>>From around the globe. It's the cube with digital coverage of AWS reinvent 2020 sponsored by Intel and AWS. >>Welcome back to the cubes coverage of AWS reinvent 2020 live I'm Lisa Martin. Really exciting topic coming up for you next, please. Welcome Blake shoulda, founder and CEO of boom supersonic Blake. It's great to have you on the program. Thank you for having me, Lisa, and your background gives me all the way with what we're going to talk about in the next few minutes or so, but supersonic flight has existed for quite a long time, like 50 or so years. I think those of us in certain generations remember the Concorde for example, but the technology to make it efficient and mainstream is only recently been approved by or accepted by regulators. Tell us a little bit about boom, your mission to make the world more accessible with supersonic commercial flight. Well, a supersonic flight has >> actually been around since 1949 when Chuck Yeager broke the speed barrier or sorry, the sound barrier. >>And as, as many of you know, he actually passed yesterday, uh, 97. So very, very sad to see one of the supersonic pioneers behind us. Uh, but, uh, but as I say goodbye to Jaeger, a new era of supersonic flight is here. And if you look at the history of progress and transportation, since the Dawn of the industrial revolution, uh, we used to make regular progress and speed. As we went from, uh, the horse to the iron horse, to the, the boats, to the, the early propeller airplanes that have the jet age. And what happened was every time we made transportation faster, instead of spending less time traveling, we actually spent more time traveling because there were more places to go, more people to meet. Uh, we haven't had a world war since the Dawn of the jet age. Uh, places like Hawaii have become, uh, a major tourist destination. >>Uh, but today, uh, today it's been 60 years since we've had a mainstream re uh, step forward and speed. So what we're doing here at boom is picking up where Concord left off building an aircraft that flies faster by factor to the, anything you can get a ticket on today. And yet is 75% more affordable than Concorde was. So we want to make Australia as accessible as a why yesterday. We want to enable you to cross the Atlantic, do business, be home in time, detect your kids into bed, or take a three-day business trip to Asia and let you do it in just 24 >> hours. I like the sound of all of that. Even getting on a plane right now in general. I think we all do so, so interesting that you, you want to make this more accessible. And I did see the news about Chuck Yeager last night. >>Um, designing though the first supersonic airliner overture, it's called in decades, as you said, this dates back 60 years, rolling it out goal is to roll it out in 2025 and flying more than 500 trans oceanic routes. Talk to me about how you're leveraging technology and AWS to help facilitate that. Right. Well, so one of the really fascinating things is the new generation of airplanes, uh, are getting born in the cloud and then they're going to go fly through actual clouds. And so there are, there are a bunch of revolutions in technology that have happened since Concord's time that are enabling what we're doing now, their breakthroughs and materials. We've gone from aluminum to carbon fiber they're breakthroughs and engines. We've gone from after burning turbo jets that are loud and inefficient to quiet, clean, efficient turbo fans. But one of the most interesting breakthroughs has been in a available to do design digitally and iteration digitally versus, uh, versus physically. >>So when conquer was designed as an example, they were only able to do about a dozen wind tunnel tests because they were so expensive. And so time consuming and on, uh, on our XP one aircraft, which is our prototype that rolled out in October. Um, uh, we did hundreds of iterations of the design in virtual wind tunnels, where we could spin up a, uh, a simulation and HPC cluster in AWS, often more than 500 cores. And then we'd have our airplanes flying through virtual wind tunnels, thousands of flights scenarios you can figure out which were the losers, which were the winners keep iterating on the winners. And you arrive at an aerodynamic design that is more efficient at high speed. We're going very safely, very quickly in a straight line, but also a very smooth controllable for safe takeoff and landing. And the part of the artist supersonic airplane design is to accomplish both of those things. One, one airplane, and, uh, being able to design in the cloud, the cloud allows us to start up to do what previously only governments and militaries could do. I mentioned we rolled out our XP one prototype in October. That's the first time anyone has rolled out a supersonic civil aircraft since the Soviet union did it in 1968. And we're able to do as a startup because of computing. >>That's incredible born in the cloud to fly in the cloud. So talk to me about a lot of, of opportunity that technology has really accelerated. And we've seen a lot of acceleration this year in particular digital transformation businesses that if they haven't pivoted are probably in some challenging waters. So talk to us about how you're going all in with AWS to facilitate all these things that you just mentioned, which has dramatic change over 12, uh, when tone test for the Concord and how many times did it, >>Uh, I mean for 27 years, but not that many flights, never, it never changed the way mainstream, uh, never, never district some of you and I fly. Right. Um, so, so how, how are we going all in? So we've, you know, we've been using AWS for, uh, you know, basically since the founding of the company. Uh, but what we, what we're doing now is taking things that we were doing outside of the cloud and cloud. Uh, as an example, uh, we have 525 terabytes of XP one design and test data that what used to be backed up offsite. Um, and, and what we're doing is migrating into the cloud. And then your data is next. Your compute, you can start to do these really interesting things as an example, uh, you can run machine learning models to calibrate your simulations to your wind tunnel results, which accelerates convergence allows you to run more iterations even faster, and ultimately come up with a more efficient airplane, which means it's going to be more affordable for all of us to go to go break the sound barrier. >>And that sounds like kind of one of the biggest differences that you just said is that it wasn't built for mainstream before. Now, it's going to be accessibility affordability as well. So how are you going to be leveraging the cloud, you know, design manufacturing, but also other areas like the beyond onboard experience, which I'm already really excited to be participating in in the next few years. >>Yeah. So there's so many, so many examples. We've talked about design a little bit already. Uh, it's going to manifest in the manufacturing process, uh, where the, the, the, the, the supply chain, uh, will be totally digital. The factory operations will be run out of the cloud. You know, so what that means concretely is, uh, you know, literally there'll be like a million parts of this airplane. And for any given unit goes through their production line, you'll instantly know where they all are. Um, you'll know which serial numbers went on, which airplanes, uh, you'll understand, uh, if there was a problem with one of it, how you fixed it. And as you continue to iterate and refine the airplane, this, this is one of things that's actually a big deal, uh, with, with digital in the cloud is, you know, exactly what design iteration went into, exactly which airplane and, uh, and that allows you to actually iterate faster and any given airline with any given airplane will actually know exactly what, what airplane they have, but the next one that rolls off the line might be even a little bit better. >>And so it allows you to keep track of all of that. It allows you to iterate faster, uh, it allows you to spot bottlenecks in your supply chain before they impact production. Um, and then it allows you to, uh, to do preventive maintenance later. So there's to be digital interpretation all over the airplane, it's going to update the cloud on, you know, uh, are the engines running expected temperature. So I'm gonna run a little bit hot, is something vibrating more than it should vibrate. And so you catch these things way before there's any kind of real maintenance issue. You flag it in the cloud. The next time the airplane lands, there's a tech waiting for the airplane with whatever the part is and able to install it. And you don't have any downtime, and you're never anywhere close to a safety issue. You're able to do a lot more preventively versus what you can do today. >>Wow. So you have to say that you're going to be able to, to have a hundred percent visibility into manufacturing design, everything is kind of an understatement, but you launched XQ on your prototype in October. So during the pandemic, as I mentioned, we've been talking for months now on the virtual cube about the acceleration of digital transformation. Andy, Jassy talked about it in his keynote at AWS reinventing, reinventing this year, virtual, what were some of the, the, the advantages that you got, being able to stay on track and imagine if you were on track to launch in October during a time that has been so chaotic, uh, everywhere else, including air travel. >>Well, some of it's very analog, uh, and some of it's very digital. So to start with the analog, uh, we took COVID really seriously at Bo. Uh, we went into that, the pandemic first hit, we shut the company down for a couple of weeks, so we'd kind of get our feet underneath of us. And then we sort of testing, uh, everyone who had to work on the airplane every 14 days, we were religious about wearing masks. And as a result, we haven't had anyone catch COVID within the office. Um, and I'm super proud that we're able to stay productive and stay safe during the pandemic. Um, and you do that, but kind of taking it seriously, doing common sense things. And then there's the digital effort. And, uh, and so, you know, part of the company runs digitally. What we're able to do is when there's kind of a higher alert level, we go a little bit more digital when there's a lower alert level. >>Uh, we have more people in the office cause we, we still really do value that in-person collaboration and which brings it back through to a bigger point. It's been predicted for a long time, that the advent of digital communication is going to cause us not to need to travel. And, uh, what we've seen, you know, since the Dawn of the telephone is that it's actually been the opposite. The more you can know, somebody even a little bit, uh, at distance, the hungry you are to go see them in person, whether it's a business contact or someone you're in love with, um, no matter what it is, there's still that appetite to be there in person. And so I think what we're seeing with the digitization of communication is ultimately going to be very, um, uh, it's very complimentary with supersonic because you can get to know somebody a little bit over a long distance. You can have some kinds of exchanges and then you're, and then the friction for be able to see them in person is going to drop. And that is, uh, that's a wonderful combination. >>I think everybody on the planet welcomes that for sure, given what we've all experienced in the last year, you can have a lot of conversations by zoom. Obviously this was one of them, but there is to your point, something about that in-person collaboration that really takes things can anyway, to the next level. I am curious. So you launched XB one in October, as I mentioned a minute ago, and I think I read from one of your press releases planning to launch in 2025, the overture with over 500 trans oceanic routes. What can we expect from boom and the next year or two, are you on track for that 2025? >>Yeah. Things are going, things are going great. Uh, so to give a sense of what the next few years hold. So we rolled out the assembled XB one aircraft this year, uh, next year that's going to fly. And so that will be the first civil supersonic, uh, flying aircraft ever built by an independent company. Uh, and along the way, we are building the foundation of overture. So that design efforts happening now as XB one is breaking the sound barrier. We'll be finalizing the overture design in 22, we'll break ground in the factory in 23, we'll start building the first airplane and 25, we'll roll it out. And 26 we'll start flight tests. And, uh, and then we'll go through the flight test methodically, uh, systematically as carefully as we can, uh, and then be ready to carry passengers as soon as we are convinced that safe, which will be right around the end of the decade, most likely. >>Okay. Exciting. And so it sounds like you talked about the safety protocols that you guys put in place in the office, which is great. It's great to hear that, but also that this, this time hasn't derailed because you have the massive capabilities of, to be able to do all of the work that's necessary, way more than was done with before with the Concorde. And that you can do that remotely with cloud is a big facilitator of that communication. >>Yeah. You're able to do the cloud enables a lot of computational efficiencies. And I think about the, um, many times projects are not measured in how many months or years exactly does it take you to get done, but it's actually much easier to think about in terms of number of iterations. And so every time we do an airplane iteration, we look at the aerodynamics high speed. We look at the low speed. We look at the engine, uh, we look at the, the weights. Uh, we look at stability and control. We look at pilots, light aside, et cetera, et cetera. And every time you do an iteration, you're kind of looking around all of those and saying, what can I make better? But each one of those, uh, lines up a little bit differently with the rest now, for example, uh, uh, to get the best airplane aerodynamically, doesn't have a good view for the pilot. >>And that's why Concord had that droop nose famously get the nose out of the way so we can see the runway. And so we're able to do digital systems for virtual vision to let the pilot kind of look through the nose of the runway. But even then they're, trade-offs like, how, how good of an actual window do you need? And so your ability to make progress in all of this is proportional to how quickly you can make it around that, that iteration loop, that design cycle loop. And that's, that's part of where the cloud helps us. And we've, we've got some, uh, uh, some stuff we've built in house that runs on the cloud that lets you basically press a button with a whole set of airplane parameters. And bam, it gives you a, it gives you an instant report. I'm like, Oh, was it that this is a good change or bad change, uh, based on running some pretty high fidelity simulations with a very high degree of automation. And you can actually do many of those in parallel. And so it's about, you know, at this stage of the program, it's about accelerating, accelerating your design iterations, uh, giving everyone of the team visibility into those. And then, uh, I think you get together in person as it makes sense to now we're actually hitting a major design milestone with over-treat this week and we're, COVID testing everybody and get them all in the same room. Cause sometimes that in-person collaboration, uh, is really significant, even though you can still do so much digitally. >>I totally agree. There's there's certain things that you just can't replicate. Last question since my brother is a pilot for Southwest and retired Lieutenant Colonel from the air force, any special training that pilots will have to have, or are there certain pilots that are going to be maybe lower hanging fruit, if they have military experience versus commercial flight? Just curious. >>Yeah. So our XB one aircraft is being flown by test pilots. There's one ex Navy one ex air force on our crew, but, uh, overture, uh, will be accessible to any commercial pilot. So, uh, think about it as if you're, if you're used to flying Boeing, it'd be like switching to Airbus, uh, or vice versa. So the, uh, Concord is a complicated aircraft to fly because they didn't have computers. And all the complexity, the soup of supersonic flight was right there and the pilots and an overture, all that gets extracted by software. And, uh, you know, the, the, the ways the flight controls change over speed regimes. You don't have to worry about it, but the airplane is handled beautifully, no matter what you're doing. And so, uh, and so there are many, many places to innovate, but actually pilot experience, not one of them, >>Because the more conventional you can make it for people like your brother, the easier it's going to be for them to learn the aircraft. And therefore the safer it's going to be to fly. I'll let them know, like this has been fantastic, really exciting to see what boom supersonic is doing and the opportunities to make supersonic travel accessible. And I think at a time when everybody wants the world to open up, so by 20, 26, I'm going to be looking for my ticket. Awesome. Can't wait to have you on board. Likewise for Blake shul, I'm Lisa Martin. You're watching the QS live coverage of AWS reinvent 2020.

>> Announcer: From around the globe it's theCUBE with digital coverage of HPE GreenLake Day made possible by Hewlett Packard Enterprise. >> Welcome everybody to this spotlight session here at GreenLake Day and we're going to dig into high-performance computing. Let me first bring in Pete Ungaro who's the GM for HPC and Mission Critical Solutions at Hewlett Packard Enterprise. And then we're going to pivot to Addison Snell, who's the CEO of research firm Intersect360. So Pete started with you welcome and really a pleasure to have you here. I want to first start off by asking you what are the key trends that you see in the HPC and super computing space. And I really appreciate if you could talk about how customer consumption patterns are changing. >> Yeah, appreciate that Dave and thanks for having me. I think the biggest thing that we're seeing is just the massive growth of data. And as we get larger and larger data sets larger and larger models happen and we're having more and more new ways to compute on that data. So new algorithms like AI would be a great example of that. And as people are starting to see this, especially as they're going through digital transformations, more and more people I believe can take advantage of HPC but maybe don't know how and don't know how to get started. And so they're looking for how to get going into this environment. And many customers that are long-time HPC customers just consume it on their own data centers, they have that capability but many don't. And so they're looking at how can I do this? Do I need to build up that capability myself? Do I go to the Cloud? What about my data and where that resides? So there's a lot of things that are going into thinking through how do I start to take advantage of this new infrastructure? >> Excellent, I mean, we all know HPC workloads. You're talking about fording research and discovery for some of the toughest and most complex problems particularly those that are affecting society. So I'm interested in your thoughts on how you see GreenLake helping in these endeavors specifically. >> Yeah, one of the most exciting things about HPC is just the impact that it has. Everywhere from building safer cars and airplanes to looking at climate change to finding new vaccines for things like COVID that we're all dealing with right now. So one of the biggest things is how do we take advantage of that and use that to benefit society overall. And as we think about implementing HPC, how do we get started and then how do we grow and scale as we get more and more capabilities. So that's the biggest things that we're seeing on that front. >> Yeah, okay, so just about a year ago you guys launched the GreenLake initiative and the whole complete focus on as a service. So I'm curious as to how the new GreenLake services the HPC services specifically as it relates to GreenLake, how do they fit into HP's overall high-performance computing portfolio and the strategy? >> Yeah, great question. GreenLake is a new consumption model for us. So it's a very exciting. We keep our entire HPC portfolio that we have today but extend it with GreenLake and offer customers expanded consumption choices. So customers that potentially are dealing with the growth of their data or they're moving to digital transformation applications, they can use GreenLake just easily scale up from workstations to manage their system costs or operational costs or if they don't have staff to expand their environment, GreenLake provides all of that in a managed infrastructure for them. So if they're going from like a pilot environment, I've been to a production environment over time, GreenLake enables them to do that very simply and easily without having to have all that internal infrastructure people, computer data centers, et cetera, GreenLake provides all that for them. So they can have a turnkey solution for HPC. >> So a lot easier entry strategy is a key word that you use there was choice though. So basically you're providing optionality, you're not necessarily forcing them into a particular model, is that correct? >> Yeah, 100% Dave. What we want to do is just expand the choices so customers can buy and acquire and use that technology to their advantages. Whether they're large or small, whether they're a startup or a fortune 500 company, whether they have their own data centers or they want to use a colo facility, whether they have their own staff or not. We want to just provide them the opportunity to take advantage of this leading edge resource. >> Very interesting, Pete, I really appreciate the perspectives that you guys are bringing to the market. I mean, it seems to me it's going to really accelerate broader adoption of high-performance computing to the masses, really giving them an easier entry point. I want to bring in now Addison Snell to the discussion. Addison, he's a CEO, as I said of Intersect360 which in my view is the world's leading market research company focused on HPC. Addison you've been following this space for a while. You're an expert, you've seen a lot of changes over the years. What do you see as the critical aspects in the market specifically as it relates toward this as a service delivery that we were just discussing with Pete? And I wonder if you could sort of work in there the benefits in terms of in your view how it's going to affect HPC usage broadly. >> Yeah, good morning Dave, and thanks very much for having me. Pete it's great to see you again. So we've been tracking a lot of these utility computing models in high-performance computing for years. Particularly as most of the usage by revenue is actually by commercial endeavors using high-performance computing for their R and D and engineering projects and the like. And cloud computing has been a major portion of that and has the highest growth rate in the market right now where we're seeing this double digit growth that accounted for about $1.4 billion of the high-performance computing industry last year. But the bigger trend and which makes GreenLake really interesting is that we saw an additional about a billion dollars worth of spending outside what was directly measured in the cloud portion of the market in areas that we deemed to be cloud-like which were as a service types of contracts that were still utility computing, but they might be under a software as a service portion of a budget under software or some other managed services type of contract that the user wasn't reporting directly as cloud but was certainly influenced by utility computing. And I think that's going to be a really dominant portion of the market going forward when we look at a growth rate and where the market's been evolving. >> So that's interesting. I mean, basically you're saying this utility model is not brand new, we've seen that for years. Cloud was obviously a catalyst that gave that a boost. What is new you're saying is, and I'll say it this way. I'd love to get your independent perspective on this is sort of the definition of cloud is expanding where we people always say, it's not a place, it's an experience and I couldn't agree more. But I wonder if you could give us your independent perspective on that, both on the thoughts of what I just said but also how would you rate HPE position in this market? >> Well, you're right absolutely that the definition of cloud is expanding. And that's a challenge when we run our surveys that we try to be pedantic in a sense and define exactly what we're talking about. And that's how we're able to measure both the direct usage of a typical public cloud but also a more flexible notion of as a service. Now you asked about HPE in particular and that's extremely relevant, not only with GreenLake, but with their broader presence in high-performance computing. HPE is the number one provider of systems for high-performance computing worldwide. And that's largely based on the breadth of HPE's offerings in addition to their performance at various segments. So picking up a lot of the commercial market with our HPE Apollo Gen10 plus, they hit a lot of big memory configurations with the Superdome Flex and scale up to some of the most powerful supercomputers in the world with the HPE Cray EX platforms that go into some of the leading national labs. Now GreenLake gives them an opportunity to offer this kind of flexibility to customers rather than committing all at once to a particular purchase price. But if you want to do position those on a utility computing basis, pay for them as a service without committing to a particular public cloud, I think that's an interesting role for GreenLake to play in the market. >> Yeah, yeah it's interesting. I mean, earlier this year we celebrated Exascale Day with the support from HPE and it really is all about a community and an ecosystem. Is a lot of comradery going on in the space that you guys are deep into. Addison, it says we can wrap what should observe as expect in this HPC market, in this space over the next few years? >> Yeah, that's a great question what to expect because if 2020 has taught us anything it's the hazards of forecasting where we think the market is going. Like when we put out a market forecast, we tend not to look at huge things like unexpected pandemics or wars but it's relevant to the topic here. Because as I said, we were already forecasting cloud and as a service models growing. Anytime you get into uncertainty where it becomes less easy to plan for where you want to be in two years, three years, five years, that model speaks well to things that are cloud or as a service to do very well flexibly. And therefore, when we look at the market and plan out where we think it is in 2020, 2021, anything that accelerates uncertainty actually is going to increase the need for something like GreenLake or an as a service or cloud type of environment. So we're expecting those sorts of deployments to come in over and above where we were already previously expected them in 2020, 2021. Because as a service deals well with uncertainty and that's just the world we've been in recently. >> I think those are great comments and a really good framework. And we've seen this with the pandemic, the pace at which the technology industry in particular and of course HPE specifically have responded to support that. Your point about agility and flexibility being crucial. And I'll go back to something earlier that Pete said around the data, the sooner we can get to the data to analyze things, whether it's compressing the time to a vaccine or pivoting our businesses, the better off we are. So I want to thank Pete and Addison for your perspectives today. Really great stuff, guys, thank you. >> Yeah, thank you. >> Thank you. >> All right, keep it right there for more great insights and content. You're watching GreenLake Day. (ambient music)

>> From around the globe, it's the Cube covering the Upgrade 2020, the NTT Research Summit presented by NTT Research. >> Hi, I'm Stu Miniman, and this is the Cube's coverage of Upgrade 2020 the Global Research Summit for NTT and always happy when we get to talk about digital transformation. Happy to welcome to the program, first time guest on the program, Eric Clark. He is the Chief Digital Officer with NTT data. Eric, thanks so much for joining us. >> Thank you, glad to be here. >> All right so Eric, let's start, you know, CDOs, first of all, there's lots of CDOs. We've done lots of events with the Chief Data Officers, which I'm sure we'll talk a little bit about data, but the digital officers, of course digital so important in general and even more so in 2020. But let's understand your role as Chief Digital Officer. What's your charter? Where you sit in the work? What are you responsible for? >> Yeah, definitely, and you know, it's a good question. I often start conversations with our customers by talking about exactly that, because Chief Digital Officer means something different to different companies. So for us, it's primarily my market facing. And what that means is I spend most of my time looking at research, looking at R&D, looking at what our competitors are doing in the market and looking at where trends are going to make sure that we have the right offerings and capabilities to bring to our customers, to make sure that they will remain competitive in their markets. >> That's great, you know, we've been talking for years about the digital transformations that companies have been going through. One of our definitions has been, if you're not at the end of it, more data-driven, you probably haven't done the right thing. But Eric, this year with 2020, you know, anecdotally, we talked to a lot of customers and obviously there's certain initiatives that get frozen or will take a little bit longer, but those digital initiatives, which are supposed to rely on data and help us move fast and be more agile, seem to be at the top of the list and are accelerating because if I can't respond to the daily and weekly changes that have been great in 2020, I might have a tough time surviving. So, what are you seeing? How does that live in your world? >> Yeah, you're exactly right. And that's what we're seeing from our client base as well. So early on in the pandemic, there was a lot of freeze. You know, hold everything, stop, stop spending, and let's figure out where we are and where this is going. But very quickly that turned to, we've got to react. We're going to be living with this for awhile. And we can't afford to sit back and wait and see where it goes. We've got to react and we've got to direct our future. And very often the way that comes out is with digital. So, customers are looking for opportunities to leverage digital, to grow revenue, to improve customer engagement and to drive more of their revenue through digital channels. >> Interesting, but one thing I didn't here in there, but I'm sure is part if it, what about the employees themselves? One of the big things of course, is that we've made this wonderful corporate environment, you've got the great internet there and now way everybody's at home and scrambling as to what they do. So how about the kind of the EX to go along with the CX? >> Yeah, exactly, and that was actually one of the first places that we focused as a company, because we do a lot of what we refer to as workplace services. So making sure that our customers, employees have the tools they need to do their job successfully. So immediately when offices started closing and people started going home, our big challenge was let's make sure that our customers can connect from anywhere, from wherever they need to be working from and have access to the applications and the tools and the products that they need to perform their jobs remotely. And that's really turned into a significant business of its own, really addressing those needs, not only for our customers, but also for our employee base. We have 50,000 people that we sent home, more than 90% of overnight. And many of these are our employees that are interacting with our customer base on a daily basis. So we had to make sure not only that they had connected but they had to be secure. So it was a very big switch and I think I personally was really impressed not only with what we did, but what we saw the industry do, to make that transition very safely and seamlessly. >> Eric I'd love you to expand a little bit on that, You know, which pieces of that full solution that is NTT offering and how do you and your partners help your customers through those rapid adoptions that they need? >> Yeah, so we're a full suite provider. So, we're focused on digital operations, which is digitizing your back office from your workplace services to your hybrid infrastructure network, et cetera. All the way through bringing what we refer to as journey to the cloud. So how do we help you identify what applications and what data you need in the cloud. CX and EX very big focuses for us. In fact, we take a lot of pride in, while we do go to market and sell CX specifically, we consider CX part of everything we do. So if we're talking about workplace services or hybrid infrastructure or security, we want the employee experience to be solid, and we want the employee experience to be consistent across all of those things. So, we think that our customers should not expect to have different interfaces and different portals and different user experiences when they do work with us across infrastructure, application and cloud, et cetera. >> That's excellent Eric. You know we spent the last six months talking about how did we react to the pandemic, and now at least here in the US, the children are back in school. If they're back though, it tends to be a hybrid model. And when we look at work, often we know we're going to have this long gated, kind of new abnormal if you will. So, yes you might be back in the office some, but chances are you will spend some time remote and therefore it's not work from home or back to work, it's work from anywhere, is what I need to be able to do. So, how are you preparing? How are you helping your customers through that? Because it's one thing if it was just a switch that says, I'm either here or there, but it's changing and it's very fluid. >> Yeah, and you're exactly right, it is work from anywhere. But there are some of our customers that don't have the luxury of work from anywhere. So when you think about manufacturing facilities and different hospitality companies, there are people that need to go into physical places. We do a lot in the healthcare space. We need doctors in the hospitals. So we've done a lot to help our customers figure out safe ways to return to work. Recently, we've seen universities, and as you mentioned, high schools and elementary schools all going back with varying degrees of success, right? Some of them have failed and they've had to take a pause and figure out how they're going to restart. We've also seen professional sports leagues and now college sports leagues. And when we see them having issues, we see protocols adjusting and we see them looking for what can we do to make this safer, more effective and more successful for whether it's our sports team, our school or our business. So we've taken a very active approach in that. And we're leveraging technology and creating IP that starts with pre-arrival, registering in advance and opting in for things like tracking social distancing and tracking the use of masks. Then using cameras and facilities to monitor it, to make sure people that are adhering to social distancing and adhering to wearing mask. And in the event that they aren't, we can send instant notifications to their phone. If we have repeat violators, we can prohibit them from coming back to the office. So we can have very strict controls and adherence to whatever the protocols may be as the protocols change. And then the other thing that allows us to do is in the event, someone would test positive with COVID, we will know exactly who they've been within six feet of without a mask over the past X number of days. All of that is stored in the cloud for us to use for reference and use for audit purposes. So that gives us the ability to then use our app to direct all the people that the person that was positive was in contact with, let them go get tested, come back with a negative test before they returned to the office. So basically what we've done is we've created all kinds of technology using automation and AI and facial recognition to bring more safety and more security to the workplace, whatever that workplace might be. Whether again, school, university, manufacturing facility, or a hotel. >> Really interesting topic. Tracking and tracing, so critically important. We've seen in many countries around the world, that's really helped them get their arms around and control that. We talked at the top of the interview about digital means leveraging the data. And if I don't have the data, I can't respond to what's happening there. Here in the US, I haven't heard as much about the tracking and tracing. Is this a company by company thing? Do they have the expense all on them to do it? And of course it raises the concerns about, well, I'm concerned about my privacy and that balance between the public interest and my right to privacy. How do you help your customers sort through some of those issues? >> Well, privacy is definitely a big issue. And you notice that when I was explaining that I said in pre-arrival, you opt in. So the way we've approached it is, it is an opt in. So those that don't want to opt in to that kind of tracking and tracing, won't be those that will be allowed to come back to the office. And that goes back to your other point, I've worked from anywhere. Many of those people can still successfully work from anywhere. But those that feel like they're more effective, more successful or have a need to be in an office, or a need to be physically again in a manufacturing facility or a hotel, we have a way to do that safely. >> All right, well, Eric one of the things I love about research events lately like yours, is a little peek into what's coming on down the road. So, any other things you'd like to share about? You know, some of the things that are exciting you, some things we should be looking at a little bit further down the road? >> Well, I think, you know, for us as you know, we spend a significant amount of money each year on research, and we really get excited about these opportunities and these showcases. So you'll see a lot of exciting information and a lot of what's coming in the future. (indistinct) out of it right now obviously because of the time you'll see themes of safety and security, but you're also going to see just a whole lot of really thought provoking, forward thinking technology. >> You always take the opportunity, even when they're crisis out there. There's the opportunity for innovation and acceleration of what's happening. >> Yes. Eric, thanks so much, a pleasure talking with you and definitely looking forward to hearing more from the event. >> Great, thank you, enjoyed it. >> And stick with us for more coverage from Upgrade 2020, I'm Stu Miniman, thanks as always for watching the Cube. (upbeat music)

>>from around the globe. It's the cue with digital coverage of active EO data driven 2020. Brought to you by activity. We're back. This is the cubes coverage. Our ongoing coverage of active FiOS data driven. Of course, we've gone virtual this year. Ash. Ashutosh is here. He's the founder, president and CEO of Active Eo. Great to see you again. >>Likewise, They always always good to see you. >>We have We're in a little meet up, You and I in Boston. I always enjoy our conversations. Little did we know that, You know, a few months later, we would only be talking at this type of distance and, uh and of course, it's sad. I mean, a data driven is one of our favorite events is intimate, its customer content driven. The theme this year is you call it the next normal. Some people call it the new abnormal, the next normal. What's that all about? >>I think it's pretty pretty fascinating to see when we walked in in March, all of us were shocked by the effect of this pandemic. And for a while we all scrambled around trying to figure out How do you react to this one, and everybody reacted very differently. But most people have this tendency to think that this is going to be a pretty broom environment with lots of unknown variables, and it is important for us to try to figure out how to get a get our hands on this. By the time we came on. For six weeks into that, almost all of us have figured out this is Ah, this is not something you fight again. This is not something you wait, what, it to go away? But this is one. Did you figure out how to live in and you figured out how to work around it? And that, we believe, is the next long. It's not about trying to create a new abnormal. It's not about creating a new normal, but it's truly one that basically says that is it. That is a way, perhaps packed forward. There's a is a way to create this next normal, and you just figured out how to live with the environment, behalf and the normal outcomes of companies that have done remarkably well as a result of these actions. Fact. If you're being one of them, >>it's quite amazing isn't it? I mean, I've talked to a lot of tech companies, CEOs and their customers, and it's almost like they feel the first reaction was course they cared about their there, their employees and their broader families. Number one number two was many companies, as you know, saw a tailwind, and it initially didn't want to be seen as ambulance chasing. And then, of course, the entrepreneurial spirit kicked in and they said, Okay, we can only control what we can control and tech companies in particular just exceedingly Well, I don't think anybody really predicted that early >>on. Yeah, I, um I think of the heart, We're all human beings, and the first reaction was to take it off. Four constituencies, right? One. Take care of your family. Take it off your community, take care of your employees, take care of your customers. And that was the hardest part. The first 4 to 6 weeks was to figure out How do you do each of those four. Once you figured that part out or you figured out ways to get around to making sure you can take it off those you really found the next mom, you really start forgetting our out of continue to innovate Could, you know to support each of those four constituencies and people have done different things. I know it's amazing how, um, Cuba continues to operate As far as a user is concerned, they're all watching anymore. Yes, we don't have the wonderful desk, and we all get to chat and look in the eye. But the content of the messages asked powerful as what it waas a few months ago. So I'm sure this is how we're all going to figure out how to make through this new next normal >>and digital transformation kind of went from from push to pull. I mean, every conference you go to, they say, Well, look at uber, you know, look at Airbnb and it put up the examples you have to do this to, and then all of sudden the industry dragged you along. Some Curis esta is toe. How and and I guess the other point there is digital means data. We've said that many, many times. If you didn't have a digital strategy during the height of the lock down, you couldn't transact business and still many restaurants is still trying to figure this out, But so how did it affect you and your customers? >>Yeah, it's very interesting. And I we spend a lot of time with several of our customers were managing some of the largest I T organizations. We talk about very interesting phenomena that happened some better beginning of this year. About 20 years ago, we used to worry about this thing called the Digital Divide, those who have access the network and Internet and those who don't. And now there is this beta divide, the divide between organizations that know how to leverage, exploit and absolutely excellent the business using data and those adorable. I think we're seeing this effect so very clearly among organizations that unable to come back and address some of this stuff. And it's fascinating. Yes, we all have the examples off the lights off. People are doing delivery. People are doing retailing, but there are so many little things you're seeing organizations. And just the other day, he had a video from Century Days Is Central Data System, which is helping accelerate Cohen 19 research because it will get copies of the data faster than they would get access to data so that these are just much, much faster. Sometimes you know, several days to a few minutes. It's that that level of effect, it's not just down to some seven. You know, you almost think of it as nice to have, but it's must have life threatening stuff. Essential stuff or just addressing. Korea was running a very pretty in a wonderful article about this supercomputer in That's Doing an Aristo covert 19 and how it's figured out most of these symptoms they're able to figure out by just crunching a ton of data. And almost every one of those symptoms that the computer has predicted Supercomputer is predicted has being accurate. It's about data. It is absolutely about data, which is why I think this is a phenomenal time for companies. Toe Absolutely go change. Make this information about data exploration, data leverage, exploitation. And there's a ton of it all over all around us. >>Yeah, and and part of that digital transformation, the mandate is to really put data at the core. I mean, we've we've certainly seen this with the top market cap companies. They've got dated at the core, and and now, as they say it's it's become a A mandate. And, you know, there's been several things that we've clearly noticed. I mean, you saw the work from home required laptops and, you know, endpoint security and things of that. VD. I made a comeback, and certainly Cloud was there. But I've been struck by the reality of multi Cloud. I was kind of a multi cloud skeptic early on. >>Yeah, >>I said many times I thought it was more of a symptom than it was a strategy, but it's that's completely flipped. Ah, recently in r e t r surveys, we saw multi cloud popping up all over the place. I wonder what you're seeing when you talk to your customers and other CEOs. >>Yeah, So fascinating, though really is the first flower part of sometime in 2018. End of 2018 >>Go right, Yeah, >>the act if you'll go on world, which is a phenomenal way to completely change the way you think about the using object storage in the flower for two years that we saw about 20% of our business. By the end of two years, the beginning of this year, 20% of our business was built on never it in the cloud since March. So that was end of our almost ended the Q one. So now we just limit left you three in six months. We added 12 more percent of the business literally weeded in six months. What we did not do before for 18 months before that, right? Significantly more than what we did for a year and a half before that. And there are really three reasons and we see this old nor again, we have a large customer. We closed in January. Ironically, were deploying out of UK, a very large marketing organization. Got everything deployed, running the they're back up and beyond and a separate data center. And they had a practical problem of not being able to access the second sight literally in the middle of deployment. Mystere that customer, Did you see me Google Cloud? Because they were simply no way for them to continue protecting their data, being able to develop new applications with that data that simply had no access. So there was. This was the number one reason the inability for already physically access, but put their their employees at rest and have before the plow would be the infrastructure. That's number one, so that first of all, drove the reason for the cloud. And then there's a second reason there are practical reasons. And why some clerk platforms that good one working the other ones are not. So where, uh, some other more fuels. And so if I'm an organization that has that spans everything, I've got no power PC and X 86 machine A vm I got container platforms. I got Oracle. They got a C P. There is no single cloud platform that supports all my work loaders efficiently. It's available in all the agents I want. So inevitably I have to go at our different about barefoot. So that's a second practical visa. And then there's a strategic reason. No, when no customer what's really locked into anyone card back at least two. You're gonna go pear more likely? Three. So those are the reasons. And then, interestingly enough, have you were on a panel with as global Cee Io's and in addition to just the usual cloud providers of you all know and love inside the U. S. Across the world, in Europe, in Asia, there's a rise off the regional flower fire. See you take all this factor. So have you got absolute physical necessity? You got practical constraints of what can the club provided support the strategic reasons on why either Because I don't want to be locked into a part for better or because there is a rise off data nationalism that's going on, that people want to keep their data within the country bombs all of these reasons. But the foundations or why multiplier is almost becoming a de facto. It's impossible. What a decent size organization to assume. They were just different on one car ready. >>The big trend we're seeing, I wonder if you could comment. Is this this notion of the data life cycle of the data pipeline? It's a very complex situation for a lot of organizations, their data siloed. We hear that a lot. They have data scientists, data engineers, developers, data quality engineers, just a lot of different constituencies and lines of business. And it's kind of a mess. And so what they're trying to do is bring that together. So they've done that data. Scientists complain they spend all their time wrangling data, but but ultimately the ones that are succeeding to putting data at the core is, we've just been discussing are seeing amazing outcomes by being able to have a single version of the truth, have confidence in that data, create self serve for their for their lines of business and actually reduce the end and cycle times. It's driving your major monetization, whether that's cost cutting or revenue. And I'm curious as to what you're seeing. You guys do a lot of work. Heavy work in Dev ops and hard core database those air key components of that data Lifecycle. Yeah, you're seeing in that regard regarding that data pipeline. >>Yeah, it's a It's a phenomenal point if you really want to go back and exploit data within an organization. If you really want to be a data driven organization, the very first thing you have to do is break down the silos. Ironically, every organization has all the data required to make the decisions they want to. They just can't either get to it or it's so hard to make the silos. That is just not what trying to make it happen. And 10 years ago we set out on this mission rather than keep this individual silos of data. Why don't we flip it open and making it a pipeline, which looks like a data cloud where essentially anybody who's consuming it has access to it based on the governance rules based on the security rules that the operations people have said and based on the kind of format they want to see data. Not everyone even want to see the data in a database. Former, maybe you want the database for my convert CSP for my before you don't analytics And this idea of making data, the new infrastructure, this idea of having the operations people provide this new layer for data, it's finally come to roost. I mean, it's it's fascinating. I was the numbers last quarter. We just finished up. You do now. 45% of our customer base is uses activity or for reuse is the back of data for things that excellent. The business things that make the business move faster, more productive or you will survive. That was the mission. That was what we set out to do 10 years ago. We were talking to an analyst this morning, and now this is question off. You know, it looks like there's a team of backup data being reused, said Yeah, that's kind of what we've been saying for 10 years. Backup cannot be an insurance back up in order to your destination. It has to be something that you could use as an asset and that I think it's finally coming to the point with you can use back up a single source of truth only if you designed it right from the beginning. For that purpose, you cannot just lots of lots of ways to fake it. Make it try to pretend like you're doing it. But that was a trooper was off making date of the new infrastructure, making it a cloud, making it something that is truly an ask. And it's fascinating to see our businesses. You take any of our larger counts and the way they've gone about transforming not just basic backup. India. Yes, we are the world's glasses back up in most Kayla will be our solution. That's that's a starting point. But do we will be used after Devil applications 8, 10 times faster? Ron Analytics, 100 ex pastor. The more data you have, the more people who use data you have, the better this return makeups. >>You know, that is interesting to hear you talk about that because that has been the holy Grail of backup. Was toe go beyond insurance to actually create business value. And you're actually seeing some underlying trends We talked about that data pipeline in one of the areas that is the most interesting is in database, which was so boring for so many years. Ah, and you're seeing new workloads emerge. Take the data warehouse beyond your reporting. Never really lived up to its Ah, it's promise of 360 degree view. You mentioned analytics. That's really starting toe happen. Ah, and it's all about data John, for Used to say that your data is that is the new development kit. You call it the new infrastructure, and it's sort of the same same type of theme. So maybe some of the trends you're seeing in ah in database enoughto talk about that for a little bit and then pick your brains and some other tech like object storage is another one that we've really seen takeoff? >>Yeah. So I think our journey with object story began in 16 4017 as we started or Doctor Cloud platform in response to the user requirements, Uh, we did more like most companies have done and unfortunately continue to do to take the in print product. And then it's smooth under the cloud. And one of the things we saw was there was a fundamental difference off how the design points of flower engineering is all about what they're designed it for object story, that one of those one of those primitives fundamental stories, primitives that the cloud providers actually produced that we know really exploited. There was. It was used as a graveyard for data. It's a replacement for me, please, where data goes to die. And then we look at it really closely and say, Well, this is actually a massively scalable, very low cost storage, but it has some problems. It has an interface that you cannot use with traditional servers. Uh, it has some issues around not being able to read, modify right the data. So it feels like a consuming a lot of stories. So we're going to solve those problems because a good two years to come back with something on world that fundamentally creeds objects the lady like this massive use capable high performer disk? Yes, except it is ridiculously low cost and optimize the capacity. So this finger on world that patented has really become the foundation of how everything in our works without using CPU Ray, that is simply nothing at a lower PCO that if you wanted to basic backup, the, uh, more importantly, use that to do this a massive analytics and you don't know more data warehouse data leaks. It is not a good deal of Lake House aladi. All of these are still silent. All of these are people trying to take some data from somewhere put into one of the new construct and have it being controlled by somebody else. This is artist thing. It's just you just move the silos from some place to another place instead of creating a pipeline. If you want to really create a pipeline object story has been integral part of the pipeline, not a separate bucket by itself. And that's what we did. And same thing with databases, you know, most business, most of the critical business and I was on a daily basis, and the ability to find a way to leverage those. Move them on our leverage in terms of whichever format databases access. Which location or Saxes doesn't know how big it is. Lots of work has gone into trying to figure figure that one out. And we we had some very, very good partners in some of the largest customers who help take the journey with us. I'm pretty much all of the global 2000 accounts you see across the board, but an integral part of a process. >>You mentioned the word journey and triggered a thought. Is your discussion with Robbie, the CEO of of Seeing >>A. It was a customer years. >>Ah, and what he said. I liked what he said. He course he used the term journey. We all do. But he said, You know what? I kind of don't like that term because I want to inject the sense of urgency essentially what he was saying. I want speed, you know, journeys like Okay, kids get in the car, were in a drive across country. We're gonna make some stops. And so, while there's a journey, he also was was really trying to push the organization hard and he talked about culture. Ah, as some of the most difficult things and it goes like many. See, I said, Now the technology is almost the easy part. It's true when it works. Oh, I thought that was a great discussion that you had. What were some of your takeaways >>with thinking? Robbie's is very astute. Ah, I t executive was being around the block for so long and one of the fascinating things, but a asking this question about what's the biggest challenge was just gone through this a couple of times. What is the biggest challenge? Taking an organization as vulnerable as well known A C gate is. I mean, this is a data company. This is This is the heart of the Oliver Half the world's data is on seeing stuff. How are you today was, or company has been around for long in the middle of Silicon Valley and make it into ah into a fast growing transformation company that's responding to the newer challenges. And I thought he was going to come back with Well, you know, I gotta go to the abuses. I picked this technology that techno in. Surely that is exactly what I expected he would end up with. There's nothing through technology in this day and age when you can have an Elon Musk and send a card of Mars. It's not many technologies that we can really solve many covered 19 ism. Next one Do we gotta go solve? Well, frankly, he kid upon the one thing that matters to every company. It is the fundamental culture to create a biased of action. It's a fundamental culture where you have to come back and have a deliverable that moves the ball forward every day, every month, every quarter, as opposed to have this CDs off. Like you said, a journey that say's and we all know this right? People talk about, we're going to do this in face one. We're gonna do this and face to and good food release and face three nothing and what happens Invasive. Nobody gets a number feast. I think he did a great job of saying I fundamentally had to go change the culture that was my biggest take away, and this I've heard this so many times the most effective I D execs wait a transformation. It actually shows in the people that they have. It's not the technology, it's the people. And some. This history is replete with organizations that have done remarkably well, not by leveraging the heck out of the technology, but truly by leveraging the change in the people's mindset. And, of course, that at that point that leverages technology where a proper here. But Robbie's a insightful person, always such a They lied to talk them, said they like for him to have chosen us as a its information technology for him to go pull his data warehouses and completely transformed how I was doing manufacturing across the globe. >>You know, I want to have some color of what you just said because some key keep takeaways that from what you just said, ashes is You know, you're right when you look back at the history of the computer industry used to be very well known processes, but the technology was the big mystery and the and the big risk and you think about with Cove it were it not for Technology Way didn't know what was coming. We were inventing new processes literally every day, every week, every month. It's so technology was pretty well understood. It and enabled that. And when you when you think when we talked earlier about putting data at the core, it was interesting to hear Robbie. He basically said, Yeah, we had a big data team in the U. S. A big tainted TV in Europe. We actually organized around silos and and so you guys played a role you were very respectful about, you know, touting active video with him. You did ask him, You know what role you play, But it is interesting to hear and talk about how he had to address that both culturally. And of course, there's technology underneath to enable that unification of data that silo busting, if you will. And you guys played a role in that. >>Yeah, I always enjoy, um, conversation with folks who have taken a problem, identified what needs to be done and then just get it done. And its That's more fascinating than you. Of course, I video plays a small part in a lot of things, and we're proud to have played a small part in his big initiative, and that's true of know the thousands of customers we talk about. But it's such a fascinating story to have leaders who come back and make this transformation happen, and to understand how they went about making those decisions, how they identified where the problem with these are so hard. We all see them in our own life, right? We see there is a there's a problem, but sometimes it takes a wider don't understand. How do you identify them and what do you have to do and more importantly, actually do it? And so whenever use, whenever I get an opportunity with people like Robbie, I think understanding that there's a way to help, uh, we always make sure that we play our own small part, and we're privileged to be a part of those kinds of journeys. >>Well, I think what's interesting about activity on the company that you created is essentially that. We're talking about the democratisation of data, that whole data pipeline, that discussion, that we had the self service of that data to the lines of business and, you know, you guys clearly play a role there. The multi cloud discussion fits into that. I mean that these air all trends that are tail winds for companies that can that can help sort of you know, flattened the data globe. If you if you will, your final thoughts. >>Yeah, I know you said something that is so much at the heart of every idea Exactly that you're talking to, if they truly is. The fundamental asset that I finally end up with is an organization. The democratization of data. Where I do not lock this into another silo, another platform, another ploughed. Another application has to be part of my foundation design and therefore my ability to use each of this cloud platform for the services they provide. While I and they were to move the data to where I needed to be. That is so critical. So you almost start to think about the one possession and organization now has. And we talked about this with a group of CEOs. They might be some pretty soon. Not too far off, but data stolen asset. I might actually have our data mark data market, just like you. I was stopped working, but I can start to sell my data. You know, imagine a coup in 19. There's so many organization that have so much data, and many of them have contributed to this research because this is an existence of issue. But you can see this turning into a next level. So, yes, we've got activities, will move the data toe one level higher where it's become a foundation construct for the organization. The next part is gonna actually done. This is the one asset would actually monetize someone stuff. And it will be not too long when you need to talk about how there's this new exchange and what's the rate of data for this company? Was, is that company in the future trading options? Who knows is gonna be really interesting. >>Well, I think you're right on this notion of a data. Marketplaces is coming, and it's not not that far away, Blash. It's always great to talk to you. I hope next year a data driven weaken we could be face to face. But I mean, look, this has been we we've dealt with it. It's it's actually created opportunities for us toe to reinvent ourselves. So congratulations on the success that you've had and ah, and thank you for coming on the Cube. >>No, thank you for hosting us and always a big fan off Cube. You guys, you engage with you since early days, and it is fascinating to see how this company has grown. And it's probably many people don't even know how much you've grown behind the seats, technologies and culture that you created yourself. So it's hopefully one day we'll strict the table that I would be another side and asking of our transformation. Digital transformation of Cuban cell >>I would love to. I'd love to do that index again. And thank you, everybody for watching our continuous coverage of active fio data driven keeper Right there. We'll be back with our next guest right after this short break. >>Thank you.

>> Narrator: From theCUBE studios in Palo Alto and Boston, connecting with thought leaders all around the world, this is theCUBE conversation. >> Everybody, welcome to this CUBE conversation. I'm John Furrier, host of theCUBE here in Palo Alto, California in our studios where we have a quarantine crew and we're doing remote interviews with thought leaders in the industry and people who have been around the block, beat it through three industry cycles but also can share their perspectives on the COVID-19 situation that we're in, the challenges and the opportunities. And I have with me, Jeremy Burton, a good friend of theCUBE. Have been a CUBE alumni now for 10 years, now the CEO of Observe, it's a stealth startup. I got a little taste of it, it's a Cloud thing. It's going to be part of this whole new guard. Jeremy, great to see you. You're sheltering in place, we're sheltering in the studio. Thanks for joining me. >> No, thanks for the offer. I mean, it's funny these days I welcome chance to actually speak to somebody and particularly, somebody that's not at Observe. So this is a rare treat in the last three weeks. >> Telling the wife and kids, "Hey, I'm going to go talk to theCUBE guy." So you know, I'm going to have some fun for a while. Look, I want to just have a candid fun conversation 'cause I think one of the things that's interesting to me in one, things that we're spending a lot of time doing media on is getting the word out about some of the things that are going on. People do have anxiety, they're sheltering in place for the folks that've been in the tech industry, working at home and being virtual has been part of the thing. It's not a big thing but from some of the people it's like a first time thing. And also it's also highlighting a disruption that kind of is off the books if you will, the classic continuous operations and disaster recovery was also confined to power outages or hurricanes or all those things that we people are protected against. But this is just a surge of the herd of the people going home. It's causing an at scale problem and showing these challenges, but there's also opportunities. What's your take on this? How do you see this evolving? What's your view of the current situation and some of the comments? >> Yeah, I think for most of us we're in a little bit unchartered territory. I don't really know a whole lot about medicine or the details of the virus or how pandemics happen. But we obviously have to, we deal with the consequences of it. And so I think right now although, I think it's a fairly bad situation for a lot of people, just having been through a couple of recessions where we all went through 9/11. The world does turn around and you come out the other side. And so the key thing is you start like a very much as a cliche, but you've got to live in the moment, "What can I do right now? "What can I affect right now? "How can I make sure that what I'm working on "is a value for when we come out the other side "and when more curveballs come along?" I think you've got a reason about that with the best information you have at the time. So I almost feel like you very much, you've got to just live solid like day to day, week to week, listen to the data and adapt based on that. But it's certainly starting to reinvent how work is done. I think we've all worked from home at some point. We've all worked using our equipment at home. But the prospect of working that way for months on end and it maybe been the new way of working, is a whole new ballgame. So I'm a big believer that this will fundamentally change the way we work. I don't think we're going to go 100% back to the way that we were, and there's going to be quite a lot of readjustments, and I think in that world, there's going to be some new companies come along that are big winners. And by definition, there's going to be some big losers as well. >> Well, people who know theCUBE know that I'm a big fan of you as an executive. I've seen the vision, you have also great technical shops and product shops, but also a good operational view. You've always been a fan of digital. And I think if you look at video conferencing, for instance, WebEx as a Cisco thing, great bulletproof of the enterprise, but Zoom has come across the scene. I've never seen so many Zoom parties. I did one with my family that they actually liked it. They were having fun. We had cocktails raising the wineglasses up. So people are Zooming their CUBE in, we're doing interviews. So video now is not just a corporate thing. You're seeing the engagement of digital taking on a new life and this is a whole new roles and responsibilities that we might reimagine how people do their business because with the events being canceled that are going on, whether they're concerts or just industry or tech events or any event, that physical space is gone, now it's going to digital. So how do you replicate the business value or personal value from physical face to face to digital? It's a whole new venue, there's new roles. It's complicated, it's a complex system. What's your thought on that? >> It is though, but what I have been pleasantly surprised by, I'd love it going in the office. I love the engagement with people and hanging out in the office. And so I was not really a big fan of remote working and virtually working, but I have to say, not only now where we virtually work in and we do the Zoom meetings and that's all well and good. It's a big cultural thing with at Observe to do a game night. And so we thought, "Well, why can't we do a virtual game night "and lending some trade secrets here? "But our favorite game was Secret Hitler." >> Yeah, that's a great game. One of my family's favorite. >> Turns out there's an online Secret Hitler. And you know what? The first time we played it, one of the nice thing is we've got less than 20 people in the company. So you got 12 or 14 people online. It's actually manageable. But I have to say, I'm almost embarrassed to say, it was almost as good sitting there with a drink playing virtual Secret Hitler as it was sitting around the desk. And so now I'm thinking when we go back to work, maybe we don't need to leave our desks and go have a drink together. We can just sit there on Zoom and play the secret Hitler online. Then you start looking around, "Well, what are the games can I play online?" Not like for one or two players or five players and I'm not talking about playing kind of Halo or something like that, but good collaborative games for tens of people to play at once. There's not as many as you think. So I feel like the social aspect of it, I mean, online gaming I think is huge. But even the video conferencing software, you would have thought that we would be done WebEx by now, right? I mean Skype and WebEx, we've had those for years, right? And so how does Zoom, which does guess what, video conferencing come along and start to clear up. And Zoom is not perfect by the way, but this is almost the crisis that they needed to make a fabulous business. I do believe as we start to come out the other side, I think there's going to be much, much investment in the VC world, on improving that remote work experience Because as much as me and you can talk to a video session, we can't collaborate and work together. The tools for doing that, I think still are relatively poor. >> I think you're onto something. Zoom by the way, had 10 million active dailies in December. This month was 200 million rocket ship. They got 90,000 universities. They essentially made some good moves. I think that's going to be good, but you bring up a good point about these new kinds of opportunities that are going to come out the other side, which is, think about Secret Hitler. For the folks who don't know, is a great game that you play with people, in your family or in friend group like Cards Against Me. And if you know that game, it's a similar thing concept, but you have different games. It's really fun, you should get it. Check it out online. But think about that online gaming or just what engagement means socially. I mean the old web days or just like a couple of months ago was individual engagement, "Did you like my tweet? "Did you like my Facebook post?" You're getting at something that's little bit more of a social organizational construct of group engagement, intimacy. >> Right, and the thing is we would do game night once a month and we'd get videos in and get the teamed together. Once a month was good when everybody had their own life to deal with. Now people are craving like, "Hey can we do this like every week?" And I wouldn't be surprised if the frequency increases from that, but I think that just almost speaks to human beings and that we crave social interaction. And even though most of the people at Observe are engineers and by definition should not enjoy as much social interaction, they do. They love it, right? And to me, that gaming and social direction, that's part of work. And so you have to have a virtual environment that can reproduce that. >> I mean, it's very interesting to see some of the entrepreneurial exercises or pitches that come out of this because I think it's going to be a Renaissance, it's not Renaissance 'cause it's going to come back. It's always been there. But the new kind of entrepreneurial products coming out are going to address these things. And the question I want to ask you, 'cause you've been on the big company, you've done extremely well in your career, than you get back down to your roots to doing startup, you're launching, you haven't yet launched. So you got hit right here, you're working at home sheltering in place. I was talking to a couple of VC buddies, venture capitalists, and they're saying, "I'm reading books and I'm doing research "but I really can't meet people." So their work has changed. How do you see the investment community reacting to this? Certainly valuations might come down. Obviously, their limited partners are being hit with the stock market. You're seeing a disruption. What do you see going on in the VC world around this cold hard time? >> I mean certainly all VCs are not created equal. So I think there's going to be different perspectives based on the background of the DNA of the VC involved. I think certainly at Observe, I feel very fortunate that we've got a sort of Hill Ventures. So these guys were the investors behind Snowflake and behind Pure Storage and many other good companies but they're very longterm investors and their advice to me has been, "Well look, "some of the most innovative times if you like, "have been during and after a major crisis. "And so if you make short term decisions "to get you through those crisis, "they're all terrible but they don't last forever "and there will be another side. "And so make good business decisions "and good investment decisions through this "because there will be winners "that emerge on the other side." And that's really what I try and get the team focused on is, "Guys for now, we're sort of hunkered down "and it feels bad, "but we're probably more privileged than most. "And we have an opportunity maybe on the other side, "to take advantage, we don't have a revenue stream, "we don't have existing customers. "We can sort of take this Greenfield business "that we've got and you go on the offensive "when things returned to assemblance of normal." So The Hill had been fantastic. And I would hope that most VCs retain that perspective, which is if it was a good company three weeks ago, it's probably still a good company today. And the best way to create value is to sort of empower I think the CEOs and executive teams to make the right sort of longer term decisions. Try and capitalize when you come out the other side because there will be losers as well. And I think the wrong decisions now can put you on the losing end of that equation in three, four, five months time. >> Yeah, that's a good point. If you are a good company just a few months ago or even weeks ago or a year ago, you're still a good company. That's really going to be a tell sign to what happens in some of these companies. If I got to ask you a more focused question on this whole, which side of the street are you on? Are you riding the wave or are you going to get taken away and washed away with it? Because there are bets and well, I want to get into Observe in a minute, but you mentioned Snowflake there in the Cloud wave. Obviously, that's pretty bullish. We're still bullish on that. Obviously, it's going to be game changer. But is there a tell sign for the kind of bets that those good management teams need to make now? Because I agree with you, when the Dot-com bubble burst in 2000 and really 2004 kicked back up again. 2008, we saw that post and a lot of great companies were created. So what's your advice on which side of history do you need to be on here? I'll say Cloud is one. What is your view on that? >> Yeah, I mean we felt for many years, it's not just since I went to the startup, but I am a huge believer in this transition to digital businesses. Frictionless interactions, automation, yes, obviously people are required to run a business, but if you could run a business remotely, or the businesses automated in a way such that it doesn't require hands-on operation, then that's a beautiful thing. And my belief is that, this terrible situation will force people to really think seriously about what the digital business looks like. If you don't have one, then that you may not be able to be in business in a year, two, three years down the line, right? There'll be some carryover, but I think the smart businesses are going to be able to function in an environment such as this. >> Yeah, I think that's great. >> That's going to be playing on everybody's minds. Now more than ever, I think that the digital business is a necessity. >> Yeah, I was just talking to a colleague and we were just talking about how all of the events got canceled and you've had the history running some of those best events ever in the industry at EMC. And we participated in those and you know your staff when it comes to events, there's economic value in these physical events as a venue, Science Convention Center in Moscone here in San Francisco. I mean there's a lot of things that go on, a lot of decision-making that's been standardized over the years and there's an economic value that comes out of those events. Now that's gone, and then these little digital teams, some companies have like five people, two people, sometimes maybe if you're lucky you have 10 or more or a department. And then you've got demand generation. All these guys are being told now, "You have to make up for the shortfall "in not just leads but value." And this just has been a big burden for some of my friends out there who are like, "Wait a minute, you want to take that and move it over here?" It's been kind of a challenge. What is your view on this? Because a lot of people are trying to figure this particular problem out on how to make digital work today and have some extensibility and get success. What's your take? >> Well, I'm still a huge believer I mean, whereas sort of like we just saw digital marketing content is still very much King, right? If you can produce a compelling piece of content online, TV quality with a depth of knowledge that you're going to attract an audience, now can you then make that experience interactive? Can you engage the audience in a deeper way? Yeah, you're probably not going to have something which lasts for a full day or for three days online, but I think it's really going to force the creativity on the content side to another level, right? It can't just be talking heads and PowerPoint pictures. So that rethinking from first principles, what an online conference or an online experience actually looks like in a way that it engages the people who are watching. To me, those folks are going to go do very, very well. And the economics, I know how much it costs to put on a conference for 10 or 15,000 people. And by the way, I know how much it costs to put on a virtual event for 10 or 15,000 people. And the economics are astounding in that difference. Now if you're physically somewhere, you can feel things that you can't feel online. Come on though, this is a problem that requires some innovation to solve, right? We've talked about virtual reality and augmented reality, but it's still pretty clunky and relegated to sort of niche use cases and bad games. But at some point, that technology has to reach the point where it can be useful and engage in a new. You can approximate to that physical experience. But I think that is going to be critical but many businesses even beyond sort of marketing and virtual events and that kind of thing, many businesses are just going to have to reinvent how they engage and interact with their customers and the automation of their operations and how do you get by when you don't have as many people physically in an office or operating machines? Everybody's going to have to think through that. >> Yeah, I think that's great insight and that's going to be a great clip that I'll share and I think that's going to be inspirational for the folks trying to solve that problem. The things that we're focused in on, as you know, and this is something that we're doing a lot of work on, is the engagement with groups and you mentioned The Secret Hitler as the game, they're going to see some new clever things go on. And I think the group dynamic and having people in whether it's virtual and physical spaces exchanging credible things, ideas or jokes or whatever is going to be a new kind of dynamic. >> Yeah. >> Because that's going to have to fill the void. >> Yeah, I mean I've got a small company so we can play these individual games, but just think about some of these board type games where I want to have three teams and I want to divide the company up into three. The logistics of actually figuring that out is ridiculous and it shouldn't be that way, right? And so these are basics of human social interactions. We want to play a game together, we want to divide up into teams. But that sounds like a relatively trivial thing, but try and find the number of games available that allow you to easily do that and each team interaction independently of the others, it's almost impossible. >> It's going to be fun to watch and I think and I hope we're going to learn. Well, thanks for the device. Let's get back to your startup. Let's get a plug in for that, I want to get the plug in. I've seen you in stealth so you can't really go into great detail, but you have been talking to customers. You are obviously related, that's related to Snowflake, but you were going to do some things with Snowflake. You're in the Cloud. Can you just take a minute to give a plug for what you guys are doing for the people who want to know what you guys are leaning towards in terms of the value proposition? >> Yeah well, when I look back in my career, one of the times I enjoyed the most was the time at Oracle and working with data. And I've been fortunate enough for the last four and a half years or so to be on the board of Snowflake. Couple of ex Oracle guys, Benoit and Thierry founded the company and they've reinvented the database. And I felt like I've sat for 20 years looking for the second coming of the database and we all were sort of had fake thinking it was Hadoop. And turns out it wasn't. But I think Snowflake and the separation of storage and compute that allows them to sort of scale and have a usage-based pricing model, I just think is absolutely revolutionary and I think it's going to be one of the great companies of the new era. And so when I was there when I looked at Observe, really the thesis was that using a platform like Snowflake, you could potentially reason about unstructured log data. It's all like Splunk. You could reason about time series data, a little bit like Datadog or tracing data like AppDynamics or in fact any data, you could reason about it together. And today, if you look at the world, it's like if you want to do something with logs, you go get one product. If you want to do something with relational data, you get another, if you want to do time series data, you get another, you want to do tracing, you get an APM tool. And nobody has the big picture, right? Everybody's got their own little piece of data and their own perspective on where the issue might be in your company. But nobody really knows and it's usually put together in the brain of, of the smartest guy in the room. And so I thought it was quite simple. At Snowflake, you've got this commercial database that can do instruction data and time series data and relational data. And what if we could collect all data within an organization together, structure it, relate it, and then imagine what you could find out about your infrastructure, your applications, your business? >> Sort of unification? Does it have like unification kind of concept for users or IT? >> Yeah, I think the emerging category would be observability but it really is a collapsing of log analytics, metrics monitoring and tracing into this new category of observability. We don't necessarily just view that though as sort of data coming out of Kubernetes clusters or out of AWS or wherever. We actually could ingest security data. We could ingest data from people surfing using your app or surfing your website. We could take logs coming out of machines on a factory floor. So the way we built the product, it can be literally any kind of data. And we try and structure it and relate it and make sense of it and then make it very easy for people to navigate through it and determine issues and problems. So yeah, we're pretty excited about it. And like I said, we could not have built this even a couple of years ago because I don't think Snowflake would have been there. And in fact, that was one of the big risks when we started the company. Can we build it on Snowflake? And so here we are two years later and we think we can. Well, we're sure we can do it. >> Yeah, they've had a good run too. I mean, look at the growth of Snowflake. >> Yeah, it's crazy. I've never seen anything like it and in the last 20 years and B2B, I've never seen anything like it. So just like I felt in the mid 90s when I was at Oracle, people were making decisions to go with Oracle and then saying, "Hey, help me get all of my other data in that, "my mainframe data, my this, my that." I think Snowflake are going to go through the same sort of growth phase and hopefully with Observe, we can be like, "Hey, if you want to put "your unstructured data or time series data, "we can help you do that very easily." >> Well, this is exactly the current wave that you want to be on the right side of because like you said, just a year or so ago or a couple of years ago, it wasn't available. This is kind of the new capabilities. >> Yeah, I feel like there's going to be a lot of businesses, grow ridiculously. You talked about the Zoom numbers. These are ridiculous growth numbers and there are going to be companies come out the other side that take advantage of the new environment. And as they're growing, as they're scaling, as they build these new microservice-based applications, they're going to run into issues and we hope at least that it's products with our kind of architecture, that's going to be able to help these fast-growing businesses. So yeah, as I said, we're somewhat fortunate in that we don't have a product yet, but certainly on the other side of this, we think there's going to be plenty of opportunity to help a few folks. >> We know you got to do a launch and we're looking forward to hearing more and getting the briefing, and looking forward to hearing more about it when you go public. And yeah, thanks for coming on and taking the time today. I know you got your daughter's birthday party there and you're going to have some celebration. Thank you for sharing the insights on your vision of digital. I thought that was very compelling and great to see you and stay safe. >> Great to see you. Yeah, my 18-year-old, it's got a birthday party and she like always would worry, "What if no one shows up?" Well, today she knows no one's going to show up. >> Except for her family, yeah. >> It's going to be down in the family, yeah. So thanks for that and you guys stay safe and been great the last 10 years knowing theCUBE been that long but hopefully, here is the next 10 years after this current situation is over. >> Yeah, looking forward to it, it's going to be a lot of fun rye and get the content out there. And again, thanks for coming on during this important time and sharing your insights and also just making some entertainment here. We're getting some conversations so people can fill the void and play some games and have some fun. Jeremy, thanks. Great to see you. Jeremy Burton, senior executive in the industry. I've known him for years, been a CUBE alumni since theCUBE was formed. Now the CEO of Observe, sharing his insights on the industry but more importantly, how to be successful, how to come out the other side. Don't be too optimistic. Be focused on today and get through it. That's his advice. Of course, we're theCUBE bringing you all the data as we can now with remote interviews during this time. Thanks for watching, I'm John furrier. (soft music)

>> Narrator: From theCUBE studios in Palo Alto and Boston, connecting with thought leaders all around the world, this is theCUBE conversation. >> Everybody, welcome to this CUBE conversation. I'm John Furrier, host of theCUBE here in Palo Alto, California in our studios where we have a quarantine crew and we're doing remote interviews with thought leaders in the industry and people who have been around the block, beat it through three industry cycles but also can share their perspectives on the COVID-19 situation that we're in, the challenges and the opportunities. And I have with me, Jeremy Burton, a good friend of theCUBE. Have been a CUBE alumni now for 10 years, now the CEO of Observe, it's a stealth startup. I got a little taste of it, it's a Cloud thing. It's going to be part of this whole new guard. Jeremy, great to see you. You're sheltering in place, we're sheltering in the studio. Thanks for joining me. >> No, thanks for the offer. I mean, it's funny these days I welcome chance to actually speak to somebody and particularly, somebody that's not at Observe. So this is a rare treat in the last three weeks. >> Telling the wife and kids, "Hey, I'm going to go talk to theCUBE guy." So you know, I'm going to have some fun for a while. Look, I want to just have a candid fun conversation 'cause I think one of the things that's interesting to me in one, things that we're spending a lot of time doing media on is getting the word out about some of the things that are going on. People do have anxiety, they're sheltering in place for the folks that've been in the tech industry, working at home and being virtual has been part of the thing. It's not a big thing but from some of the people it's like a first time thing. And also it's also highlighting a disruption that kind of is off the books if you will, the classic continuous operations and disaster recovery was also confined to power outages or hurricanes or all those things that we people are protected against. But this is just a surge of the herd of the people going home. It's causing an at scale problem and showing these challenges, but there's also opportunities. What's your take on this? How do you see this evolving? What's your view of the current situation and some of the comments? >> Yeah, I think for most of us we're in a little bit unchartered territory. I don't really know a whole lot about medicine or the details of the virus or how pandemics happen. But we obviously have to, we deal with the consequences of it. And so I think right now although, I think it's a fairly bad situation for a lot of people, just having been through a couple of recessions where we all went through 9/11. The world does turn around and you come out the other side. And so the key thing is you start like a very much as a cliche, but you've got to live in the moment, "What can I do right now? "What can I affect right now? "How can I make sure that what I'm working on "is a value for when we come out the other side "and when more curveballs come along?" I think you've got a reason about that with the best information you have at the time. So I almost feel like you very much, you've got to just live solid like day to day, week to week, listen to the data and adapt based on that. But it's certainly starting to reinvent how work is done. I think we've all worked from home at some point. We've all worked using our equipment at home. But the prospect of working that way for months on end and it maybe been the new way of working, is a whole new ballgame. So I'm a big believer that this will fundamentally change the way we work. I don't think we're going to go 100% back to the way that we were, and there's going to be quite a lot of readjustments, and I think in that world, there's going to be some new companies come along that are big winners. And by definition, there's going to be some big losers as well. >> Well, people who know theCUBE know that I'm a big fan of you as an executive. I've seen the vision, you have also great technical shops and product shops, but also a good operational view. You've always been a fan of digital. And I think if you look at video conferencing, for instance, WebEx as a Cisco thing, great bulletproof of the enterprise, but Zoom has come across the scene. I've never seen so many Zoom parties. I did one with my family that they actually liked it. They were having fun. We had cocktails raising the wineglasses up. So people are Zooming their CUBE in, we're doing interviews. So video now is not just a corporate thing. You're seeing the engagement of digital taking on a new life and this is a whole new roles and responsibilities that we might reimagine how people do their business because with the events being canceled that are going on, whether they're concerts or just industry or tech events or any event, that physical space is gone, now it's going to digital. So how do you replicate the business value or personal value from physical face to face to digital? It's a whole new venue, there's new roles. It's complicated, it's a complex system. What's your thought on that? >> It is though, but what I have been pleasantly surprised by, I'd love it going in the office. I love the engagement with people and hanging out in the office. And so I was not really a big fan of remote working and virtually working, but I have to say, not only now where we virtually work in and we do the Zoom meetings and that's all well and good. It's a big cultural thing with at Observe to do a game night. And so we thought, "Well, why can't we do a virtual game night "and lending some trade secrets here? "But our favorite game was Secret Hitler." >> Yeah, that's a great game. One of my family's favorite. >> Turns out there's an online Secret Hitler. And you know what? The first time we played it, one of the nice thing is we've got less than 20 people in the company. So you got 12 or 14 people online. It's actually manageable. But I have to say, I'm almost embarrassed to say, it was almost as good sitting there with a drink playing virtual Secret Hitler as it was sitting around the desk. And so now I'm thinking when we go back to work, maybe we don't need to leave our desks and go have a drink together. We can just sit there on Zoom and play the secret Hitler online. Then you start looking around, "Well, what are the games can I play online?" Not like for one or two players or five players and I'm not talking about playing kind of Halo or something like that, but good collaborative games for tens of people to play at once. There's not as many as you think. So I feel like the social aspect of it, I mean, online gaming I think is huge. But even the video conferencing software, you would have thought that we would be done WebEx by now, right? I mean Skype and WebEx, we've had those for years, right? And so how does Zoom, which does guess what, video conferencing come along and start to clear up. And Zoom is not perfect by the way, but this is almost the crisis that they needed to make a fabulous business. I do believe as we start to come out the other side, I think there's going to be much, much investment in the VC world, on improving that remote work experience Because as much as me and you can talk to a video session, we can't collaborate and work together. The tools for doing that, I think still are relatively poor. >> I think you're onto something. Zoom by the way, had 10 million active dailies in December. This month was 200 million rocket ship. They got 90,000 universities. They essentially made some good moves. I think that's going to be good, but you bring up a good point about these new kinds of opportunities that are going to come out the other side, which is, think about Secret Hitler. For the folks who don't know, is a great game that you play with people, in your family or in friend group like Cards Against Me. And if you know that game, it's a similar thing concept, but you have different games. It's really fun, you should get it. Check it out online. But think about that online gaming or just what engagement means socially. I mean the old web days or just like a couple of months ago was individual engagement, "Did you like my tweet? "Did you like my Facebook post?" You're getting at something that's little bit more of a social organizational construct of group engagement, intimacy. >> Right, and the thing is we would do game night once a month and we'd get videos in and get the teamed together. Once a month was good when everybody had their own life to deal with. Now people are craving like, "Hey can we do this like every week?" And I wouldn't be surprised if the frequency increases from that, but I think that just almost speaks to human beings and that we crave social interaction. And even though most of the people at Observe are engineers and by definition should not enjoy as much social interaction, they do. They love it, right? And to me, that gaming and social direction, that's part of work. And so you have to have a virtual environment that can reproduce that. >> I mean, it's very interesting to see some of the entrepreneurial exercises or pitches that come out of this because I think it's going to be a Renaissance, it's not Renaissance 'cause it's going to come back. It's always been there. But the new kind of entrepreneurial products coming out are going to address these things. And the question I want to ask you, 'cause you've been on the big company, you've done extremely well in your career, than you get back down to your roots to doing startup, you're launching, you haven't yet launched. So you got hit right here, you're working at home sheltering in place. I was talking to a couple of VC buddies, venture capitalists, and they're saying, "I'm reading books and I'm doing research "but I really can't meet people." So their work has changed. How do you see the investment community reacting to this? Certainly valuations might come down. Obviously, their limited partners are being hit with the stock market. You're seeing a disruption. What do you see going on in the VC world around this cold hard time? >> I mean certainly all VCs are not created equal. So I think there's going to be different perspectives based on the background of the DNA of the VC involved. I think certainly at Observe, I feel very fortunate that we've got a sort of Hill Ventures. So these guys were the investors behind Snowflake and behind Pure Storage and many other good companies but they're very longterm investors and their advice to me has been, "Well look, "some of the most innovative times if you like, "have been during and after a major crisis. "And so if you make short term decisions "to get you through those crisis, "they're all terrible but they don't last forever "and there will be another side. "And so make good business decisions "and good investment decisions through this "because there will be winners "that emerge on the other side." And that's really what I try and get the team focused on is, "Guys for now, we're sort of hunkered down "and it feels bad, "but we're probably more privileged than most. "And we have an opportunity maybe on the other side, "to take advantage, we don't have a revenue stream, "we don't have existing customers. "We can sort of take this Greenfield business "that we've got and you go on the offensive "when things returned to assemblance of normal." So The Hill had been fantastic. And I would hope that most VCs retain that perspective, which is if it was a good company three weeks ago, it's probably still a good company today. And the best way to create value is to sort of empower I think the CEOs and executive teams to make the right sort of longer term decisions. Try and capitalize when you come out the other side because there will be losers as well. And I think the wrong decisions now can put you on the losing end of that equation in three, four, five months time. >> Yeah, that's a good point. If you are a good company just a few months ago or even weeks ago or a year ago, you're still a good company. That's really going to be a tell sign to what happens in some of these companies. If I got to ask you a more focused question on this whole, which side of the street are you on? Are you riding the wave or are you going to get taken away and washed away with it? Because there are bets and well, I want to get into Observe in a minute, but you mentioned Snowflake there in the Cloud wave. Obviously, that's pretty bullish. We're still bullish on that. Obviously, it's going to be game changer. But is there a tell sign for the kind of bets that those good management teams need to make now? Because I agree with you, when the Dot-com bubble burst in 2000 and really 2004 kicked back up again. 2008, we saw that post and a lot of great companies were created. So what's your advice on which side of history do you need to be on here? I'll say Cloud is one. What is your view on that? >> Yeah, I mean we felt for many years, it's not just since I went to the startup, but I am a huge believer in this transition to digital businesses. Frictionless interactions, automation, yes, obviously people are required to run a business, but if you could run a business remotely, or the businesses automated in a way such that it doesn't require hands-on operation, then that's a beautiful thing. And my belief is that, this terrible situation will force people to really think seriously about what the digital business looks like. If you don't have one, then that you may not be able to be in business in a year, two, three years down the line, right? There'll be some carryover, but I think the smart businesses are going to be able to function in an environment such as this. >> Yeah, I think that's great. >> That's going to be playing on everybody's minds. Now more than ever, I think that the digital business is a necessity. >> Yeah, I was just talking to a colleague and we were just talking about how all of the events got canceled and you've had the history running some of those best events ever in the industry at EMC. And we participated in those and you know your staff when it comes to events, there's economic value in these physical events as a venue, Science Convention Center in Moscone here in San Francisco. I mean there's a lot of things that go on, a lot of decision-making that's been standardized over the years and there's an economic value that comes out of those events. Now that's gone, and then these little digital teams, some companies have like five people, two people, sometimes maybe if you're lucky you have 10 or more or a department. And then you've got demand generation. All these guys are being told now, "You have to make up for the shortfall "in not just leads but value." And this just has been a big burden for some of my friends out there who are like, "Wait a minute, you want to take that and move it over here?" It's been kind of a challenge. What is your view on this? Because a lot of people are trying to figure this particular problem out on how to make digital work today and have some extensibility and get success. What's your take? >> Well, I'm still a huge believer I mean, whereas sort of like we just saw digital marketing content is still very much King, right? If you can produce a compelling piece of content online, TV quality with a depth of knowledge that you're going to attract an audience, now can you then make that experience interactive? Can you engage the audience in a deeper way? Yeah, you're probably not going to have something which lasts for a full day or for three days online, but I think it's really going to force the creativity on the content side to another level, right? It can't just be talking heads and PowerPoint pictures. So that rethinking from first principles, what an online conference or an online experience actually looks like in a way that it engages the people who are watching. To me, those folks are going to go do very, very well. And the economics, I know how much it costs to put on a conference for 10 or 15,000 people. And by the way, I know how much it costs to put on a virtual event for 10 or 15,000 people. And the economics are astounding in that difference. Now if you're physically somewhere, you can feel things that you can't feel online. Come on though, this is a problem that requires some innovation to solve, right? We've talked about virtual reality and augmented reality, but it's still pretty clunky and relegated to sort of niche use cases and bad games. But at some point, that technology has to reach the point where it can be useful and engage in a new. You can approximate to that physical experience. But I think that is going to be critical but many businesses even beyond sort of marketing and virtual events and that kind of thing, many businesses are just going to have to reinvent how they engage and interact with their customers and the automation of their operations and how do you get by when you don't have as many people physically in an office or operating machines? Everybody's going to have to think through that. >> Yeah, I think that's great insight and that's going to be a great clip that I'll share and I think that's going to be inspirational for the folks trying to solve that problem. The things that we're focused in on, as you know, and this is something that we're doing a lot of work on, is the engagement with groups and you mentioned The Secret Hitler as the game, they're going to see some new clever things go on. And I think the group dynamic and having people in whether it's virtual and physical spaces exchanging credible things, ideas or jokes or whatever is going to be a new kind of dynamic. >> Yeah. >> Because that's going to have to fill the void. >> Yeah, I mean I've got a small company so we can play these individual games, but just think about some of these board type games where I want to have three teams and I want to divide the company up into three. The logistics of actually figuring that out is ridiculous and it shouldn't be that way, right? And so these are basics of human social interactions. We want to play a game together, we want to divide up into teams. But that sounds like a relatively trivial thing, but try and find the number of games available that allow you to easily do that and each team interaction independently of the others, it's almost impossible. >> It's going to be fun to watch and I think and I hope we're going to learn. Well, thanks for the device. Let's get back to your startup. Let's get a plug in for that, I want to get the plug in. I've seen you in stealth so you can't really go into great detail, but you have been talking to customers. You are obviously related, that's related to Snowflake, but you were going to do some things with Snowflake. You're in the Cloud. Can you just take a minute to give a plug for what you guys are doing for the people who want to know what you guys are leaning towards in terms of the value proposition? >> Yeah well, when I look back in my career, one of the times I enjoyed the most was the time at Oracle and working with data. And I've been fortunate enough for the last four and a half years or so to be on the board of Snowflake. Couple of ex Oracle guys, Benoit and Thierry founded the company and they've reinvented the database. And I felt like I've sat for 20 years looking for the second coming of the database and we all were sort of had fake thinking it was Hadoop. And turns out it wasn't. But I think Snowflake and the separation of storage and compute that allows them to sort of scale and have a usage-based pricing model, I just think is absolutely revolutionary and I think it's going to be one of the great companies of the new era. And so when I was there when I looked at Observe, really the thesis was that using a platform like Snowflake, you could potentially reason about unstructured log data. It's all like Splunk. You could reason about time series data, a little bit like Datadog or tracing data like AppDynamics or in fact any data, you could reason about it together. And today, if you look at the world, it's like if you want to do something with logs, you go get one product. If you want to do something with relational data, you get another, if you want to do time series data, you get another, you want to do tracing, you get an APM tool. And nobody has the big picture, right? Everybody's got their own little piece of data and their own perspective on where the issue might be in your company. But nobody really knows and it's usually put together in the brain of, of the smartest guy in the room. And so I thought it was quite simple. At Snowflake, you've got this commercial database that can do instruction data and time series data and relational data. And what if we could collect all data within an organization together, structure it, relate it, and then imagine what you could find out about your infrastructure, your applications, your business? >> Sort of unification? Does it have like unification kind of concept for users or IT? >> Yeah, I think the emerging category would be observability but it really is a collapsing of log analytics, metrics monitoring and tracing into this new category of observability. We don't necessarily just view that though as sort of data coming out of Kubernetes clusters or out of AWS or wherever. We actually could ingest security data. We could ingest data from people surfing using your app or surfing your website. We could take logs coming out of machines on a factory floor. So the way we built the product, it can be literally any kind of data. And we try and structure it and relate it and make sense of it and then make it very easy for people to navigate through it and determine issues and problems. So yeah, we're pretty excited about it. And like I said, we could not have built this even a couple of years ago because I don't think Snowflake would have been there. And in fact, that was one of the big risks when we started the company. Can we build it on Snowflake? And so here we are two years later and we think we can. Well, we're sure we can do it. >> Yeah, they've had a good run too. I mean, look at the growth of Snowflake. >> Yeah, it's crazy. I've never seen anything like it and in the last 20 years and B2B, I've never seen anything like it. So just like I felt in the mid 90s when I was at Oracle, people were making decisions to go with Oracle and then saying, "Hey, help me get all of my other data in that, "my mainframe data, my this, my that." I think Snowflake are going to go through the same sort of growth phase and hopefully with Observe, we can be like, "Hey, if you want to put "your unstructured data or time series data, "we can help you do that very easily." >> Well, this is exactly the current wave that you want to be on the right side of because like you said, just a year or so ago or a couple of years ago, it wasn't available. This is kind of the new capabilities. >> Yeah, I feel like there's going to be a lot of businesses, grow ridiculously. You talked about the Zoom numbers. These are ridiculous growth numbers and there are going to be companies come out the other side that take advantage of the new environment. And as they're growing, as they're scaling, as they build these new microservice-based applications, they're going to run into issues and we hope at least that it's products with our kind of architecture, that's going to be able to help these fast-growing businesses. So yeah, as I said, we're somewhat fortunate in that we don't have a product yet, but certainly on the other side of this, we think there's going to be plenty of opportunity to help a few folks. >> We know you got to do a launch and we're looking forward to hearing more and getting the briefing, and looking forward to hearing more about it when you go public. And yeah, thanks for coming on and taking the time today. I know you got your daughter's birthday party there and you're going to have some celebration. Thank you for sharing the insights on your vision of digital. I thought that was very compelling and great to see you and stay safe. >> Great to see you. Yeah, my 18-year-old, it's got a birthday party and she like always would worry, "What if no one shows up?" Well, today she knows no one's going to show up. >> Except for her family, yeah. >> It's going to be down in the family, yeah. So thanks for that and you guys stay safe and been great the last 10 years knowing theCUBE been that long but hopefully, here is the next 10 years after this current situation is over. >> Yeah, looking forward to it, it's going to be a lot of fun rye and get the content out there. And again, thanks for coming on during this important time and sharing your insights and also just making some entertainment here. We're getting some conversations so people can fill the void and play some games and have some fun. Jeremy, thanks. Great to see you. Jeremy Burton, senior executive in the industry. I've known him for years, been a CUBE alumni since theCUBE was formed. Now the CEO of Observe, sharing his insights on the industry but more importantly, how to be successful, how to come out the other side. Don't be too optimistic. Be focused on today and get through it. That's his advice. Of course, we're theCUBE bringing you all the data as we can now with remote interviews during this time. Thanks for watching, I'm John furrier. (soft music)

>>live from Las Vegas. It's the Q covering AWS executive. Something >>brought to you by Accenture. >>Welcome back, everyone. We are kicking off day two of the cubes. Live coverage of the ex center Executive Summit here at AWS. Reinvent, I'm your host, Rebecca Knight. We have three guests for this panel. We have some bad meta. He is the chief information officer at Putnam based in Boston. Where? Boston People together. Thank you so much for coming on the show. Nitin Gupta. He's the partner and solutions lead. Financial service is at AWS Welcomed and Shale Jane back again for more. Who leads the data business group in North America. Thanks >>so much the last time. >>Yes. We can't get enough of each other. So thank you so much for coming on the show. We're talking about the data data journey and financial service is so I'm gonna start with you, Sam. It tell us. Tell our viewers a little bit about Putnam. That your assets under management. Your employees? >>Sure. So you know, problem is a global firm. We are a leader in mutual funds in the mutual fund business. We're in 84 year old organization. We based in Boston on, and we are known for innovation. We've done a lot of firsts in our industry on our focus has always bean looking after the needs of our shareholders. So even as we launch digital transformation, we launch it with the lens off, making sure we're covering the needs of our shareholders. >>So what was the impetus? What was the driving force to it? To embark on this cloud journey? >>Sure, So you look recovered. The financial markets recover industries. We look at our own industry as well. Things are changing rather rapidly, right, if I may just turn it around a little bit. Last year's letter from our CEO Bob Reynolds, said That problem now has Maur increasingly Maur four and five star funds, according to Morningstar, then we've had it as a percent of total funds ever. Before we had inflows, when the rest of the industry were having outflows, we built a digital platform and we said digital technology at problem is how we gonna view the internal technology department who will help enable our company to go and provide the investment insights directly to our advisors and to our shareholders so that they can benefit from the performance that we're we're delivering, right? We can only do that through a change. What's really going on in our industry is that there's more choice that's now available to shareholders than ever before. So while we talk about where there's outflows in in in our world, there's actually a lot of flow happening, right, So So it's for us to figure out how. How are the tastes changing right? What are people buying would do advisors need? When do they need them and can reposition ourselves to service them at scale, and so that those are the things that are driving our business? For us to continue to serve the shareholders needs. We really need to be in tune with where the market is. So we're helping do that at Putnam through technology, >>so shale in it. And I mean, what he's just described is thin. This enormously changing landscape and financial service is disrupted by a lot of new entrance. A lot of financial text in tak, a lot of different kinds of technologies. A lot of industries are experiencing this rapid pace of change. How do u ex ensure in AWS work with Putnam amidst this tremendous change, and how do you sit down with the client and sort of work out? Where do we go from here? >>So you know, I want to touch upon a couple of things that made you said And Rebecca You said, So no one is the cloud of their journey. It's It's not a destination that you're trying to get to, And then the other thing that you talked about, it's change. So we had in the cycle right now. But there's a lot of change happening at an industry we had in the cycle Where you nothing, that $38 trillion or something, which is a generator, you know, they're just getting transferred from one generation to the other. I'm not getting any off it. Unfortunately, you know >>all of >>this change that is happening in the industry. What is really required is you need something up in terms of technology, a platform that allows you to move quickly on adapt really quickly to this change. And I think that's where cloud comes in when we talk about all the new generation technologies like data machine learning, artificial intelligence, how >>do you >>leverage all of those. How do you fail quickly? How do you test experiment? Run thousands of not millions of experiments and see what will work in what will not work and do that in a very cost effective way and cloud of a very easy. It's an effective way to do it. And the weight of Louis is helping our customers. Obviously. You know, we we announced a bunch of service is yes, today way have the widest and the deepest tack that is dead in the industry today. You know the strength of our partners. Accenture. So you know, Accenture has Bean one of our longest standing partners altar and financial firm on, you know, working with them, working with our partners to enable our customers. But then we're also investing very heavily in building our industry capabilities. Are accounting solution architects? Professional service is security professionals helping our customers answer all the questions that they would need to answer as they go in this journey with us. So it's, you know, we are in this with them for for the long haul on dhe, you know, super excited about parking trip. >>So from our perspective, I think where we view the world as at a point where we're post digital, where digital was to put a front end that made your engagement with the customers much better. But now we're talking about intelligent enterprise, which is to really digitize the company from the inside out. So not only you need cloud for agility and all the other benefits that cloud offers, but you also need to look at data is the vehicle that would actually not only transform the culture of the company but also be able to integrate with your partners. For example, Cement talked about, you know, getting mind share from the advisers. But if you can exchange data, integrate data much better, faster with them and serve data to them in shapes and speeds that they need, they'll be more amenable to put you on their roster as well. So I think we're seeing a change that's mostly driven by the fintech industry disruption. That's that's happening as well. And it is no better time than now with the cloud and data to really help transform companies like >>the's tons of innovation, right, it's We heard Andy Jassy talk about the Let's roll Sweet the Sweets that are available to us. Our job is to learn what they are and how does it apply to our business because at the end of the game you said it's about our shareholders. It's about the value that we can bring. But we want to harness the power off all of the innovation, and we can't even though we've Bean an innovator, we're not going to innovate alone, all right, so it's really helpful to have to surround yourself with partners who have done this before, to be learning from others and bringing in the right tools at the right time, so so we can turn things around quickly, right? This is way are obviously very conservative and risk averse when it comes to managing other people's money. So we have to be very, very careful. Having said that, you know, we want to learn about all the guardrails we can put in place so we can go faster. >>I want to actually do something about what Shayla brought up, and that is the cultural change within the organization, because change is hard and so many people are resistant, particularly when things are going relatively well and they say Why mess that up with the new technology? So how is hard? Maybe >>is the understatement of the week very hard, and as you guys know, you know where it's not. It's not hard because people don't just want changes. They are experts in things that they've been doing for the last 15 years. 20 years. They've bean at our firm for a really long time. They really know how everything works from front to back. What happens, though? Now, when we get a changing need from the market and people want to buy things differently and we want to sell different products and maybe wanna introduce new products to the market, we can create bottlenecks that slow things down if we're not careful. So this is where we want to learn about the two pizza teams and how you can do things faster. How can we apply that to our world? Which means business partners working with technology, co located in small teams, being completely empowered to deliver solutions, right, working with our risk and compliance people, making sure that everyone's doing things that there were supposed to be doing right? How do we put that to work in the financial service is industry. So where we're learning as we go, we're learning to break down the sidles in the organization, and it's hot all the way around because we're experts in our areas. We know what we've done really well. But fortunately we have a leader in our CEO who's basically said that Let's transform problem so that we become leaders in the digital era for financial service is so with his support waken. Get the executive team align, and as the executive team aligns, then you find that people in the organization they want to work in this model, right but way don't know yet what we don't know, right? It's so we know how to do things from yesterday. Now we're learning and working together. So you guys have come in and this is where we've said, Bring in the people who have done this before and let's hold a session with 40 50 people that Putnam and let's just learn about what that transformation looked like at other places, so we don't make the same mistakes. >>Well, that's what Andy Jassy said in his fireside chat this morning. He was talking about how he had surgery recently in the question you need to ask your surgeon is how many times have you done this surgery? Because that is the critical thing. And so having a trusted partner is so important. So how how does it work that we're working together, collaborating on this relationship? How are you ensuring that Putnam doesn't make mistakes and does do the right tool for the right job shell? >>So, um, earlier this year, we actually launched an offering. A devious lighthouse with eight of us and what it is is a is a collection off. All of our assets are thought, leadership and architectures that we have garnered over the years, having worked with plants like Putnam and have them through the journey. So we put them all together and we bring Bring that Fourth Putnam is one of the first clients actually take advantage of it Abuse Data Lighthouse and, for example, we have a methodology that is specially customized for doing data on on eight of us. So things like that is what we bring to the table to help eliminate the risk that they may encounter. >>And data is critical to us, right? It's we manage a set of data assets, and that's the engine off the organization. So when we look at cloud migration way, look at what's our data strategy? How are rebuilding the so called you guys introduce the terminology for confirmed data sets? And then can we gallon eyes the rest of the organization around it, from investment professionals to operational professionals who used that data every day. Manager governent Make sure that it is what it's supposed to be. And to do that in a cloud environment where their user experience becomes a lot simpler, a lot easier almost takes I t a little away from the day to day. We don't have to be in the report writing business because we can make them more self service right that will create efficiencies in our organization. Our clients are asking us to do things at a lower cost than ever before and introduce more products and more tools and more service is right, so >>I would just tie with Samantha, just said with your question about culture. So if you can make it easy for people, for example, making things self service and data that's discovered through a catalog, so you have a place where you can go and find all the data sets it available. What is the quality? What is the veracity of data and then be able to take a piece of that and try some experiments with it? I think that would enable the cultural change much faster >>because they are able to basically do their jobs better. >>Yes, yes, >>it is. A is a more productive implement. Will highly >>engaged employees, right? We don't want to be in a situation where we find a lot of those disengagement moving employees and the mission for company. We want high engagement. We own people committed to what they're doing. We want to remove hurdles, and technology is they can produce great efficiencies, but it's not done right. It can also be a big hurdle. So we want to learn how to deliver the right tools, the right products to make it easier for way like to say, bring delightful experiences for our clients and our employees. >>Delightful. Another were another Jeff Bezos favorite word of his Obviously Putnam is, is a real innovator and really on the vanguard of this new technology. What are you seeing in the greater financial service is landscape. I mean, how how what are the what is the corporate mind set when it comes to this kind of change? >>So you know, when we look across our financial service is customer base across banking, capital markets, insurance pretty much every customer today. The question is not, you know if we should move to the cloud or when should we move to the cloud? But I think every every CEO and see io is asking the question, How do I move too loud? And what applications do I move over? How do I start on this journey of transformation? Whether it's a digital or it's reducing costs are improving my risk. Posher whatever that end goal is on dhe, you know, when we look at use cases across the industry, risk and data is with one of the easiest use cases to get started with, say, on Ben Field. They were looking at Solvent E to calculations for 25 million other policy holders, and they reduce that time from 10 days to 10 minutes. That is a, you know, really good use case off getting moving to the cloud. You know, if Indra is a great example. They're very public customer analyzing 38 building over market records in the stock market and looking in on alive in all of the data. On it up with data and risk is one of the core use cases that companies start with but then >>has to >>get more as they learn more about the cloud. As they get more get a deeper understanding, they start looking at other things, like Transforming Corp core applications. Today we have core creating applications, scored insurance application score, banking applications that are running running on the cloud. And then they start looking and innovation. You know, how do we look at artificial intelligence? How do we look at machine learning? How do we look at the new technologies to really transform our business and one of the great use case? And we thought so. You know, a lot off insurance companies Liberty Mutual using Lexx as part of their there was a conversational agent for their customers. But one of the interesting examples I have is it's ah, it's a reinsurer in Denmark, Italy insurer in Denmark, and what they're doing is they're using image recognition from from Amazon to look at on accident in the field and then analyzing that, using the using our recognition service to see what that that actual damages and what the cost is and feeding that information to the underwriter really compressing the time that it takes two from a clean filing to processing and payment to a matter of a few few few hours on getting that payment to the to the customer. So really creating a very positive customer experience. >>So it speaking of customer experiences, what have you know? You said you thought you were in service to your shareholders. What have been some of the results that you've seen? >>So you have to look across the organization, right? So our advisers served the need on the retail side, so we were like a bee to be business, right? So we have to be cognizant of what's going on in their world. They're sitting down with clients and talking through the choices, and they have certain needs what they need to fulfill their obligations. They need to explain why they're doing what they're doing. If Putnam knows where each of the advisers are at in their journey with their clients, we can be more helpful to them in explaining why our funds are behaving the way they are right, that information can be had at the right time at the right moment when they need it. Need it, And that brings advisers closer to our our teams are retail distribution teams are marketing teams are investment teams are investment professionals, are using data and analytics to get information to. We're using technology to get information to them faster, so companies are doing releases. There's a ton of information out there these days. We're using technology to dig deeper into the press releases as well as the SEC filings, looking at the footnotes, really trying to understand what they're trying to say, what they said before and what are analysts should be focused on. And we can take a 70 page document, condense it to seven pages and pinpoint what the technology tools say's are really insights. And the analysts will take the time and read the whole thing. But they'll also look at the insides and they'll add it into their process. So technology's additive to the investment process and really making a change help and then that's helping Dr performance. So at the end of the day, we're living good performance on our funds through data analytics technology, you know, give you another example. Some off the were were very strong in the in the mortgage analytics business and on the fixed income side. Our team's very well known. They've been together for many, many years now. They're starting to use data at scale, and we found that being able to go to the cloud to do these analytics right in hours instead of days has really made a material difference in the number of iterations we can run. So now the questions are, when we do risk management, can we do that a little differently and run more reiterations and get more accuracy? So we're seeing all of that benefit. That's direct user experience, that people are seeing people seeing how technology is helping them do a better job with their thesis. >>Excellent. Thank you so much for coming on. The Cube seem ed knitting and shale. A pleasure having you on. >>Thank you for being here. >>I'm Rebecca night. Stay tuned for more of the cubes. Live coverage of the Ex Center Executive Summit coming up in just a little bit

>>live from Las Vegas. It's the Q covering AWS executive. Something brought to you by extension. >>Welcome back, everyone to the cubes. Live coverage of the ex Censure Executive Summit here at AWS. Reinvent I'm your host, Rebecca Knight. We have two guests for this segment. We have Satya Adric, Carl Adder Gala. Sorry, He is the VP single family technology at Fannie Mae. Thanks so much for coming on the show. Satya >>glad to be here. >>And we have Dave Baldwin, VP Architecture, Cloud Engineering at Fannie Mae. Thank you so much for coming on the show D thanks >>for having us. >>So we're talking today about transforming the mortgage industry through through the cloud. Fannie Mae is obviously a foundational part of the US home mortgage industry, and it's been around for a long time. But at a time right now, where there is just so much tremendous change going on in the industry, particularly with the emergence of fintech and other push button mortgage providers, talk a little bit about the last 3 to 5 years. In terms of the changes, you've seen two to the business. You want to start? >>Yeah, I will. So So when we look at the industry changes. What Fannie Mae does is mostly in the secondary market, so our core business hasn't changed from the point of taking the lone synchronizing and selling. However, in the mortgage industry, when we talk about the bar or experience and then the lenders how they have improved the experience across the board, I think is it has been a huge shift right three years ago. The discussion has bean always about Hey, can we do more reliably? Can we do more faster? Right? Those were the conversations, but now the expectations off our lenders and bottles have significantly increased. Right now, they're talking about user experience. How can we meet our bar or where they are, Right. So the lenders have got a lot of expectations on us in terms of how do you feel? Feel that that is the first biggest change in the realm off several of these, right? The 2nd 1 ese, the data has become the currency now, right? It has significantly improved our posture around finding about, um, their assets that income, their employment. Right. So you guys may have seen a lot off David surgeon. It is a product that we have launched in that well, so data revolution has been a big change. And then how we're utilizing that to serve Margaret's industry, our lenders and borrowers, thereby we also reduce the risk within the industry. Right? So those two have bean huge changes. Then there is a technology revolution in terms off AP eyes, Microsurgery says. How do I plug and play? How do we reduce my cost when I'm locking a bottle or two alone? Right. And these are the things that are lenders have bean pushing us on right? Reduced the cycle from somebody coming to the application to taking a loan, closing alone and delivering to Fannie Mae. Shrink the timeline and in doing it, reduce our costs. Right? So these are being like more and more expectations Have bean really set from the border for a few from the lender point of view on Fanny me and all our innovation. Our transformation is all about meeting them and also setting standard for them. What is great in this industry and that's that's what has been going on in the last 3 to 5 years. >>Yes, and that you just laid out a tremendous number of trends and all this disruptive change when you were trying to meet these new expectations from your lenders and your borrowers. Dave. What? What are the in making this journey to, from to to say, I'm sorry from to the Cloud, How are you thinking about these challenges ahead at a time where the user experience is so important? Data is currency and this technology revolution, >>well, it's a big change and, you know, and it's a change across people, process and technology. So if you think about it, what we've done is we've started to trade a new operating model, which really is a lot more engaging, and and it requires an uptick, a scale and really ah, a new way of working right. We've even gone as far as to introduce lean management in a tools and processes. But if you think about it, the people definitely have to change. If you think about it from a process point of view, you're you're really looking at reimagining the way some of the mortgage industry works right, because there's a lot of demand for it. At the end of the day, the customer expectations and especially If you go all the way to the borrower, the customer expectations is very different. You know, they're very they they don't understand unnecessarily why they would have to fill out all this paperwork, right? When don't you already have the information? And to sati is point about data. That's why it's so important to get that data together. Because if we can harness it right, then we can truly start to re imagine these processes and make it so much easier for a borrower nor a lender to work together and eventually work with us. So and then finally, you know, from a tech point of view with the introduction of the cloud, you know, that new foundational sort of technology that really gives you something to pivot off, you can really you can really start to take advantage of the micro service architectures and the new technical capabilities that can help make this really right. And so that's That's generally how we look at our digital transformation and and as you start to think about prioritization, how do I move those? How do I think about the applications that are going to change and how they're gonna neither either Transformer moved to the cloud. You really start to think of you know what business value and I'm trying to achieve 1st 2nd 3rd right? And then what applications won't make it, You know, they're gonna be completely redone. And what applications? Frankly, we're gonna have to move along with it to manage some of the dependencies we're going. >>So I think one more point I wanted and Rebecca is that when we look at this B to B businesses, they're very tightly integrated, right? Our companies have been integrated when we are extending out information explained, extending the responses in the past. Anybody talks about experience, right? It is about Hey, there will be there are technological glitches, but you don't want to impact big. That's used to be the norm. Not anymore. I think when we look at now one of the top customer slate, if you blink from the infrastructure layer point of view, there is business loss. People are not just looking for resiliency anymore. People are looking for fault tolerance, especially when it comes to the top to your customers. Right. So I think we can see the underpinning off cloud and also how we architect our applications to meet that kind of need. It's not just about being resilient anymore. Gotta be. You cannot lose a transaction. But I think those things have bean more and more that we're hearing from our customer base, and we feel like the cloud journey is going to be underpinning for these types of expectations from our customers. >>So how do you work with partners like Accenture in AWS? When you embark on this journey and think through the your business imperatives and think through your strategy, >>I think when when we think about our partnership's. First of all, there are a lot of partners that we have and that we've had for years, as we as we really not only do digital transformation, but you got to run the business, too, while you're doing this transformation. And so you know, when you think about it, the way the wake centers worked with us is you know they number one have helped us with a cloud strategy. So that's a very hard thing to Dio because you think about all the different personalities in your organization and all the people that you have to bring together. You know what Accenture helped us with. It is to really level, said everyone and get everybody on the same page in terms of, you know, where we want to go on how we wanna head on this journey. The second thing that they helped us with was really the program management. So that's a huge undertaking to write and given the fact that it's very different and these are new things that we're doing in our firm. It's good to have that external expertise that that sort of done it with other companies and they can bring that to bear with eight of us. You know, eight of us is is one of one of the major providers that we're using. Thio post a lot of our business applications, and if you think about that there, you know we're taking advantage of their technology. We're leveraging some of their pro serve professional service is thio, help us get it right and help us sort of not only with the implementation, but in some cases the governance and control frameworks that are highly regulated. Organization like ours needs So >>and I think if you think about this from the scale point of view, right? Everybody knows there is war for talent, right? We use our partners in terms of how can we scale these things that are new operating models? New technological? Because there is a change curl in bringing up the entire employees based without extent, These guys can be catalyst. In addition to that, they can be scaled provided us, right. I think that's how we can I use these, But it is action generator B s. >>This morning during Andy Jassy fireside chat, he talked a lot about the importance of innovation and experimentation and trying different things. How What's the experience of innovation at Fannie Mae? How do you innovate with partners or just thinking about all of the changed expectations? How do you make sure you are trying to solve the right problems? Describe your process creative process >>again, I think, um, when we I think about this innovation process and how we do water in Fannie Mae right three years ago, it is about Hey, how do we get our employee base to think about the possibilities right on Veran bunch of hackathons innovation days so that you get excitement from the teams, but in the last one and 1/2 year. It's more about innovation that can reap benefits, right? So we call it as focused innovation. We have, ah, clear cut Enterprise Innovation team. And they're on some of these innovation days and whatever have you within the within the firm so that you get the ideas and we have a process called pitch. So all these ideas feeding to lack of a better time a funnel where we have this enterprise innovation groups actually scan through the I. D. S and then can identify what things we can use and where we want to put our innovation investments. Right. So there is, ah, set off funnel requirements and gates we go through to identify Hey, this is where we want to do. And how we do is that Fanny Me is a lot more design thinking shop, right? So customer is at the center of everything. So anything we do, we will have some sort of research first, right with the customers and then how that might push the needle such that it can reach different boundaries through innovation. Right? So our processes cultivated ideas from inside. Also, look at what is happening with the trends. We have a strong strategy group. They're gonna look at this and our innovation team is always on the hunt for Hey, what is happening in industry in the cutting edge, How do you bring these three dimensions and then come up with a bunch of ideas? And then we have a funnel process where we identified what moves? What's this? What stays? Because there are other things that are at play. Is this innovation ready for the market? Now? Does it have to wait that sort of There are so many dimensions that going to that. But we have a structure process, and we have AH, dedicated team who can manage is that yet uses the creativity of the employees to be able to participate in animation. I mean, that's how we have a wall this process from. Think of the possibilities, too focused innovation. >>I think there's one extra point as well, like when it comes to technology side of that, it's it's creating a safe place for people to experiment, right, So we have a sandbox, the environment that we've created, an Amazon there in eight of us, and what we're doing is we're actually releasing some of the controls. I mean, obviously there's security and compliance, but released some of the controls and and just put a few guard rails in place so that people can experiment safely and not impact our firm, you know, in a very negative way. So >>talk about your employees and how they received this, this major transformation, and how are you receiving feedback in terms of their productivity in their engagement with the process? Dave. >>So you know, I would say this. There are lots of different types of employees, right? And like I said earlier, we also have as we're building the new, we also have to continue to support what we're running. So So what we've done is we've actually rolled out on South. We'll talk about it more detail because his team rolled it out. But, you know, but we have rolled out some training. You know, we've created a change management process, an organization right. Working with our human resource is so that we can up left, you know, sort of skills. And that's what I think. What's important is you're not going to be able to find the people out there to do everything that you need to do right. What's really important is creating those opportunities to carry the people that you have in your organization along with you for the journey as they learn you benefit right as an organization. So but salty should talk about some >>of the training. Yeah, so I take your question in two parts one. Is that how the employee base is taking the message of this district transformation or don't have right again? We have a compelling vision and mission like people that fanny man, they what? They take pride in fulfilling the mission. That's that's the 1st 1 along the way, when we crafted our message around why we're doing this. That is a lot more compelling. It is meaningful for our customers, our employees, right? So I think the messaging has been very important. Then, when you look at the things that we're trying to do, our cutting edge right from the employee point, if you it is a lot of excitement, because that keeps them at the cutting edge of what is happening in the world that makes them more marketable, right? Naturally, people are excited about it, but like any transformation, right? There will be camps off who will come across the change car up front like they're catalyst. Right? And then there are some in the middle and summer can a lagging right? But when we look at the entire gambit off the employee base, majority off them are. Hey, we are on board with this. We want to do it. We want to learn, How do we get there? And the company has done several different things to help the employees through this kind of knowledge cover I would call rather than the change career. We have a whole bunch of training plans that we have laid out. People have been wall until early taking. I mean, maybe a classroom training, maybe a self, sir. Uh, type off, download this particular module and then kind of read upon it and then also provide them to practice them with the sandbox. Right? So all these things have been done. I think one challenge we had actually facing now is that we can train them up pretty easily if we haven't put them in a place to practice it. Then it kind of fades away. So we're now kind of trying to see. Okay, let's identify groups off people. Give them a tool where they can assess for them their own self. What I wanted to learn such that I can become that and then be eligible for doing that right so that now they learn. And then they're put in a role on a project that they can actually practice on. So we are in that posture of that right now. So I think, but employee base is really excited about this, >>So I want to. I want to end where we started where Sati described the myriad changes that are taking place in your industry and getting back to your your cause, which is helping the customer buy a home, get it, get it, get it more easily, qualify for a loan. Can you think about the customer experience of the home buying process 3 to 5 10 years from now? And how it will be different as Fannie Mae embarks on this on this cloud journey. Do you want to start David? Just think. Look into your crystal ball >>and it's great. I wish I had a crystal ball. That would be great, but but you know. Look, we're making significant advancements, you know, working, working with our customers, taking that customer first mentality. And, ah, and and, you know, the mortgage industry itself is right for a change. I mean, you know, and and we're in a good position to really help and drive a lot of that. So my expectation, if I were to look out, I would expect to see a world where you know that borrower experience gets a lot better. I mean, one of the things we've learned to our research is that you know what is it? 40% of people actually cry as they're going through the mortgage experience, >>and they're not tears of joy. No, it's actually, you >>know, tougher to get into a tougher to think through the mortgage process, you know, and really take that big leap than it is to, you know, our Cielo tells us all the time than it is to actually apply for college. It z, it's often on bigger life event our goal. How do we make that simpler? How do we make people have a much more pleasant experience? Right? Waken do that with our data. We can make sure that they don't have to fill out those amazing forms. Heck, find the information. Sometimes they don't have it. You know, we're in a better position, right? You know, really? Get Teoh. You know, I can't promise a single click experience, but we're all gonna try to aspire to that, because that's what the customers out there with their cell phones and their technology or used to right. So we've got to get at least somewhere close to being there. >>So in the bottle, it expedient sight. I think we can even now see one tap market. How do we get them right? I think that's probably not too far. It's probably within two or three years. That's if I were to think about that. But if you want to think about 5 to 6 years, 10 years, if I am an individual driving by a home and then take your phone and say, Hey, can I buy this home? That should be able to tell you this is your lender and then go. That's right. And again from Fannie Mae, a point if you re help the lenders and they helped the borrowers threat. So through this transformation, what we're doing is that set up an engine that can be nimble, that can move fast. That runs with the low investment so that if we were to pivot, do things testing, learn and then change your game. We are fully in the position to be able to do that, right So and however fast, fast, you can experiment, those many different ideas will come out, and then some of them will reap fruit. And all of these for two things, like for our customers. How do we benefit our company, Fannie Mae? And how do we move the needle in industry? I think these are the three things that we want to achieve through this transformation. And we're building an engine to be able to do those types of things. I wish I could say this is one thing we would do. That's not what we're trying to do. Being a position where we can move quickly, we can lead industry. We can set the standard and then make good for the good for the American house. So that's all stories. >>Exciting times. Thank you so much. Both for coming on the Cube. Satti on Dave. Thank you. I'm Rebecca night. Stay tuned for more of the cubes. Live coverage of the Ex Censure Executive Summit coming up in just a little bit.

>>live from Las Vegas. It's the Q covering AWS executive. Something brought to you by extension. >>Welcome back, everyone to the cubes. Live coverage of the ex Center Executive Summit here at AWS reinvent I'm your host, Rebecca Knight. I'm joined by Marum Best Aerobic. He is the managing director Global Cloud and Infrastructure Attic Center. Thank you so much for coming on the show again. We met last year. So you're a Cuba Lem. >>Yes, I am. >>So we're talking today about moving a $43 billion company to the Cloud X Century. This is X Center as its own as its own use cases. But Accenture has been engaged in a major move to the public Cloud moving a company of the size and heft of ex center. Must have been intimidating. How did you even sort of wrap your brain around the challenges? Walk? Walk us through this. >>So you know, the tough part about working at Accenture is you have 480,000 people that work for Accenture or at least 1/2 a 1,000,000 let's say, and those half a 1,000,000 people all think they can do the job better and differently than you do, right. So the first challenge is our own our own organization. But I would tell you I say that, you know, just in a joking way. They're very supportive. It was. We're telling our clients the cloud is the future. So when we told our organization we're going to the cloud, it was massive support. It was what's taking so long? Let's do this. And now, granted, this was over a little over four years ago when we started the journey. So the cloud providers in the world was very different. So today we run, you know, tens of thousands of workloads on Amazon. We run all kinds of the capability to do cloud native. We do platform service's. We consume so much cloud service that, in my opinion, we're never going back to a data center. Never. >>So what Ex center is really well known as a big advocate of the public cloud? First of all, why? Why the public club? Well, the public cloud is >>the future. I really think when you think about how especially somebody like Amazon, if you listen to Andy Jassy this morning, right, it's they are innovating at a scale and a pace that that's just truly exceptional, and it gives us opportunity to take those things and implement them to change the way we run our business. So the weak and implement a lot of these capabilities toe help enable our business and then through that, by enabling our business be a credential for not only ourselves but to our clients to say, Hey, we do this to ourselves and way can help you do it as well. >>We're walking the walk >>or totally walking the walk and we push very hard on that angle because for us, it's very important for me personally to say, you know, I started my career client service. So I know serving our clients is one of the key things for us in our business. So I want to be able to solve these things, these air hard things itself so we can solve them faster for our clients ourselves. It makes it easier for them on their journey, >>and you also understand the pain points and the challenges A CZ you said your employees, your workforce was very supportive of it, but that's not always the case. >>No, it's not. It's not in But I'll tell you, our own teams in the early days they struggled with this. To be honest, right? It was a It was a change because we were heavily, heavily virtualized. We were great at running our infrastructure. We were doing all those things. Those are the things you did back then. So then when we said the team's Hey, we're going to the cloud They said, Well, we're not so sure. Do we really think we're going to save money? And in the early days we said We're doing this because this is the right thing to do But in the end, we actually did save a lot of money going to the cloud because we learn toe work differently and I think that's one of the key messages I would convey back is you are not going to work in the cloud the same way you work in a data center. You are going to shut things off. When you don't use them, you're going to have an opportunity to optimize them. You will have an opportunity to spend new capabilities up sooner, used them for what you need and faster and then you know things you can't do in a data center. You can't spend up. You can't use Dynamo. You can't use lambda. You can't. You can't use these. Micro service is in the data center, but in a cloud you can. So now you leave yourself in a situation where you have so much capability you can turn on to enable In enterprise is just mind boggling and exciting and exciting. >>So the time table t make this transformation was ambitious, to say the least. How aggressive did you need to beating? This is a journey. You said you started a little over four years ago. >>Yeah, it took the entire program for us. Took us about three years. But the real aggressive part of the journey was we said, you know, we can't We're dabbling a little bit in it. So let's just say our starting point was around 9%. You know, one of the big things we said is, how do we get the 50% in one year? And it was like, Okay, how do we do that? So we put a program in place and we got the team organized, and we did, you know, kind of like what Andy Jesse was talking about today at the keynote. We set some top down goals. We said to the teams were going to do this. This is the future. We're not kidding. We're going to do it. We have full support and we work with the business. And we explain what it was what was going to be. And you know what? One of the first things we took the public cloud, like three months into this program, was accenture dot com. I mean, we literally three months into the program, took our market facing capability of what our clients look at. People look at to think about us. They moved into the public cloud. >>We've described as a very disciplined approach and also one that was led from the top brass. So how talk a little bit about how the transformation started? >>Yes. So the transformation was really I will tell you, in the early days it was a function of we're going to start to take thes workloads and move them to the cloud. How do you do that? We made a decision to say, Let's take this. Let's take it a data center approach perspective. We're going to shut down an actual data center one at a time. And that's how we do migrations now. A lot of clients think about it from a different perspective. From our point of view, it made the most sense of Shut down the data center and get out of that location because then you're not maintaining all these things twice the fastest you can do it. The better way to do it is to do that. So that's kind of how we approach that. We said all the workloads in the data center go now. We took on our North American workloads first because we didn't make it easy for ourselves, right, because that's where all of our production work clothes where it wasn't just the test environments. It wasn't just a, you know, development environment. It was the real deal, everything it takes to run and support Accenture And we said we're gonna move those first. And so from a transformation perspective, that was our key. And then the other one is we had this. We had this notion of cloud first and cloud only. So any new capability also, we said here on out the minute we started the program. We said no more data center. We are anything you need now is going to be provisioned in the cloud. >>And what about digitally native applications? Yes. So when you think >>about like, um, a clown native capability. So now you start to get into another. You're into cloud, You go. Oh, man, what else can I do? And then So our previous CEO announced to the world extension was no wonder going to do performance reviews. And we're like, Okay, this is great. What we gonna >>do >>about this? And we need it implemented in three or four months. So when our HR business team came to work with us, one of the things we said is, Hey, this >>is the >>time because at that point we were about six or seven months into the program of Cloud. We said, Well, you can't spend up of'em. You're gonna go into the cloud. So we built a capability to does performance achievement for 405 100,000 people globally that runs it with Lambda and Dynamo. And it's been there for a little over now, four years, believe it or not. >>Amazing. So we talk about other challenges that you face because I mean, the way you're describing it, It sounds as though it people were supportive and you had a lot of winds along the way. But of course, there there were. I'm sure there were some dark days to weigh, had some >>growing pains. I think you know, when you think about it a lot of times because a lot of work loads we did pick up. We did a lot of lifting shift. Um, and I hate that term because what we learned as we went is we could actually lift, configure and run for less. So I don't know if there's an industry term for I haven't coined one yet. If somebody here is one that they want to share with us, I'd love to hear it. But lift and shift itself is a bad. It's a misnomer because that's not how you do this right. You have to touch a little bit of something. But what happened is in the early days we weren't quite sure how to size these environments, so when we would pick them up and we would say, Well, let's let's let's kind of give it some more capability. Let's let's throw some more CPU at it. But what we learned very quickly was that costs a lot of money. And we started applying some tools that would love, help us see what the utilization needed to be. And then we learned very quickly that Oh, you know what this environment that used to exist in the data center? Well, that's >>kind of >>on a couple of generations ago. CPU a couple of generations ago, memory a couple of generations ago storage because all the stuff in the cloud is all newer, all new or CPU on your memory. So then very quickly it's not even a like for like it's a like for less. So we figured out very quickly that we can actually take a workload. Let's say they had eight CPU use and we can run in the cloud with two. And so, But it was. It was. It was growing pains through that process that we learned to say, How do we do it then? Frankly, I think a lot of times we talked about this with our clients who is how do you get the team along the way? Because it's it's and When we set the edict, the team realized they had to go do this stuff. But, you know, we thought we'd have a little bit of resistance. What we found instead was a team very eager to learn and very eager to be part of this program and part of this capability. Because they see it. They saw that it was this new stuff that we were doing. So a little bit of the early growing pains around who's gonna work on what? How do we How do we focus our training? You know, how do we get these teams to help us really drive some of this capability and as we started, enabled them or that helped us get momentum. And I think the other one is just when you start to get all these workloads and how do you actually manage this stuff? How do you manage this capability? And for us? You know, we spent a lot of time with our eccentric cloud platform friends because we needed a capability to said, How do I actually manage all this building? How do I discover all the capabilities that are out there? How do I track my compliance How do I make sure all these things are aligned to my security? Construct that in, You know, info SEC is asking us to drive. So we need to do all do all those things that we didn't have it perfect in the beginning and we learned along the way. >>So talk about some of the other benefits you've described cutting some costs. And you've also described this new mindset that so many of your employees have adopted a rials learning minds, a growth mindset, one of embracing innovation. What are some other of the benefits that you've seen? >>You know, the benefits that are to me today is just this art of the possible is just mind bogglingly so much more open to whatever you want to do. It's almost scary how much is out there. You actually have to kind of pull back a little bit and say, How do I apply some guardrails around us? And I think when I think about the other benefits are we have more capability now than ever to spin workloads up. I'll give an example, like on Amazon spot instances are one of the things that they offer. We spend up 700,000 spot instances a year to do work along the way. And it's unfathomable to even think about doing some of those things in the data center. So the flexibility that you get if you want to test the release sometimes some of these big systems you might have to bring in hardware to test that in the data center. But in the cloud I >>don't have >>to buy hardware. I could just spend up more excuse. So it's just the benefits of flexibility, the agility, the speed that not waiting on and also, I think, the other one that I think sometimes gets overlooked as Excuse me. Sometimes that gets overlooked as I don't have a capacity management team that's worried about the capacity in the data center. I don't have AH team managing the vendor. Providing the data center service is right. It's all these things. You start to turn off that you didn't know that you don't need in a cloud anymore because they're managing those things. So even even if you're some, I think some clients get lost and waiting too long to do this. But there's all these other costs around there that you're spending money on anyway, you may not realize is you think about this business case, so I think the benefits are just tremendously there. But you really have to look at it holistically. >>So this morning, on the main stage we heard Andy Jassy describes a dizzying number of new products and service is that eight of the U. S. Is coming out with How how are you thinking about those and integrating them into what you're doing at Accenture with this initiative? And what's the energy that you're taking away from? I mean, he's certainly a very dynamic leader. >>Well, the energy the energy is great at this event. Every single year, the amount of innovation that comes out, it's fantastic. I think one of the great things that came out today is this concept of we're gonna take the hyper visor. We're actually gonna move it into a chip set to help you give you more processing power on the computer. I think on the server is huge. That's a huge capability. Lets us think about how do we manage things differently? I think some of this, uh, you know, uh, capabilities run enterprise, search enterprise, search is very hard, very difficult, right? This ml capability that, you know, it's very appealing. What am I gonna do with that? How do I help my organization think about search differently? That's very appealing. And I think the other one that's you know, there are a lot of other ones around the ML and the Data Lake stuff and everything else, but I think some of these things that get overlooked sometimes the pure review with ML was awesome, right? It's like, How do I help? How do I help them? Has the machine helped me do a code peer review with my people? So those were just, you know, real quick things that come to mind. But it's just great to see all this innovation, and it becomes available so quickly, right? So you've got you have an opportunity to get into these things very fast. >>So as you look back on this journey, this transformation, what are you most proud of? And what are you most excited about in the future? I'm most >>proud of the bold bets. Not only that, we all individually took, but the team's I'm so proud of our team in taking the journey onto trusting us, tow working and pushing and learning themselves to really take this on and it's it's it's just this magical. It's like it's a compound ing thing that just infested everybody else writes. Everybody's been excited about the cloud and how do we do it? How do we do this stuff? I think you know. And then from a future perspective, I'm really interested in MAWR in As the capabilities evolve and they get announced, I think the benefit we have is as we're there. It's easy for us to see some of these things. I think the container landscape is going to be huge. All the kubernetes stack and everything else that's that's out there. We need to think about. How does that help me continue to evolve? The service's I provide either more custom cost, effectively arm or efficiently back to the business and turn on more capability faster and try stuff faster and turn it off faster. And that's the great part of the cloud, right? You get the try stuff, you get to play >>with it, >>and if you don't like it, you turn it off. You don't have to wait three years for this equipment toe. Appreciate you move on with life. And that, to me, is exciting because there's just so much innovation that's coming. There's so much opportunity for us to really just jump out there and, uh, have fun. >>Excellent old Merrin. Best aerobic. Thank you so much for coming on. The cubic pleasure talking to you too. I'm Rebecca. Night. Stay tuned for more of the cubes. Coverage of the ex center Executive Summit coming up tomorrow. We'll see you here right now. Early.

>>live from Las Vegas. It's the Q covering AWS executive. Something >>brought to you by extension. >>Welcome back, everyone to the cubes. Live coverage of the Ex Censure Executive Summit here in AWS. Reinvent I'm your host, Rebecca Knight. I'm joined by Tristan Moral Laur said. He is the managing director. North America Intelligence Cloud Infrastructure. Thank you so much for coming on the show. >>Thanks for having me, Rebecca. >>So I know that your primary focus is cloud management and optimization. Tell our viewers why. Why those air? Two critical things. >>They're two very important things. That cloud is wonderful. It's full of innovation. It's It involves all the time. It's wonderful for developers. They love to leverage this. There's broad implications for I T departments. I T departments are used to buy in Big, bold Guy T service is every three years they park it and then they renew that five years later. So from how do you constantly consume the clown an innovative way, and additionally, while the developers are enjoying the service is at the enterprise level, there's broad implications on the tools. The skill sets, the load that you're putting on the infrastructure on the network on the security. And so you really have to benefit of the clown to benefit of all the innovation. You have to take a step back and say, What does it mean to run in the clown and to manage and optimize it? And that's why we call it run different because you have to take it completely from the ground up and rethink it. >>Okay, so run different. Describe what this means. What? This what this is >>So we look at run different as five core pillars. First, you have to manage it, of course. And that doesn't go away because you put an application in the clown doesn't mean you don't manage it. So you have to manage it. The tools it, Sandra, you have to optimize it optimization if cloud is all about innovation. And every day in this morning, we heard all source of new innovations come out from quantum computing to contextualized. Aye, aye. Two new types of storage. You now have two on board this into your environment. How do you optimize it? The thirties? You have to consume it so you have to consume differently. It's completely changed. Procurement departments have to adapt to it, the security framework has to evolve. And finally, the governance across all of the cloud that you're consuming at the enterprise level has to change. And those five pillars are critical to what we mean by run different. >>So we're going to get into all of these in just a second. But I'm your premises that the old way of doing I t doesn't work anymore. So when you explain this this approach in this strategy of thinking in this new way, is there any pushback? I mean, so much of technology and new strategies and approaches is not necessarily the technology itself. It's the it's the change management. It's the people. So with the implication that your way is not gonna cut it anymore, it's wrong. How is it? How is it understood in the organization's? It's >>in many cases, not understood, because in many cases people look at the individual technology and how my using this individual technology. And this morning, as of this morning, a lot of clients we're looking at, how do I use these widgets? Better use? That's not the point. The point is, if I'm there, I am the belief of why I'm moving in the clown is not for one particular capability, but the belief that the kid buildings are going to get better over time, better operationally. So developers are going to get new features and, by the way, better financially, because if I'm using the right innovation financially, it gets better over time. So you're moving from very static environment applications that don't move to a very dynamic environment, and that is a complete shift in mindset. It's a shift in mindset for the developers, for the people managing applications for procurement departments who now have to buy something every day. And so the change management of the enterprise is very complex because, by the way, you can't completely over rotate. Just because you're moving A S a P application to the clown doesn't mean you don't manage it anymore. You still have to make sure that your piece system is operating properly. So that's what we mean by a multi mode operating model is across the spectrum. You still have to have the more traditional management, but you have to evolve it on an ongoing basis, and that is a complete shift. Your workforce has to change all the time this morning, Seo should have woken up and said, I'm gonna use ultra warm. I now need skills on that. I now need tools on that, and so that's a complete shift, which is very difficult for enterprise at a large scale to adapt to and embrace. But they have to. If they do not, they won't benefit from the clown. >>So let's let's go through these things. Let's start with Cloud Management Service is tell it. Tell us, Tell our viewers a little bit about that. So, clown >>management, The wonderful thing about the clown is you can automate it, and so you can now automate the resolution of incidents. Frankly, we don't care about incident management anymore. If something fails, we just spend something else up, and it resolves itself. So it's much more about how do you make sure that things are automated so that there's no human intervention from a When something goes really wrong and you need to do problem management, you now need different stead of skills. So instead of having the old network skill and storage skill and operating system skill, I need an AWS platform skill, somebody that can engineer the application from top to bottom, a full stack engineer on that platform. That's a completely different type of skill. Number one and number two has to evolve over time. So how are the engineers at any client or 90 department are going to learn about how to manage the new quantum computing that we heard about this morning or wavelength and enable five G's so those skills normally have to be different and platform enable. But they have to evolve over time and so managing the clown that it still requires skills and tools but that have to evolve and change over time. >>So, as you said, C I ose and CEOs air saying, Wow, I have a lot of work to do to make sure my work versus up to speed um, cloud optimization surfaces, yes, he said. So >>that, to me, is the fundamental shift. If management over time, hopefully if fully is automated and that function shrinks to almost zero, what now becomes his cloud is available to all the developers. The problem is, they're consuming it as much as they want, so you have to shift from fixing your problem to fixing the consumption um I'm making sure that I am I using the right type of service. So instead of having a e c two instance on it in a database, am I using RD s instead of R. D s? Am I using Lambda instead of Lambda? Am I using fargate? So am I using the right type of service for my application and for my business? And that is constant optimization to drive the right service. And when I'm consuming too much of my identifying that consumption event, um, very recent example. Ah, client of mine explained to me how at Christmas one of his developers left a key out in the open. Somebody used that key to spin up a bunch of aws instance to mine. Bitcoin. Now that's not a incident. The system's working fine as advertised, so it's not a incident. The rial idol term. It's an incident in the terms of its a consumption event that I have to catch and identify. That is the shift you have to manage the consumption in real time, not the incident in real time, and that's what optimization is all about. >>But but then there's another consumption element to it. too >>There is because procurement department's used to buy things on an annual basis. Sometimes if every five years, they would pain along with a bunch of hardware and leave it sitting in their data center. Now they're buying things every month. If you take X century, for example, every month we have 900 million lines of bills for our cloud providers like sell only processes. What, 64,000? You have toe have special tools. How do you reconcile this? How do you translate these bills back to the application owner so that they drive the right consumption? How'd you align it back to the business? All of those air new features of the procurement department that has to exist in the i T department to deal with a clown. >>So next is security. And this is, of course, on every ceos mind. Right now. How do you ensure security compliance clients, but also secure, Secure? >>So how is it secure and how do you ensure security compliance? Um, the great things about the clown new kid abilities have security embedded. Unfortunately, clients realize that they can't outsource security. That is always a responsibility. That's a board level responsibility the CEOs are accountable for. So how do you relate the security component that is in the cloud versus the security component that you're still responsible for us, the C. I O. And the default security features and configurations of the cloud service is may or may not be aligned to your own security policies. So as you using the cloud, you have to align their security to your your eye tea estates policies, and you have to monitor it in real time. So it becomes a monitoring of the security feature and how it's complimentary to your policies, as opposed to driving and insecurity individually for every widget it evolves over time. And as your developers consume, news service is you don't have control over that, but you have to monitor it so you can address any shortfalls as they as they calm and as you identify them. >>So the final element of this this approach is cloud governance. How do you define this? >>So cloud governance? What's what's fascinating and one of the big lesson learned from this morning actually is you are not going to go to AWS to be public club. You're going to AWS for the cloud. With outpost now being generally available, you may go to AWS for private or public and now, by the way, for quantum as well. So even if you have one primary cloud provider and let's say, state of us or or another, you have to manage multiple cloud platforms and you have to govern it across the platforms. Developers don't care where they're consuming it. They just want it available. And that governance across all the AWS clowns, in most cases multi clowns, is critical to get that total visibility of your entire estate. And so that's why that fifth pillar is critical in a foundation of all the others. >>So this is this is really interesting. Can you give us some examples of clients that you are already using this approach and and how it's having an impact on their businesses? >>So we're using this approach at all of our clients, so we fundamentally believe that is how you have to manage it. And it's no longer just a fixing the incidents. It truly is about automating and optimizing. I think the best example is Accenture. We've moved 95% of our estate in the cloud >>your own use case. >>We are. And I could name a lot of clients, but centuries our best example. Because we run the risk and being the cloud to completely over consume. And when we spend, you know hundreds of millions in the clown, you have to manage that very, very carefully. Are you using the related skit build these? Are you consuming it properly? And how are we dealing with the bills? In fact, this framework was built on the lessons learned from our clients. But really, from what we did internally to Accenture, >>So other than implementing run differently, stat, What is your best advice for organizations that are really looking to have a more organized and systematic approach to this? >>Yeah, I think clients will have to one every clients on a big clown journey. And I think what we're seeing is clients are accelerating their clown journey. They have to make a real decision. Run different is a framework which way advise client. Either they could do it themselves, and they have to adopt this this concept or they can use 1/3 party. Important concept is if you want to benefit from the cloud it evolves. If you are investing in your tools in your skill sets, we will absolutely support it and encourage it. But you have to understand that that is an ongoing investment. Every year you have to update your platform. Every year you have to update your skills. So some clients air fully committing to that our technology companies at the core and are making those investments. Other clients realize that that is something they would prefer to use 1/3 party for. And they come to a number providers, including ex center. >>Well, Tristan, thank you so much for coming on. The show are really interesting conversation. >>Thank you so much. Rebecca. >>I'm Rebecca. Night. Stay tuned for more of the cubes. Live coverage of the Accenture Executive Summit.

>>live from Las Vegas. It's the Q covering AWS executive. Something brought to you by extension. >>Welcome back, everyone to the cubes. Live coverage of the ex Censure Executive Summit here in AWS. Reinvent I'm your host, Rebecca Knight. We have three guests for this segment. We have Fang Deng. She is the big data and an Advanced Analytics program. Lead analytic Seo hee at Novartis. Thank you so much for coming on the show. Thank you. We have low eq zero. He is Novartis head of Analytic Seo Hee. Thanks so much. Look, and Vika sinned. Wan Hee hee is applied intelligence delivery lead at Accenture. Thank you so much. Thank you. So I want to start with you. Look, no. Novartis, of course, is a household name. It's one of the largest pharmaceutical companies in the world. But that left you to just walk our viewers a little bit through your business and sort of the pain points you were looking to solve with this journey Thio to the cloud >>you think you ever care? So I think if I if we look at the company, I think Wayne realized that it is more and more difficult to bring new trucks to market, so it takes about 12 years and on $1.2 billion to find a new trick. So at the same time, we see that there's more and more patient that need access to medicines. So in the last two years, I think we tried toe clear the new strategy where we're trying to re imagine medicine for user's data and technology. So in 2018 we've recruited a new studio that's came and I tried to build a digital ambition which is around fabulous, which is the innovation, the operation and the engagement on the innovation. What we're trying to do is to find new compound, will application off existing compounds into our business, make sure that I think patients can get access to drugs much faster and earlier on in the operation. We are trying to optimize the backbone off day to day processes, beat in the manufacturing or in the supply chain, or in the commercialization to ensure that the patient also get access to that much faster in the engagement. We're trying to healthy a cheapie and the players and then the and the patients to better understand the tracks reproduce as well as on the medication they need to have to receive treatment. So if you look at these three pillars, the cloud strategy is an essential portion of it. Because in all of its processes we have a lot of data and full cloud. I think we can make use off his data to help to innovate, open, right and engage. >>So as you as you said, it's really about reimagining medicine. I mean, from the drug discovery process to how it's helping patients live, live longer, healthier lives. Thanks. So talk about the vision for the Formula One platform. >>Yeah, aside, like a mission before we trying to re imagine our products for the patient. And we're trying to use more the more data history data and also the public data try to support our products. And the Formula One is our future enterprise data and the next perform for our new artists. So our objective is trying to love you all the new technology and also trying to consolidate over data in our Macleod and build up this platform for the whole notice Users support our business, do better products full patient. >>So when it comes to these these new new platforms, new technologies that are being introduced. We know that oftentimes the technology is the easy part. Or at least the more straightforward part I should say. But it's it's sort of getting people on board the change management. What are some of the challenges that you that you know of artists faced in terms of of the culture and the skills for your for your workforce? >>So if you look at that, the are in disgrace, very traditionally nature. And when we embarking the details confirmation, I think the first thing we had to change the culture of the company. So when you when you listen to our CEO, I think you tried to promote this invoice culture where all of us are Syrian leaders. And then we walk, you know, as a thing as an organization where we try to help each other and more and more collaborate when it comes to digital transformation. When we started this having this period, we've realised actually that workforce was not trained, so the first few things that we did disease is a tight wire new workforce, but also try to actually identify the advocate ambassadors. I could go and then go into residual confirmation early on to be able to help and to guide the office to get for that. So it's actually it's totally immaterial, Johnny. And then we are now in the second year and we've seen already a tremendous four guys, right? >>Can you describe some of the changes that you've seen him? I mean, I'm really interested in what you talk about. The ambassador's, the people who are going to spread the good word. What are what are some of the changes that you've seen in your workforce? Yeah, we can mention >>that. It's like you mentioned before. Um, like, talking about regarding overall catch a bus back to tried to leverage a new attack. Knowledge like the delivery perspective. We trying to do more automation, and the May 1 side is trying to get more efficiency and also another side. Try to ensure the intern responsibility for one product to be produced and also at the same time, let me through more automation to think about this secret inside the compound inside. Help us a lot of in pulling that part also, because >>maybe I can compliment that so I think if you look at it when the initial studying part of our journey, I think that a lot of people were reluctant to go and then tie to work on a cloud and to work with digital technology. So we found few projects where we felt there's a good ready for money. And as we can deliver fast in fact, Andi to things like, I don't get reviewed t piece every. Make sure that when we went, our field falls, go then and talk to the hippies. They know what to talk about an orphan, and then which format. We also look at that we can reduce costs internally and for the food, different projects and then on product that we've established, we build credibility within the organization that helped to disseminate the cultural transformation. >>So once others air seeing, seeing the benefits that that captured, they're more likely to to feel good about the cloud work. >>Yeah, that's that's the true and also notes of the news. Things like our teams, they are interesting about that. You see more and more people talking about our driveway and also talk about the UAV's and how can we improve the did he re efficiency and the same time is come back to say that teams think about how to make themselves to be a product owner and the product the way of the great. Let's the glistening for the whole team >>because I want to bring you in here a little bit. So talk to me about how ex Center is helping Novartis, particularly in in this eight of us. Caught initiative. >>Six incher is a leader in business and technical i t transformation programmes. So what we're bringing on the table is in the expertise with not only the technology and the AWS elements, but also the business and technical transformation expertise that have we have over the years in the firm. On additionally, I think you know, it's not only about technology change. As you mentioned, it's all a lot of change and operating model and and also kind of working with a very blended team. Across that expertise and experience is what you bring to the table >>a blended team, culturally, regionally, actually, all of it >>one of that belief. I mean, just to give an example. We are working across steams in roughly about six geography ese from various cultures. Where's countries? And it's it's, ah, various time zones, which makes it quite challenging to make it all work together. So you started the journey. I hope you succeed in it. And, uh, you know, it's working well, so far, >>so Cloud is is really a megatrend right now. What are the differences that you're seeing across Regions, countries, industries? >>So I think it's this many answers many parts of the answer to the question. So I think if I talk about, um, industries So you know, initially when clouds started, we had seen a major up take off the cloud technology and the company that manufactured the clown technology and telecommunications, and you know where the older infrastructure and technology aspects were, Whereas companies like health care and media and metals and mining, We're kind of behind the curve in adoption rates because off their respective, you know, concerns around compliance and security of data. But I think that trends is slowly shifting. US. Companies are becoming more open. I think I've seen how the public cloud has matured. The security models, you know, are speaking for themselves. People can understand the benefits from moving to the cloud in terms off, you know, cost rationalization from producing maintenance costs, focusing their proteins on things that they were not able to divert their attention on. >>The fact we had, I think I will say for me and then where I've seen a Novartis if it is access to innovation. So I think loud offering brings a lot off innovation at happy face. That's one hand and also access to extend our collaboration. So when you're in, you know, inside focus I think the relatives from over there wants to walk and collaborate with you. But when you work on the cloud, everybody goes on the cloud. So that's really a stream manifested ate a collaboration with Nextel Partners. >>So how is that changing the culture of Novartis itself? In terms of there, there are more opportunities to collaborate. And it also is maybe changing the kinds of workers you attract because it is is people who want to be doing that in their day to day. >>Well, if you look at it, um, in the past, I think we used to have our own workforce, and then we tried to do a lot of things with our own workers, but I think he's in the on Monte. Workers are full of us, so we have more and more partnerships being announced, and this publishing, I mean used actually to help the company to in revenge himself. So that's actually on one hand on the other side. As you said, I think that to attract with talents I think you need. You also need to have a different future. But you need also to be able to give them the flexibility to work and do the things they like, and we're in a context and a framework. >>One of the things that we hear about so much at the's technology conference is this buzzword of digital transformation and of artisans obviously embarking on its own digital transformation as well as his journey to the cloud. There happen. They're powering each other, they're accelerating each other. How would you describe what is happening to the industry and to know Vargas with it within this, the pharmaceutical industry? >>Yeah, I think, based on our knowledge, to send the why this may be the first. The company can't be trying to build this kind of enterprise level data and also an Alex platform, and based on that, we will be able to counseling date off the history potato intended date on public date, huh? And the Human Industry Day. Then they tried to help us to produce the better products for the patient the same time it gave also the team a chance as you mentioned before, and the look at former more opportunities and the China to leverage in your technology particles of Kayla. >>It's also changed the way that we work every day. So if you look at it now, um, we won't be virtual assistant. We I think we use machine learning elements politics to be able to talkto you are a cheap piece. We actually monitor clickers, Kyle real time having using common centers. So every single day, I think the use off, digital at work and atom in the physical man thinks. And I think we have seen that the adoptions has increased since we have I ever to launch successful products. And I think >>one of the things which, which I really like about working in the bodies, is also I think there's there's an ambition to drive business value quickly. So you know you take a very agile use case, best approach on things rather than having to wait for very long years of time. Plus, the company kind of encourages a culture which is based on mutual cooperation and sharing knowledge, which is great >>because Novartis is really on the vanguard of companies in terms of how much it's embraced, the cloud and how much it's using it. What do you think? Other companies, pharmaceutical companies, but maybe even in other industries as well could learn from the nerve artists example. >>I think one thing people really shy about is, you know, when they moved to the cloud is the security aspect. I think what people probably had failed to realize in the past that there's been so much developments on security in the public cloud, which has bean key focus areas, something nobody's has taken the challenge and has understood that very well. And I think companies can learn from all the different aspects of security that you know were built into our entire transformation work, starting from ingesting data, the user management to access and all of that thing, so that's kind of one thing. Similarly, compliance related aspects as well, you know, So we've g x p compliance is at the core off how we're building our solution. So I think on dhe, if you understand how we built the rules around compliance. But in architecture, I think couples can learn from that a swell and build that is integral part off your not only technology solution, but the process that goes along with it. >>We started our conversation talking about Novartis and its quest to reimagine medicine. How How do you think that your industry is gonna look 5 10 years from now? I mean, the drug discovery process is slow on purpose. I mean, we need to think of patient health and safety for most. But how do you think it really could change the course of how we treat people? >>If if you look at it is more and more treatment required that actually I used and required data as a service or are being actually process for data. So when I am, when we look at the things the way that the industry is changing, I think the times to develop drugs, yes, takes longer. But I think for your use off the data that you have. I think you can try to reduce I cycle. So one of the objective is to reduce the cycle by one firm. Between that, we could bring the day. Is a new director market in eight years, rescues 12 years Today. The other thing is that way for user's data. You can monitor them patient, and you can recommend it the treatment of 80% off foundation. They don't go in and finish her treatment. So I think if we can show the audience to treatment, then there's a lower risk off the admissions to the season and sickness that they have. >>So it's not even not not just Novartis seeing the value of the date. It's the patients themselves, efficiency >>and the d. A r C as well, right? Because I think if you're if the situation is not six and I think the insurance doesn't have to pay. So I think all the value chances is being comes from >>well, sang Loic, because thank you so much for coming on the Cube. It was a really fascinating segment. Thank you. I'm Rebecca night. Stay tuned for more of the cubes. Live coverage of the Ex Center Executive Summit coming up in just a little bit

>>live from Las Vegas. It's the two covering AWS executive. Something brought to you by extension, >>everyone to the cubes. Live coverage of the ex Censure Executive Summit here at AWS. Reinvent I'm your host, Rebecca Knight, and we're kicking off two days off Walter Wall coverage here at the Accenture Executive Summit. Joining me today is Key Shore, Dirk. He is the global lead growth and strategy and Cloud Attic Center. Thank you so much for coming on the Q. Thank >>you. Thanks. Very nice to be here. I'm absolutely excited to be here on dhe love to talk to you about our new platform. >>Exactly. So the thing about Cloud and then this is this is really the topic of the day is that it presents this opportunity to drive innovation and power, business agility and to reduce costs and to streamline operations. But with that tremendous opportunity, there comes this really over abundance of choice. How? Let's before we start talking about your new platform, talk about how you think companies ought to start to think through these multiple decisions that they have to make when trying to decide the right cloud solution. >>If you know, we actually talked to our Lord for clients we work with. And when we actually looked at, you know, the cloud adoption among enterprise is only 20% of actually adopted cloud. 80% of the enterprises are looking to see how to leverage it. Now, when we talk to our own clients and then we figured out, you know that you know, what is it that is challenging them to get the cloud? And we also had, uh, data points, which existed A 2/3 of them are not seeing the full value off what they need to expect from the cloud. So these challenges were in front of us, and we really wanted to help our clients. And if you really look at the complexity that is that is there today in terms of choices, there are multiple options. Do I go public private hybrid and our clients a challenge. A paralyzed with all these choices. And how do I How do I build my enterprise? You know, earlier it was all about just infrastructure. They're not the enterprise applications went to cloud. Now they want to run their business in the cloud. If you're betting your business in the cloud. You really need to be sure it's not just a business, Lee deciding. I want to be in the cloud for this application. So when you have that strategic choice, you really need good advice and they're looking at us like, you know, Hey, sure, Help me, help me decide. Help me figure out the business case helped me plan. I need to see what are the options and what is the right choice for me. That's a plank. So that's where we're willing to help. And that's the context. And that's the genesis off. Why we thought about a platform like my name is about navigating this complex city. Life was simple earlier. Now >>it's a little bit >>complex, and we're helping you navigate that complex. >>So you've painted this picture of companies. As you said, only 20% have adopted the cloud. Many have yet to see value from it, and they are paralyzed by choice. So you've created my now tell us more about mine enough so one of our >>clients are all about I want to get this >>right the first time, >>so they have tried multiple times and and there's a reason why only 20% of their they've tried it multiple times. There had some challenges. Ah, lot off. Our clients want to get their data application aspect and strategy right for the cloud. They want to get the right solution there. Bean challenged with the right solution. What is it that is gonna be in the cloud, or is the architecture looked like? And they've not been able to visualize it until unless they put hundreds of people on the ground. You actually make it work if their performance challenges. So let me just step back a bit where, you know, you had your application running for 10 years, and suddenly you're taking to Cloud doesn't perform the same way in the cloud as it was performing in a data center. So these challenges are to be assimilated for our clients. So one of the aspects in supporting hundreds of people on the ground for 6 12 weeks, Why can't I do it in a day to figure out how to assimilate this and that is the power of minor were able to figure out the right architecture, the right solution, and simulate that for our clients to visualize, you know, think of it like you have a new home and you >>want to >>kind of figure out How does that new home look like? No. Does the kitchen look different? You want to visualize it? Would you go to a new home without a plan? Would you go to a new home without an architecture? And what if I can give you a three d simulation of how that whole plan looks like? My nap does that for you. My now helps you navigate through that architecture recommence the right solution. Then you can visualize. Oh, this is the right thing for me. Obviously, you have a lot of constraints. You gotta get your kitchen stuff, right? Bedroom stuff, right? How do you bundle things? Very similarly, Adi Bundle applications. How does it look there? And that's exactly what my numbers. >>I'm thinking about it in terms of the way that they trained pilots in this in the simulator atmosphere. So tell it, how does it work? So let me give >>you a gamut of things that we do. So a lot of clients asked me, Hey, you know, I'm talking about 80 person who are not in the cloud is their business case. So I had to give them a view off. Well, it all comes down to What is the financial financials off it? Is it the five year run? You know, Is it like, how much how much I'm going to say you're one? Is that your two year three? I was gonna back my bottom line. That's the first part. Then it comes down to who do I go? It, You know, what are the choices I have? Then it comes down to, you know, I'm taking my say enterprise application to cloud. What is the architecture looked like today? What is the architecture looked like in the cloud? And what is the architecture looked like two years down the line, which includes Arman increase customer base. I have tohave Ah, lot more users that are gonna be added to my enterprise application. I need to see what that architecture looks like. It's one click of a button. My now gives that to you. And a lot of my clients asked me how long is it gonna take? It's a very simple question, but then you gotta figure out how you bundled applications. How do you take the migration plan. Then you'll have some holidays where you don't want to do anything. You want to stop the business while they're doing your cloud migration. So we actually give you a migration plan coming out off. It is your what we call this bill of Materials. Essentially, this is exactly what you need for you to be in the cloud. That plan is what minor gives you. And then after that, you're gonna execute, and then we have ability to manage it through our management platforms. So minor helps you and therefore phases, which is discover, assess, architect and similar it and then you actually do the migration, and then you do the manage part. So the discover assets architects simulate, which is what I've been talking to you about today is what might have does. So it helps you discover the infrastructure aspect application aspect, date aspect it will assess based on your needs, what you need. Then it'll architect it for you, and it'll also assimilated for you. We have not had a platform that helps you simulate things in the cloud in applying conversations. So this is something that plane's value. I have a lot of planes across Jim, Japan, Spain, all over the world, reaching out saying, Hey, I really need help. This is exactly what I was looking for and that's that's how these time conversations are going for us. And they're like, I needed to be part off your core aspect, how you deliver these things. So that's how we do workshops with our clients. We can work with them and say, This is how we do this And once they get comfortable So the 80% of the people are waiting for some comfort level disk, Use them that comfortable that Yes, I know what I'm doing. These guys know what they're doing, and I feel I can go back and run my business there. >>So I mean, as you said, so many of them are paralyzed because they want to get it right the first time. So So my novice, really giving them the comfort level to make these decisions? Or are they then really, just understanding what they need and then how to think forward in terms of creating that plan. >>In Accenture, you have done 30,000 projects in the cloud. We know what is right. So based on our depository off projects that we have, we know which architectures work. So we >>have >>an artificial intelligence engine which actually sister these architectures and then recommends what is right for outlined. So essentially, the plants have, ah stronger affinity toe what works so essentially, when we recommend to them you're saying, Hey, you know, this is something that worked at this client E, which is what works a client. So we are reusing a depository off reliable, credible architecture that supports the current line needs from a depository of the existing what we call as working architectures that is out there and essentially this ability to kind of learn. Obviously we will work with the client. Things can still change, and then we can off make sure that the right thing goes into the depository, and the next time we come back and recommend toe the 3001st client, we know what works and that that's exactly the power off. It is the ability to learn ability to understand and ability to recommend. I'm just keeping it simple for our clients to understand so that they don't have toe get Swan with the complexity of cloud you just have to navigate this. >>I mean, it almost is the best practices machine in the sense that it really understands industry to industry, company to company, the right kinds of architecture. >>So, for example, in the business case, so we have reportedly off costs for all the different industries. So when my spin exceed, the benchmarking costs for airline industry is very different from the bench marking cost for utilities. So when I prepare a business case, I'm looking through the depository off my industry data that we are working with our clients based on that industry data actually build the business case. So it's not a business case just built on very much off a data center because the cost off employees the capital cost the operation was very different for different industries. So you lied to consider a 10 industry angle in terms of how you estimate the business case. Coming out of that, we have the ability to estimate so we also have aspects where a lot of clients don't have eight and weeks to decide. The board is asking them, Hey, what you gonna do? So we have the ability to have a business case for the strategy deals that we say, and we're able to very quickly revert back because we have a lot of repositories of data that we have with us. That helps in that conversation. >>So when time is of the essence, this is what matters. I read an article that you wrote recently for ex Center. I believe it was an ex center block where you talked about the hype around Cloud and how companies were so eager to get on board with Cut With Cloud because they wanted greater efficiency. They wanted to be able to innovate more quickly, and yet it wasn't happening right away. I'm I'm wondering, where is the mindset right now? Are our company's understanding now that it is going to take time to capture the benefits? Or how would you? How would you describe the client mindset? So I would say >>they're two different generations of planks, clients who are already there and clients for getting there. The planes are already there. We're looking at aspects of transformation elements. I want to do my eye. I want my data analytics in the cloud, so we're helping them. Its second generational elements of cloud It's not just about moving your application we're talking to them about, you know, how do you run your business in terms of recommendation engines that you have in the cloud? So what do you need for the evacuation? Cleansing off data elements off it, essentially taking your data to the cloud. Now there are first generation aspects who are almost around data center aspects. You know, they want to get rid of the data centers. They want to go into the cloud. So my now helps both of them. My never helps clients who are essentially navigating through the cloud for the first time gives the more confidence, and they have that kind of getting the help of our collective, which works. And for the first condition, clients were already there in terms of in the club. We're helping them transformative aspects in terms of future systems. What for your future systems looked like, and cloud is an enabler for it, whether it's boundary less adaptable are radically human element off what a new application would look like. A business would look like you need to have flowers, a foundation elements for those those clients are in the 20% You're telling them Hey, cloud, you're already in the foundational aspect of it. Now you need to build boundless applications. Now you need to build adaptable. Now you need to build radically human applications. So how do you build radical human applications? You gotta have the eye when you have to have a I you need to have data. How do you get data? You need to curate plans and basically capture the data that you need so that you can build a re engines on top. So those are different levels of conversation with different maturity off up lines. But we're happy to help them in either of the spectrum's, because a lot of our clients are looking at obviously vetting their business on the cloud now. So we are looking for strategic partners for reliable partners who understand that industry, and with 30,000 projects, we >>are we are >>helping our clients make those decisions. >>So beyond making sure that we're talking about the 80% that are not yet there but our but our curious cloud curious beyond getting mine off platform stat, What is your best advice for those companies right now? >>So what we tell her clients is that you need to look at the end to end aspect of cloud. Do not look at it as a single application going to cloud. So when we talk to our clients way, look at generation, they're doing a lot of the transformative elements is about future systems. We start our conversation around your future systems aspect off it, and then, obviously clouds and enabling element of foundation really meant to get you there. But then essentially, if you want to run your business in the cloud, least the things you need to do. So the transformative aspects is what our clients are willing to work with us. So we tell them, Don't just take it to the cloud just from a obviously cost perspective. Obviously, you will gain a lot from that. But you also need to look at what you want to do in the cloud. It's not just going through the cloud. What? What do you want to do in the cloud? >>Well, key. Sure. Those air. Great great words of advice. Thank you so much for coming on. The Cuba was a pleasure having you. >>Thank you very much. >>I'm Rebecca night. Stay tuned for more of the cubes. Live coverage of the Accenture Executive Summit

>>live from San Francisco. It's the Q covering Micron Insight 2019 to You by Micron. >>We're back to Pier 27 in lovely San Francisco, Everybody. I'm Dave a lot with my co host, David Floy Er and you're watching the Cube, the leader and live tech coverage. Evan cursed Ellis here. He's a social digital influencer. First time in the Cube. Evan, Great to see you. >>Thanks for having me. First time's the best. >>You Very well. And it is beautiful. Out him in October is the best month in San Francisco. Way better way warmer than July. I mean, you live out here. Holy cow. All right, let's get right into it. You're just fresh off of mobile work. World Congress down in L. A. >>This morning. Yeah, five g on the brain's >>s. So what do we need to know about five g? You >>know, I think my big takeaway as an industry observer is that five g Israel, and it's now I mean, we've seen 5 10 years, maybe of hype, an expectation and marketing buzz and even spin. But I think we're now in the business of practical deployments, scaling rollouts of networks and that's, you know, as a industry observers, quite exciting. >>So what is five g mean for the average user? I mean, is it gonna be like going from dial up toe, high speed Internet or, you know, it's gonna be interesting. >>The average user, I think we'll experience, you know, like a 10 x increase in their current experience on mobile in terms of uploads and downloads and speed and Leighton see, And that kind of thing, which is super exciting, it's it's gonna blow people's mind. >>An ex stoked to get a 10 extra. When can I get this? >>It's when and it's where, right? I mean, if you look at how these networks are evolving, there are hundreds of thousands of small cells of base stations that have to be deployed naturally to get five G ubiquitous across the country. So it's it's when it's where it's how. But we're here. We're at the starting point and look for the next years and months ahead to see that riel attraction. >>If I look now when I travel around the country, I still have four G. I still have three g. I still have edge. I have a ll the old ones are still there, and it's taken forever, even just to get to 40. So isn't lesson. Isn't the rollout of this going to take a long time ago or 10 year horizon? >>I think, to get ubiquitous coverage indoor, outdoor, suburban, urban, rural It's going to take 10 years. But if you look at those hot spots that generate a lot of activity, whether it's, you know, indoor coverage in the Enterprise, whether it's, you know, the Bruins playing in Boston Garden I mean those air where five G is really going to come into play first and then it's going to sort of go outside of those urban dense areas. >>You mean like the fan experience in the fan experience in the venue >>is huge? I mean, if you go to any you know, baseball, basketball, football game, you know what the experience is like Pretty pretty bad, right? So horrible. So those kind of hot spots are ripe for five g like right away today. Now, >>so by the way, David, sometimes I get five g on my that's right, and I feel like it's fake. Five years like HD ready. What's that all about? Well, you know, >>these networks evolve, and so the carriers are maximizing for G, including biggest speed on four G and five. Gene is really if overlay to these existing networks. And so, as you get your next Samsung, you know five G enabled devices. Apple next year comes out with a five G iPad. You'll then begin to use. The service is as you use your existing device. >>Can you help us understand the fundamental architecture of five G? My understanding is it's, you know, no basis more distributed on. That's part of the reason why it's taking so long to roll out. But what do we need to know about that E? >>I think it's a brand new editor interface. So if you think about the current radio on for G, they reinvented the wheel with five G, which means you can support a huge number of endpoints of I o. T devices of wearables of home access points. And so it enables almost a 10 to 100 ex war devices in terms of scale. So while the end user may think this is business as usual, what's really happening on the network side is pretty revolutionary And once the networks are primed and built and ready, what's gonna be happening on the device side is gonna be really extraordinary. You're talking about a K A video on a mobile device or augmented reality through in new kinds of glasses. And so it's sort of a chicken and a little bit. You know what? She's gonna come first, the network or the incredible new devices. So we're seeing now the network's being put in place for those wave of devices, >>which makes sense. Device manufactures don't want over rotate into something that's not quite. >>But if you look at the network, it's you have to have a lot of device is very close to each other. I in my area that all these the holdings holding these hearings about radiation, everything else like that, which is never, never really a problem unless you're underneath. >>Yeah. I mean, there's a lot of fun, you know, fear, uncertainty around five G. >>Yeah, and I'm just the practical thing. You gotta have all of these lots of these very close in the The exposure to having a gap of some sort is pretty high. >>Yeah, I think it's an issue of frequencies as well. Right now, we're seeing very high frequency five deployed for those dense urban suburban areas. We're going to Seymour Spectrum rolled out next year. The FCC is putting out new auction so you'll see lower bit rate five g rolled out for suburban and rural areas. So it's a It's a work in progress, but the fact that we have first devices first silicon for software first networks. It's kind of a big inflection >>point, but some bumps. I'm inferring this ATT the back end. It could be a lot of machine to machine communications, so that's kind of sets up this whole coyote and an edge discussion. And of course, that means more data. What can you tell us about how that's going to affect really the amount of data and how we use that data? >>The data explosion is extraordinary. I mean, we experience this as early adopters here at the table every day, and so no one's ever said, you know, my network is fast enough is good enough, secure enough. There's always that insatiable appetite now, given the connected world in which we live. And so it's not just the network speed it's the input output of the device. I mean, we have Leighton see that frankly, from these networks operates at the speed of the human brain, you know, in in milliseconds, in terms of input output on the network. And so that's really gonna change the user experience to when the way you do gaming or collaboration or video conferencing video calls and all these service is we use today will be much more tuned to how we live and work. >>So dial upto high speed Internet obvious Are you want? I'll update you say you go back. I'm also I know remember this stuff But that was a significant change. Obvious step change, really a step function. Exactly. But subsequent to that it was I could doom. Or but it was just so much more data and acts were flowing through the network that it really didn't change the experience a little bit. Maybe, actually, you know, be careful. I watched the Patriots game on the plane on the NFL app on the way out here, which could probably have done a year or two ago, but so that was that's goodness. But generally speaking, the experience is substantially similar. Will you said a 10 X before? Will the user actually see a difference like that kind of dial up to high speed step function? Or is it going to be sort of a slow roll? >>I think the user will see a big a big improvement because of the efficiencies of the network and the way in which data is kind of throttled and limited. Today, with three and four for G networks, I think more interestingly, is how businesses and enterprises and sm bees will consume. Five g. I mean, there are a lot of antiquated networks out there, whether it's legacy wired Network, D S. L. Whether it's, you know, crappy WiFi that we all experience in hotel rooms, five g has the opportunity to come in and really displace all of that legacy crap that that's in our networks and give users in those enterprises hotels, venues, a brand new experience. And when's the last time you had a bad hotel? WiFi, for the idea of, of getting rid of a legacy network and delivering those high speed service is from a public network. It's her Private networking is a really exciting opportunity for the carriers and, really, for the B two B enterprise. >>Well, the technology suppliers are pumped about their pumped and their >>look at their profitability, their revenue, their sales. Everything's up. >>Well, the thing is that that is, the carriers, like you say they have no choice but to remain competitive. They have to consume. They have to spend more >>on what a great time in the mobile industry. I mean to be a consumer of devices and service is, I mean, the consumers that businesses are winning in this march. >>So tell us about Mobile World Congress. What was the vibe? It was >>very buzzy. I mean, there were lots of Rhea World applications on display, whether wearable devices for health care and hospital T applications. There were examples of remote controlled autonomous shipping and autonomous trucking monitored, supervised with five G. There were examples of vehicle to vehicle communications for accident, safety purposes being deployed in the next generation of cars baked in, and so five. He's gotten very practical. Now it's like, Okay, we've built this network, we have silicon, we have software we have storage memory out of we deploy it so is very focused on deployment usage and an application. >>If you take that one of automotive, for example, if you're a god, health and life on your If you If you can't guarantee that you've got connectivity toe, what's the value wouldn't do? For example, wouldn't you prefer vehicle to vehicle direct communication, as opposed to going outside to some much faster? >>Exactly. Exactly. And there's a new technology called vehicle Be two extra people vehicle standards that are being baked so that that's not funny. It's based on the five of the family of standards, and so one of the technologies within the five G family is vehicle to vehicle. Qualcomm's doing some amazing work there. And once the automobile manufacturers baked that technology into cars, the car manufacturers can then build in vehicle avoidance, vehicle collision technology and so forth. >>So I'm worried that was some talk about a I right? I mean, lots of talk that mobile world Congress, you're gonna hear a lot about here. What about the ecosystem that's emerging to support five G? There's gotta be a whole value chain specialized chips. I mean, obviously, micron, you know? Yeah, you know, the >>whole supply chain has to come together and Micron powering all of these devices with memory and storage to the application developers to the O E ems to the network providers. And so that ecosystem is getting really baked, fully baked and and integrated. And that was on display at MWC, too. So all these things are coming together, and I think it's pretty exciting. As a long time skeptic like yourself. I saw some real world. >>I say, I'm excited about it. I just I'm just not holding my breath. Don't >>hold your breath. Not >>recommended weight. That's great, Evan. Thanks very much for coming in. Thanks so much. Appreciate your insights. Thanks so much. Thank you for watching. Keep it right there. But it will be back from Micron Insight 2019 from San Francisco. You're watching the Cube?

>> from Austin, Texas. It's Theo Cube, covering your storage. Accelerate 2019. Brought to you by pure storage. >> Welcome to Austin, Texas. This is the Cube. Live at the fourth annual pure accelerate. I'm Lisa Martin with David, Dante, Dave or in Texas, >> Texas again. >> Austin, Texas. Very interesting venue for this fourth annual hear stories. >> A lot of construction, >> music, a >> lot of music. >> So we just came from the keynote and news announcements, customers on stage. But the first thing to point out is, this is here is about to celebrate their 10th anniversary. Charlie Giancarlo, CEO and chairman who's coming on the program with us, and just a few minutes talking about what they have innovated and delivered these 10 X improvements and 10 years kind of this overnight success in 10 years and what's coming? What was with the things that really stuck out at you, Nicky Note. >> Well, first of all, ironically, this is the 10th year of the Cube, not our 10th anniversary, but it's the 10th year of doing the Cube. And so our fourth year, I think it's pure accelerate about what 3000 people here, >> you know, the keynotes >> pure was laying out what their vision is of the modern data experience and that I felt like the keynotes least there were sort of, ah, speed date of what's coming. There was a couple of major announcements that we'll talk about, >> Uh, but >> they really are trying to differentiate as the modern storage company turn a deep position. The competition, as the old guard is to use this term that Andy Jassy uses pure, didn't use that term. But they really talked about it's time to go Modern. And so they were an overnight success. It took him 10 years, was one of the comments that was on stage. So I think this is worth pointing out. A couple of things. I mean, let me lay out. Sort of my thoughts on Pure is a company. They were the only storage company Ah, in the past. Let's call a decade to reach what I'll call escape velocity. They achieved a billion dollars a couple years ago. They're doing their due about a billion and 1/2 on a trailing 12 month basis. They'll do 1.7 billion this year and evaluations about 4.5 billion. So they got a a three ex valuation in that fluctuates. That's pretty good for a storage company. Billy on Lee major storage company. That's really growing rapidly. They got 28% growth. I did a breaking analysis on Lincoln, and I'll just share with you some of the numbers. Dallas flat at 0%. So Del is actually gaining share with no growth has got a scary NetApp minus 16% in the quarter H P E minus 3% IBM minus 21%. And so it is pure A 28%. So they're really crushing it in terms of growth. They've also got a 69% gross gross margin, even if it's in its heyday. E emcees gross margins weren't that high, you know. They were in the sort of mid sixties, and so, and they've also got a good balance sheet. About a billion dollars in cash A little. A little more than that, they got some debt. They're shifting their model to a deferred revenue model. Now the only thing is, you know they're growing much, much faster than the competition. But they're throwing off a lot less cash because they're much smaller. Just as an example, they probably throw off 5 to 6% of their revenues in cash. Netapp probably throws about 23% of its revenues, often catch the big Delta there, so the point is long winded. But but pure storage is in growth mode. And until the market rewards more consistent with a cash flow, they're gonna, I think, stay in huge growth mode. >> There was a great analysis. Dave and I saw an analysis that you did with some spends data, just a couple of your reverence. A little bit of that. There's there seems to be a tailwind behind here you mention the 28% wrote that they announced in Q two, and some of the things that also they talked about were there. Adding about in Q two of F Y 2020 about seven net new customers every business day, adding about 450 new customers just in that quarter. Like you said, 3000 folks expected here today. The momentum is behind them, but they're also a company of firsts. You talked about this a number of times. The first, with all flashed the first with envy me on the back and a couple of additional firsts announced today. Talk about the as a service model and how that youth, in your opinion, you think might continue that trajectory that they're on. >> Yes, so basically pure laid out today, said that vast majority are Pouliot Portfolio is gonna be available as a service. That's the cloud consumption mall is important because pure has about $600 million in deferred revenue, largely coming from their evergreen service. But there they are, slowly shifting their model to a subscription model. It's gonna be very interesting to see how that plays out. Um, we've seen a number of companies do a tableau in Adobe kind of pulled the band Aid off and did it Splunk has taken years to do. It will be interesting to see how how pure goes. For that. I'll >> bring it >> back to the cloud up yours largely an on Prem storage company. That's where most of the revenues come from. But we heard the gentleman from Amazon today. I think it was E ethan whiner, not Ethan, anyway, Mr Whiner, he said. That gardener did A survey last year showed 88% of customers said they have a cloud for a strategy, but 86% of those customers continue to spend on prim. So here you have the cloud. Amazon gorilla wants everybody to go to the cloud pure would much rather they make much more money on Prem? But they realize customers air pulling them in. So they have to move to that as a service model. One of the interesting things that pure is done, which, you know, that's not really a first. But it certainly is for the large storage companies they've announced. Ah, block storage on AWS. So basically what they're doing is they're taking the pure experience. It all looks like pure software, and they're front ending cheap s3 storage from Amazon with E. C. To compute instances, and they've architected using Amazon service. Is this basically a block storage array in the cloud so Amazon gets paid, pure, gets paid? It's a little bit of a premium, but you get higher availability. You get great right performance and you get the pure cloud experience pretty interesting strategy, >> and they're talking about it really as this. This positioning it rather as a bridge, a bridge to hybrid cloud. This numbers that the Amazon gentlemen, share that you mentioned Gardner were really interesting both sides recognizing there's a forcing function there and that forcing function is the customers from the enterprise to the small business who need to have data available immediately wherever it is people to extract this insights from it quickly so that those companies, whether it's a capital one or a Delta Airlines or a smaller organization, can act on it quickly to Dr Competitive Advantage. Same kind of challenge that your storage has. But really that forcing function of the customer, clearly bringing the giant AWS together with yet another story >> so pure as they say reached escape velocity. They and Nutanix were the only on a new entrance that reached a billion dollars Nutanix. I really don't consider a storage company. They're kind of hyper converged. And the way they did that as they drove a truck through E emcees install base with flash. So they were the first within all flash array. Maybe maybe they weren't the first, but they were the first to really drive it. They hired a bunch of DMC sales reps. They knew where all the skeletons were buried and they really took out a lot of old Symmetric Se's and Claire eons and V. Max is and all the old sort of GMC install base, and that helped them catapult their way there 1st 10 years. Now they got to do that again. They got to get to get They're on their way to two billion. But how did they get to five billion? Um, and and so the way they do that is they have to expand their tam. I mean, we'll talk to Charlie Jean Carlo about this. My feeling is a big job of the CEO is to expand the Tamil. How do they do that? They go after new workloads like a i. They go for cloud. They go from multi cloud. These are all very large markets in which they don't participate. Data protection. They'll partner with Lex, Kohi City and Rubric and Beam to to have data protection software running on their flash. A raise with very, very fast restores. That's something that's taking off. It's gonna be really interested in seeing as they say, they've got this subscription model that's coming in. They've got all this deferred revenue that in a way, it's going to slow him down a little bit just from an accounting standpoint, cause when you recognize deferred revenue, you recognize that, you know over 12 months over 36 months, so that's a little bit of a transition. The other thing that pure is facing in a tactical basis is Nande pricing. It's like this countervailing effects nan pricing is coming down, which means lower prices, lower costs but also lower revenue. But at the same time, it becomes more competitive with spinning disk. This is something else. We'll talk to Charlie Jean. Cholera right about it opens up new markets. So this tam expansion is critical for pure in terms of driving this modern data experience into these new workloads and fighting the competition, the competition is not sitting still. All those companies that I mentioned the H P ease, the the Delhi emcees, et cetera, are basically taking a page out of your swords narrative, talking about the cloud experience, talking about, you know, flexible pricing models, building cloud products on prime and hybrid cloud and multi cloud. So it's hard sometimes for customers to squint through that. And really, no, I guess the bottom line, the last thing I'll say is pure. Doesn't have as many feet on the street is these other guys. So it's gotta leverage the channel increasingly, and that's how it gets beyond two billion on its way to five billion. >> And that was one of the factors that they attributed the second quarter. 28% year on year growth is to not just innovation, but also to the channel. So they've done a good job of really pivoting. There's large enterprise deals to be covered, direct and then bringing in the channel for those smaller mid size business customers. Adding a lot of momentum in cute to you mentioned the nan pricing that in some of the political climate with the start of China, most of their businesses in the Americas so they're not facing as many of those challenges. So they did lower guidance for the rest of it is >> the second time they've >> lowered 20. However, they kind of attributed that thio the nan supply oversupply and they say happy Matt to flatten out quickly, say they're >> not worried about the macro. I mean, look, if if the economy is good and is booming and people are spending money on cap ex. That's good for even a high growth company. They're basically positioning to the street that if if the economy does turn down and there's a softness at the macro, they'll actually gain share more rapidly. Which, by the way, is probably true. But look at the rising tide lifts all boats. Nobody wants to see Ah recession. Having said that, well, it's interesting. When you saw Pure Lower, its guidance stock took a hit, and then net app, I'd be him. All these other company you have to see a deli emcee they announced in the market said, Wow, pure must be doing really well compared to these other guys. So it's come back in a big way. My opinion pure is going to in the e. T. Our data shows this from a spending intentions Pure is going to continue to gain share at a much, much more rapid pace of the other. The other guys, from a product standpoint, delicacies consolidating its product portfolio, trying to lower its cost. H. P E is really focused on limbo. IBM needs a mainframe product cycle to get back going, Ned APS facing its challenges and its kind of tweaking its go to market model. So all these other companies air dealing with sort of some structural changes. Where is pure is like put the put the foot on the gas and accelerate no pun intended. And so I think they're gonna continue to gain share for quite quite a number of quarters. >> I want to talk about sustainability before we break. And one of the things that Charlie talked about on his keynote is in terms of the modern data experience, he said. It was three things. It was simple, seamless and sustainable, an inch sustainable. You really started talking about the evergreen model that they launched a while ago that seems to be really sticky with organizations. He also talked about sustainability is a lot of other organization I need to adjust in terms of, you know, waste and carbon emissions and things like that. But I'm just curious, since Pierre is much smaller than the competitors that you mentioned and a lot more focus, obviously all in on flash. Where does the evergreen model, in your opinion, give them that tail winter? That advantage? >> Well, the Evergreen model was first of all brilliant marketing strategy and a business strategy Because if you think about the traditional storage vendors, they make so much money on maintenance, they would never have done this unless pure force them to do it. Because they're making so much cash on the maintenance. You know, it's it's you. You put the storage array in and we're just gonna charge you maintenance. And if you're not on the maintenance contract, sorry. You don't get all the software upgrades, everything else. So it's just this, you know, this lock in strategy, which is work brilliantly for two decades pure, comes along and says, Hey, where? Software driven. We're gonna allow you to get all the modern software. As long as you're got a subscription with us, we'll swap out your controller for free. You know, the competitors hate that. There's all kinds of nuances and stuff, but it worked, and customers love it. And so it's very strong, and it's a fundamental as they said, they got $600 million in deferred revenue, largely from that evergreen model. So they, you know, Charlie mentioned first for non disruptive upgrades. First for cloud management, first for a I ops first for always on que Os first with always on encryption, and if they're really the first, we're probably the first big company. They got a lot of attention there. Last thing, it's it's a four big announcements today. There's a I ready infrastructure, airy. They're doing some stuff they were first to announce with video. You know, a year or so ago, they got cloud offerings. Ah, block storage for AWS. And they've got clout Snap for Azure, which is actually pretty hot. It's backup on Azure, and they got product extensions. They got cheaper flash with a flash or a C for capacity. And then they have extended their all flashy raise their flash played etcetera with storage class, memory and and storage memory. And in this, this as a service model. Those are really the four big announcements that were gonna dig into all this week. >> We are, and we're gonna be talking with This is a great event. Two days. The cube is going to be here. We have seven pure customers to talk to you that I think kind of a record, at least in my cube experience of the last >> AWS always puts a lot of customers up too. You know. All >> right, well, there's no better validation than the success of a brand, whether we're talking about Evergreen or their first or the reaction of the market to bringing flash down to satya prices. So excited to dig into customer stories with you, Dave. Course we'll talk to some partners who got c'mon slung Cisco somebody else and probably forgetting. And, of course, some of the pure, exactly gonna be exciting two days with you and looking for two days >> looking forward to at least a great >> all right stick around. Dave and I will be right back with our first guest, Charlie Giancarlo, chairman and CEO of Pier Storage. Stick around, come back Mawston in just a minute.