It's a quiet thing but I want everyone to come. It was, not going there, too many people are going. >> It's like my parties, right? >> It's like a Yogi Berra. Well, thanks for coming out, appreciate, wrapping up day one of coverage The Cube. This is Samsung Developer Conference 2017. Hashtag SDC2017, that's what they're calling it. Lot of great guests today go to YouTube.com/siliconangle for all the great footage. And also check the Twitter sphere, lot of photos. And shout-out to Vanessa, out there has like helped us set everything up. Appreciate it and great to the team. That's day one wrap up, thanks for watching. (upbeat music)