>>Hello and welcome to the cubes coverage of dr khan 2021. I'm john Kerry, host of the cube agent I own L. C. Ceo and co founder chairman of Morantes cube alumni Adrian Great to see you. Thanks for coming on the cube here for dr khan coverage. Good to see you. Hey >>john nice to see. You gotta do. >>So obviously open source innovation continues. You guys are at the forefront of it. Great to see you what's new Miranda's, give us the update on what's happening. >>Well, I mean what's, what's interesting is we've had one of the best years ever last year and it's very much more continuous, you know, into this year. It's pretty fantastic. We wanted about 160 new customers. Kubernetes is definitely on a tear. We see customers doing bigger and bigger and more exciting things, which is absolutely great to say lens is getting tremendous destruction and I think we have a five fold increase in user base within a year. So it's a lot of fun Right now, customers are definitely pushing the boundaries of what benefits can do. And they want to get the cloud native infrastructure and they want to get there faster and they want to be big and exciting things. And we are so happy to be part of the right. >>You guys are investing in brand new open source solutions for customers. Give us an update on on why and why do they matter for your customer? >>Well, there are, let me unpack this a little bit and there are really two elements to this. One is wide. Open Source and what's new. What matters. So the open source is not new, but open source is being embraced more and more heavily. Bye bye companies everywhere because just a very flexible and cost efficient and highly innovative way to to use innovation and to continue software and a lot of innovation these days is happening the open source communities, which is why it's super exciting for many, many users now. What's new with us? I think there are two really terrific things that we brought the market that we see, get a lot of interest and attention from our customers and create value. One is this idea of delivering, including the infrastructure that's been in space as a service for some of the largest news cases out there. Very large enterprises. We want to have a cloud experience on prime just like they have it in public clouds. That is absolutely fantastic. And that's new and different and very, very exciting. Customs. The second thing that's new and compelling and exciting is the is lands which is this kubernetes, i. e. that has empowered in the meantime, close to 180,000 communities, developers around the world to make it much much easier to take advantage of genetics. So you can think of it as a I. D. And a D. Bugger for anybody who is using genetics on public clouds or on on private infrastructure. That is getting tremendous traction and adoption. >>The interest in kubernetes has been unbelievable. I mean in coop con we saw kubernetes almost become boring in the sense of like it's everyone's using it and there's still now it's enabling a lot more cloud native development. Why does that lens matter what is the benefit? Because that's that's a killer opportunity because kubernetes is actively being adopted. The general consensus is it's delivering the value. >>Yeah. So let me unpack this in two aspects why Wise Bennett is important, why people adopting it and then how it lands adding value on top of it for people who want to use humanity's common. It is tremendously important is because it solves some very, very fundamental problems for developers and operators when building cloud native applications. These are problems that are very essential to actually operating in production but are really unpleasant people to solve, like availability, scalability, reusability of services. So all of that with amenities comes right out of the box and developers no longer have to worry about it. And at the same time, the benefits gives you a standard where you can build apps on public clouds and then move them on prem or build them on trend with them on public clouds and anywhere in between. So it gives a kind of this universal cloud native standard that you as a developer can rely on. And that's extremely valuable for developers. We all remember from the java times when java came online, people really value this idea of white ones run anywhere and that's exactly what benefits does for you in a clown in the world. So it's extremely screaming valuable for people. Um now how does let's add value in this context is also very exciting. So what's happening when you build these applications on a minute? This is that you have many, many services which interact with each other in fairly complex and sometimes unpredictable ways and they're also very much interact with the infrastructure. So you have you can you can imagine kind of this jungle this label building of many different cloud native services working together to build your app, run your app well, how are you going to navigate that and debug that as a developer as you build and optimize your code. So what lengths does it gives you kind of like a real time poppet of pounds of console. You can imagine like you're a fighter pilot in this jet and you have all these instruments kind of coming out here and gives you like this fantastic real time situational awareness. So you can very quickly figure out what is it that you need to do? Either fixing a bug in your application or optimize the performance of the code of making more your rival fixing security issues. And it makes it extremely easy for developers to use. Right? But this tradition has been hard to use complicated, this makes it super fast, easy, have a lot of fun. >>You know, that is really the great theme about this conference this year and your point exactly is developer experience making it simpler and easier. Okay. And innovative is really hits the mark on productivity. I mean and that's really been a key part. So I think that's why I think people are so excited about kubernetes because it's not like some other technologies that had all the setup requirement and making things easier to get stood up and manage. Its huge. So congratulations. A great point, great call out there, great insight. The next question to ask you is you guys have coined the term software factory. Um, yeah, this kind of plays into this. If you have all the services, you can roll them up together with lens and those tools, it's gonna be easier, more productive. So that means it's more software, open source is the software factory to what does that term mean? And how >>it is leverage. Yeah, So here's what it means to us. And so, as you know, today, Soft is being produced by two groups working together to build software, uh, certainly the poor people are the developments, these are the people who create the core functionality. Imagine all the software should be architected and ultimately ship the code right? And maintain the code, but the developers today don't operate just by themselves. They have their psychics, they have their friends for often platform engineering and platform engineers. These are the people who are helping developers, you know, make some of the most important choices as to which platform states we should use, which services they should use, how they should think about governance. How should they think about cloud infrastructure they should use, which open source libraries they should use. How often they should be fresh those libraries and support. So this platform engineers create if you want the factory, the substrate and the automation, which allows these developers to be highly productive. And the analogy want to make is the chip design, right. If you imagine ship design today, you take advantage of a lot of software, a lot of tooling and a lot of free package libraries. You get your job done, you're not doing it by yourself. Uh just wiring transistors together or logical elements. You do it using a massive amount of automation and software, like recent polls. So that's that's what we aim to provide you to customers because what we discovered is that customers, I don't want to be in the business of buildings off the factories, They don't want to be in the business or building platform engineering teams. If they can avoid it, they just do it because they have no choice. But it's difficult for them to do. It's cumbersome, it's expensive. It's a one off. It really doesn't create any unique business value because the platform engineering for a bank is very similar to the platform engineering for, let's say, an oil gas company or the insurance company. Um So we do it for them turnkey as a service. So they can be focusing on what Madison's for that. >>That's a great inside. I love that platform engineering, enabling software developers because, you know, look at sas throwing features together. Being a feature developer is cool. And and and the old days of platform was the full stack developer. And now you have this notion of platform as a service in a way, in this kind of new way. What's different agents? You've seen these waves of innovation? Certainly an open source that we've been covering your career for over a decade uh with more Anderson and open stick and others. This idea of a platform that enables software. What's changed now about this new substrate, you mentioned what's different than the old platform model? >>Uh That's a wonderful question. Uh a couple of things are different. So the first thing that's different is the openness and uh, and that everything is based on open source frameworks as opposed to platforms that we that are highly opinionated and, and I lock in. So I think that's that's a very, very fundamental difference. If you're looking at the initial kind of platform as a service approaches, there were there were extremely opinionated and very rigid and not always open source or just a combination between open source and proprietary. So that's one very big difference. The second very big difference is the emphasis on, and it goes along with the first one, the emphasis on um, multi cloud and infrastructure independence, where a platform is not wedded to a particular stack, where it's a AWS stack or a uh, an Azure stack or the EMR stack. And, and but it's truly a layer above. That's completely open source center. >>Yeah. >>And the third thing that is different is the idea that it's not just the software, the software alone will not do the job, you need the software and the content and the support and the expertise. If you're looking at how platform engineering is done at the large company like Apple, for example, facebook, it's really always the combination of those three things. It's the automation framework, the software, It's the content, the open source libraries or any other libraries that you create. And then it's the expertise that goes all this together and it's being offered to developers to be able to take advantage of this like soft factory. So I think these are the major differences in terms of where we are today was five years ago, 10 years ago. >>Thank you for unpacking that for I think that's a great uh great captures the shift and value. This brings up my next uh question for you because you know, you take that to the next level. DeVOps is now also graduating to a whole another level. The future of devops uh and software engineering more and more around kubernetes and your tools like lens and others managing the point. What is the new role of devops? Obviously Deb see cops but devops is now changing to What's the future of devops in your opinion? >>Well, I believe that there is going to become more and more integrated where our option is going to become uh something like Zero Arts, where are you going to be fully automated And something that's being delivered entirely through software and developers will be able to focus entirely, on, on creating and shipping code. I think that's the major, that's a major change that's happening. The problem is still yet I think to be solved like 100% correctly is the challenge of the last mile. like deploying that code on on on the infrastructure and making sure that he's performing correctly to the sls and optimizing everything. I also believe that the complexity veneta is very powerful by the same time offers a lot of room for complexity. There are many knobs and dials that you can turn in these microservices based architecture. And what we're discovering now is that this complexity kind of exceeds the ability of the individual developer or even a group of developers who constantly optimize things. So I believe what we will see is a I machine learning, taking charge of optimizing a lot of parameters, operating parameters around the applications and that unemployment benefits to ensure those applications perform to the expectations of the illness. And that might mean performing to a very high standard security. Or it might mean performing to a very a low latency in certain geography. Might mean performing too a very low cost structure that you can expect and those things can change over time. Right? So this challenge of operating an application introduction Burnett is substrate is I think dramatically higher than on just additional cloud infrastructure or virtualization. Because you have so many services inter operating with each other and so many different parameters you can set for machine learning and Ai >>I love the machine learning. Ai and I'd love to just get your thoughts on because I love the Zero ops narrative Because that's day one zero ops now that you're here day to being discussed and people are also hyping up, you know, ai Ops and other things. But you know this notion of day to, okay, I'm shipping stuff in the cloud and I have to have zero ops on day 234 et cetera. Uh, what's your take on that? Because that seems to be a hot air that customers and enterprises are getting in and understanding the new wave, writing it and then going, wait a minute pushing new code that's breaking something over there I built months ago. So this is just notion of day to obstacle. But again, if you want to be zero ops, it's gonna be every day. >>Oh, I think you hit the nail on the head. I don't think there's going to be a difference between they want the zero they want and today chair, I think every day is going to be the zero. And the reason for that is because people will be shipping all the time. So your application will change all the time. So the application will always be fresh, so it will always be there zero. So zero ops has to be there all the time. Not just in the birthday. >>Great slogan! Every day is day zero, which means it's going well. I mean there's no no problems. So I gotta ask you the question was one of the big things that's coming up as well as this idea of an SRE not new to devops world, but as enterprises start to get into an SRE role where with hybrid and now edge becoming people not just industrial, um there's been a lot of activity going on a distributed basis. So you're gonna need to have this kind of notion of large scale and 00 ops, which essentially means automation, all those things you mentioned, >>not everyone can >>afford that. Um Not every company can afford to have you know hardcore devops groups to manage and their release process, all that stuff. So how are you helping customers and how do you see this problem being solved? Because this is the accelerant people want, they want the the easy button, they want the zero ops but they just they don't they can't pipeline people fast enough to do this role. >>Yeah. What you're describing is the central differentiator we bring to customers is this idea of as a service experience with guaranteed outcomes. So that's what makes us different versus the traditional enterprise infrastructure software model where people just consume software vendors and system integrate themselves and then are in charge of operations themselves and carrying the technical risks themselves. We deliver everything as a service with guaranteed outcomes through the through cloud native experience. That means guaranteed as L. A. Is predictable outcomes, continuous updates, continuous upgrades. Your on prem infrastructure or your edge infrastructure is going to look and feel and behave exactly like a public cloud experience where you're not going to have to worry about sRS or maintaining the underlying being delivered to you as a service. That's a big part, that's a central part of what makes us different in this space. >>That's great value proposition. Can you just expand give an example of a use case where you guys are doing that? Because this is something that I'm seeing a lot of people looking to go faster. You know speed is good but also it could kill right? So you can break things if you go to a. >>Yeah absolutely. I can give you several examples where we're doing this um very exciting company. So one companies booking dot com booking dot com as a massive on from infrastructure but they also massive public cloud consumer. And they decided they want to bring their own infrastructure to the cloud level of automation, cloud level Sophistication, in other words, they want to have their Aws on brand, they wanted to the old, so eccentric and we're delivering this to them with very high in the cell is exactly as a service turnkey Where there is nothing for them to system in grade or to tune and optimize and operate is being really operating 24/7 guaranteed sls and outcomes by us. Well, combination of soft film expertise that we have at massive scale and to the standards of booking dot com. This is one example, another example and this is a very large company um is the opposite side of the spectrum. You know, because they're not called Mexico super successful. Soft as a service company in the security space, growing in leaps and bounds in very high technical demands and security demands. And they want to have an on prem and cloud infrastructure to complement public clouds. Why? Because security is very important to them. Latency is very important to them. Control the customer experience is very important to them. Cost is very important to them. So for that reason they want that in a network of data centers around the globe And we provide that for them. Turnkey as a service than before seven, which enables them to focus 100% on building their own sense on their the functionality which matters to their customers and not have to worry about the underlying cloud infrastructure in their data centers. All of that gets provided to them has guaranteed about experience to their end users. So this would be the examples where we're doing a >>great service. People are looking for a great job. Adrian, Great to see you. Thank you for coming on the cube here, doc are gone 2021. Um, take a minute to put a plug in for the company. What are you guys up to? What you're looking for hiring? I'll see. You got great tracks with customers, congratulates on lens. Um give a quick update on what's going >>on. Happy happy to give it up in the company. So he, here are the highlights. It was super excited about about what we achieved last year and then what we're up to this year. So last year, what we're proud of is despite Covid, we haven't laid off a single person. We kept all the staff and we hired staff. We have gained 160 new customers, many of them, some of the world's largest and best companies and 300 of all existing customers have expanded their business with us last year, which is fantastic. We also had a very strong financial physical cash flow positive. It was a tremendous, tremendous here for us. Uh, this year is very much growth here for us and we would incredible focus on customer outcomes and customer experience. So what we are really, really digging in super hard on is to give the customers the technology and the services that enable them to get to ship software faster and easier to dramatically increase the productivity of dissolved the development efforts on any cloud infrastructure on crime and public clouds using containers and is and to do that as scale. So we're extremely focused on customer outcomes, custom experience and then the innovation is required to make that happen. So you will continue to see a lot of innovation around lens. So the last better release of lens that we brought about has now a cloud service and have a lot of feature where you can share all your cloud automation with your bodies, in, in uh, in uh, in your development team. So the lens used to be a single user product. Now it's a multi user and team based product, which is fantastic, continues to grow very quickly. And then container cloud as a service. Uh, it's a very big part that we're meeting on the infrastructure side. Are you get quite >>the open source cloud company. Adrian. Congratulations. We've been again following even on the many waves of innovation. Open stack, large scale open source software. Congratulations. >>Uh chris >>Thank you very much for coming on the cube. >>Yeah. >>Okay. Dr khan 2021 cube coverage. I'm john furrier here where the Gi Enel Ceo, co founder and chairman of Miranda's sharing his perspective on the open source innovation with their process and also key trends in the industry that is changing the game in accelerating cloud value cloud scales. Cloud native applications. Thanks for watching. Mhm.

>>from the Cube Studios in Palo Alto in Boston, connecting with thought leaders all around the world. This is a cube conversation. >>Hey, welcome back. You're ready, Jeffrey here with the Cuban Apollo Alto studios today, and we're excited. You know, we're slowly coming out of the, uh, out of the summer season. We're getting ready to jump back into the fall. Season, of course, is still covet. Everything is still digital. But you know, what we're seeing is a digital events allow a lot of things that you couldn't do in the physical space. Mainly get a lot more people to attend that don't have to get in airplanes and file over the country. So to preview this brand new inaugural event that's coming up in about a month, we have We have a new guest. He's Dave and Everen. He is the senior vice president of marketing. Former ran tous. Dave. Great to see you. >>Happy to be here today. Thank you. >>Yeah. So tell us about this inaugural event. You know, we did an event with Miranda's years ago. I had to look it up like 2014. 15. Open stack was hot and you guys sponsored a community event in the Bay Area because the open stack events used to move all over the country each and every year. But you guys said, and the top one here in the Bay Area. But now you're launching something brand new based on some new activity that you guys have been up to over the last several months. So let us give us give us the word. >>Yeah, absolutely. So we definitely have been organizing community events in a variety of open source communities over the years. And, you know, we saw really, really good success with with the Cube And are those events in opens tax Silicon Valley days? And, you know, with the way things have gone this year, we've really seen that virtual events could be very successful and provide a new, maybe slightly different form of engagement but still very high level of engagement for our guests and eso. We're excited to put this together and invite the entire cloud native industry to join us and learn about some of the things that Mantis has been working on in recent months. A zwelling as some of the interesting things that are going on in the Cloud native and kubernetes community >>Great. So it's the inaugural event is called Moran Sous launchpad 2020. The Wares and the Winds in September 16th. So we're about a month away and it's all online is their registration. Costars is free for the community. >>It's absolutely free. Eso everyone is welcome to attend You. Just visit Miranda's dot com and you'll see the info for registering for the event and we'd love it. We love to see you there. It's gonna be a fantastic event. We have multiple tracks catering to developers, operators, general industry. Um, you know, participants in the community and eso we'd be happy to see you on join us on and learn about some of the some of the things we're working on. >>That's awesome. So let's back up a step for people that have been paying as close attention as they might have. Right? So you guys purchase, um, assets from Docker at the end of last year, really taken over there, they're they're kind of enterprise solutions, and you've been doing some work with that. Now, what's interesting is we we cover docker con, um, A couple of months ago, a couple three months ago. Time time moves fast. They had a tremendously successful digital event. 70,000 registrants, people coming from all over the world. I think they're physical. Event used to be like four or 5000 people at the peak, maybe 6000 Really tremendous success. But a lot of that success was driven, really by the by the strength of the community. The docker community is so passionate. And what struck me about that event is this is not the first time these people get together. You know, this is not ah, once a year, kind of sharing of information and sharing ideas, but kind of the passion and and the friendships and the sharing of information is so, so good. You know, it's a super or, um, rich development community. You guys have really now taken advantage of that. But you're doing your Miranda's thing. You're bringing your own technology to it and really taking it to more of an enterprise solution. So I wonder if you can kind of walk people through the process of, you know, you have the acquisition late last year. You guys been hard at work. What are we gonna see on September 16. >>Sure, absolutely. And, you know, just thio Give credit Thio Docker for putting on an amazing event with Dr Khan this year. Uh, you know, you mentioned 70,000 registrants. That's an astounding number. And you know, it really is a testament thio. You know, the community that they've built over the years and continue to serve eso We're really, really happy for Docker as they kind of move into, you know, the next the next path in their journey and, you know, focus more on the developer oriented, um, solution and go to market. So, uh, they did a fantastic job with the event. And, you know, I think that they continue toe connect with their community throughout the year on That's part of what drives What drove so many attendees to the event assed faras our our history and progress with with Dr Enterprise eso. As you mentioned mid November last year, we did acquire Doctor Enterprise assets from Docker Inc and, um, right away we noticed tremendous synergy in our product road maps and even in the in the team's eso that came together really, really quickly and we started executing on a Siris of releases. Um that are starting Thio, you know, be introduced into the market. Um, you know, one was introduced in late May and that was the first major release of Dr Enterprise produced exclusively by more antis. And we're going to announce at the launch pad 2020 event. Our next major release of the Doctor Enterprise Technology, which will for the first time include kubernetes related in life cycle management related technology from Mirant is eso. It's a huge milestone for our company. Huge benefit Thio our customers on and the broader user community around Dr Enterprise. We're super excited. Thio provide a lot of a lot of compelling and detailed content around the new technology that will be announcing at the event. >>So I'm looking at the at the website with with the agenda and there's a little teaser here right in the middle of the spaceship Docker Enterprise Container Cloud. So, um, and I glanced into you got a great little layout, five tracks, keynote track D container track operations and I t developer track and keep track. But I did. I went ahead and clicked on the keynote track and I see the big reveal so I love the opening keynote at at 8 a.m. On the 76 on the September 16th is right. Um, I, Enel CEO who have had on many, many times, has the big reveal Docker Enterprise Container Cloud. So without stealing any thunder, uh, can you give us any any little inside inside baseball on on what people should expect or what they can get excited about for that big announcement? >>Sure, absolutely so I definitely don't want to steal any thunder from Adrian, our CEO. But you know, we did include a few Easter eggs, so to speak, in the website on Dr Enterprise. Container Cloud is absolutely the biggest story out of the bunch eso that's visible on the on the rocket ship as you noticed, and in the agenda it will be revealed during Adrian's keynote, and every every word in the product name is important, right? So Dr Enterprise, based on Dr Enterprise Platform Container Cloud and there's the new word in there really is Cloud eso. I think, um, people are going to be surprised at the groundbreaking territory that were forging with with this release along the lines of a cloud experience and what we are going to provide to not only I t operations and the Op Graders and Dev ops for cloud environment, but also for the developers and the experience that we could bring to developers As they become more dependent on kubernetes and get more hands on with kubernetes. We think that we're going thio provide ah lot of ways for them to be more empowered with kubernetes while at the same time lowering the bar, the bar or the barrier of entry for kubernetes. As many enterprises have have told us that you know kubernetes can be difficult for the broader developer community inside the organization Thio interact with right? So this is, uh, you know, a strategic underpinning of our our product strategy. And this is really the first step in a non going launch of technologies that we're going to make bigger netease easier for developing. >>I was gonna say the other Easter egg that's all over the agenda, as I'm just kind of looking through the agenda. It's kubernetes on 80 infrastructure multi cloud kubernetes Miranda's open stack on kubernetes. So Goober Netease plays a huge part and you know, we talk a lot about kubernetes at all the events that we cover. But as you said, kind of the new theme that we're hearing a little bit more Morris is the difficulty and actually managing it so looking, kind of beyond the actual technology to the operations and the execution in production. And it sounds like you guys might have a few things up your sleeve to help people be more successful in in and actually kubernetes in production. >>Yeah, absolutely. So, uh, kubernetes is the focus of most of the companies in our space. Obviously, we think that we have some ideas for how we can, you know, really begin thio enable enable it to fulfill its promise as the operating system for the cloud eso. If we think about the ecosystem that's formed around kubernetes, uh, you know, it's it's now really being held back on Lee by adoption user adoption. And so that's where our focus in our product strategy really lives is around. How can we accelerate the move to kubernetes and accelerate the move to cloud native applications on? But in order to provide that acceleration catalyst, you need to be able to address the needs of not only the operators and make their lives easier while still giving them the tools they need for things like policy enforcement and operational insights. At the same time, Foster, you know, a grassroots, um, upswell of developer adoption within their company on bond Really help the I t. Operations team serve their customers the developers more effectively. >>Well, Dave, it sounds like a great event. We we had a great time covering those open stack events with you guys. We've covered the doctor events for years and years and years. Eso super engaged community and and thanks for, you know, inviting us back Thio to cover this inaugural event as well. So it should be terrific. Everyone just go to Miranda's dot com. The big pop up Will will jump up. You just click on the button and you can see the full agenda on get ready for about a month from now. When when the big reveal, September 16th will happen. Well, Dave, thanks for sharing this quick update with us. And I'm sure we're talking a lot more between now in, uh, in the 16 because I know there's a cube track in there, so we look forward to interview in our are our guests is part of the part of the program. >>Absolutely. Eso welcome everyone. Join us at the event and, uh, you know, stay tuned for the big reveal. >>Everybody loves a big reveal. All right, well, thanks a lot, Dave. So he's Dave. I'm Jeff. You're watching the Cube. Thanks for watching. We'll see you next time.

>> Announcer: Live from Barcelona Spain, it's theCUBE! Covering Cisco Live 2020, brought to you by Cisco and its ecosystem partners. >> Welcome back, this is theCUBE's live coverage of Cisco Live 2020 here in Barcelona, Spain. I'm Stu Miniman, my cohost for this segment is Dave Vellante, John Furrier is also in the house. We're doing about three and a half days, wall-to-wall coverage. The surface area that we are covering here is rather broad and I use that term, my guest is laughing, Vikas Butaney, who is the Vice President of IoT, of course. Extending the network to the edge, to the devices, and beyond with Cisco. Thank you so much for joining us. >> It's great to be here. >> All right, the IoT thing. I've worked with Cisco my entire career, I've watched through the fog computing era for a couple of years. Edge of course, one of the hottest conversations, something that I bought up in many of the conversations, the across the portfolio but Liz Centoni was up on the main stage for the day one keynote talking a lot about IoT and IT and OT and your customers of the like. So let's start there, what's new, and how does IoT fit into the overall Cisco Story? >> Absolutely. So as Liz was on the main stage and David talked about the cross domain and multi-domain architecture; Now, IoT and our operational environment is one of the key domains within that environment. And what Liz announce yesterday are two pieces of news that we are releasing at Cisco Live. First of them is an IoT security architecture which ties together the capabilities with cyber vision and then integrates it within the rest of our IT security portfolio and the second part that I'm also excited to talk about is Edge Intelligence. It's about how we are helping our customers extract the data at the edge, then deploy and move it to wherever the applications are in the multicloud environment. >> You know, we definitely want to dig into those pieces, but IoT is such a diverse solution set so it's often helpful to talk about specific industries, any customer examples so what can you share with us there to help illuminate where Cisco's helping the customers love the security angles and edge? >> That's right. Just a level set, when we think about industrial IoT we're really talking about the heavier industries, plant environments for a manufacturing company. We're thinking about roadways for a public sector customer. We're thinking the grid for utility environments. We're thinking refineries and oil extraction upstream environments, right. So this is the kind of spectrum in which we are working in, where customers have real businesses, real assets where the operations is the heart of the enterprise that they are running. And the technology can really be a revolutionary change for them to help them connect and then extract the data and then make sense of the data to improve their business practice so industrial IoT, whether you're a roadway in Austria like Asfinag, you're a utility in Germany like NRG, or EDF in France as an example. Enel in turn in Italy, all of these industries and all of these customers are using industrial IoT technologies in running their businesses better today. >> Where are we in terms of that critical infrastructure being both connected and instrumented? Where are we on the adoption curve? >> Sure, look and many of these industries we have talked about SCADA systems, right, that have been here for thirty plus years for our customers and most of those is really a one-way flow of information, right. And typically customers stood up separate side load networks which weren't really connected to the rest of the enterprise so, Rockwell has a saying from the shop floor to the top floor, right like how the digital enterprise where all of these environments are coming together is where customers are. Critical infrastructure, as you said, in this day and age with security and other kind of threats, customers are a little hesitant about how they connect it all together. But Cisco is working with these customers and helping them think through the benefits they can get but also make sure, from a cyber security point of view, that you're helping protect assets, manage these environments because you can't just arbitrarily connect them because IT tool sets just are not ready to manage these environments. >> I love that all the examples you gave were European, of course, being here in Europe. I'm curious, there's some technologies where North America might take the lead or Asia might take the lead. Is IoT relatively distributed? Is Europe kind of on-par or with the rest of the world when it comes to general adoption? >> What we have found in Europe, because of many countries like Germany leading in the renewable energy effort, and the climate is a big focus here. Data privacy and concerns around data sharing are much more top-of-mind in Europe, so we find those kind of use cases getting adopted much much faster. In Germany, as an example, NRG which is one of our customers, and they were here with us last year at Cisco live and we launched a capability with them. They are trying to manage the real time flow of energy in their grid environment, such that make sure there are no outages, no brownouts in these environments. So utilities and customers like that across Europe are adopting technology faster. Manufacturing, as always, is a leading use case. There we see some of the automotives in US are leading a little bit more in getting environments connected to their environment but overall, IoT is a global market. We work, we have over 70,000 enterprise IoT customers today at Cisco so we are fortunate to be able to serve these customers on a global basis across the range of industries I talked about earlier. >> In a lot of respects too, I would say the US is behind, right, when you look at public policy from a federal standpoint, the US doesn't really have a digital strategy from an overall perspective whereas certainly India does and countries in Europe. You look at the railway systems in Europe. >> Vikas: Much more advanced, yeah. >> Beautiful and shiny and advanced. So I would say the US has a little bit of work to do here, in my perspective. >> That's right, in India Prime Minister Modi started the effort around One Hundred Smart Cities, right, and Cisco is working with many of those smart cities with our Cisco Kinetic for Cities to kind of create, connect all of the sensor networks. Video surveillance, safety, environmental sensors, managing the flow of that data and digitizing those environments, right, and in Europe we've been working in France, Germany, Italy, UK. I think we are seeing much more adoption in these specific industries but it's a global market and again, like I said, 70,000 customers, we get to see quite a bit of the landscape around the globe. >> What should we know about the architecture? Can you give us kind of a high-level summary? What are the basics? >> Sure, so in the comprehensive IoT security architecture we released this week, it really starts with, you have to be able to identify the devices, right. In IT environments, you know, to your laptop and to your PC, they have been managed by MDM technologies for years but in the industrial environment I might have a programmable logic controller that I deployed 15 years ago. It's not ready for modern capabilities so what you really have to start with is identifying all of these assets in the communication baselines that are happening there, that's step one. Step number two is really, now that I know that this is a PLC or that's a controller, I need to come up with a policy, a security policy which says this cell in a plant environment can only talk to the other cell but doesn't need to talk to a paint zone. So I'll give you an example in automotive, if I'm welding a car, I'm building a car, the welding robots need to be communicating with each other. There's no real reason that the welding robot needs to talk to the paint shop, as an example. So you can come up with a set of policies like that to keep these environments separate because if you don't, then if there is one infection, one malware, one security, then it just traverses your whole factory. And we know customers in Europe that their networks have gone down and they've impacted 150 to 200 million dollars of downtime impact. >> Well we had a real world use case 10 years ago or so with Stuxnet with Siemens PLC and boom it went all over the world, I mean it was amazing. >> Exactly right, so again back to identification then I create the policy, then I implement the policy within our switching or a firewall network but you're never done so you have to keep monitoring on a real time basis as the landscape changes. What's happening, how do I keep up with it? And that's where things like anomaly detection are super important, right, so those are the four steps off the architecture that I want to talk about. >> So it sounds like something like cyber security is both a threat and an opportunity of bringing together IT and OT. Bring us inside a little bit those dynamics, we know it's one of the bigger challenges in the IoT space. >> Yeah, I mean I think, look, both parties whether I'm an operational person or an IT person, both of us, both audiences have their own care-abouts. If I'm a plant manager, I'm measured on number of units I'm producing, the quality, the reliability of my products. If I'm in IT I really am measured on downtime of the network or the cyber security threat. There aren't really common measurable capabilities but cyber and security, it kind of brings both the parties together. So when we use our cyber vision product, we're able to provide to that plant manager visibility to what's happening, how are their PLC's performing, did anybody change my program, is my recipe for my given product I'm making secure and safe? So you have to appeal to the operational user with what they care about. IT really cares about to manage the threat surface, don't let that threat kind of propigate. Now at the board level because the board sees both sides of it, they're asking these teams to work together because they have a complimentary skill set. >> Well I think that's critical because, rhetorical question, who's bigger control freaks? Network engineers or operation technology engineers? They both, you know, keep that operation going and are very protective of their infrastructure. So it's got to come from top down and it is a board level discussion, right? >> Yeah that's right, we have customers where, you know, the board, the CEO has mandated to say listen, whether it's for the national threat actors or other corporate espionage, I need to protect the corporate intellectual property. Because it's not just a process, it's also about safety of employees and safety of their assets that comes into play, right. So when some of the customers we're working with, where the CEO has kind of dictated that the IT teams help the operational environments, but it is a two-way street, like, there has to be value for both parties to come together to solve these challenges. >> Okay so we talked a little bit about the threat, also when we're talking IoT, there's all that data involved. What's the opportunity there for customers with data, how's Cisco involved? >> Absolutely, look, I think one of the reasons customers are doing digitization projects is because they're trying to use the data to make better business decisions. It has to improve, yield, and meet their KPI's of their industry. So far what we have seen is that all of the data is really trapped in all of these distributed environments. Gartner tells you that 75% of the data will be produced at the IoT edge. But our customers to date have not had the tool set to be able to get access to the data, cleanse the data at the edge of the network, bring the right data that they can create insights with, and improve their businesses so it's been a heterogeneous environment, lots of protocols, lots of legacy, so that's kind of what our customers are struggling with today. >> Yeah, absolutely and most of that data is going to stay at the edge so I need to be able to process the edge. Heck I even went to a conference last year, talked about satellites that are collecting all of the data, I need to be able to have the storage, the processing, the compute there because I can't send all of the data back, as fast as it is. So it's a changing architecture as to where I collect data, where I process data. We think it is very much additive to traditional cloud and data center environments today, it's just yet another challenge that enterprises need to deal with. >> That's right, so the work that Cisco is doing in the IoT edge environment is we are enabling these customers to connect their remote terminal units, their machines, and their robots and providing them the tool set with four capabilities. First, extract the data. So we have a set of protocols like Modbus, like OPC UA where they can extract the data from their machine so that's step number one. Second is to transform the data, as you said, over an LTE circuit or over a connection, I'm not going to be able to send all of the data back so how do I transform the circuit, transform the data where I maybe take an average over the last five minutes or I kind of put some functions, and we are providing, as we are in the Devnet zone, we are providing developers the capability such that they can use visual studio, they can use Javascript to write logic that can run right at the edge of the network so now you have extracted the data, you have transformed the data. Governance is a key topic, who should have access to my data, especially here in Europe where we're concerned about privacy, we're concerned about data governance. We are enabling our customers to come up with the right logic by which if there's a machine data and you are the supplier, I'm only going to give you the data, the temperature, the vibration, the pressure that you need to support the machine, but I'm not going to give you the number of units I produce. I'm not going to give you the data about my intellectual property. And then you have to integrate to where the data is going, right. So what we're doing is we are working with the public cloud providers, we are working with software ISVs, and we are giving them the integration capability and the benefit of this for the customer is we have done pre-integration on the extraction part and we have done pre-integrations on the delivery part, which allows the projects to go faster and they can deliver their IoT efforts. >> So how do you envision the compute model at the edge, I mean, probably not going to throw a zillion cores so maybe lighter weight components, and I have some follow up on that as well. >> Sure, absolutely. Look, Moore's law is a friend of ours here, right, like with every cycle, every generation of CPU technology, you get more and more compute capabilities. So the IoT gateways that we provide to our customers today have four ARM cores in them. We are using a couple, two of those ARM cores for the networking function but those cores are available for our customers. We have designed an extra memory for them to be able to process these applications and we give them SSD and some storage at that so we can provide up to sixty gigs or one hundred gigs of storage so now that gateway, that communication device, a router, a switch that's at the edge of the network can kind of do a dual purpose. It can not only process and provide you security for the communications but is now an edge processing node so we call them IoT gateways and I can tell you, we are deploying these kind of products on buses. You know, in a mass transit bus, we all ride these buses, there are over six systems that are on that bus. A video surveillance system, I'm going to monitor the tire pressure, I want to monitor if the driver is going over the speed limit. We have now connected all of these systems and we are running logic at the edge such that the riders have a safer experience and then they can get real time visibility to where the bus is as well. >> Yeah and my follow up was on persisting, so you mentioned storage, you know, flash storage at the edge and then you also referred to earlier the challenges this data today is locked in silos or maybe it's not even persisted, it's analog data sometimes. So do you envision, if you think about successful digital companies, kind of born digital, data's at the core and traditionally big manufacturing firms, large infrastructure, the manufacturing plant is the center of the universe and data sort of sits around it. Do you envision a period where that data is somehow virtualized and we have access to it, we could really build digital businesses around that data, what are your thoughts? >> Absolutely. So we have been working with a customer, it's a steel manufacturer in Austria, the heartland of Europe as an example. And they make high quality steel, right, and when they're building the high quality steel, they have two hundred different machine types and like you're saying, the data is trapped in there. This customer is trying to digitize and trying to do that but they have been struggling for the last two years or so to be able to get the data because it's a variety of machines and they want to use our IoT services but they haven't been able to pipeline the data all the way to their cloud environments so that was one of our lighthouse customers and we worked with them like, you know, roll up your sleeves and kind of designed the system with them. And we worked to get that data such that now, they're not quite a born-digital company but they are a hard manufacturing company, they can get the best of the tool sets and analytics and all of the things that contemporary tech companies use and they can bridge them into this digital environment. >> Yeah and this is how the incumbents can compete with the sort of digital natives, right I mean it's an equilibrium that occurs. >> That's right, I mean look we love the digital companies but they're not really, they don't have physical assets there or out there working. They're working in a more physical or more of the real economy whether if you are an oil company and you're getting, extracting oil from a pumpjack, right, well you need to still have the capability to do that better. So that's what we're doing, whether you're a transportation, like the bus example I gave you, an oil and gas company whose trying to extract oil from the ground or you are a manufacturer or you're a utility, if we improve use of our digital technologies and operate, improve the efficiency of the business, a 0.1%, a 1%, that has got a much much bigger implication for us as a society and the world at large. But just making them better and more efficient. >> Huge productivity gains. >> Exactly right, that's right, right. >> Massive, yeah. >> So I think that technology and IoT technologies can benefit all of these industries and you know Cisco is kind of invested and kind of helping our 70,000 customers to get better with all of these capabilities. >> Awesome, congratulations. 70,000 customers, big number, rolling out IoT solutions. Look forward to keeping track of Cisco's IoT solutions. >> Super excited to be here, thanks again. >> For Dave Vellante, I'm Stu Miniman, back with lots more wall-to-wall coverage here at Cisco Live 2020 in Barcelona. Thanks for watching theCUBE. (upbeat music)

>> Narrator: Live, from Las Vegas, it's theCUBE, covering AWS re:Invent 2017, presented by AWS, intel, and our ecosystem of partners. Hello, everyone, welcome back to theCUBE. This is Silicon Angle's exclusive coverage with theCUBE, here at Amazon, re:Invent 2017. It's our 5th year covering Amazon's explosive growth. I'm John Furrier, the founder of Silicon Angle media. I'm here with Justin Warren, my cohost here, our next guest on set one is Tom Siebel, who is the founder and CEO of C3 IOT, industry legend, knows the software business, been around the block a few times, and now part of the new wave of innovation. Welcome to theCUBE. >> Thank you. >> I hear you just got in from San Francisco. What a world we're living in. You're at the front-end of your company that you founded and are running, an IOT big data play, doing extremely well. Even last year, the whisper in the hallway was C3 IOT is absolutely doing great, in the industrial side, certainly in the federal government side, and on commercial, congratulations! >> Thank you. >> What's the update, what's the secret formula? >> Well, we live at the convergence of elastic cloud computing, big data, AI, and IOT, and at the point where those converge, I think, is something called digital transformation, where you have these CEOs that, candidly, I think, they're concerned that companies are going through a mass-extinction event. I mean, companies are being, 52% of the Fortune 500 companies, as of 2000 are gone, right, they've disappeared and it's estimated as many 70% might disappear in the next 10 years, and we have this new species of companies with new DNA that look like Tesla and Uber, and Amazon, and, they have no drivers, no cars, and yet they own transportation, and I think that these CEOs are convinced that, unless they take advantage of this new class of technologies that they might be extinct. >> And it's certainly, we're seeing it, too, in a lot of the old guard, as Andy Jassy calls it, really talking about Oracle, IBM, and some of the other folks that are trying to do cloud, but they're winning. I gotta ask you, what's the main difference, from your perspective, that's different now that the culture of a company that's trying to transform, what's the big difference between the old way and new way now, that has to be implemented quickly, or extinction is a possibility? I mean, it's not just suppliers, it's the customers themselves. >> The customers have changed. >> What's the difference? >> So, this is my 4th decade in the information technology business and I've seen the business grow from a couple hundred billion to, say, two trillion worldwide, and I've seen it go from mainframe to mini-computers, to personal computers to the internet, all of that, and I was there when, in all of those generations of technology, when we brought those products to market, would come up in the organization, through the IT organization, to the CIO, and the CIO would say, "well, we're never gonna use a mini computer." or, "we're never gonna use relations database technology." or, "we're never gonna use a PC." And so, you'd wait for that CIO to be fired, then he'd come back two years later, right? Now, so meanwhile we build a two trillion dollar information technology business, globally. Now, what's happening in this space of big data, predictive analytics, IOT, is all of a sudden, it's the CEO at the table. CEO was never there before, and the CEO is mandating this thing called digital transformation, and he or she is appointing somebody in the person of a Chief Digital Officer, who has a mandate and basically a blank check to transform this company and get it done, and whereas it used to be the CIO would report to the CEO once a quarter at the quarterly off-site, the Chief Digital Officer reports to the CEO every week, so, and virtually everyone of our customers, CAT, John Deere, United Healthcare, you name, ENGIE, Enel, it's a CEO-driven initiative. >> You bring up a good point I wanna get your thoughts on, because the old way, and you mentioned, was IT reporting to the CIO. They ran things, they ran the business, they ran the plumbing, software was part of that, now software is the business. No one goes to the teller. The bank relationship's the software, or whatever vertical you're in there's now software, whether it's at the edge, whether it's data analytics, is the product to the consumer. So, the developer renaissance, we see software now changing, where the developer's now an influencer in this transformation. >> True. >> Not just, hey, go do it, and here's some tools, they're in part of that. Can you share your perspective on this because, if we're in a software renaissance, that means a whole new creativity's gonna unleash with software. With that role of the CDO, with the blank check, there's no dogma anymore. It's results. So, what's your perspective on this? >> Well, I think that there's enabling technologies that include the elastic cloud that include, computation and storage is basically free, right? Everything is a computer, so IOT, I used to think about IOT being devices, it's that IOT is a change in the form-factor of computers. In the future, everything's a computer, your eyeglasses, your watch, your heart monitor, your refrigerator, your pool pump, they're all computers, right, and then we have the network effect of Metcalfe's law, say we have 50 billion of theses devices fully connected and well, that's a pretty powerful network. Now, these technologies, in turn, enable AI, they enable machine learning and deep learning. Hey, that's a whole new ball game. Okay, we're able to solve classes of problems with predictive analytics and prescriptive analytics that were simply unsolvable before in history and this changes everything about the way we design products, the way we service customers, the way we manage companies. So, I think this AI thing is not to be underestimated. I think the cloud, IOT, big data, devices, those are just enablers, and I think AI is-- >> So, software and data's key, right? Data trains the AI, data is the fundamental new lifeblood. >> Big data, because now we're doing, what big data is about, people think that big data is the fact that an exabyte is more than a gigabyte, that's not it. Big data is about the fact that there is no sampling error. We have all the data. So, we used to, due to limitations to storage and processing we used to, you know, basically, take samples and infer results from those samples, and deal with it on the level of confidence error that was there. With big data, there's no sampling error. >> It's all there. >> It is a whole different game. >> We were talking before, and John, you mentioned before about the results that you need to show. Now, I know that you picked up a big new customer that I hope you can talk about publicly, which is a public-sector company, but that sounds like something where you're doing predictive maintenance for the Air Force, for the U.S. Air Force, so that's a big customer, good win there, but what is the result that they're actually getting from the use of big data and this machine learning analytics that you're doing? >> By aggregating all the telemetry and aggregating all their maintenance records, and aggregating all their pilot records, and then building machine learning class of ours, we can look at all the signals, and we can predict device failure or systems failure well in advance of failure, so the advantage is some pretty substantial percentages, say of F16s, will not deploy, of F18s will not deploy because, you know, they go to push the button and there's a system failure. Well, if we can predict system failure, I mean, the cost of maintenance goes down dramatically and, basically, it doubles the size of your fleet and, so the economic benefit is staggering. >> Tom, I gotta ask you a personal question. I mean, you've been through four decades, you're a legend in the industry, what was the itch that got you back with this company. Why did you found and run C3 IOT? What was the reason? Was it an itch you were scratching, like, damn, I want the action? I mean, what was the reason why you started the company? >> Well, I'm a computer scientist and out of graduate school, I went to work with a young entrepreneur by the name of Larry Ellison, turned out to be a pretty good idea, and then a decade later, we started Siebel Sytems, and I think, well, we did invent the CRM market and then it turned out to be a pretty good idea and I just see, at this intersection of these vectors we talked about, everything changes about computing. This has been a complete replacement market and I though, you know, there's opportunity to play a significant role in the game, and this what I do, you know. I collect talented people and try to build great companies and make customers satisfied. This is my idea of a good time. You're on the beach, you're on your board hangin' 10 on the big waves. What are the waves? We're seeing this inflection point, a lotta things comin' together, what are the waves that you're ridin' on right now? Obviously, the ones you mentioned, what's the set look like, if I can use a surfing analogy. What's coming in, what are the big waves? The two biggest ones are IOT and AI. I mean, since 2000 we've deployed 19 billion IOT sensors around the world. The next five years, we'll deploy 50 billion more. Everything will be a computer, and you connect all these things that they're all computing and apply AI, I mean we're gonna do things that were, you know, unthinkable, in terms of serving customers, building products, cost efficiencies, we're gonna revolutionize healthcare with precision health. Processes like energy extraction and power delivery will be much safer, much more reliable, much more environmentally-friendly, this is good stuff. So, what's your take on the security aspect of putting a computer in everything, because, I mean, the IT industry hasn't had a great track record of security, and now we're putting computers everywhere. As you say, they're gonna be in watches, they're gonna be in eyeglasses, what do you see as the trend in the way that security is gonna be addressed for this, computers everywhere? Well, I think that it is clearly not yet solved, okay, and it is a solvable problem. I believe that it's easier to secure data in cyber space than it is in your own data room. Maybe you could secure data in your data room when it took a forklift to move a storage device. It doesn't take a forklift anymore, right? It takes one of these little flash drives, you know, to move, to take all the data. So, I think the easiest place we can secure it is gonna be in cyber space. I think we'll use encryption, I think we'll be computing on encrypted data, and we haven't figured out algorithms to do that yet. I think blockchain will play an important role, but there's some invention that needs to happen and this is what we do. >> So, you like blockchain? >> I think blockchain plays a role in security. >> It does. So, I gotta ask you about the way, you're sinking your teeth into a new venture, exciting, it's on the cutting-edge, on the front lines of the innovation. There are a lotta other companies that are trying to retool. IBM, Microsoft, Oracle, if you were back them, probably not as exciting as what you're doing because you've got a new clean sheet of paper, but if you're Oracle, if you're Larry, and he went to be CTO, he's trying to transform, he's getting into the action, they got a lot to do there, IBM same thing, same with Microsoft, what's their strategy in your mind? If you were there, at the helm of those companies, what would you do? >> Well, number one, I would not bet against Larry. I know Larry pretty well and Larry is a formidable player in the information technology industry, and if you have to identify one of four companies that's surviving the long-run, it'll be Oracle that's in that consideration, in that set, so I think betting against Larry is a bad idea. >> He'll go to the mat big time, won't he? I mean, Jassy, there's barbs going back and forth, you gotta be careful there. >> Well, I mean, Andy Jassy is extraordinarily competent, I think, as it relates to this elastic cloud I think he's kinda got a lock on that, but, you know, IBM is hard to explain. I mean, IBM is a sad story. I think IBM is, there's some risk that IBM is the next Hewlett-Packard. I mean, they might be selling this thing off for piece parts this, you mean, if we look at the last 23 quarters, I mean, it's not good. >> And Microsoft's done a great job recently with Satya Nadella, and they're retooling fast. You can see them beavering away. >> But IBM, I mean, how do you bet against the cloud. I mean, are you kidding me? I mean, hello! IBM's a sad story. It's one of the world's great companies, it's an icon. If it fails, and companies like IBM's size do fail, I mean let's look at GE, that would be a sad state for America. >> Okay, on a more positive upbeat, what's next for you? Obviously, you're doing great, the numbers are good. Again, the rumors in the hallways we're hearing that you guys are doing great financially. Not sure if you can share any color on that, big wins, obviously, these are not little deals you're on, but what's next? What's the big innovation that you got comin' around the corner for C3 IOT. Well, so our business grew last year about 600%, this year it'll grow about 300%. We're a profitable, cash-positive business. Our average customer is, say, 20 to $200 billion business. We're engaged in very, very large transactions. In the last 18 months, we've done a lotta work in deep learning, okay. In the next 18 months, we'll do a lotta work in NLP. I think those technologies are hugely important. Technologically, this is where we'll be going. I think machine learning, traditional ML, we have that nailed, now we're exploiting deep learning in a big way using GPUs, and a lotta the work that Jensen Wang's doing at Nvidia, and now NLP, I think, is the next frontier for us. >> Final question for you, advice to other entrepreneurs. You're a serial entrepreneur. you've been very successful, inventive categories. You're looking at Amazon, how do you work with the Amazons of the world. What should entrepreneurs be thinking about in terms of how to enter the market, funding, just strategy in general. The rules have changed a little bit. What advice would you give the young entrepreneurs out there? >> Okay, become a domain expert at whatever domain you're proposing and whatever field you're gonna enter, and then surround yourself with people, whatever job they're doing, engineering, marketing, sales, F&A, who are better than you at what they do and, to the extent that I have succeeded, this is why I've succeeded. Now this might be easier for me than for others, but I try to surround myself with people who are better than me and, to the extent that I've been successful, that's why. >> We really appreciate you taking the time coming on. You're an inspiration, a serial entrepreneur, founder and CEO Tom Siebel of C3 IOT, hot company, big part of the Amazon Web Services ecosystem. Doing great stuff, again, serial entrepreneur. Great four-decade career. Thanks for coming on theCUBE, Tom Siebel. Here inside theCUBE, I'm John Furrier and Justin Warren, here in Las Vegas for AWS re:Invent. We'll be back with more live coverage after this short break. >> Thanks guys, good job.